Gender pay gap reporting

Galligan, Y., McMahon, T., Millar, T.

Y Galligan, T McMahon, T Millar - The Gender-Sensitive …, 2020 - library.oapen.org

10 citations2020

Summary

The research paper "Gender pay gap reporting" by Galligan, McMahon, and Millar, published in 2020, investigates the efficacy and implications of mandatory gender pay gap reporting in the United Kingdom, introduced to tackle a 19% national gender pay gap in employment. The UK regulation, effective from April 6, 2017, required all employers with 250 or more employees to annually disclose their gender pay gap and gender bonus gap. This regulatory framework aimed to increase transparency and accountability, thereby incentivizing organizations to address pay disparities. The paper serves as an analysis of this policy's initial impact and its manifestations within specific sectors, particularly drawing lessons from higher education institutions like Queen's University Belfast (QUB) and Trinity College Dublin. The methodology employed in the study involved an examination of the gender pay gap reporting data and the contextual factors influencing these gaps within the selected institutions. The authors also consider gender pay audits as an impactful strategy to reveal and track inequities in salaries and salary progression related to career stages, especially at comparable senior levels. The findings of the paper reveal several critical insights into the gender pay gap. While there has been a gradual reduction in the overall UK gender pay gap for median gross hourly earnings (excluding overtime), decreasing from 19.8% in 2010 to 17.8% in 2018, significant disparities persisted within specific organizational contexts. At Queen's University Belfast in 2014, for instance, the overall gender pay gap was 21.1% for basic pay and 22.0% for total pay. Within academic roles, professors exhibited a notable gender pay gap of 11.4% in both basic and total pay in 2014, slightly decreasing to 10.6% in 2017. The study identified contributing factors to these gaps, including differences in market supplements, the outcomes of exceptional advancement schemes (which were often dominated by male applicants), and varied success rates in promotions. For example, the paper noted a significantly higher number and value of market supplements paid to men, and male applicants showing higher success rates in exceptional advancement schemes. These detailed institutional analyses underscore that while general national trends may show improvement, entrenched issues within specific employment categories and senior academic grades continue to fuel the gender pay gap. The implications of this research are substantial for both policy-makers and organizational leaders. Gender pay gap reporting, as demonstrated by the paper, is a vital mechanism for identifying and making visible gender differences in pay at various career stages, thereby highlighting the need for corrective measures. The transparency fostered by such reporting provides a strong basis for institutions to develop targeted interventions, such as reviewing salary structures, promotion criteria, and access to market supplements and advancement opportunities. The study implicitly advocates for a continuous and detailed auditing process to monitor salary progression and address systemic issues, particularly those contributing to the "glass ceiling" phenomenon that disproportionately affects women in senior roles. Ultimately, the paper suggests that effective gender pay gap reporting is not merely a compliance exercise but a strategic tool for driving genuine gender equality within the workplace.

Key Findings

  • - Mandatory gender pay gap reporting in the UK has contributed to a gradual reduction in the national median gross hourly earnings gap, but significant disparities persist within specific organizations and employment categories.
  • Academic institutions, such as Queen's University Belfast, demonstrated notable gender pay gaps, particularly at the professorial level, indicating persistent challenges in senior roles.
  • Factors contributing to the gender pay gap include unequal distribution of market supplements, male dominance in exceptional advancement schemes, and disparities in promotion success rates.
  • Gender pay audits are highlighted as an impactful strategy for increasing transparency, revealing inequities in salaries and career progression, and informing targeted interventions to address these disparities.