Gillian Unsworth Head of Gender Pay Gap Reporting

Gillian Unsworth Head of Gender Pay Gap Reporting Government Equalities Office

What is the Gender Pay Gap? Women working full-time in UK are paid on average 9. 1% less than men in the UK 18. 4% Overall, women working in the UK are paid on average 18. 4% less than men in the UK

Equal Pay vs Gender Pay Gap? Unequal Pay Gender Pay Gap Paying men and women differently for the same work Unlawful in the UK for over 45 years Difference in average pay between men and women Vs

What causes the gender pay gap? Occupational segregation 14% Industrial segregation 21% Unobserved factors: • Gender stereotypes • Discrimination • Individual choices 25% Labour market history 40% Olsen et al May 2018 Women tend to work in occupations that are female-dominated, but which have overall low pay and are low-skilled. Women are less likely to progress to senior roles, comprising 40% of middle managers and under 30% of FTSE execs. Women tend to work in lower-paying sectors with health, retail and education employing over 50% of women. The average hourly wage for women across health, retail and education is £ 11. 20 compared to the average hourly wage for men in finance which is £ 24. 25. Fewer women progress into STEM careers, which have around a 15% earning premium. This driver covers things that are not directly measured by data, such as gender stereotypes which can influence decisions throughout women's’ lives about who should do the caring and which roles to pursue. Women can also face gendered discrimination and sexual harassment in the workplace. This is the biggest known driver of the pay gap - women spend more time out of work, often for caring. Women receive a 2% p. a. reduction in hourly wages for each year taken out of employment. On returning to work women are more likely to work part-time This means they accumulate fewer years of work experience - women are three times more likely to work part-time than men and their wages stagnate during this period. Men’s labour market participation is essentially unaffected by having children.

Reporting regulations § Employers must publish specific gender pay gap information annually on their UK website, and the Government’s website 1. Overall gender pay gap - mean and median 2. Mean and median gender bonus gap 3. Proportion of male and female employees that received a bonus 4. Proportion of men and women working at different pay quartiles § They are also encouraged to publish a plan of action

Different sectors face different challenges Totemic sectors: finance, tech/digital and construction Sectors with significant impact on national GPG: are among the high profile and/or fast-growing sectors with high GPGs and/or significant gender imbalances in their workforces. Government needs to show that it is committed to tackling extreme examples of gender inequality in totemic sectors. education, health and retail are dominated by women, employing over 50% of all women in work. Eradicating the GPG in these three sectors would reduce the overall national gender pay gap to 6. 9% instead of the current 18. 4%. 100% 40% 90% 35% 80% 25% 60% 50% 20% 40% 15% 30% 10% 20% 5% 10% % Male employed % Female employed Gender Pay gap lth He a io n Ed uc at s vic e rs he Ot Ac co m & er fo m ad lic Pu b Pr o fe ss io n od in t en & il Re al Ar ts & ta c sc ie nt ifi Ad m in an Fin tio m m Co M an uf un ac ica tu or st t& or sp an Tr ns g rin ag n ct io tru ns Co ce 0% Source: LMS April 2018; ONS Annual Survey of Hours and Earnings 2017 Gender Pay Gap (%) 30% 70%

What is the Government doing? Reporting Unprecedented transparency through gender pay gap reporting Women on Boards Supporting a 33% target for women on FTSE 350 Boards, Executive committees and direct reports to the Executive committees by 2020 Returners A £ 5 m fund to support people who have been out of the labour market for a long period, to return to work Flexible working Extended right to request flexible working P Parental leave 30 hours childcare Tax-Free childcare Tax-free childcare A new system of. Workplace shared parental leave Sectors culture Seniority Doubled early education provision for all 3 and 4 year olds in England, from working households Introduced Tax-Free childcare, which around 2 million families could benefit from

Partnering with business § Gender diversity is a competitive differentiator – companies are more likely to have financial returns above industry medians § Potential to add £ 150 bn to UK GDP by 2025 if we bridge the gender gap in the workplace § Business In The Community: 92% of 1, 000 surveyed would look at GPG if deciding between two employers It is a legal requirement to report, but setting an action plan with aspirational targets will have business benefits

‘What Works’ guidance: evidence-based actions for employers The guidance • The Government Equalities Office commissioned the Behavioural Insights Team to produce ‘What Works’ guidance for employers. • The guidance summarises actions employers can take to reduce their gender pay gap and improve gender equality within the workplace. • The guidance can be found on the Gender Pay Gap service The evidence • The guidance is based on the best available evidence currently, and will be updated as the evidence base develops. • Where possible, the guide used evidence based on randomised controlled trials that were conducted in the field and that measure objective outcomes.

First year of reporting Ground breaking legislation Widespread media attention with the regulations attracting headlines in regional, national and international news (coverage even in Hawaii) GPG was the biggest story apart from the royal wedding. * Typical 1 st year compliance with new regulations is between 6085%. We substantially exceeded this. More than 10, 000 organisations published their GPG data by the deadline Data available on our viewing service which has had: - 1. 2 million sessions, with over 100, 000 on 1 day - Visits from users in 195 different countries International interest with discussions held with Canada, Ireland, Chile & New Zealand. Academics and researchers including Harvard University are analysing the datasets Bloomberg has updated their Gender Equality Index to include our GPG metrics * Golin

What next for GPG reporting? § Reporting is an annual requirement so we will be able to see year-on-year progress. § Employers will need to show they are making progress and implementing real action to close the gender pay gap. Parental leave P § ‘What Works’ guidance is. Workplace available on our website and we Occupations Sectors culture will continue to work with business to offer support and. Seniority 30 hours childcare help drive change together. Tax-Free childcare

For more information § Acas-GEO guidance on gender pay reporting www. acas. org. uk/genderpay § Action Hub – Guidance and online viewing service https: //gender-pay-gap. service. gov. uk/