This past October legislation comes into action in the United Kingdom that makes it mandatory for companies with more than 250 employees to publicize the difference in pay between its male and female employees. Companies are being encouraged to share their data and identify their results across basic pay and bonuses, in addition to revealing the proportion of males and females in each quartile of the pay distribution.
Our UK team commissioned a study to survey business leaders to explore the causes and repercussions of the gender pay gap. The prevailing finding from the research is that the UK business community is aware of the problem, but struggling to re-address the balance. The vast majority of executives (85%) admit that the UK has a gender pay gap, with over two-thirds (68%) having witnessed gender-based pay discrimination. 62% say it’s because women take time out of their careers to have children and struggle to catch-up with male counterparts on return.
Indeed, 72% of execs believe those women will never catch-up to male peers unless they leave their company. 40% also suggested that women don’t ask for pay raises and almost half believe the reason for the gap they experienced was “a natural prejudice against women within that organization.” What was really interesting is understanding how business leaders plan to address this difference in pay. Almost all (92%) of business leaders would be disappointed if a gender pay gap existed within their organization. More than eight-in-ten leaders (82%) say their business has a clear strategy to close the gender pay gap. However, over a third (38%) did admit that they lack the data or analytical capabilities needed to identify the gap. It’s my sense that business leaders have a sincere desire to want to correct the pay gap.
Until now, the real-world data needed to remedy the gender pay gap has remained elusive. By leveraging the data from Xactly Insights™ companies can address and change these kinds of issues. With these kinds of insights, it becomes clear and simple adjustments can be made to assure that employees are being paid based on their performance, not their gender.
The new pay gap legislation in the UK is a step in the right direction but not much will be able to change unless businesses are equipped the data they need to have the visibility into the issue. Through openness and strong action, we can all work together to help other business leaders create gender equality. Learn more about how Xactly Insights can help your organization address the gender pay gap.