What Have We Learned? UK Gender Equity Reporting




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What Have We Learned? UK Gender Equity Reporting


 

Any organisation that has 250 or more employees were required to file the UK government pay gap report.  With more than 10,000 firms publishing data and over 1,000 firms reporting on the last day, the results are in.  More than three-quarters of UK companies pay men more on average than women, with a median pay gap among those companies was 9.7%.  The BBC published the four things we have learned

 

 


  1.     
  2. The UK has a national median pay gap of 18.4%

  3.     
  4. The size of the gap varies between sectors

  5.     
  6. Finance is worst affected

  7.     
  8. The UK is worse than the OECD average


  9.  

 

 

The BBC article also has an interactive section where you can put in the name of an organisation, and it will give you the results.  I decided to look at the management consultancies to see how they fared.  Here are the results

 

 

PwC Services Ltd - The average woman at this company is paid 13.1% less than the average man. Women make up 37.8% of higher-paid jobs and 49.9% of lower-paid jobs

 

 

Deloitte MCS Ltd -The average woman at this company is paid 17.8% less than the average man. Women make up 24% of higher-paid jobs and 45% of lower-paid jobs  

 

 

EY - The average woman at this company is paid 14.8% less than the average man. Women make up 35.5% of higher-paid jobs and 51.4% of lower-paid jobs

 

 

KPMG - The average woman at this company is paid 22.1% less than the average man.  Women make up 33.2% of higher-paid jobs and 56.1% of lower-paid jobs

 

 

Accenture - The average woman at this company is paid 10.2% less than the average man. Women make up 27.9% of higher-paid jobs and 45.3% of lower-paid jobs

 

 

What does this information potentially tell us?  If I was a new graduate how might I use this data to help me decide which management consultancy firm I might like to join?

 

 

In many ways the gap appears to be pretty much the same for all five organisations, the gap is most significant with KPMG and the least with Accenture.  To me, one of the interesting statistics was the number of women in higher paid jobs.  Deloitte and Accenture both have women in less than 30% of the high paid positions (in most cases these would be partners or similar).  You could interpret from this, especially for Accenture, that they have a little to no pay gap between middle managers. Otherwise, their average gap would be higher due to the reduced number of women in higher paid jobs.  You can make your comparison of your favourite sector in the BBC article

 

 

If I were looking for a role in management consulting, I would consider these statistics and more importantly the company response.  For example, PwC published their response to the pay results.  Their main reaction was: -

 

 

“When looking at our bonus gap, it is predominantly driven by two key factors, the first being that there are more men in senior roles and secondly the number of part-time opportunities across our business, which are mainly filled by women. At PwC we are confident that men and women are paid equally for doing equivalent jobs across our business.”

 

 

The combination of the results reported and the company’s response should provide a potential employee with some interesting insights into the company culture so they can form their own opinion if this is a management consultancy firm that they want to work.

 

 

The UK government is not telling companies they have to close the pay gap.  With increased transparency employees and shareholders can make informed decisions on who they wish to be associated.  Good companies will rise to the challenge, and those that are dinosaurs will most likely see the same fate as the giants of the past that could not change.

 

 

Article by Mary Sue Rogers

 

 

Picture by BBC

 

 

Additional Articles

 

 

BBC Reports that 1,500 Fail to Report 

 

 

Britain Aims to Close Gender Pay Gap with Transparency and Shame- NYT


 

 

Posted on : 2018/09/06





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