Women are less likely than men to have been awarded a salary increase that was in line with inflation, according to a study by HR and payroll software provider CIPHR.

It was found that 14 percent of women, compared to 22 percent of men, received an increase that was in line with or above the rate of inflation.

Two fifths (40%) of women that received a pay rise said it was blow inflation. Only 32 percent of men said the same.

The UK’s gender pay gap is set to grow, as the Office for Budget Responsibility report that pay is not expected to keep pace with inflation either this year or next.

Interim results from the UK’s government’s 2021-22 gender pay gap reporting data shows that 75 percent of employers paid their male employees more than their female employees. They found that only one in seven paid women more, and only 1 in 10 reported having no pay gap.

With the gender pay gap reporting deadline for public-sector organisations tomorrow, and for private companies the 5th April, it is important to acknowledge both the inequalities in the workplace and the ways in which HR can achieve tangible change.

 

How vital are the gender pay gap reports?

Gender pay gap reports highlight whether large employers (250+ employees) have been helping to reduce the country’s pay gap.

“Pulling together gender pay gap data is not just crucial for compliance reasons, but it supports diversity and inclusion within the organisation,” says Managing Director at DeltaNet International. Darren Hockley.

‘The Great Resignation’ has seen many employees quitting roles and moving to organisations who place greater emphasis on wellbeing.

“Organisations that place importance on diversity and inclusion initiatives, wellbeing and sustainability are the ones to win talent,” adds Hockley.

“The pandemic, unfortunately, highlighted further inequalities women faced in the workplace, and with this reporting deadline looming, organisations have a responsibility to step up. Setting up diversity and inclusion initiatives that support recruitment is crucial to ensuring people from all genders and backgrounds have an opportunity to apply for roles – and they are aware of the salary bandwidth during the application process. HR and finance teams working together with hiring managers is what will support organisations tackle any gender pay gaps that are still prevalent in the workplace,” says Hockley.

 

What can HR do?

HR professionals and employers both nationally and internationally have a responsibility to ensure companies are doing the most to support gender pay equality. But how can this be achieved?

“Attempting to resolve the issue of pay inequality is not enough on its own; we need to focus our efforts on innovatively reworking the employment system. Research from the World Economic Forum has shown that jobs in increasing demand that are female dominated only average £28,053 per year, while those that are male dominated average over £46,000. What we need is societal change, an innovative rewiring of jobs, coupled with a new approach to reward and compensation,” says CEO of Gapsquare, Zara Nanu.

“The gender pay gap goes beyond a renumeration issue. Businesses need to ensure women receive better opportunities and start tackling gender inequality from new angles. This restructuring of workplaces is about making voices heard, talent seen and reconsidering what leaders look like,” she adds.