In a survey conducted by Stewarts Law - the UK's largest litigation-only law firm - insights into the perceptions of equal pay in the workplace among 2,000 women have been revealed. The report sheds light on the evolving dynamics of gender inequality as women progress in their careers, unveiling a stark contrast in perceptions based on income levels and seniority.
The survey - which was compiled from research conducted by Censuswide, among a sample of 2,008 employed women in the UK aged 16+ (minimum 500 respondents who earn £75,000+) - found that only 52.2% of the respondents felt they were equally compensated compared to their male colleagues in the same role. What's particularly striking is the trend that emerges as women climb the salary ladder. Those earning between £65,000 and £75,000 were less likely (36.7%) to believe they were paid on par with their male counterparts. Interestingly, generally individuals earning over £55,000 were more likely to perceive unequal compensation compared to those earning between £15,000 and £55,000, highlighting a concerning trend in senior roles.
Joseph Lappin, Head of Employment stated:
“Promoting women into senior roles is a key priority for businesses and there remains a lot of work for businesses to do in this regard. Our data shows that women in senior roles believe they are being paid less than their male counterparts. This is worrying. Employers will need to make sure that, unless a pay differential can be justified lawfully, they are not paying men in senior roles more than women performing the same work. If they do they may face equal pay claims.”
Beyond remuneration, the survey delved into gender representation at different income levels. A mere 47.1% of respondents believed there was an equal mix of men and women at their career level. This perception worsened as income increased, with over a third of those earning over £75,000 perceiving an imbalance in gender representation.
While 64.1% of women overall believed there were equal opportunities for both genders within their organisations, this viewpoint was challenged among higher earners (£55,000 or more), with 21.0% expressing dissatisfaction. This suggests a potential disparity in access to opportunities as women climb the career ladder.
The survey also explored transparency around promotion, pay and rewards. A notable 55.8% of respondents felt their companies were open about internal processes and policies. However, among individuals aged 25-34, 34.8% felt that policies in their organisations lacked clarity. The discrepancy was more pronounced among higher earners, where 60.9% of those earning over £75,000 believed policies were clear, compared to only 40% of those earning between £65,000 and £75,000.
A significant finding highlighted the importance of gender pay gap reporting for women when considering employment. A substantial 60.2% of respondents would factor in an employer's gender pay gap when applying for a job, emphasizing the growing importance of transparency and accountability in the workplace.
While a considerable proportion of women expressed willingness to raise complaints regarding equal pay, there exists a lack of knowledge or awareness around how to navigate this process. Over a third (37.6%) of respondents would consider taking their employer to an employment tribunal or court if they discovered pay discrepancies. Notably, younger individuals were more inclined to explore legal avenues, with 47.6% of 16-24-year-olds expressing this willingness compared to 21.8% of those over 55.
Charlie Thompson, Partner in the Employment team added:
“It is sometimes easy to forget that employers do not want to be involved in discrimination disputes – meaning that the employee is often in a stronger position than they may think. An employee has the right to file a claim against their employer if they are not receiving equal pay for equivalent work compared to a colleague. Beyond safeguarding women from workplace discrimination, individuals undertaking a ‘protected act’ under the Equality Act 2010 gain additional protection against victimisation.”
Stewarts Law's comprehensive survey underscores the evolving landscape of gender inequality in the workplace, with perceptions shifting as women progress in their careers. The findings emphasize the need for targeted efforts to bridge the gender pay gap, promote workplace diversity and equity, and empower women to address disparities. Addressing these issues is crucial not only for the well-being of individual employees but for fostering a fair and inclusive work environment for all.
