Time to use gender pay gap data as catalyst for change - Susannah Donaldson

Although many firms are taking positive action, there are still issues to overcome, writes ​Susannah Donaldson ​

Businesses operating in the UK energy sector should consider how they can use their gender pay gap (GPG) data as a catalyst for change in their organisation.

Analysis by Pinsent Masons has found that many businesses in the sector are already taking positive action to reduce the disparity between what men and women are paid, however, deep-rooted issues persist around attracting more women to work in the sector and in supporting those in jobs already into more senior roles.

Under GPG reporting regulations, employers in Great Britain with 250 or more employees have to publish their overall mean and median pay gaps based on gross hourly pay for men and women, expressed as a percentage, as well as their mean and median gender bonus gaps.

Susannah Donaldson, Partner and Global Co-Head of Pinsent Masons’ Equality Law practice

Sixty four employers in the energy sector have reported their GPG for the latest reporting year, 2022-23, which is lower than other sectors and down on equivalent figures in the sector from the previous year.

Women working for large energy companies are paid on average approximately 15.5% less per hour than men - roughly on par with other industries and sectors. Overall, however, there is on average an 18.9% difference in the median bonus payments to men and women across the sector, which does not compare favourably to most other sectors.

There has been mixed progress towards addressing the GPG in the energy sector. Several companies have improved their GPG by a relatively modest 1-2%, while others have been able to improve the position by more than 5%. At many other companies, however, the GPG has remained pretty similar across the years and in some cases there is evidence that the position has regressed.

It is often the case that more men are in higher paid technical roles across the energy sector, whereas a greater proportion of women work in customer service and administration roles, which are typically lower paid. Traditionally, more women work in part-time or flexible roles than men, and this can affect bonus payments.

More men typically earn additional call out and unsocial hour allowances compared to women. This is particularly the case within oil and gas, where offshore workers - the majority of whom are male - earn offshore allowances, travel allowances, and other additional payments to reflect the rotational working pattern.

The most common actions taken by employers in the energy sector to close the gender pay gap include promoting dedicated leadership programmes, introducing STEM activities, operating mentoring schemes, and setting diversity targets.

Family-friendly policies, such as enabling hybrid working and offering support to employees on maternity leave, are also popular in the sector. Companies in the energy sector are also focusing efforts on addressing the GPG even before the recruitment stage. This includes through educating school children and encouraging more young girls to think about jobs in the energy sector.

There is broad recognition across oil and gas companies that they need to raise greater awareness of the types of jobs that are available within the sector, particularly in light of the focus on energy transition, to attract woman to the industry.

Susannah Donaldson, Partner and Global Co-Head of Pinsent Masons’ Equality Law practice