The gender pay gap: are equal pay audits an effective solution?

Summary

A.E. Joss's 2005 doctoral thesis, "The gender pay gap: are equal pay audits an effective solution?", investigates the efficacy of Equal Pay Audits (EPAs) as a tool for achieving gender equality in the workplace, focusing on their potential to identify causes of unequal pay within individual organizations. The research specifically explores the extent to which changes to pay and grading systems contribute to or alleviate the gender pay gap. The study challenges the reliability of government-approved procedures for conducting these audits and proposes ways to enhance their effectiveness. The methodology employed in the thesis involved the analysis of two specific pay audits conducted within the UK finance sector: one in a bank and another in an insurance company. By examining these real-world applications, Joss aimed to illustrate both the utility and potential misuses of EPAs. The research delved into the reasons behind the substantial gender pay gap, identified as 43% in the finance sector at the time of the study. A significant aspect of the investigation involved scrutinizing the claims of fairness and objectivity often associated with "new" payment systems, such as performance-related pay and promotion criteria. The findings indicate that while modern payment systems are presented as transparent and objective, their effectiveness in ensuring equal pay is often undermined by the provision for management discretion. Crucially, the study identifies the development of a "two-tier workforce" resulting from recent industry restructuring as the primary driver of the persistent gender pay gap. This restructuring effectively reproduces pre-existing gendered divisions, with women predominantly occupying the lower tier, particularly in roles such as call centers and customer service departments. Although these roles might offer relatively better pay and conditions compared to alternative local jobs and provide some flexibility for domestic commitments, they are characterized by flat career structures and limited opportunities for advancement. In contrast, the few men entering this lower tier often utilize it as a stepping stone to traditional departments where promotional prospects lead to significantly higher salaries.