The Government has announced a voluntary pilot scheme to help tackle the gender pay gap under which companies will be encouraged to list salaries on job adverts.
The gender pay gap has been around for decades despite equal pay legislation having been in place for 50 years. Over the course of the pandemic it is believed that the gender pay gap has become worse with estimates that nationwide women earn approximately 40% less than men.
One of the contributing factors is believed to be that women are less likely to initiate negotiations of their salary than men, resulting in a lower starting salary and then ongoing inequality throughout their careers. Employers advertising their salary bands with the job advert is aimed at trying to equalise the bargaining powers of female staff and overcome these issues.
Additionally employers who sign up to the pilot scheme will be prevented from asking employees about their pay history. Given the already existing gender pay gap, by pitching new salaries based on what employees earn with their current employer, the gender pay gap is reinforced and continued.
This pilot scheme is due to last for 6-12 months and if successful will likely result in legislation compelling employers to mirror these requirements.
If you have any questions regarding the pilot scheme or the gender pay gap within your business please contact our Employment Team on 0345 646 0406 or fill in our online enquiry form and a member of our Team will be in touch.