Although there has been equal pay legislation in force for the last forty years, there is still a significant gender pay gap. Women who work full time in the public sector are reportedly paid on average 10 per cent less than men and in the private sector, 19.8 per cent less. Causes for this pay gap include stereotyping women's capabilities and skills, women having caring responsibilities and discrimination in pay systems.
According to the Government, the first step towards gender equality is to make pay transparent. Public sector bodies are already under a duty (under the Equality Act 2010) to consider gender equality in the workplace. In order to encourage pay transparency and address workplace inequality within business, the Government has launched "Think, Act, Report".
"Think, Act, Report" is a voluntary reporting scheme, produced by the Government in consultation with businesses. It is aimed at all private sector and voluntary organisations, but particularly those companies who have 150 employees or more. The scheme sets out a step by step guide on gender reporting. The first step requires companies to think about the barriers facing their female employees, then to act on any unfairness based on gender, and finally, to publish information on gender equality within their organisation. ACAS has also produced guidance to help employers participate in the scheme. Participation is on a voluntary basis only. However, a number of leading UK companies, including Tesco, Unilever and BT, have already signed up to the scheme. Over the next year, the Home Office intends to conduct a survey of employers with 150 or more employees, to monitor how many employers are engaging in gender equality reporting, and will report back in September 2012.
As we reported earlier this month, according to a study by the Chartered Management Institute, if female and male salaries continue to increase at current rates, it will be 2109 before female and male executives are paid the same. Whilst the "Think, Act, Report" scheme may be one step towards tackling the issue of gender equality, there is still a long way to go.
Although there has been equal pay legislation in force for the last forty years, there is still a significant gender pay gap. Women who work full time in the public sector are reportedly paid on