Gender Pay Gap

The gender pay gap remains one of the most pressing issues in modern workplaces. Despite equal pay legislation, men continue to earn more than women on average. This article explores the definition, main drivers and practical steps employers and employees can take to close the gap.

What Is the Gender Pay Gap?

The gender pay gap measures the difference between average earnings of men and women, expressed as a percentage of men’s earnings. Unlike equal pay (which deals with pay differences for the same role), the gender pay gap looks at all roles across an organisation.

Main Contributing Factors

• Occupational Segregation: Women are over-represented in lower-paid roles such as care work and under-represented in senior leadership.
• Pay Progression: Career breaks for childcare or eldercare can slow salary increases and promotion prospects.
• Part-time Roles: Women are more likely to work part time, where hourly rates and bonus opportunities tend to be lower.
• Unconscious Bias: Hiring, promotion and pay-review decisions can be influenced by stereotypes about gender and leadership potential.

Legal Framework and Reporting Requirements

Under UK regulations, employers with 250+ staff must publish their gender pay gap report annually. The report must include:

• Mean and median pay gaps
• Differences in bonus pay
• Proportion of men and women across pay quartiles

For more detailed guidance, see our internal resource on Gender Pay Gap Reporting.

Closing the Gap: Best Practices

Employers and employees can work together to reduce disparities:

• Transparent Pay Structures: Define clear salary bands and promotion criteria.
• Flexible Working Policies: Offer agile hours and remote options to support diverse family commitments.
• Bias Training: Regularly train managers on fair recruitment, appraisal and reward processes.
• Mentoring and Sponsorship: Provide women with access to senior leaders to champion their career progression.

Explore Related Articles

• Understanding Gender Pay Gap Trends
• Strategies for Closing the Gender Pay Gap
• Key Insights into Gender Pay Gap Reporting