Comment: Action to tackle manufacturing’s gender pay gap

Some manufacturers have provided staff training on unconscious bias, says Donaldson. Picture: Devlin Photo Ltd.

More than 10,500 employers submitted their data to the government portal in the latest reporting cycle. The results revealed that 78 per cent of female employees are working for companies that pay them on average less than their male counterparts, although the overall median pay gap was 9.6 per cent, down 0.1 per cent from the pay gap reported in 2018.

According to the latest data from the Office for National Statistics, the national average pay gap (which includes employers who are not subject to the mandatory GPG reporting obligation) was 17.9 per cent in April 2018, down from 18.4 per cent in April 2017. Sectors with the biggest GPGs include construction, where the median GPG is 24 per cent, finance and insurance (22 per cent), and education (20 per cent).

It is open to employers to publish an explanation of their GPG data. In some cases, manufacturers explained that they have been able to reduce their median pay gap by recruiting more women in to senior leadership roles. Others have been honest in explaining how changes in their GPG data have been influenced by factors such as business restructurings.

Some manufacturers have also gone beyond their reporting obligations by disclosing their GPG data for their whole group, rather than for just the specific entities in that group with more than 250 employees.

Manufacturers face the ongoing challenge of convincing women to pursue a career in the sector. A Women in Manufacturing survey found that almost three quarters of women would not consider manufacturing careers as a viable option. Consequently, most employees in the sector are male, and men are typically holders of senior leadership positions.

Many manufacturers attributed their GPG to historic issues within manufacturing, in particular the challenges they face in encouraging women into science, technology, engineering and mathematics (Stem) careers. And many such firms are taking positive steps to address the GPG in the sector and the long-term challenges of recruiting and retaining talented women.

Drinks giant Diageo has opened a scholarship programme with Heriot-Watt University to encourage more women into Stem careers and to provide a pipeline of talent for the future, while others are boosting their investment in similar programmes to encourage more girls to consider careers in Stem subjects.

Some manufacturers have introduced new policies, or provided staff training on unconscious bias, while others have moved to introduce guaranteed gender balanced interview panels for senior positions, and ensure job adverts avoid being unintentionally gender-biased.

Some have developed their own mentoring programmes. Cargill has said it will base decisions on individuals’ career progress on business results and performance, not their presence in the workplace, recognising that many employees, particularly women, have a need to work flexibly for childcare reasons. A focus on parental support is reported by other manufacturers.

Mondelez has a virtual community to support colleagues in relation to parenthood, and phased return-to-work programmes after maternity leave, while Unilever has improved its paternity leave policy to encourage more equal sharing of duties.

Another example of best practice in the sector includes Babcock’s use of enhanced reporting and metrics on gender ratios throughout their recruitment process to help monitor and improve performance. Manufacturers should take note of the best practices and positive actions being taken across the sector. A truly holistic approach is necessary to eliminate gender-based pay disparity in the long term.

Susannah Donaldson is an employment law expert and legal director at Pinsent Masons