In February 2019, analysis by the Guardian found that more than 30 employers had filed inaccurate data, with several companies publishing mathematically impossible gender pay data in the first year of reporting despite the second round looming, and with a percentage also filing mathematically impossible figures for the second year. • Direct discrimination explains why women sometimes still earn less than men - when women are paid less than men for doing the same job. This is my estimate of the maximum extent of unequal pay issues. When ethnicity pay gap reporting is introduced, similar findings are likely to emerge,” she adds. After a few months, when some male colleagues I’d been training received their first pay cheques, they made a comment about how much tax they were paying – and it was more than me. The problem for many, explains Cotton, is both maintaining accurate data on what people are paid, and sticking consistently to a sound, official rationale when making pay decisions. And so despite 4 April 2020 (30 March for public sector organisations) marking the third reporting deadline for eligible employers, some may only just be getting to grips with their data. I spoke to some co-workers in different departments because I’d heard other people had similar issues. During these evaluations, you should make sure there are no pay disparities based on gender. The communication piece is important too. “While essential, equal pay audits, and the subsequent addressing of any imbalances, do not come without challenges,” says Wallis. They were essentially threatened. For women, negotiating pay is often viewed as being greedy or desperate, which leads to hesitation when it comes to asking for their worth in the workplace. In this briefing you will find: Information on how … Increasing everyone to then be overpaid is not necessarily the right solution. A crucial distinction many in HR and reward circles have taken great pains to make since gender pay gap reporting first entered the HR lexicon, is the difference between gender pay gaps and unequal pay. Negative, deeply rooted stereotypes about women’s abilities and opportunities are at the root of gender discrimination, perpetuating societal issues like pay disparity, occupational segregation … And equal pay isn’t just about gender. Downloadable! Consequently, fewer women work in scientific and technical jobs, while women often work in lower valued and lower paid sectors of the economy. Most important will be an equal pay audit. It’s a measure of inequality and captures a concept that is broader than the concept of equal pay for equal work. Causes of inequality in trade Trade is the exchange of goods and services between countries. The gender pay gap (or the gender wage gap) is a metric that tells us the difference in pay (or wages, or income) between women and men. The key is to have data good enough to show if there’s a genuine reason for a disparity. The latter is only one of a number of potential factors contributing to the gender pay gap, with others including unequal shares of caring work in the home done by men and women, resulting in women doing more part-time work; the under-valuing of the types of work women do; a lack of women entering certain well-paid careers such as science and engineering; and a failure to promote women. In contrast, the equal pay issue is one of discrimination: paying men and women different amounts for doing the same job. Even as early as 1960s there were disparities between the incomes of developed and developing countries. Corporations are often blamed for putting profits ahead of workers. Far more women than men choose to take parental leave. “The challenge for many larger organisations is they have grown over time, taking over other companies, and there may not necessarily be any logic behind why they are paying people as they are now,” he says. “Gender pay gap reporting and recent court cases suggest that many organisations are still a long way from eliminating the gender pay gap and achieving equal pay. The Fawcett Society is also calling for women to have a legally enforceable ‘right to know’ what male colleagues earn. On top of gender and ethnicity pay gap reporting, 2020 is the first year quoted companies with more than 250 employees are obliged to deliver CEO pay ratio reports. But because of the success of equality legislationover the years, this factor only explains a limited part of the gender pay gap. I still remember the red fibers on the carpet of the hotel room in Chicago when a friend shared her salary. A year later, Congress passed the Civil Rights Act of 1964. Likewise, economic neoliberalism, which promotes minimum trade barriers, may also lead to labor exploitation in the form of unfairly low wages. I … More than half the world's trade takes place between just eight countries known as the G8. Some of the key factors that contribute to unequal pay between men and women, such as job segregation and stereotyping. As we have explained previously, the gender pay gap is based on the difference between the average hourly pay rate for men and the average hourly pay rate for women, largely due to the reasons cited above. In Louisiana, for instance, the gender pay gap is 31%, the largest wage gap in the nation. Thanks to gender pay gap reporting, mandatory since 2017 for firms with more than 250 employees, many in HR have discovered they have a problem not only with gender pay gaps, but unequal pay too. I can’t speak for all women, but I refuse to wait that long. It’s been 16 years since the Equal Pay Act was signed into law, but the data shows that at this pace, we’re not going to close the gender wage gap until 2059. There’s no one cause of the gap – important factors are discrimination, undervaluing roles predominantly done by women, dominance of men in best paid positions and unequal caring responsibilities. But, illegal since 1970, pay discrimination is the most controversial factor an organisation could uncover as at least partially driving their gender pay gap – and one requiring urgent and serious attention from those employers that, up until recently, may not have realised they had a problem. But HR teams must avoid panicking and jumping to conclusions if disparities emerge, advises Rank Group HR director David Balls. What can employers learn from Samira Ahmed’s discrimination case. Kate:“Eighteen months ago, when I was 21, I worked for an IT company and I was one of the first people on their new projects team. When comparing the contributing factors in 1980 and 2010, we see that education and work experience have become much less important in explaining gender differences in wages over time, while occupation and industry have become more important. While related to the issue of unequal pay, fear of discussing money is a separate issue that affects women more significantly than men. Which means appetite for pay transparency is only growing among employees, says CIPD senior performance and reward adviser Charles Cotton, who also points to the small handful of employers taking the radical step of publishing exactly what everyone’s paid, either internally or even publicly. Women predominantly do these jobs. 1079797. On Equal Pay Day, it’s critical that we each do what we can to make workplaces more equitable. If you’re part of a larger organisation obliged to conduct gender pay gap reporting, you should already be doing this as part of the process and have accurate data at your fingertips. To anyone who finds themselves in a similar situation, I’d say don’t be afraid of bringing up relevant legislation.”. 4/2/2019 by Rabbi Hara Person. The law mandates that men and women receive equal pay for “substantially equal” work at the same establishment. Unequal pay is the top factor impacting inequality in workplaces today, according to the Ranstad US, Women In The Workplace 2018 report. Income inequality is blamed on cheap labor in China, unfair exchange rates, and job outsourcing. This was the first time that PES Women, together with Zij-Kant, marked the European Unequal Pay Day. But if I was in that position, surely I should already have been on a higher wage? There must be clarity when explaining to line managers and their team members what is being rewarded and how, explains Cotton, and organisations should make sure the people making reward decisions are “suitably equipped” to do so. Causes of unequal pay between men and women, This site is managed by the Directorate-General for Communication, Aid, Development cooperation, Fundamental rights, Follow the European Commission on social media, About the European Commission's web presence. There are some deep-seated concerns relating to ethnicity, and some troubling figures. Houses in Naples, Florida. With a larger set of submitted data, as being collected by #MeTooPay, this estimate could be refined further. That’s how I found out. Sophia resigned shortly after her line manager refused to provide a reason for paying her unequally. This, together with a lack of childcare facilities, means that women are often forced to leave the labour market. • Women’s competences and skills are undervalued, so women frequently earn less than men for doing comparable jobs - that is, jobs of equal value. Causes and consequences of uneven development. Actions were led both online and offline to sensitise to the fact that, due to the fact that women are paid on average 16% less than their male counterparts, they effectively work for free 2 months each year. Free Essay: The Main Causes of Income Inequality in Developing Countries From time immemorial income inequality has been a hugely debated matter in the world. What Pay Inequity Looks Like at Highest and Lowest . “You’ve got to be careful and pull yourself back from rushing to a judgement,” he says. “Are there genuine reasons for this being in the data? “A particular challenge is where an individual, or individuals, of one gender – and this works both ways – are effectively overpaid and their peers/comparators are actually paid at the correct market rate. To prevent issues with unequal pay, you can monitor companywide compensation on a regular basis. That made me feel I was unable to take it further.”. We experimentally test whether intentional and observable discriminatory pay of symmetric agents in the Winter (2004) game causes low paid agents to reduce effiort. Although the equal pay for equal work principle was already introduced in the Treaty of Rome in 1957, the so-called gender pay gap stubbornly persists with only marginal improvements being achieved over the last ten years.. The collapse of the Soviet Union and the rise of China brought over a billion new workers into the global economy. But this will soon come round. However, the ONS ASHE figure for the gender pay gap is 16% which shows that unequal pay can at most be contributing a quarter of this gap. social norms – Social norms constrained executive pay. When conducting pay audits it’s vital to be aware of the “nuances” they throw up and not immediately assume discrimination, he says. Segregation is frequently linked to stereotypes. Factors that … But this isn’t the case for every employer. Unconscious bias and stereotyping come into play at work when managers are determining which employees to hire and how employees should be compensated. Rebekah Wallis, UK director for people and corporate responsibility at Ricoh, agrees the ultimate success of an effective equal pay audit lies in both accurate data and careful analysis. But as doubts around the accuracy of the first two rounds of gender pay gap data show, some HR departments might need to call in outside help. Women and men still tend to work in different jobs. The main cause is the way in which women's skills are valued compared to men's. So how can HR teams best tackle the urgent matter of ensuring they pay people doing the same role equally? “The first step is making sure you have what you need,” says Cotton. In HICs many people have formal jobs in which they have set hours, a monthly wage, healthy working conditions and they pay tax. Causes Industrial Revolution : Since ancient times, women have been present in the workforce in agriculture and other tasks. “I raised this with my manager, who said it had nothing to do with her – I’d have to go higher up, which I did. The latter is only one of a number of potential factors contributing to the gender pay gap, with others including unequal shares of caring work in the home done by men and women, resulting in women doing more part-time work; the under-valuing of the types of work women do; a lack of women entering certain well-paid careers such as science and engineering; and a failure to promote women. Causes of unequal pay between men and women Some of the key factors that contribute to unequal pay between men and women, such as job segregation and stereotyping. Among men and women employed full time, 60 percent of the wage gap can be attributed to known factors such as work experience at 10 percent, union … “One person was earning a third more and another double my salary, and what they were doing was basic compared to my role. But they must remain competitive. In some states, female workers were also forced to contend with laws that restricted their working hours or prohibited them from working at night.Efforts … Basically I was told there was nothing they could do. Managers must have the authority and take responsibility for addressing any inequalities and, once any are uncovered, it’s essential action is taken and plans are put in place. Nearly a quarter of … “These can range from identifying which roles are similar – difficult for organisations where there is no existing objective evaluation system in place – to the sheer cost of addressing any inequalities. immigration – Relatively high levels of immigration of less-skilled workers since 1965 may have reduced wages for American-born high school dropouts. According to ONS data released in July 2019, employees from the Bangladeshi ethnic group on average earned 20.2 per cent less than white British employees. Unequal pay is part of the broader problem of systemic discrimination in employment, and pay equity is one essential tool for creating systemic change. 3 U.S. companies must compete with lower-priced Chinese and Indian companies who pay their workers much less. They were told we couldn’t discuss salary or we’d be in breach of contract. The Injustice of Unequal Pay. This year marks the 50th anniversary of the Equal Pay Act 1970, which made it illegal for employers to differentiate between men and women on matters of pay and conditions of employment. But he is sceptical about the effectiveness of criminalising unequal pay based on gender as Iceland now does, mainly because of the city’s different legal setting and culture. When autocomplete results are available use up and down arrows to review and enter to select. Most states have implemented laws against gender discrimination, and Title VII of the Civil Rights Act of 1964 protects women at the federal level even though disparities persist. (Jeffrey Greenberg/Education Images/Universal Images Group via Getty Images) Rising economic inequality in the United States has become a central issue in the race for the Democratic presidential nomination, and discussions about policy interventions that might help address it are likely to remain at the forefront in the 2020 general election. The BBC, for example, has come under fire for equal pay failings following the high-profile resignation of China editor Carrie Gracie, and Newswatch presenter Samira Ahmed’s employment tribunal victory – with reports that other female BBC employees are also taking action 
against the broadcaster. A lot of gender pay gaps are not driven by inequality.”. With the next full UK census due in March 2021, Cotton thinks it possible the government will wait until the ethnic classifications are agreed for ethnicity pay gap reporting, so as to ensure consistency. But even with the best intentions, there are still problems to surmount. Kate left the organisation and today serves on the advisory panel of a charity that champions gender equality. Unequal Pay: The Role of Gender Kathleen M. Gillespie University of New Hampshire - Main Campus, ... equal pay and equal rights in the workplace and the progress it made for equality for women was ... look further into the gap in order to find out its true causes. Despite continuing confusion, a gender pay gap is not synonymous with unequal pay. Sophia: “I was working at a local authority when I found out during a discussion with a male colleague, who had the same job title as me, that he was earning roughly £3,000 a year more than me, even though my role was more complicated and he was a recent graduate, while I had two years’ experience. Eighty-six per cent of women would be in favour of this, according to the society’s accompanying report Why Women Need a Right to Know, which also found that three out of every five working women are either in the dark about how much male counterparts earn, or are aware the men earn more. Plenty of time, then, to have finally laid to rest the issue of equal pay. Segregation in the labour market also reinforces the gender pay gap. To finance the settlement, the council struck complicated property-backed loan deals involving the remortgaging of many of the city’s prime property assets, including museums, sports venues, offices, and conference and events facilities. And given other moves to shine the spotlight on fair pay, more pay transparency is undoubtedly coming. I helped train new members of staff as they came in. In some cases, women may earn less than men for doing jobs of equal value. While around 60% of new university graduates are women, they are a minority in fields like mathematics, computing and engineering. There are many different ways to measure or assess gender equality, for example, by comparing men’s and women’s: 1. levels of wealth and incomes 2. access to education 3. representation in local and national government 4. participation in professional leadership roles.By focusing on pay, particularly the median hourly incomes for men and women, students can understand that gender inequality has a direct impact on people’s lives. “Eighteen months ago, when I was 21, I worked for an IT company and I was one of the first people on their new projects team. Causes . President John F. Kennedy signed the Equal Pay Act into law on June 10, 1963. I did feel at the time it was clear sexism. Sign up to PM Daily and keep up to date with all the latest HR and business news from, UK at ‘coronavirus crossroads’ for gender equality, report warns, Employers urged to focus on record keeping in wake of BBC equal pay row. After a few months, when some male colleagues I’d been training received their first pay cheques, they made a comment about how much tax they were paying – and it was more than me. Yet many companies still face difficulties getting to grips with equal pay. there are many part-time jobs in catering and cleaning which pay close to the minimum wage of £7.50. A free-market society without statutory protection on wages may have unfairly low wages for certain types of work, usually those involving repetitive tasks and low skills, which widens the wealth gap. As time advanced, and the Industrial Revolution began in the late 18th and early 19th centuries, the type of work needed in countries around the world shifted from manual labor to jobs with salaries and wages. Clearly, Glasgow is an extreme case of failure to comply with equality legislation. We control for intentionality of wages by either allowing a principal to determine wages or by implementing a random process. It could be both costly and have a wider impact on other roles in the organisation. “What is important is organisations start getting their house in order before they start making pay transparent, because it’s a legal right and employers that find a gap that’s unjustified are required to fix it.”. As a result, different groups of women experience very different gaps in pay. Dependent on skills and experience but likely up to £70,000, Female employees could prosper or suffer depending on the actions of employers and the government, campaigners claim, Previous crises have hit women’s earning power more than men’s, say Tracey Marsden and Catriona Aldridge. Only 65.8% of women with young children in the EU are working, compared with 89.1% of men. The gender pay gap is a complex issue with many causes, which are often inter-related. “I was told that because of the type of role I was in and the responsibilities I had, I should take comfort in the knowledge I would be in a better position to work my way up than the people currently on a higher wage than me. Also, poorly paid jobs are often found in the service sector, e.g. And it’s now a decade since the introduction of the Equality Act 2010, which largely superseded it. In fact, while it might have been expected that large organisations would have realised several years ago if they had an issue with unequal pay, there could still be some making such disquieting revelations. “My line manager was unwilling to increase my pay and refused to say what the reason was. Most people discussing the causes of unequal pay focus on the occupational segregation and ignore the question of valuing women for what they already do. The Fawcett Society is among the bodies pushing for ethnicity pay reporting. That’s how I found out. Across Europe around 32% of women work part-time, compared with only around 8% of men. Many firms still reward people differently for the same job – and they might not even know it. “As well as comparing the figures, it’s an opportunity to check the understanding of line managers and employees about what’s being rewarded, why and how,” he says. Although “those tend to be relatively new, smallish IT set-ups… there is still only one direction of travel when it comes to pay transparency”, he says. I’d agreed to the wage when I signed my contract and that was that. She says regardless of legislation, paying people equally for equal work is a “moral duty” for all employers. The Pay Gap Through the Years A Range of Inequity The gender pay gap is the result of many factors, including race and ethnicity, disability, access to education and age. Pay scale… April 10th marks how far into the year on average wome.   I helped train new members of staff as they came in. There are signs that Covid might do the same, As the UK equalities watchdog calls on the broadcaster to rebuild trust with female staff, experts recommend other firms ensure their processes are watertight, The presenter’s tribunal victory against the BBC shows unconscious bias is still a problem in many businesses, says Hina Belitz, © Copyright Chartered Institute of Personnel and Development 2020, 151 The Broadway, London SW19 1JQ, UK Incorporated by Royal Charter, Registered Charity no. Two wrongs do not make a right. “Perhaps you might need to second people in from other departments to help you, or possibly people from outside the organisation in terms of capturing, analysing and interpreting the information.”. As a result, it will face hefty loan repayments for decades. The government closed its consultation on this in January 2019 and the outcome remains unclear, although the likelihood is it will be introduced at some point over the next couple of years. Someone might have more experience, someone might have more relevant experience, someone might have been in the organisation longer. Elsewhere, last year Glasgow City Council began paying out £548m in compensation to around 16,000 workers, the vast majority of them women in roles such as catering, cleaning and caring, who had been earning up to £3 an hour less than colleagues on the same pay grade with jobs in male-dominated roles such as refuse collection. Meaning employers must ensure they are shipshape, and that their reward practices are equitable and – most importantly – legal. One of the many effects of this has been to lower the value of unskilled labour, right around the world, pushing wages for skilled workers and unskilled workers in different directions. Unequal Pay Day Europe, 31 October 2017. The Equal Pay Act was an effort to correct a centuries-old problem of gender-based wage discrimination.Women made up a quarter of the American workforce by the early 20th century, but they were traditionally paid far less than men, even in cases where they performed the same job. Tea Colaianni, founder and chair of Women in Hospitality, Travel & Leisure and former HR director, agrees that if equal pay audits are to achieve meaningful change, they require the support of all managers who have the responsibility and authority to put right any unjustified pay and benefits inequalities identified. The gap between public and private sector has increased since 2010 and the government’s strict pay freeze for wage rises. L' inégalité salariale est un élément du problème plus large de la discrimination systémique dans l'emploi, et l'équité salariale constitue un … Solutions to challenges such as these are not always easy.”. 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