Accessing pay, accessing opportunity
Professional barriers
of respondents cited access to equal pay as a barrier to progression, and
of respondents cited opportunities to demonstrate leadership skills was a barrier.
The issue
Despite efforts towards pay equality, our research indicates that gender pay disparities persist and hinder female leadership advancement. Access to equal pay and opportunities to demonstrate leadership skills were cited as barriers by 19% and 18% of respondents, respectively. These issues are closely linked, as pay inequality often goes hand in hand with a lack of opportunities for women to advance into senior roles.
A recent report by think tank Onward, backed by the parenting website Mumsnet, found unsurprisingly that becoming a mother was associated with lower earning and saving throughout their lives. It found that a large proportion of the gender pay gap occurred after the point at which women started having children. The report states that women aged between 18 and 21 earn 0.2 per cent more than their male counterparts. But by the time they are between 40 and 49 they earn 10 per cent less. The data also shows a profound effect on savings, with women’s pension savings averaging at £69,000 by the age of 67 in comparison with £205,000 for men10.
32% of female business owners and leaders said they had experienced ‘support’ bias in their career, whereby they were denied the opportunities or resources needed to succeed in a leadership role or grow their business due to their gender. These opportunities are often awarded to those who are most present in the office, or who are the most vocal at work, which can very easily lead to gender bias.
What our panel said
As highlighted by our leadership panel, one way to support access to opportunity is to encourage mentorship, from men and women, whether formal or informal.
“People wonder that if you do put a woman in a leadership role, is there a point at which she is going to not be able to attend an important meeting? What if the kids get sick - is it going to get too much for her? There is a negative perception that women are more emotive - which I actually see as a massive strength in my leadership team.”
- Rebecca Rosmini
“My former boss was key to me changing from a secretarial role to a land role. …There are male figures who will give advice and will help and will champion you. If I didn't have him, I don't think I would be where I am now. And, its important to continue this mentality. We have an assistant development manager on our team who has so much potential –you can see that there's such a great future in there for her that I'm desperate to make that happen for her. I send her out to lead meetings and network.”
- Rebecca Taylor
Action needed
There are two issues here; addressing the ability for women to progress and ensuring there is pay parity. Creating a competency framework, which clearly articulates the skills needed to progress and no gender bias to those competencies is essential. Furthermore, businesses need to ensure that those making promotion decisions use the framework and provide necessary training. Finally, focussing on longer term succession planning, ideally with development workshops, allows those with potential to be identified early.
To address pay inequality, businesses should regularly review their compensation structures to identify and rectify any gender-based discrepancies. That often takes time, so openness about the direction of travel can be important. Additionally, promoting transparency around salaries and providing clear pathways to leadership positions provide objectivity and clarity on the steps and skills involved, which can help empower female employees to pursue senior roles.
Alongside this, aspiring leaders need champions and mentors. Many businesses are strengthening their leadership pipeline by creating talent and leadership programs that support women, but those women also need the opportunities to be visible to decision-makers.
The new Labour government say it will take action to reduce the gender pay gap in larger businesses, building on the legacy of Barbara Castle’s Equal Pay Act. The government also wishes to strengthen rights to equal pay and protections from maternity and menopause discrimination and sexual harassment, through the Employment Right’s Bill announced in the King’s Speech.
10 A New deal for Parents, Phoebe Arslanagic-Little, p.31