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What is the Gender Pay Gap and Why Does it Matter?

What is the gender pay gap? Why does it matter? What can be done to close the gap? Watch @GenAnalytics below and find out more about what the UK Government is doing at: https://t.co/H9p5GiRves #DeliveringforScotland @WomenEqualities pic.twitter.com/59LHsRQuY4

— UK Gov Scotland (@UKGovScotland) April 17, 2018

“>The Gender Pay Gap

GenAnalytics were delighted to talk to the UK Government Scotland Office about the gender pay gap, why it matters and what employers can do to close the gap.

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It’s 2018 and Time for Action

There is growing recognition that to make real progress and deliver real change within our society, our economy and in our workplaces to achieve inclusion everyone has to take responsibility. It is not the Government’s sole responsibility, nor is it the public sector, nor is it the private sector.

The Scottish economy would benefit by additional billions if we achieved gender pay parity – £6.5bn to be exact.

A 5% rise in the employment rate of adults with a disability would see an extra £6bn contribution to the UK economy by 2030.

Full representation of ethnic minorities in the workplace would benefit the economy by £24bn per annum.

Fear of discrimination and exclusion keeps many LGBT employees closeted at work – this is a loss of talent and potential to thousands of workplaces up and down the country.

In 2018, facing the continued economic challenges that we hear about daily, can a business afford not to be Diverse and Inclusive?

When we launched Scotland’s Diversity Conference in May 2017 with The Herald we knew that there was great work going on across Scotland and that there were inspiring individuals working tirelessly to achieve change. At our conference we welcomed over 200 individuals who were all committed to finding out more about what they could do to support their organisation to move forward.

Fast forward into a new year and whilst we are making progress we still face a long road ahead.

Gender Pay Gap legislation, introduced last April requiring all organisations with more than 250 employees to report their pay gap, is still to capture a true reflection of pay across our industries. Just over 10% of 8,000 organisations have reported so far – yet the deadline to report is less than 8 weeks away… We have to seriously ask why this is the case when this is a statutory requirement?

Despite the challenges, we are excited to launch the 2018 Conference to be held in May. Inclusion must be everyone’s business. It must be a standard agenda item on FTSE 100 company boards and on senior management teams in our small to medium sized enterprises. And it must spread across an entire organisation – rhetoric from the top won’t change the behaviours of an entire workforce unless everyone buys in to truly embracing inclusion.

Our 2018 conference will focus on Action and sharing lessons and experiences from organisations on their diversity journey, even if that is just taking the first few steps to developing a strategy and understanding where challenges begin. We will also hear from inspiring individuals who prove that there is no limit to what we can achieve.

It’s 2018 and it is time for action. This is everyone’s collective responsibility. Join us.

Scotland’s Diversity Conference 2018

 

 

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The Gender Pay Gap – Looking Beyond the Headlines

In the season of glad tidings, comfort and joy there is little cheer to be had when it comes to the gender pay gap. Legislation introduced in April this year requiring all organisations in the UK with over 250 employees to report their gender pay gap figures has seen less than 300 employers reporting to date out of a potential 9000 falling under the compliance requirements.

Indications are that many organisations are still adopting a wait and see approach to publishing their figures thinking that safety in numbers will be better.

At GenAnalytics we are looking beyond headline pay gap figures. If you look at the Government’s reporting site you will see a range of organisations reporting overall pay gaps of 10% – 25% whilst some are over 30% and over 50%. Gender Pay Gap Reporting Site

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Some of these organisations are household names, some are not. A vast number of recognised brands and businesses that we interact with daily as customers or as businesses remain silent on their own figures.

Let’s look however at some of the detail behind the figures of some of the organisations that have published – particularly in the pay quartiles which demonstrate the proportion of women at senior levels.

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In two sample organisations that have reported their pay gap data the trends mirror what we suspect. Despite operating in totally different industries women are not making it through to senior roles. This is almost as stark and concerning as the pay gap figures in general. There are many reasons as to why this is the case – culture, lack of flexible working practices at senior levels, recruitment processes, retaining female talent, unconscious bias to name a few. However if we are really serious about closing the gender pay gap we need a monumental shift to get more women into senior roles and keep them there.

That’s what we are focussed on GenAnalytics – understanding the Why of the gender pay gap and using data analytics to understand where the challenges begin and the measures that can be put in place to solve it. Organisations can talk about the aspirations to close gender pay gaps but until we see these percentages really moving then it remains a wish on Santa’s long list….

We can delve further into the analysis and look at the economic disadvantage faced by women in bonus payments.

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Despite women receiving bonuses at a higher rate than men in one sample and a small fraction less in the other their bonus pay is eye-watteringly lower. Quite simply this is because women are paid significantly less than their male counterparts. Just consider for a moment the economic impact that we could achieve if women’s pay and bonus rates were the same as men, the boost to consumer spending and of course the value that these women would feel in their places of work.

These are the real figures behind the gender pay gap and we can’t lose sight of them.

As we move into a new year the spotlight on this will not go away and we hope to continue to work with clients who recognise that closing the gender pay gap is a business imperative, that diversity matters to them and that they are focussed on attracting, retaining and promoting female talent. These actions will close the gender pay gap but importantly they will close the disparity in organisations and support women to achieve their ambitions.

Jane Gotts

Director

GenAnalytics Ltd

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The Gender Pay Gap – it’s everyone’s business and everyone’s responsibility

“I’m only human after all, I’m only human after all, don’t put the blame on me” a familiar song on the airwaves. Or alternatively consider Delta Airline’s response to so-called price gouging on airline tickets shooting up in the face of the latest Hurricane to hit Florida “It was the Computer’s fault”…..

We are still hearing about the fall-out from the BBC’s gender pay gap reporting on presenters’ salaries but just this week we have seen a new direction being taken by women working at the BBC demanding action. They want someone to take responsibility and do something about it.

Companies across the UK with 250 employees or more must publish their pay gap by next April yet 6 months in just over 60 companies have reported out of a potential 9,000.

What’s the delay?

Based on our conversations with companies we are certainly seeing a bit of a ‘let’s wait and see what others do’ approach.

For companies that have done the analysis there are several areas they are probably considering:

  • Where do their gender pay gap figures sit within their industry?
  • Are they performing better or worse than competitors?
  • How will they explain the gender pay gap to staff?
  • Will this affect their brand reputation?
  • Will this affect their ability to attract and retain talent?

And hopefully, most importantly, they are thinking how do they close the gender pay gap?

For any companies currently in this scenario we would certainly be advising them to take responsibility and action.

Before publishing gender pay gap figures companies should think about:

  • What are they doing right now to promote diversity and inclusion?
  • How aware are their staff on our diversity and inclusion efforts? Are policies just there to tick a box or do they really impact staff at all levels
  • Have they been making progress in promoting women?
  • If they have equal levels of men and women in lower levels of the business have they researched why more women are not being promoted to senior leadership?

By considering all of the above companies can take a serious look at their approach and be open and honest in their gender pay gap reporting.

The Gender Pay Gap will only be closed by companies taking action and it will be individuals within these companies who take responsibility that will drive forward change.

We can’t blame our human nature or computers for the gender pay gap. We need to accept that it exists, that it’s not acceptable, and that collectively we are all going to do our part to close it.

If your organisation is looking at its gender pay gap and needs support, please get in touch. We’d be happy to talk to you.

Jane Gotts

Director

GenAnalytics Ltd

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A Little Less Conversation, A Little More Action Please

Talk is cheap.

Actions speak louder than words.

All familiar phrases that we hear regularly.

It seems lately that there’s still a lot of talk about diversity and equality in the workplace. We are still faced with reading articles about individuals working for global brands where there are searing misconceptions about men’s work and women’s work but no actions or plans in place to change mind-sets and behaviours. Too much chat and not enough positive action.

Just this week we have had more evidence and insights into the reality of pay gaps across the UK. Research by the EHRC has highlighted that:

Women in Scotland are paid 16% less than men

Ethnic Minorities are paid 5.7% less than white people

Disabled people are paid 13.6% less than non-disabled people.

Data doesn’t lie and this reality tells us that we still have a long journey ahead of us to achieve equality in the workplace for all.

Transparency and legislation is helpful in bringing these issues to the boardroom tables and to senior management forums. However, since Gender Pay Gap legislation was introduced in April we have had 48 employers publishing their data. That’s 48 employers currently out of around 9,000 who will be required to publish their details before April 2018.

What’s often missing from conversations is the absolute economic and business benefit that can be gained by greater diversity and inclusion.

McKinsey research states that ethnically diverse companies are 35% more likely to outperform companies that are not. McKinsey also state that if women could achieve parity with men we would see an additional $12 trillion added to global growth.

In the UK, gender equality would boost female earning by £85bn – though at the current rate of change we’d need to wait another 24 years to realise this benefit!

At GenAnalytics we are working with organisations to help them understand the business benefits of diversity, how they can foster an inclusive work culture, and how they can attract and retain talent.

With many industries citing skills shortages as their number one business continuity concern talent needs to be found beyond traditional recruitment practices. For example, in ICT, only 17% of the workforce in Scotland is currently female.

So we are working to change the record from conversation to action. Bold steps, transparency, leadership, ownership, and acknowledgment of challenges is needed from all our companies.

Our future economic growth and business success depends on it. As do the individuals in our society who should be free to achieve their full potential regardless of background, sexuality, race, gender, or disability.

Jane Gotts

Director

GenAnalytics

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The Importance of Engaging Men on Gender Equality – GenAnalytics Research Findings

Evidence continues to prove that diversity in the workplace is good for bottom line business performance, talent attraction and talent retention.

However, despite the evidence, the pace of change to achieving equality is stubbornly slow. Across the UK the pay gap remains 18% yet in some sectors this is as high as 40%. Women continue to dominate sectors where work is low paid and low skilled. Women are underrepresented in growing sectors including ICT. And, in sectors where women have better representation there are not enough women in senior leadership positions.

Achieving gender equality will need focus and efforts by government, the private and public sector and individuals – there is no quick and easy solution.

Men have a major role to play in ensuring women have the opportunity to achieve their ambitions and potential in the workplace. 99% of companies employing 250 people or more in Scotland are run by men. No Scottish companies who are listed in the FTSE 100 are run by women.

Yet men are often overlooked in terms of their importance to achieving equality and their views are not sought or known.

At GenAnalytics we have recognised the importance of men on this key economic issue and the valuable role they can play in identifying the challenges and solutions to solving this.

That is why we have undertaken the first male attitudes survey on gender equality in Scotland through a range of quantitative and qualitative analysis and the results are insightful.

 Workplace Equality

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73% of our respondents believed that we had not achieved gender equality in the workplace in Scotland.

When we asked men to consider if gender equality had been achieved in their industry sector 64% did not consider that it had.

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However, despite a perceived lack of progress at industry and national level 79% believed that both women and men were treated equally within their workplace.

Our research and analysis aimed to gain more detailed insights into individual views and when we asked what the barriers were to achieving equality the following quotes represented some of the views received:

“Male Bias at boardroom level”

“Unconscious and conscious bias in Senior Management”

“Ignoring the problem”

“The Old Boys Network”

“People hire people like themselves so status quo is hard to shift”

“Perception that women lose interest after giving birth”

“Structural sexism in wider society and economy is reproduced in the workplace”

Importance of Equality to Future Business Success

Despite a lack of progress and barriers to achieving equality an overwhelming majority of our respondents recognised that this was vital to the future success of their industry.

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So we can safely assume from our research so far that there has been a lack of progress yet there is recognition that gender equality is important to a business’s future success.

Gender Pay Gap Reporting

As we mentioned at the start of this analysis, the pace of change is still slow and Governments in Scotland and the UK are recognising the power of legislation to drive through change at a faster rate.

This year, all companies employing 250 staff are more will be required to publish gender pay gap information. This will deliver a step change in focusing companies to consider their pay gap and the reasons for it.

Just under a majority of respondents welcomed this legislation believing that additional transparency will reduce inequality. However, we can see from our results that with just under 35% unaware of the legislation there is still work to be done to raise the profile of this new law.

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Views on Gender Quotas

We explored the views of me on legislation to support greater gender equality by asking if they supported quotas for women on public and private boards.

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Just over half of men surveyed did not support the introduction of quotas on public boards.

In addition, a higher majority – 53% – did not support quotas on private boards.

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These results are insightful given the focus at a Scottish Government level to achieve a 50:50 gender balance on all public boards by 2020 and an aspiration to increase women on FTSE Boards over the next few years

Caring Responsibilities

Our survey also sought to understand male views to caring responsibilities and family friendly policies within their place of employment.

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70% of respondents work for an organisation that promotes shared parental leave and encouragingly 55% of men surveyed stated that they would consider using shared parental leave for their own family circumstances.

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Family Friendly Policies

An overwhelming majority of men believed that more family friendly policies will improve gender equality. However, with current low levels of uptake by men on shared parental leave we know there is work still to be done.

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Conclusions

To shift the needle and begin to make real progress in achieving gender equality in the workplace we must engage men at all levels and understand their views.

Men across Scotland recognise the importance of diversity for the ongoing success of the industry that they work in and in their own organisations.

However, they are less likely to support legislation and quotas to achieve change. Given the direction of travel in Scotland and the UK to develop and implement legislation to focus the spot light on gender equality and drive change we need to ensure that we continue to talk about the benefits of diversity.

As we have seen regularly in the last few weeks there are still so many misconceptions about women’s work versus men’s work.

There is also an aspiration for men to use shared parental leave for their own family circumstances yet we know what take up of these policies by men remains stubbornly low.

Achieving gender equality in the workplace is not just the right thing to do. It is imperative for economic growth and the future success of our companies and industries.

There is still a long journey ahead of us but at GenAnalytics we are engaging, talking and working with organisations who want to achieve a diverse balance in their workplace – because they recognise it is the smart thing to do.

 

GenAnalytics

August 2017

(This survey was conducted by GenAnalytics in Spring 2017. Respondents were drawn from the public and private sectors and were at all different stages in their careers)

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Mainstreaming Diversity – the journey has begun

Last week GenAnalytics and The Herald brought together nearly 200 individuals from the public, private and third sector for the first Diversity Conference in Scotland.

Following the success of the inaugural Diversity Awards in October last year we wanted to continue to share stories of organisations really making a difference in embedding diversity throughout their workforce. And we knew that we still have to continue to reach out to as many businesses as possible to sell the business case for Diversity – to mainstream this as an economic issue.

Last week we heard about the business benefit to Scotland if we could close the gender pay gap – stubbornly sitting at 16%.

We heard about women in North Ayrshire who earn £180 a week less than men – and the recognition from that local authority that women are central to achieving inclusive economic growth. We also learned about the inescapable link between child poverty and women not in work or in low paid jobs.

Listening to our speakers talk about Diversity as good for the business, good for attracting and retaining talent, good for culture and moral amongst teams, we also heard about the challenges that remain – the uncomfortable conversations we still need to have on race and ethnic minorities participation in the workforce. We were reminded as well on the importance of an inclusive work culture so that everyone, regardless of their background, race or sexuality felt comfortable in their place of work to enable them to be able to do their jobs.

We are making progress – certainly the collective opinions on the day from our delegates and speakers recognised that – however the overwhelming conclusion was that we are only just at the beginning of truly mainstreaming diversity.

This is our focus at GenAnalytics.

We are working with organisations unlock the business and economic potential that a diverse workforce will deliver. There is still a lack of data and evidence on gender equality across all of Scotland’s main industries, on the participation of ethnic minorities, on the potential that we could harness from more people with a disability securing jobs.

We will continue to use data to mainstream Diversity.

This is what GenAnalytics set out to do just over 18 months ago. We are also on a journey but in this short period of time we have worked with some fantastic partners who share our mission and ambition. We look forward to continuing our work with them and identifying new companies and organisations to work with until we can truly say that we have unlocked the economic potential of everyone in our economy.

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What’s United Got To Do With UK Pay Gap Legislation?

This week, United Airlines clearly demonstrated the bottom line cost to a business of negative consumer power and how quickly social media can damage corporate reputation. Whilst there was no immediate impact on United’s market valuation, in fact its shares rose immediately after the event, United have still to learn the longer term financial impact, the cost of rebuilding their brand and customer trust and of repairing their corporate reputation.

Whilst the share price rise may seem counter-intuitive, analysis by Steel City Re, a US based company which analyses reputational strength and resilience of public companies, shows that markets can often be slow in responding to corporate reputational damage. Speaking in Benzinga, an online publication, Steel City Re estimate that it can take the markets twenty weeks to recognise the severity of reputation events but then the company’s share price can be expected to fall by 25%. This is due to a progressive response to the incident by many customers and stakeholders who move from a position of tolerance to one of disappointment and dissatisfaction with the brand or organisation.

In April 2017, mandatory gender pay gap reporting became law in the UK for approximately 8,000 companies employing more than 250 people. Whilst the connection to the United experience may not seem immediately obvious, given that the UK gender pay gap is on average 18%, rising to over 40% in some sectors the requirement to publish company specific gender pay gap data will be giving cause for concern in many boardrooms and executive suites across the country particularly for some big brand and household names. A study by pay and reward consultants Mercer, suggested that 61% of organisations were worried about the impact of pay gap reporting on their reputation not just in terms of its potential impact on staff and shareholders, but also on how this data will be interpreted by the media, politicians and its customers.

Leading gender analysts Catalyst.Org, estimates that, on average, 67% of all UK Household consumption is controlled or influenced by women. And it much greater in many key household areas. As I highlighted in my last blog on female consumer purchasing power, women make the decision or influence the purchase of 92% of holidays, 65% of cars, 93% of food, 91% of homes and 61% of personal computers. And with the extensive and growing use of social networks such as Facebook and sharing of social reviews by women, social media is now playing an increasingly important role in the decision-making process of many women and in influencing their purchasing decisions.

Some companies have decided to make their gender pay gap information public well in advance of next year. Deloitte, PWC and EY have led the way in publishing their pay gap information and Virgin Money, a bank and financial services group owned by the Virgin Group and employing over 3,000 people published its gender pay gap earlier this year. Virgin Money’s mean gender pay gap was 36%, compared to a financial services sector average of 39.5%, both well above the UK average.

The company who actively promote “recognising everyone as equal” admits that the pay gap is largest at senior management levels, which have a 21% female to 79% male ratio. The rest of the organisation has a 44:56 male to female split. Headed up by a female CEO, Virgin Money publicly recognises that it has work to do to address this gap and is aiming for a 50/50 gender balance by 2020 which they believe will help resolve their current pay gap.

So far, the Twittersphere has been relatively silent on these organisations and public and consumer reaction to the earnings differentials appears relatively muted. However, as we head into 2018 and many major consumer and household names publish their gender pay gap information, it may prove difficult to predict customer reaction and for many brands, like United, it may be enough to prove the tipping point between consumer tolerance and disappointment.

Dr Lesley Sawers

GenAnalytics Ltd

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The “Why” of Diversity and Inclusion

The “Why” of Diversity and Inclusion

Simon Sinek famously inspired many businesses and individuals to understand their purpose – to start with “Why”. His best seller is based on the fact that all of us, be it in a business or as individuals, have a purpose and you need to understand your own, before you focus on the what you do and how you do it.

At GenAnalytics we have a very clear understanding of our “Why” –  we want to work with organisations and companies across Scotland to create more inclusive and diverse workplaces. We believe this “Why” will enable more people to realise their full potential, have equal access to opportunities and at the same time help deliver stronger economic performance for the organisation and support inclusive growth for the economy. It’s a hugely ambitious “Why”, but our “Why” doesn’t stop with our own business objectives.

We believe the “Why” of diversity and inclusion is hugely important for everyone, as is the “What” we’re doing and “How” we’re dealing with the issues and opportunities diversity and inclusion creates in our workplaces and businesses across Scotland.

To focus on this big national question, on the 23 May Scotland will host its first ever National Diversity Conference, delivered by GenAnalytics and Herald Scotland Events. We are delighted to be supported by our partners: Standard Life plc, MacRoberts, Skills Development Scotland, City of Glasgow College, YSC, Wheatley Group, Royal Mail, Taylor Wimpey, ScottishPower, and Scottish Canals.

Here are some of the “Why’s” we will be focusing on:

Why do women earn £183 per week less than a man?

Why is the unemployment rate higher for workers from ethnic minority groups than for white workers?

Why are disabled people twice as likely to be unemployed than non-disabled people?

Why are only 17% of jobs in ICT in Scotland held by women?

Why aren’t more companies doing more to support diversity and inclusion in our workplaces?

Why aren’t we better at sharing best practice and what-works knowledge?

To learn and share in the Why”, “Where”, “What” and Who” of Diversity and Inclusion in Scotland, then join our conference conversation and let’s collectively start with “Why”?

http://newsquestscotlandevents.com/events/the-diversity-conference/

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Diversity Delivers Results – be a part of the success

Diversity Delivers Results. There is overwhelming evidence that companies who embrace diversity are more profitable than those who do not.

Diverse organisations can attract and retain top talent.

Diversity not only delivers results for businesses – it makes economic sense.

McKinsey have estimated a boost of $12 trillion to the global economy if we could reduce the gender gap in workplaces across the world.

In Scotland, recent research by PwC has indicated that our economy could receive a welcome boost of up to £6.5 billion if we were able to close our gender pay gap.

Across businesses, organisations, the public sector, and the third sector we know there are outstanding examples of workplaces who embrace diversity and recognise talent – despite backgrounds, gender, race or disability.

However, we know that we need to do more to mainstream diversity into a must-do rather than a nice-to-do.

Across our economy women are more likely to be in low paid, low skilled and part time work compared to men. Men are currently more likely than women to work in senior positions and men dominate the higher paid sectors such as engineering, finance and banking.

Only about half of people of working age with a disability are in employment compared to 80% of able bodied people. The employment rate for people with learning disabilities is 26%.

Employment is significantly higher for white ethnic groups in Scotland than those from ethnic minorities.

One in five lesbian, gay and bisexual employees have experienced discrimination in their workplace because of their sexual orientation within the last five years.

We have made progress to improve diversity in Scotland’s economy but the statistics above show that we have a long way to go.

That’s why we are organising Scotland’s first Diversity Conference with The Herald. We will highlight best practice, hear from expert speakers, and share knowledge from all sectors of the economy on how we can work together to achieve the changes we know that we need to ensure everyone in our economy can achieve their potential.

We want you to join us and share your views and contribute to the events success. For further information and to book your place please visit – http://newsquestscotlandevents.com/events/the-diversity-conference/

Diversity delivers results. Join us to play your part in delivering diversity and success for our economy.

Jane Gotts

Director

GenAnalytics