Rachel Reeves: this is how you fix the UK’s gender pay gap

For Nahla Khaddage Bou-Diab, the new government needs to realise that to narrow the gender pay gap it must tackle corporate culture and create an atmosphere in which women are properly valued and their contributions appreciated

I know it’s early days for the new government, but it has made some big promises. It has vowed to grow the UK’s economy, boost its international presence, shake up employees’ rights, economic inactivity, drive a nationwide revival and fix the UK’s gender pay gap.

Chancellor Rachel Reeves has taken it upon herself to tackle the gender gap issue – and as the UK’s first female chancellor, I would expect nothing less. But, as large organisations continue to foster disparity, current reporting requirements just will not do the job. More requirements, more disclosures are needed – and it’s on Labour to enforce them. Quickly.

Look, I’m not one for sensationalism, but it’s no exaggeration to say the UK’s gender pay gap has spiralled out of control. The gap widened to 35% in March, according to Staffing Industry Analysts based on an Adzuna study, and PwC forecasted it wouldn’t close for another 45 years. It’s a clear backward step, but, even then, there are greater evils at play.

As found in the UK parliament’s recent Sexism in the City report, bullying, harassment and misconduct are all still rife across London’s business hub. Women are suffering in these macho environments. They’re at the brunt of broken cultures. And it’s these cultures that the government needs to sort.

You see, the gender pay gap is only one element, one symptom of the wider disparity and inequity in workplaces across the country. Ultimately, even if you manage to fix the gender pay gap, working women will still be left at an internal, cultural disadvantage. You’ll only scratch the surface of an extremely deep issue.

This is because culture is where the problem lies and is at the root of every organisation out there. So, when the government looks to address the gender gap in the corporate world – and is mandating reports from large organisations to do so – it needs to broaden its parameters to properly address their cultures.

Let me reel off some examples. On top of mandates to disclose gender pay statistics, ministers should require organisations to report the number of promotions female employees receive versus the number male employees do; the turnover rate for female staff across all levels of the organisation, from junior analyst all the way to the C-suite; finally, even the usage of in-house support services, including those for mental health, by female employees.

You get the point. More data builds a much more accurate and vivid picture of inequity in the workplace. The government will be able to review a much more kaleidoscopic set of metrics that better reflect the real-life experience of the working woman.

It’s this variety of data that will kickstart long-term change. Organisations will be pressured to overhaul their hypermasculine atmospheres. They’ll have to recognise the achievements of their female talent. And they’ll pave the path towards more female leadership – a core facet of any collaborative, successful and innovative organisation in today’s competitive world. In short, they’ll catalyse their success.

Of course, let’s look at the flip side: what will happen if more gender-related reporting parameters aren’t enforced? Well, Reeves’ hopeful plans will fall flat, women will continue to face near-impossible working environments across the City, and the government will face public accusations of “all talk, no walk”. In fact, the only thing standing up for women’s working experience will be short-term FCA inquests. That cannot run.

As soon as they enter their office’s revolving doors, women face a mammoth task. They’ve emerged into organisations built by men, into environments that don’t suit them, and atmospheres that pit them against each other.

I admire Reeves for her pledge. But workplace inequity extends beyond pay, and if she’s really serious about levelling the playing field – and I know she is – she needs to overhaul the reporting requirements. Improvement cannot be judged from compensation packages alone. Employers need to disclose more to be held accountable.

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Sexism in the City told the truth – and it’s time the government jumps on those realities. They need to work with the C-suite and regulators to sort the City’s cultural epidemic – and hold organisations, big or small, accountable for the treatment and progression of their female talent. Nudge the change and move the dial. Above all else, organisations must be persuaded to shift their cultures.

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