5Conclusion
68.No competitive economy can afford to underuse the productive capabilities of half the population in the way the UK manages to do at the moment. The gender pay gap reporting requirements have demonstrated the unacceptable degree to which women are paid less than men. The requirements to publish data represent a small but welcome step towards ensuring that women can make their fullest possible contribution in the workplace and to the economy. Whilst there have been teething problems around the detail of the new requirements, the early signs are that most organisations have engaged with the process constructively and compliance has been very good. Some companies have been forced to face up to uncomfortable truths about the extent of their gender pay gaps and will now need to demonstrate that rhetoric around a commitment to diversity will be turned into concrete performance indicators for chief executives and new policies around recruitment, development and promotion. We regret that a small number of companies are still in denial or seeking to avoid acknowledging a share of responsibility.
69.The new reporting regime is a step forward, but its full potential has not yet been realised. We are calling for the Government to be more ambitious, by requiring more detailed statistics to be provided to aid analysis and, crucially, by requiring organisations to explain what they are doing to tackle their gender pay gaps. Leadership from the very top is essential to delivering the change of mindset needed in so many businesses and it is primarily up to shareholders to hold them to account for their performance. An improved set of reporting requirements should act as a catalyst to steepening sharply the current gentle trajectory in reducing the gender pay gap. Cultural change is needed to ensure that genuinely gender-neutral policies and practices become part of the DNA of every organisation at every level. We recognise that this will take longer in some sectors than others, but some companies have proved that strong leadership and commitment can achieve success in a relatively short period.
70.Long term success in achieving pay parity will depend upon a combination of the re-orientating of reward structures to meet our evolving working practices and preferences; eliminating conscious and unconscious bias and any residual discrimination; encouraging women to choose careers where the rewards are higher and have been traditionally dominated by men; and supporting women within the workplace to tackle the motherhood and part-time penalties that are the remnants of outdated attitudes towards the place of women in the workplace.
71.We welcome the focus provided by the gender pay gap reporting regulations and will be monitoring the implementation of the changes we have recommended to improve their effectiveness, and contribute to the delivery of a society in which women can expect to achieve similar financial rewards to men.
Published: 2 August 2018