In Trailbazing Transparency, the most recent report to come out of the Think, Act, Report Initiative, which summarises the latest thinking from business and government on the gender pay information that employers will have to publish and best practice for reporting, Deloitte sets out its support for the Prime Minister’s proposals to require larger employers to publish their gender pay gap.
Deloitte has published its 2015 data in its annual Impact Report. Deloitte’s CEO, David Sproul, says:
“We must be open and transparent about the gender issues that face our business; reporting our gender pay gap was a way we could achieve this. Our gender pay gap results did not surprise us, instead serving to confirm what we knew – that the challenge for us as a business is increasing the number of women we have at senior levels. When we look across our organisation as a whole our gender pay gap stands at 17.8 per cent (around 1.3 per cent below the national figure); however, the pay gap between male and female employees at each grade is significantly lower, at 1.5 per cent on average.”
Sproul goes on to outline some of the initiatives Deloitte has in hand to improve the position of women in the company.
On bonuses, Trailblazing Transparency says:
“Over £42 billion was paid out in bonuses in 2014-15, so they constitute a significant form of payment for UK employees. If we are serious about closing the gender pay gap, it is important that we consider bonus payments as well. According to the Chartered Management Institute (CMI) male managers are still more likely to get a bonus than female managers. These findings are especially concerning as women still only make up around 34 per cent of senior managers. We also know that the EHRC’s 2009 inquiry into sex discrimination in the finance sector found that differences in bonuses awarded to men and women significantly contributed to the pay gap. Bonuses in the finance sector can form a substantial part of an employee’s remuneration; the average bonus across all those in employment last year was approximately £1,500 per employee, compared to an average of £13,500 in the finance and insurance industry.”
The report does not say what should be done about this.
The report contains some useful graphics and is packed with case studies from companies who are signed up to Think, Act, Report. PWC and Deloitte are to be congratulated on being the only contributors to have processes in place for reporting on their gender pay gaps.