A report by the Equality and Human Rights Commission, published earlier this week, showed that women in the finance sector get about 80 per cent less in performance related pay than men.

The “Financial Services Inquiry” report revealed that nearly all women still start on lower average salaries than men, indicating that the gender gap is being further entrenched by recruitment patterns.

The report also suggested that the sector’s age profile may be a key factor blocking women’s success, as an unusually high proportion of workers in the sector fall into the 25-39 age group which is when women tend to start having childcare responsibilities.

The report highlighted how a lack of transparency over pay and working conditions, direct discrimination, long working hours and the difficulties faced by those with caring responsibilities all contribute towards the significant difference between what men and women earn.

Findings from the report include:

  • Women employees earned an average of £2,875 in annual performance related pay compared to an average of £14,554 for men - a gap of 80 per cent
  • A gap in annual basic pay between women and men of 39 per cent, which rises to 47 per cent for annual total earnings when performance related pay, bonuses and overtime are taken into account
  • In 86 per cent of responses, women who had started their jobs in the last two-and-a-half years had lower starting salaries on average than men starting in the same period
  • Significant “in-grade” gender pay gaps in at least half of all job grades/categories, where men and women are assumed to be doing the same or equivalent work, were found in 63 per cent of cases
  • Less than half of the companies that responded were making some effort to address the pay gap
  • Only 23 per cent of companies reported that they had undertaken an equal pay audit.

 

To download the report, go to:

www.equalityhumanrights.com