If you’re a working woman, like me, then you will no doubt have heard a LOT about the gender pay gap, and, like me, I’m sure you think it’s unfair and just flat-out WRONG. However, when you hear conflicting voices in the media and at work, saying that the gender pay gap ‘simply does not exist’ do you find yourself questioning the whole issue and feeling tempted to simply ‘switch-off’?
Well, I hear you, but don’t worry, Genderbuzz® has been working to uncover the facts so we can all have a frank discussion about the gender pay gap and move to equal pay for equal work in the next 12 months, not in the next 40 years! We have used the 2016 Glassdoor® report ‘Demystifying the gender pay gap’ for our work and the reason we love this report is that it is based on more than 505,000 salaries shared by full time employees with Glassdoor® on their website. Yep, it’s REAL salary data from REAL people. We take a look at the difference between the like-for-like pay gap and the ‘sectoral’ pay gap so we know that we’re comparing apples with apples. We also explain the jargon ‘adjusted’ and ‘non adjusted’ pay gap so that you can be clear what you’re talking about when it comes to equal pay. You can read the full Glassdoor report here but read on for OUR quick cheat-sheet summary ….
- The pay gap in the United Kingdom, between men and women with the same job title, the same employer and working in the same location is 5.5%. This is called The ADJUSTED PAY GAP (we call it the like-for-like)
- The ADJUSTED PAY GAP (like-for-like) between men and women with the same job title and the same employer is 5.4% in the USA, 3.9% in Australia, 5.5% in Germany and 6.3% in France.
- The ADJUSTED PAY GAP (like-for-like), taking into account differences in worker education and experience, could not be explained in 33% of cases in the United States, and in 36% of cases in the UK
- The NON-ADJUSTED PAY GAP (we call it the ‘sectoral’) is the overall difference between what the average woman makes versus what the average man makes irrespective of profession. In the United States this gap is 24.1% and in the UK it is 19.2%.
- The single biggest cause of the overall NON-ADJUSTED PAY GAP (sectoral) is the occupational ‘sorting’ of men and women into high and low paying industries and professions.
- Industry sector matters – If women continue to go into low paid industries the overall (sectoral) pay gap is unlikely to change
- Younger workers fair better than older workers. There is a smaller wage ADJUSTED pay gap amongst younger workers aged 18-24 (2.2%) versus 10% in older workers 55-64)
- The gender wage gap has not changed since the late 2000s despite the increased focus on it and remains in the band between 4% and 6%.
5.5% in the UK isn’t that bad is it??
Of course it is – because it should be ZERO but even I admit that when I saw the stats for the U.K pay gap at 5.5%, I thought ‘Well that’s not as bad as the 19% we hear about in the media’. However the 19% figure is the non-adjusted (sectoral) pay gap and the 5.5% we’re talking about here is for women for doing the same job at the same company (like-for-like!) THAT’S BAD!
What does 5.5% mean to your wages?
We did a calculation based on a salary of £50k a year (roughly the average mid-managerial salary in the UK) and worked out that a 5.5% pay gap equates to £2,750k a year. If you live in London or the South East of England, like I do, the average cost of commuting to work is £3,000K +, so if you’re a woman, you’ re already subsidising your employer before you even turn up at work, and what’s fair or equal about that?
What’s next for the gender pay gap? – Our message to Britain’s Employers -‘The ball is in YOUR court’
Glassdoor states that transparency is the key to ending the ‘unexplained’ gender pay gap and that employers can close the gap by consistently and rigorously challenging this non-justifiable pay gap. Genderbuzz® is calling on ALL employers to explain clearly what and how they decide to pay their employees and we will continue to cover the topic as the 2017 pay gap legislation comes into force and the first statistics are published by UK companies in 2018.
Natasha Stromberg, CEO Genderbuzz®