Equal Pay Day
A balanced workforce will boost productivity, retention and employee engagement
On Equal Pay Day 2019, the British workforce will still show a disparity between male and female full-time workers of 8.9%, showing “little change” from 2018, and a mean gap for full time workers at 13.1%, a decline of only 0.6 percentage points since 2012. CMI argues that the benefits to business in achieving a balanced workforce will be to boost financial performance, increase retention of staff and employee engagement. McKinsey estimating that the ‘diversity dividend’ could add £150bn to the UK economy by 2025.
Ann Francke the CEO of The Chartered Management Institute speaking on the importance of achieving parity in the workforce said it is “inexcusable” that we are still talking about pay inequality at work:
“The large gender pay gap that female managers still face is being driven by the gross under representation of women at the top levels of management which has shown no signs of improvement”.
CMI identifies this effect as the "glass pyramid" – too many women at the bottom of organisations and too few at the top – and believes business must fix the "broken windows" of gender bias that impede women’s careers and mar their day-to-day experiences in the workplace.
“Business must fix the "broken windows" of gender bias that impede women’s careers and mar their day-to-day experiences in the workplace. There are huge benefits to ensuring companies promote workplace equality – with McKinsey estimating that ‘diversity dividend’ could add £150bn to the UK economy by 2025.”
Ann Francke, CEO, Chartered Management Institute said:
“We need transparency with teeth. The publication of pay gap data and action plans is a necessary first step, but organisations need to be held to account for the actions they take to close the gender pay gap. Government sanctions have a role to play but ultimately those businesses who fail to act will increasingly struggle to attract and retain the best talent. They will also miss out on the diversity dividend which is proven to boost business results. This new body would need to work closely with managers to implement light-touch measures which carry the support of the workplace.”