It could take 40 years to close the Gender Pay Gap – Isio

It could take another 40 years to close the Gender Pay Gap at the current rate of improvement, analysis from Isio has revealed.

Isio analysed publicly available data from more than 10,000 companies, and found that while the gap is gradually reducing, it won’t be until 2065 that the UK reaches equality for hourly pay.

Isio’s analysis showed that last year, women were paid an average of 12.5% less per hour than men.

This was the lowest the pay gap has been since mandatory reporting was introduced for organisations with more than 250 employees in 2017.

Despite this progress, the proportion of men and women in the highest pay quartile remained unevenly split, with 59% men compared to only 41% women.

Isio also found that nearly a quarter (23%) of organisations either experienced no change or saw their Hourly Pay Gap worsen over the period.

The research found significant sectoral differences in the Gender Pay Gap, with the financial and insurance sectors reporting an average gap of 23%, with more than 85% of employers recording a gap greater than 10%.

In contrast, sectors such as public administration and defence lead the way in achieving equality, with less than a quarter of employers in these sectors having a pay gap greater than 10%.

Other sectors with the highest pay gaps were the construction, information and communication, mining and science sectors, where the hourly pay gap exceeded 10% for more than seven in 10 companies.

Mark Jones, reward and benefits partner at Isio, said: “It is encouraging that the Gender Pay Gap continues to fall, but we still have a long way to go.

“Lots of sectors still have sizeable gaps and this is usually where women are underrepresented in senior roles.

“While many businesses have introduced policies to accelerate change, this will take time to feed through in the data and reduce their Gender Pay Gaps.

“The introduction of mandatory reporting has been a positive step and sets a good example for employers determined to take further action.”

He added: “Proactive employers are embedding diversity and inclusion into their core business strategies and taking concrete steps to close the gap by improving transparency, and developing action plans that go beyond the current reporting requirements.

“Closing the Gender Pay Gap requires leadership, commitment, and action.

“Employers who take the necessary steps to address this will not only improve their pay equity but will also gain a competitive edge in attracting and retaining top talent.”