According to leading gender pay gap analysis provider Gapsquare, the gender pay gap is eight times higher for women in their fifties than for women in their twenties. Using aggregated data from 122 users of the software, Gapsquare can reveal that the gender pay gap is a low 2.3% (mean) for women in their twenties, but reaches as much as 19.8% for women in their fifties.
Partnerships Manager of Gapsquare, Siân Webb says:
“The gap starts increasing for women when they take career breaks, often to have children in their thirties, and when they return to the workforce, the gap doesn’t close and continues to widen for every child they have. This ends up being costly for businesses as they leak a talent that they have upskilled and trained for years. It also means businesses are not making the most of over 50% of the UK population.”
The new gender pay gap regulations which came into force this April ask companies to provide some key data to the government on the gap within their company. The 6 key figures required for reporting only provide a small part of the picture and offers limited context for companies. On their own, the numbers mean nothing.
Data Scientist, Ion Suruceanu says:
“Companies need to go beyond the reporting figures to truly understand what causes the gender pay gap if they want to look at reducing it in the future. The Gapsquare software provides instant insights on the gender pay gap by age, length of service, department, location and other key variables. Over the past several months we have brought in equality and diversity expertise into our software to help companies understand exactly what is causing their gap. A number or a graph is meaningless without context, and clients find our narratives and explanations particularly useful.”
This gives companies the power to actually do something about the gender pay gap, enabling businesses to make the most of a diverse talent and therefore become more prosperous and a great place to work.
Gapsquare have released some key figures as a summary of their work over the last year. Using data from over 150,000 employees, companies have saved over 6,400 hour of staff time undertaking analysis and received over 50 data-driven recommendations to help narrow the gap. More trends around the gender pay gap by age, length of service, industry and region are available to download in the infographic.