Businesses advised to ‘mind the gap’

Women in the UK have 58% of the economic opportunity available to men – and nearly half of UK executives believe the reason for the gender pay gap is “a natural prejudice against women”.

Two studies released this week highlight the ongoing problem of the gender pay gap – and what can be done about it. The World Economic Forum’s Global Gender Gap Report for 2016 and Xactly’s Unequal Playing Field both reveal that there is still progress to be made.

In Xactly’s survey of 250 UK C-level executives within organisations of 250+ employees, the majority (85%) admitted that a gender pay gap exists among the UK business community, with over two-thirds (68%) admitting they have personally witnessed a difference in compensation between men and women. Assessing the future success of the UK Government’s new policy aimed at reducing the gap, 17% stated that attempts to close the gap should be led by the Government. However the impact of such Government-led efforts is in question with over a quarter (26%) of execs being unaware of the new policy.   

“The Government can play a part in helping to close the gender pay gap. But businesses also need the analysis of their pay information to make informed decisions about it,” said Tom Castley, Vice President EMEA at Xactly. “The new policy is only one part of the solution. The survey results clearly indicate that business leaders want to create pay equality need the data to equip them properly to take on the gender pay gap and close it.”

Claire Cockerton, CEO, Here East Innovation Centre, also commented on the findings. She said: “Changing perceptions about women’s abilities in the workplace is a stubborn challenge to address. Though we may not realise it, many of us carry preconceived ideas and unconscious biases about women in business. This has once again been highlighted by research today, which has found that nearly half (49%) of UK C-level executives believe the reason for the pay gap is natural prejudice. The fact that nearly half recognise this however, does mean it can be addressed. This elevates an issue which everyone should play a part in rectifying, both female and male, those who have been advocating for equal pay for years, and those who once might not have thought it their place.”