Female bosses of Britain’s blue-chip businesses are still receiving lower pay and bonuses than their male counterparts. A female chief executive at one of the FTSE 100 companies can expect her base salary to be around £33,800 lower than that of a man doing the same job at another big corporation.
Back in August 2014 myHRdept wrote an article titled Equal pay? Maybe for our great grandchildren. The article looked at how women would have to wait another 60 years for equal pay if the gender gap was to continue to close at the given rate. It seems 7 months later, it is still a hot topic.
The average annual cash bonus for a female chief executive is £1.83 million, 6 per cent lower than the £1.95 million paid on average to male chief executives, highlighting that the gender gap is still very much in existence.
Men and women are entitled to equal pay & benefits for ‘like work’, work rated as ‘equivalent’ or of ‘equal value’. The only exception where a difference in pay could be justified, is when a new employee performing the same role, has not acquired the same level of experience and is not as productive. However, this should not be the case once the employee has fully settled into their role and is performing their job to the same standards as others.
“But employees are not allowed to talk about how much they earn!?” – Wrong! The Equality Act 2010 makes it unlawful to prevent employees from having discussions to establish if there are differences in pay. Employees talk about what they earn, and differentials in pay will become apparent more quickly than employer’s might think. Women statistically have more time away from work (due to childbirth and care) and may have fewer opportunities for annual pay rises. Employer’s sometimes wrongly assume that the fact that a man has been employed longer than a woman justifies his higher pay, but it doesn’t!
In order to prevent any cases of sex discrimination when it comes to pay, employers are urged to have an Equal Opportunities Statement to oppose all forms of unfair discrimination. If a grievance about pay is raised but not resolved, employees may complain to an employment tribunal under the Equality Act 2010.
We can work with employers to help identify and rectify potential equal pay issues. If an employer becomes aware of an equal pay issue or complaint, they should contact us straight away.
If you’re thinking of outsourcing your HR why not contact myhrdept.co.uk. With full service Premium Plus packages for medium sized companies typically from only a few hundred per month (and from only £100 per month for smaller companies and start-ups) and fixed price HR support options available for one-off issues, we believe we offer the best combination of quality and price available in the UK. Call us on 01628 820515 to discuss your requirements or email us here and we’ll call you back.