With the gender pay gap remaining persistently wide, it’s time for companies to take action. Here’s what you need to do to close your gap.
By Rachel Parmley, Principal Consultant, Timewise
The deadline for the 2021-22 gender pay gap reporting has now passed, with initial data suggesting that the gap has barely narrowed, going from 10.2% in 2020 to 9.8% in 2021.
Now, perhaps this isn’t surprising, given that we are coming out of a pandemic in which women have been disproportionately affected. A report from the IFS on the first lockdown found that mothers were 47% more likely than fathers to have lost their job or quit, and were far more likely to be interrupted during working hours. More recently, our own research demonstrated that the pandemic has had a particularly fierce impact on part-time employees, the vast proportion of whom are women.
But even within this context, it is hugely disappointing that the gender pay gap remains so persistently wide. And it underlines the fact that, if businesses are genuinely keen to learn from the Covid-19 pandemic, they need to do so in an inclusive way that supports female career progression.
As we have previously explained, a workplace culture that embraces flexible working is a sure-fire way to approach this issue. Of the four reasons behind the gender pay gap, three can be tackled by creating quality part-time and flexible jobs at all levels, across all sectors, that are attractive to ambitious men and women alike.
And given that 9 in 10 workers say they want to work flexibly, doing so will help businesses attract and retain talented people, as well as narrowing their gender pay gap.
So with under a year to go until the next reporting deadline, the clock is ticking, and organisations who are serious about reducing their gender pay gap need to start now. Here are eight actions that leaders can take to get started.
Instead of just handing out laptops or trying to squeeze a full-time role into fewer days, redesign jobs by looking at when, where and in how much time a role is done, preferably taking a team-based approach. Specifically, consider offering part-time and job shares, rather than just homeworking.
It’s true that this is more complex in some sectors than others, but it can be done; we are showing what is possible through action research projects in hard-to-flex areas such as construction, banking, teaching and retail.
Advertise jobs as being open to flexibility at the point of hire. Make sure you are clear about what this flexibility means, and if you are open to job-sharing applicants, say so.
Our latest Flexible Jobs Index shows that only one in four jobs openly offer flexible working arrangements, which is far below candidate demand. In this era of candidate shortages and the ‘great resignation’, being upfront about offering flex will help you gain an edge in the battle for talent.
Ensure there are routes for flexible progression, to help overcome cultural bias. And make part-time roles more attractive to career-driven people, to ensure that career progression on a part-time basis is not only acceptable, but aspirational.
It’s worth getting feedback from any existing part-time workers to inform this process. Ask what they like about their working pattern, and explore whether there is anything that can be done to improve their arrangement and encourage others to consider flexible working.
For most organisations, flexible working strategy still relies on a request-response model which requires an employee to make a request. This feeds into much of the stigma around part-time arrangements, because it pigeon-holes flexibility as something that’s only considered in special circumstances (usually involving women and childcare).
The more flexibility is normalised, the more inclusive it becomes. So talk proactively to your teams about how they would like to work, making it clear that flexibility is something that can be explored, and don’t make assumptions about what they need. You could set up a survey, where employees can give anonymous feedback on their work practices.
A couple of watchouts. Avoid creating a two-tier workforce in which only some employees can access flexible working; whilst not everyone can work from home, you could explore other kinds of flex such as reduced hours, compressed hours, annualised contracts or staggered start and finish times. And for those that can work from home, remember to mitigate against proximity bias, to avoid the impact on their progression.
Gather as much data as you can around flexible working arrangements and requests in your business. This should include:
Given that the link between flexible working and the gender pay gap is clear, understanding your own data will help you make informed decisions about how best to close it.
Having flex role models – people who are effectively working in a flexible way – is critical to helping make the exception become the norm.
If people can’t see anyone working flexibly in a senior role, it’s hard for them to feel they might have flexible opportunities to progress. So champion those who are working in this way, and think about how others can follow in their footsteps.
Our annual Power List does this on a national scale, telling the stories of exceptional people working part-time, to show what is possible. But companies should do this too. By celebrating your staff who are blazing the trail for flexibly, both internally and through case studies on your jobs websites, you’ll open up a talent pipeline for those looking for flex.
Managing a team of people who aren’t all working full-time, or always physically present, isn’t instinctive; it needs to be learned. So teaching your managers the skills they need to lead and support a flexible team is vital, as is making sure they are supported to work flexibly, too.
At Timewise, we’ve developed a tried-and-tested training model that we use with our clients. Find out more through our Timewise consultancy service.
In order to have a tangible impact on their gender pay gap, leaders should not just commit to changing their approach – but also be willing to be held accountable.
So we believe all employers should be required to publish an action plan, as part of the reporting process, which explains how they are planning to address their gap, with a section dedicated to flexible working.
The evidence is clear: flexible working is key to women’s career progression. Done well, it should allow women to access and succeed in aspirational and well-paid jobs that do not require them to be in the office from 9-5, five days a week.
By offering flexible roles, you will not only narrow your gender pay gap, but also attract and retain the best talent, helping your business grow by remaining ahead of competitors. And at a societal level, you will support the creation of a healthier, more equitable society.
Of course, leadership is critical to sustainable change; so it’s important to get your organisation’s senior team on board with your plans, and vocally supportive. Make sure you’ve got that in place, then start working on the eight actions suggested above, so you’re ready for the next set of reporting in April 2023.
Published June 2022
