PwC has published its gender pay gap - making it the largest employer and first professional services firm to report under the government’s new guidelines.
PwC was one of the first UK companies to voluntarily publish its gender pay gap analysis back in 2014 and has done so every year since in its annual report.
Under the government's methodology, which came into force in April 2017, PwC’s mean gender pay gap is 13.7% and its mean bonus gap is 37.5%. PwC’s analysis of its pay and bonus data shows that the gap is largely driven by the fact that there are more men in senior higher paid roles and more women in junior and administrative roles. When these factors are removed, the mean pay gap drops to 2.9%. This compares people’s pay working in the same grade level, where any differences can largely be explained by time in role or skill set factors. In addition, the new methodology for bonus pay gap is based on actual amounts, rather than full-time equivalents. The calculations therefore don’t take account of either temporary absence from the business or part-time working.
Laura Hinton, head of people at PwC, said:
“We are committed to creating an inclusive, fair and diverse business and tackling the underlying causes of our gender pay gap. Publicly reporting our gender pay gap since 2014 has allowed us to understand the imbalances in our business and to do something about it, and it is encouraging to see that our gender pay gap is narrowing.
“We are confident that we pay our men and women equally for doing equivalent jobs across our business, but our gender pay gap does show us that we have more men in senior positions. We’re addressing this in a number of ways, including our returnship programme, reviewing our recruitment processes, making more senior jobs available as flexible or part-time, and tackling unconscious bias in the workplace.
“We support the government’s move to get large companies to publish their gender pay gaps. Without this collective focus, our research shows it could take 24 years to close the UK’s gender pay gap. This new level of transparency should help to drive greater accountability across UK businesses and, therefore, action to address the underlying causes. It’s not only the numbers that are important here - it’s the changes that businesses are making off the back of them and whether they understand what their data is telling them.
“There is no one easy solution and it will take a laser-like focus and collective action to create true gender parity in UK workplaces.”
PwC research shows that based on a continuation of historical trends it will take the UK until 2041 (24 years) to close the gender pay gap. Job differences between men and women, both across industries and job roles, is one of the biggest factors contributing to the gap in earnings.
Financial services is the sector with the largest gender pay gap at 34%, whereas public administration and support services have the lowest at 15% and 13%, respectively, according to PwC’s research.
Ed Stacey, head of employment law at PwC, said:
“One of the biggest challenges businesses face in reporting under the new regulations is collecting the vast amount of data needed in the right way, understanding the technical detail, and then getting that data in order.
“But then the next challenge is explaining the numbers. Organisations will need to prepare the internal and external communications to explain the rationale behind the gap.”
Alastair Woods, partner in PwC’s UK reward practice, commented:
“For many organisations with high gender pay gaps there is clearly a reputational risk. Unless firms are able to explain both why the gap exists and what they are doing to address the underlying issues, many will see them as not providing equal opportunities - which could negatively impact potential and current employees, as well as customers. For those that grasp the challenge to do so, they are likely to be seen as taking the issues seriously and in a positive light.”
Notes to editors:
For more information please visit https://www.pwc.co.uk/services/human-resource-services/gender-pay.html
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Head of media relations, PwC United Kingdom
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