The problem of the gender pay gap has been under close scrutiny lately, especially in the wake of the April 2018 deadline for pay data publishing. The government set out this date for firms with more than 250 staff to reveal any differences in their pay rates for men and women, and the results have been interesting to say the least. To look into the details from law companies, mis sold mortgage claims experts True Solicitors, investigates:
The data deadline
The government set the 4th April 2018 as the deadline for firms to submit their gender pay gap data. The results can be accessed here. Though it came as no surprise that the pay gap was still prevalent, the sheer scale of difference between men and women’s pay across businesses was quite alarming. The Independent reported on Ryanair’s revelation that women are paid 67% less in their company for example.
Data from law firms
Though not as bad as this, law firms still showed a pay gap that needs to be closed. A law firm in South Yorkshire reported that the women in their workplace earned a 15.9% less median hourly rate compared to their male counterparts. However, a London-based law firm saw their women’s median hourly rate at 37.4% lower than men’s.
The largest survey of its kind, The Law Society revealed the results of an international survey regarding the issue of gender equality in the workplace. The survey had 7,781 participants. The study found that while 60% were aware of a pay gap problem in their workplace, only 16% reported seeing anything being actively done about it. 74% of men said there was progress regarding the difference in pay between the genders, but only 48% of women agreed with that statement.
What is the cause?
We need to establish what the main contributor to the gender pay gap is. Is it a difference in bonuses, or are higher job positions less readily available for women?
The aforementioned South Yorkshire law firm reported that their average bonus pay for women was 20% less than for men. The London-based firm noted a 40% lower median bonus pay for women compared to men. It clear that bonuses are also suffering from the same gender discrimination as standard wages.
A possible reason for the pay gap could be that women who want a family are automatically at disadvantage; 49% of survey participants noted an extremely difficult work/life balance in senior roles meant women would struggle to be in a position of acceptance. The Balance Careers notes the difference in perception — if a man starts a family, it is a note in his favour, showing stability and reliability. But for a woman, having children brings an unfair stigma of unreliability, that they may put their family first. This can cause discrimination when aiming for higher roles within the firm, such as partner positions.
The pay gap in senior roles
The pay gap is still evident for women who have become partners in a law firm though. In fact, according to The Financial Times, female partners in London-based law firms earn on average 24% less compensation than men. 34% of women earn less than £250,000, where 15% of men earn less than £250,000.
How to deal with the gap
The BBC has listed some tips to help address the gender pay gap. These suggestions include:
- Better, balanced paternity leave — allowing fathers to take paternity leave, or having a shared parental leave, would allow mothers to return to work earlier.
- Childcare support — childcare is expensive! Support for childcare expenses would help both men and women in the workplace.
- Allowing parents to work from home — the ability to work from home while raising a family would open up additional opportunities for women to balance both a career and a family.
- A pay raise for female workers — a simple solution, but a pay raise for women can quickly equalise the pay rate between men and women.
