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International Women’s Day: Understanding the Gender Pay Gap
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Understanding the gender pay gap: The gender pay gap is the difference in average earnings between men and women. It is influenced by various factors, including occupational segregation, career interruptions due to caregiving responsibilities, and differences in access to higher-paying roles. While the gap has been narrowing, it persists, particularly for older employees and those in higher-paying positions. understanding the gender pay gap
What is the Gender Pay Gap?
The gender pay gap is the difference in average earnings between men and women. It is influenced by various factors, including occupational segregation, career interruptions due to caregiving responsibilities, and differences in access to higher-paying roles.
While the gap has been narrowing, it persists, particularly for older employees and those in higher-paying positions.
According to the Office for National Statistics:
- The gender pay gap among full-time employees has fallen by about 25% over the last decade.
- In April 2024, the gender pay gap was 7.0%, down from 7.5% in 2023.
- The gap is larger for employees aged 40 and over than those under 40.
- High earners experience a greater gender pay gap compared to lower-paid employees.
How employers can help close the Gender Pay Gap
- Conduct Regular Pay Audits – Employers should analyse their pay structures to identify disparities and take corrective action. Transparent salary reviews can help ensure that employees are paid fairly for equal work.
- Promote Pay Transparency – Making salary ranges public and ensuring clear progression pathways can help reduce unconscious bias and inequality in pay negotiations.
- Support Career Development for Women – Investing in leadership training, mentorship programs, and professional development opportunities for women can help close the gap, especially among high earners.
- Encourage Flexible Working – Many women take on caregiving responsibilities, which can impact career progression. Offering flexible working arrangements, such as remote work or adjusted hours, can help retain talent and support career growth.
- Address Bias in Promotions and Hiring – Implementing structured interviews, diverse hiring panels, and objective performance evaluations can help reduce bias and ensure fair opportunities for all employees.
- Provide Financial Education and Support – This is where Lifetime come in! Financial education plays a crucial role in helping employees to make informed decisions about their earnings, savings, and future financial security. Our financial wellbeing benefit can help HR teams support their employees by providing access to expert financial guidance, educational resources, and tools. By equipping employees with financial knowledge, businesses can reduce barriers that contribute to the gender pay gap.
Take action today!
As we celebrate International Women’s Day, let’s commit to creating workplaces that foster equality and financial wellbeing. Find out more about how Lifetime can support your team!