Women in Workplace - Business, Innovation and Skills Committee Contents


Conclusions and recommendations


In the report conclusions are shown in bold, recommendations are shown in bold italics. In this list, recommendations are shown in italics.

Stereotyping of jobs and gender representation

Nature or nurture?

1.  We are of the view, based on much of our written and oral evidence, that the root of the problem of the stereotyping of jobs come from the cultural context in which career decisions are made, not from innate differences between men and women. (Paragraph 17)

Schools and Careers advice

2.  Independent, impartial advice from schools, from parents, and from organisations connected with education and business is crucial in informing young girls and young boys of the full range of career opportunities open to them. While we received evidence highlighting pockets of excellent careers advice given by individuals and organisations, we are concerned about the lack of comprehensive careers advice, as highlighted by the Education Committee's Report on careers guidance for young people. This lack of advice to young people—both girls and boys—needs to be addressed head on, and careers advice should be incorporated in the work of both primary and secondary schools, in the training of teachers and teaching assistants, and in the role of governors. At an early age, girls and boys are influenced by those around them, and all people involved in children's upbringing should view this influence as highly important. (Paragraph 27)

3.  At the heart of the issue of career aspirations for girls and boys is the need to have a cultural change through the educational system, at the point when pupils make subject choices. In this respect, we support the recommendations set out in the Women's Business Council's recent Report. We recommend that the Government develops an enhanced careers strategy, based on partnership working between the National Careers Service, the Equality and Human Rights Commission (EHRC), the National Apprenticeship Service, the UK Commission for Employment and Skills, the Department of Education, and the Department for Business, Innovation and Skills. Such a strategy must include firm targets and regular review processes to ensure that progress is maintained and is consistent across all parts of the country. The Government should also engage, where appropriate, with the devolved administrations, so that best practice can be shared. Within this Government-led strategy, there should be strong business-led engagement with this process. (Paragraph 28)

Apprenticeships

4.  The Government is committed to improving the representation of women on boards, and has set specific targets for such an increase, and progress against the Davies Report has been encouraging. The Government should demonstrate the same commitment and leadership in the area of Apprenticeships. It should set targets for encouraging more women into Apprenticeship sectors where they are currently under-represented, and consider, where appropriate, how Apprenticeship funding can be used to support such a shift in gender representation. There should be publically-available data on the types of available Apprenticeships and funding, and what successful apprentices should expect in terms of careers and salaries. We repeat the recommendation in our Report into Apprenticeships: the National Apprenticeship Service (NAS) should be given specific responsibility and accountability both to raise awareness of Apprenticeships among under-represented groups and to promote positive action measures available to employers when employing Apprenticeships. (Paragraph 33)

STEM subjects

5.  There are many excellent and diverse initiatives in the fields of science, technology, engineering and mathematics, such as the Athena SWAN Charter, Project Juno, and Wired for Success. These programmes encourage and recognise the participation of women in STEM subjects. The Government Equalities Office should compile a comprehensive list of such initiatives, with the aim of sharing best practice. The Government has powerful leverage in its funding of higher educational institutions, but is not using that leverage to force change. The Government also needs to compile specific data that shows the male/female ratio in these subjects. Data from institutions that have adopted specific initiatives for female participation should then be compared with data from institutions that have not adopted such initiatives. (Paragraph 39)

6.  The Government should study the strategy behind the Davies Report, including the setting of targets, and should aim to tackle the skills shortages in a similar way. Programmes targeted at increasing participation of women have proved to be successful. Rather than reinvent the wheel, the Government should use that knowledge and replicate the measures that have proven success in delivering an increased take-up by women in certain professions. Higher educational institutions should demonstrate a track record in changing the unequal representation of men and women in these subjects. (Paragraph 40)

7.  These specific recommendations are voluntary measures, but if the percentage figures do not increase within two years from the start of this initiative, the Government should look at regulation—either self regulation or Government regulation—to ensure a greater representative of women in under-represented professions and sectors. At December 2015, analysis of the information should be undertaken, and assessed. (Paragraph 41)

Positive Action

8.  The positive action provisions in sections 158 and 159 of the Equality Act 2010 could be used more effectively to rebalance unequal representation of women in certain sectors. The Government should actively consider how they can promote better gender representation in their procurement policies, building on existing best practice as shown in the 'Women in Construction' project at the Olympic site. The Government should use the opportunities presented by the procurement of goods and services from the private sector to advance equality for women. They should produce an annual statement to illustrate the way in which Government contracts have been used to achieve this aim. The Government should make this provision more widely known to employers, with the potential to enable workforces to become more diverse and more representative of the communities that they serve. As with the Government targets for the number of women on Boards, targets should be set by the Government to encourage women to explore more atypical work sectors, especially in those sectors that have a skills shortage. (Paragraph 48)

9.  We are concerned that the objectives of the Women and Work programme—that of supporting women in the workplace— could well be at risk, following the move from grant to challenge-based investment funding for Sector Skills Councils from April 2011. If the Government is serious about tackling skills shortages and readdressing gender inequality in certain sectors, it should be prepared to take responsibility for funding specific 'Women and Work' programmes, should the change in funding arrangements not deliver its initial aim of promoting employment for women. (Paragraph 49)

Equality legislation and equal pay

Gender pay gap

10.  Published examples of equal pay best practice in the private sector would provide evidence that equal pay is good not only for individuals, but for business. We welcome the Government's Think, Act, Report initiative to improve transparency on gender equality in the workplace. We urge the Government, through the Government Equalities Office, to promote the initiative more widely, and to use the evidence to prove that good employment practice is good for business. (Paragraph 58)

11.  The gender pay gap is stubbornly persistent. It is unacceptable that women are still systematically paid less than men, over 40 years since the Equal Pay Act was passed. We recommend a review of the Think, Act, Report initiative in the Autumn of 2013, two years after its establishment, including statistical analysis of pay differentials, to determine whether it is helping to effect change. (Paragraph 59)

Equal Pay Audits

12.  We welcome the Government's proposal to give tribunals the power to require an employer to undertake an equal pay audit when discrimination has been proved. However, there is existing legislation addressing inequality in pay that has not yet been implemented. The Government should introduce regulations under Section 78 of the Equality Act 2010, to require large private sector employers to undertake and publish equal pay audits. That data could then be used to highlight where pay gaps exist. (Paragraph 63)

13.  The Equality and Human Rights Commission (EHRC) should make public those businesses that are non-compliant under Section 78 of the Equality Act 2010 , as well that those examples of equal pay best practice in the private sector, to show that equal pay is good for business. (Paragraph 65)

Public Sector Equality Duty (PSED)

14.  The Public Sector Equality Duty (PSED) is a useful tool to ensure that public bodies take steps to secure parity in pay, and in other terms and conditions of employment. The Government is nearing the end of a year-long review of the Public Sector Equality Duty—even though it was only introduced in 2011—in the interests of removing unnecessary burden on businesses and organisations. We do not believe that the Public Sector Equality Duty is an unnecessary burden on employers, but is a vital tool for the collation of evidence and for ensuring that steps are taken with the aim of achieving parity. The Government should send a clear message that the PSED is valued. We urge the Government to retain the PSED in its current form, unless a full analysis of its compliance by public bodies has been carried out by the EHRC, and the results of that analysis point towards the need for change. Published statistical analysis should be at the heart of that review. (Paragraph 70)

15.  The Equality and Human Rights Commission needs to improve its performance in relation to the monitoring and assessment of compliance of the Public Sector Equality Duty. It should use its powers to issue compliance notices to those public bodies that have failed to comply with the PSED. The Government should give a clear statement of support for the EHRC in exercising these duties. (Paragraph 71)

Equality Impact Assessments

16.  Equality Impact Assessments shine a light on the differing impacts of decisions, policies and practices adopted by large organisations, identifying those which might help to advance gender equality as well as those which adversely impact on particular groups. Given the fact that large companies have Human Resource departments that hold the relevant data, they are relatively easy to undertake, and they provide a positive context in which to work. We urge the Government to reconsider its decision to 'call time' on the undertaking of Equality Impact Assessments. This change in policy is in direct contradiction with the Government's other measures directed at achieving equality in the workplace. (Paragraph 73)

Changes to the Equality Act

17.  Reforms to employment legislation may make it harder for women to tackle inequality in the workplace. We urge the Government to remove the fee requirement for pregnancy discrimination cases. Pregnancy discrimination, by definition, affects women only and such a financial burden on those women would be in direct contradiction with the Government's aim of removing inequality in the workplace. The impact of the new fee arrangements for other gender-related employment tribunal cases must be monitored, and kept under review to ensure that genuine cases of discrimination are not being stalled by the introduction of fees. We recommend that the questionnaire procedures in discrimination cases, which gives both employees and employers guidance about what information will be asked in an employment tribunal, should be retained. (Paragraph 77)

Data transparency

18.  The Government has already done much to ensure data about women in senior positions is collated, assessed and acted upon. However, as with the measures in place for increasing women on boards, the prospect of regulation can be a useful motivation for intransigent companies which fail to engage with the Think, Act, Report initiative. Only when there is consistent, reliable data on equality issues can progress be planned, achieved and measured. The Government Equalities Office should collate data on women in the workplace, including figures on part-time employees, what roles women return to after maternity leave, and specific ages or periods in the employment lifecycle. (Paragraph 78)

Flexible working

Data transparency and a voluntary code of practice

19.  Without reliable, consistent data on the extent of flexible working—including part-time, job-share, and compressed hours—the Government, public and private sector employers, and employees cannot have clear understanding of who is working in such a way, in what sector, and how well they are performing. The data needs to be gathered and analysed by gender, race and disability, and by age and sector. The Government Equalities Office should oversee the collation of this data by the Office of National Statistics. (Paragraph 89)

20.  The Government should collect and publish consistent data on the working practices of staff within its own Departments. This data should be reviewed on an annual basis, and those Departments with poor records of offering flexible working should be set achievable targets for improvement. (Paragraph 89)

21.  We recommend the establishment of a voluntary Code of Practice by the Government, through the Government Equalities Office, to highlight best practice in relation to the provision of quality part-time and flexible working. The Government should draw attention to those organisations that encourage flexible working—for both men and women, at all levels of the workforce, including at a senior level—in order to dispel the myth that flexible working is problematic and cannot work. (Paragraph 96)

22.  Flexible employment can work, when it is fully integrated into the workplace structure, with equal access for training and development opportunities alongside full-time workers. The voluntary Code of Practice should also highlight the 'return-to-work' experiences and opportunities for those many women who are qualified and experienced in their chosen work, and who wish to return to work after looking after young children. (Paragraph 97)

23.  Currently, employees do not have the right to ask for flexible or part-time working within six months of starting a job. Staff should be entitled to ask for flexible working from the outset, unless there are justifiable reasons to the contrary. This should be led from the top management level, with the default position being the right to ask for flexible working, unless justified. (Paragraph 98)

Small and medium businesses (SMEs)

24.  The Equalities and Human Rights Commission needs to take a more active role in supporting and advising SMEs, in relation to the issue of flexible working. Many SMEs are exemplars of flexible working, which benefits both the business and the staff, but others lack the knowledge to utilise flexible working successfully. The Government should invest resources in advising small and medium businesses, of the benefits of recruiting and retaining flexible workers, and it should highlight the work that organisations such as the Federation of Small Businesses do to promote the positive benefits of flexible working. (Paragraph 102)

Maternity leave and Childcare

Parental leave proposals

25.  We welcome the reforms to maternity leave, which are part of the Children and Families Bill, including the right to shared parental leave, and statutory shared parental pay. This should lead to parental leave becoming a more gender-neutral matter. However, we appreciate the fact that for some small businesses, parent rights are not without occasional, but potentially significant risk to those businesses. (Paragraph 109)

26.  We recommend that the Government collects data on pregnancy discrimination, in order to monitor its incidence, from the position of both employees and employers. This should be done in conjunction with our previous recommendation that women with pregnancy discrimination cases should not have to pay the proposed £1,200 tribunal fee. (Paragraph 110)

Equality and Human Rights Commission (EHRC)

Proposed changes to the EHRC

27.  We welcome the fact that the Government reconsidered its intention to repeal the Equality and Human Rights Commission's general duty, as set out in Section 3 of the Equality Act 2006. However, we remain concerned at other Government measures that are weakening the EHRC's ability to carry out its general duty. In this Report, we have recommended that the EHRC should be providing: enhanced information and advice covering career strategies; equal pay audit and equal pay best practice advice; the monitoring and assessment of the Public Sector Equality Duty (PSED); data transparency advice; and support to SMEs. Funding is tight, but if the EHRC is to carry out all of these activities effectively, it needs to be better resourced. We welcome initiatives such as the EHRC's recent work with the meat and poultry industry, and recommend that that EHRC actively seek funding from other private business sectors for similar funding. (Paragraph 117)

Women in senior positions

The current position

28.  Much has been achieved as a result of the recommendations in the Davies Report of 2011. There are some exemplary organisations that have both promoted women to executive board level, and have ensured that women are progressing throughout the structure, and tangible results have been achieved. However, more needs to be done to consolidate that work and to ensure there are more women on boards, especially those on executive committees, and those holding executive directorships. The total number of women on boards can be deceptive, because there has been a drop in the percentage of women on executive committees, from 18.1% to 15.3% since 2009. The Government needs to monitor regularly the proportion of women holding both executive and non-executive directorships. (Paragraph 125)

Progress

29.  We welcome the changes to the UK Corporate Governance Code and the new policy of 'comply or explain'. Boards will now report annually on their boardroom diversity policy, including gender, and on measurable objectives for implementing the policy. (Paragraph 128)

30.  We are encouraged by the increase in the number of women on boards, and support the continued work of Lord Davies in his voluntary approach. We recommend that the Government highlights best practice of mentoring and networking initiatives run for women, in its Think, Act, Report initiative, in order to stress the importance of increased opportunities for women to apply for boardroom appointments. Those companies that are more successful nurture their potential leaders at all levels of the workforce. (Paragraph 139)

31.  While we support the voluntary approach of Lord Davies, we are concerned that the number of women appointed to FTSE 100 boards has decreased since December 2012. The Government has put on record its intention to take tougher measures, in the form of quotas, if the voluntary approach does not work. The Government needs to set out clear figures, and a timescale, to outline to businesses what will be done if those targets are not achieved. (Paragraph 140)


 
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Prepared 20 June 2013