Zarah ChoudharyTwo-thirds (65%) of companies that reported in both 2017 and 2023 have managed to narrow their pay gaps, according to data from Isio, released on Equal Pay Day.
Despite this positive shift, women continued to be disproportionately represented in lower-paid roles.
The introduction of mandatory gender pay gap reporting started in 2017, and the research indicated that the mean hourly pay gap across all organisations reporting in 2023 was around 12.5%, down from 14.3% in 2017.
This change was partly attributed to a slight shift in the representation of men and women in the top 25% of highest-paid roles.
In 2023, men held 59% of these jobs, compared to 61% in 2017, but in 2023, women accounted for 55% of positions in the lowest-paid quartile.
Nevertheless, the number of companies reporting a gap of less than 5% moved from 19% in 2017 to 22% in 2023.
The report stressed that simply publishing pay gap data was not enough, and that employers must go further by digging into the data, conducting regular pay reviews, and implementing action plans to address disparities.
Transparency around pay decisions, coupled with increased opportunities for mentoring and career development, is essential to ensuring that all employees, regardless of gender, have the support they need to close the pay gap.
Annie Hodgson, reward and benefits consultant at Isio, said: “The data from pay gap reporting is a powerful tool, but it’s just the start and the introduction of action plans as part of the reporting requirements will further support reduction in these gaps.”
