SPR Roundtable: The Gender Pay Gap
Tuesday, 19th September, Colliers, London W1U

“What an insightful and engaging discussion, I am a firm believer that in having these discussions is so important in keeping the issues alive and there is always that light bulb moment. My key take away is that we have made huge progress in benefits, helping us to level the playing field, but to really move the needle we need to normalise take up of these benefits and that is something I will be focussing my efforts on.” – Lydia Ings, HR Director at Colliers.

In this roundtable discussion on the gender pay gap, Lydia Ings at Colliers set the scene by clarifying the often-misused terminology surrounding the gender pay gap. The gender pay gap is calculated by taking all employees in an organisation and comparing the average between men and women. Employers must report and publish their gender pay gap information yearly under the Gender Pay Gap Legislation 2017. Equal pay, on the other hand, refers to equal pay for equal work. Women and men are legally entitled to be paid at the same rate for like work, work as equivalent, and work of equal value in the UK under the Equality Act 2010.

Some key findings from the SPR’s Salary Survey 2023 were then covered by Sara Lindblom at Colliers. Disappointingly, the gender pay gap is 14% in 2023 (up from 9% in 2021). This is likely due to the noticeable “role gap”, i.e., less women in senior positions. The gender pay gap was the most significant between ages 31-40, which is the typical childbearing age for women.

Another aspect that was discussed was why there is a gender pay in the first place. For example, one study mentioned, from The University of Kent, found that men are more likely judged based on their potential and women are more likely judged based on their past performance. Another study mentioned, from Hewlett Packard, found that on average men apply for a job when they meet only 60% of the qualifications, but women apply only if they meet 100% of them. Harvard Business Review also found that women tend to undersell their work, rating their performance as 33% lower than their equally performing male colleagues. Women are also less likely to ask for a pay increase and to put themselves forward for promotions.

The discussion then continued around research findings supporting having women in senior roles from a financial perspective. A couple of standout examples were from The Pipeline: Women Count 2022 report, which found that FTSE 350 companies that have female executives on their Executive Committees are more profitable than companies that do not. Yet nearly 70% of companies in the FTSE 350 have no female executives at all on their main boards. Another reason to have women in senior positions is to adapt to changing social and consumption trends, as women now have a major influence on purchase decisions. McKinsey’s Women Matter Report found that in Europe, women are the driving force behind over 70% of household purchases, although they account for around half of the population.

What are the solutions?
The group discussed various potential solutions and one main takeaway was the importance of equal maternity and paternity leave. As the gender pay gap is the widest during typical childbearing age, it emphasises the extent that women are held back in their careers compared to men, by choosing to become a parent. Other potential solutions discussed included increased education on unconscious biases, transparent pay ranges for different roles as well as the option to pay childcare costs on your gross income.

Disclaimer: this discussion was mainly focused on the gender pay gap between men and women. We are very aware that there is a gender pay gap for transgender people, and we think that this is a very important topic to focus on in the future. In addition to that, pay gaps for ethnic minorities, social-economic background and LGBQ+ were not explored in this discussion due to the topic on gender.

Sara Lindblom, Colliers