CGP 2 | Promotion After The Pandemic

COVID-19 And The Gender Pay Gap: Why Women May Have Less Chances Of Promotion After The Pandemic

40% of employers expect more than half of their workforce to work from home after the COVID-19 pandemic has ended, and many of these are women. The danger is that women will become less active and less visible in the workplace. With less visibility comes lesser chances of promotion.

In this episode, we explore:

  • why Covid-19 pandemic has had and will continue to have a bigger impact on women’s careers than on men’s, even in the technology sector
  • how the future workplace and the introduction of hybrid working is going to affect women’s career prospects
  • the risk of hybrid working on the visibility of women and how this will have a negative impact on your organisation’s gender pay gap
  • what you can do to stop this from happening and protect your reputation as a forward-thinking employer striving to attract, develop, and retain female talent in its workforce.

Key resources mentioned in this episode:

Annual report 2020 of the Women and Work All Parliamentary Group

Hackajob’s survey on What Do Tech Talent Want in 2021

Stanford Graduate School of Business: Does Working From Home Work?

PwC’s Women In Work Index 2020

Find out more about the Women In Technology Leadership programme HERE.

Book an exploratory chat:

Book an exploratory chat with me! I’m offering exploratory calls with me so that you can ask any questions you have about the work I do with technology companies on attracting, developing, and retaining your female talent so you can close the gender pay gap.

If you’d like a totally transparent conversation about how working with me could support your organisation’s talent goals, email me to book a call now: sherry@sherrybevan.co.uk.

Sign up to newsletter:

If you’re looking to stay in touch with the latest industry trends, research, and best practice to develop and retain your female talent so that you close the gender pay gap and bring major benefits to your organisation in 2021 and beyond, sign up to my monthly newsletter here: http://www.sherrybevan.co.uk/newsletter-signup/.

Connect with Sherry:

Email me: sherry@sherrybevan.co.uk

Follow me on Twitter: https://twitter.com/SherryRB

Connect with me LinkedIn: https://www.linkedin.com/in/sherrybevan/

Listen to the podcast here

COVID-19 And The Gender Pay Gap: Why Women May Have Less Chances Of Promotion After The Pandemic

Welcome back to this episode in which we’re going to explore how COVID-19 is having a bigger impact on women’s careers than on men and what employers can do about it. I’m sure if we were all back in the office, we’d be swapping stories of how we got the barbecue out for the first time, how busy the beaches and parks were, how good it was to have a sunny bank holiday weekend whereas there’ll be many of us also wishing at the same time that it would rain because the garden needs a good soak. I’ll happily confess that I’m in that second camp wishing that it would rain so I can get my plants a good soaking. I’ve been sheltering from the sun so that I can finalise the preparations for my next Women In Technology Leadership Programme, which started on June 28, 2021.

Not only has COVID-19 affected our conversations after the bank holiday weekend. I don’t know about you but it seems that every week there’s a new report being published on how COVID-19 is having a negative impact on women and on their careers which means that longer-term, the gender pay gap will widen. You might be thinking, “It’s not a big problem for us in technology,” because after all the lockdown has mainly affected those sectors where women are overrepresented, such as hospitality, arts, retail, childcare which have all been shut down for long periods of time.

What you’ve got to remember is that across all sectors, including technology, women were more likely to be trying to balance full-time working and full-time homeschooling. The report from the Women and Work All Parliamentary Party Group shows that women were more likely to have requested furlough holiday or unpaid leave so they could homeschool despite their worries that this would put their careers on hold and that in the long-term that ultimately pay the price by missing out on promotion opportunities. Indeed, we know that many women decided to quit the workforce altogether rather than risk complete burnout of trying to do it all.

Explore the growth mindset so that you can identify any limiting behaviours.

The good news is over the years, all countries across the Organisation for Economic Cooperation and Development (OECD) have made consistent gains towards progress for women in work. In the PricewaterhouseCoopers’ Index they studied a range of factors, including the gender pay gap and female unemployment. It showed that progress for women in work is expected to fall more than 2% between 2019 and 2021. It warned that progress towards gender equality needs to be twice as fast as its historical rate, simply in order to undo the damage caused by COVID-19 to women in work. As you know, gender pay gap reporting has been compulsory for employers in the UK with 250 more employees since 2017. This means employees must report the salary difference between male and female workers. In 2020, compulsory reporting was suspended at the outbreak of the pandemic. It’s not going to restart until October in 2021.

There’s a great quote that I’d like to share from Laura Hinton, who is PwC’s Chief People Officer. She says, “It’s paramount that gender pay gap reporting is prioritised. We’ve targeted action plans, put in place as businesses focused on building back better and fairer.”

Indeed, the CMI strongly recommends employers to develop time-bound, target-driven action plans to address the issues arising out of your Pay Gap analysis.

Having a published action plan sends a clear commitment to your staff, customers, shareholders and to other stakeholders that you understand what is causing any pay gaps and more importantly, that you’re going to take meaningful steps to address those challenges.

CGP 2 | Promotion After The Pandemic
Promotion After The Pandemic: Many women decided to quit the workforce over the past 12 months rather than risk complete burnout of trying to do it all.

COVID-19 has brought positives too. We’ve all experienced more workplace flexibility than we might ever have imagined years ago. In September 2020, CIPD published a report on new ways of working post-pandemic. It showed that 40% of employers expect more than half of their workforce to work regularly from home after the pandemic has ended. If you compare that before the pandemic when they expected 5% of their workforce to work regularly from home, many workers don’t want to go back to the standard 9 to 5 in the office.

Technology is not an exception. In a survey by the tech job market platform, Hackajob, 86% of technology professionals want a work-from-home arrangement after the pandemic. Of the 1,700 technologists surveyed, only 14% of them want to go back to a company office on a full-time basis. Around 25% of them want to work remotely on a permanent basis and 60% had said that they’d be happy with a hybrid solution so that they work from the office occasionally and spend the rest of the week working from home.

We’ve seen a flurry of hybrid working announcements from forward-thinking employers. As we know genuine flexible working has always been very appealing and very persuasive to attract the best female talent. Deutsche Bank confirmed it has moved to adopt hybrid working and plans to mix office days with remote working. The Bank of Ireland has said they will implement a hybrid working model for its workforce and it’s going to establish hubs that will allow staff to use desks and attend meetings. Although flexible working was already in place before the first lockdown, the pandemic has accelerated the longer-term strategy for the bank. Accountancy firm KPMG told 16,000 staff that they can leave early one day a week, as part of a move towards more flexible working after lockdown. This is part of their strategy to promote wellbeing.

Not all organizations are going down this route. We’ve seen from Google that they’re actively encouraging staff to return to the office for at least three days a week. Goldman Sachs has told its UK bankers that they need to be ready to return to the office when lockdown restrictions are expected to be lifted. While we’ve all been working from home, it didn’t matter where you were based. We’ve all been equally remote and therefore equally visible. While working from home has brought its challenges with home life distractions, trying to balance that working from home with homeschooling, fighting over who gets the home office space versus who’s going to be perched at the kitchen table, there’s less of that water cooler chat where you can share challenges and get fresh insights.

Many of us do prefer to work from home because it allows for a better work-life balance. You don’t have the stress to commute. Very often it means you can be more productive with fewer distractions. The danger though from a gender pay gap point of view is that if more women than men take up the option of remote working, women will become less visible in the workplace. We know that visibility matters even when management says it doesn’t. A new study from the ONS, the Office for National Statistics, says that people who mainly work from home prior to the pandemic were far less likely to receive a promotion or a bonus compared with their office-based counterparts.

Visibility at work is a critical factor for progress at work. Less visibility will lead to women being less likely to get promotions and the accompanying pay rise which means that your gender pay gap will widen as a result. This isn’t a new problem for remote workers. If we go back to 2015, researchers from the Stanford Graduate School of Business found that while people working from home were 13% more productive, they were not promoted at the same rate as their in-office colleagues. The study’s lead author commented that it was striking that promotion rates plummeted. It was roughly half the promotion rate compared to those in the office. Why is that? What can we learn from that as we go to a more hybrid working practice in the future?

CGP 2 | Promotion After The Pandemic
Promotion After The Pandemic: Many of us prefer to work from home because it allows for a better work-life balance.

This study suggested that there were two key reasons. First, if you’re working from home, you don’t have the same opportunity to develop relationships and managerial skills. Secondly, you may well have those skills and the skills to develop relationships remotely, but you don’t have the same opportunities to demonstrate those skills and relationships. It’s out of sight, out of mind. In another study published in 2019 reported that remote workers whose promotion prospects suffer because of lack of FaceTime find that their workload increases. This comes back to the presenteeism thing. Office-based colleagues are often perceived to be working harder even if they’re working badly, whereas those who work from home often end up going above and beyond to make up the perceived difference, so they don’t get forgotten.

When we look at who wants to work from home, those with a higher preference for working more days at home tend to be people with disabilities, people with children and women. The danger is if you let people choose, it’s likely to be the young, ambitious, single man who doesn’t want to work from home. They’ll come into the office and be visible. Therefore, charge ahead in their careers while others who feel invisible fall behind and don’t get promoted, which means that in a few years’ time, you’ll observe an even greater lack of diversity in your leadership. However, it’s within your control. You have the power to determine the long-term effects of the pandemic on your female talent pipeline. You can raise awareness of how communication and behaviour at work affect how you’re likely to be perceived by coworkers and senior management.

You have the power to determine the long-term effects of the pandemic on your female talent pipeline.

You can teach employees how to get more visible so that they make a big impact in the workplace even if they’re regularly working from home. You can educate your female talent so they know how to appreciate their unique strengths so that they can clearly articulate their skills, ambitions, value to the business and be able to communicate that to their senior management. You can communicate the importance of setting and maintaining clear boundaries so that your female talent doesn’t start to burn out because they’re going above and beyond to make up that perceived difference. If they burn out, then ultimately, they’ll quit. You can support your promising female leadership talent to build networks both internally and externally, so they feel less isolated, which means they’re more likely to put themselves forward for promotion.

You can do this yourself. You can design and deliver a series of workshops, run brown bag lunchtime drop-ins. You could publish useful career advice on your internet. You could run your own internal leadership development program, invest in executive one-to-one coaching or send your female talent to an external leadership development program such as the one that I run. The additional benefit is that you’re sending a powerful message. It clearly communicates your organization’s awareness of the impact of COVID-19 on women’s careers. It will demonstrate your commitment to female talent development and your commitment to closing the gender pay gap.

Why is it important? How does it help you to close the gender pay gap? First, it enhances your reputation as an employer, taking proactive steps to develop, retain its female talent, helping them to show up and be more visible even if they’re working more often from home. That means you’re more likely to attract the best female talent in the first place. My program offers blended learning and development in a structured format in which we explore the key principles of authentic leadership so that participants develop their leadership skills, they get to improve on their negotiation skills, build and nurture their resilience, enhance their communication skills and raise their levels of emotional intelligence and self-awareness. All of this means that they’re going to be better informed and equip to take personal responsibility and ownership for managing their own career with more confidence and purpose. It’s not all down to you.

During the program, we’ll take time to allow the participants to get crystal clear on their strengths and how to leverage these. We explore a growth mindset so that we can identify any limiting behaviours. The idea of that is that women then can continue to grow and develop even after the program finishes. Whether you run a leadership development program in-house or send your staff to an external supplier, it builds an internal network. There’s more cross-departmental promotion of your female talent. The end result is your participants will come away feeling inspired, encouraged and motivated. They become leading role models, which means you start to see a ripple effect across the workforce.

One of the big benefits of a leadership development program is that participants will build and develop that own circle of trust, their internal career support network. This means they’ll feel less isolated and more supported. Therefore, they’re more likely to put themselves forward for promotion because they know they’ve got those cheerleaders in their team. If you’d like to discuss how the Women in Technology Leadership program will stop COVID-19 from having a negative impact on your organisation’s gender pay gap by raising the visibility of women, book a call with me and let’s talk. Thank you for reading. We’ll be back in the next episode.

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CGP 1 | Gender Pay Gap

Addressing The Gender Pay Gap: Why Equal Pay Is Not The Only Solution

Sometimes, when I reach out to technology companies to find out what they’re doing to close their gender pay gap, they tell me “We don’t have a problem, we have an equal pay policy.” You can have an equal pay policy and still have a gender pay gap. The two are related, but they are not the same.

In this episode, we explore the difference between an equal pay policy and the gender pay gap so that you understand how your employer is offering equal pay and still have a gender pay gap. In order to close your gender pay gap, your organisation needs to think more broadly about how to attract, retain, engage, and develop more women through the talent pipeline.

Key resources mentioned in this episode:

Book an exploratory chat:

Book an exploratory chat with me! I’m offering exploratory calls with me so that you can ask any questions you have about the work I do with technology companies on attracting, developing, and retaining your female talent so you can close the gender pay gap. If you’d like a totally transparent conversation about how working with me could support your organization’s talent goals, email me to book a call now: sherry@sherrybevan.co.uk.

Sign up for to newsletter:

If you’re looking to stay in touch with the latest industry trends, research, and best practice to develop and retain your female talent so that you close the gender pay gap and bring major benefits to your organization in 2021 and beyond, sign up to my monthly newsletter here: http://www.sherrybevan.co.uk/newsletter-signup/.

Connect with Sherry:

Email me: sherry@sherrybevan.co.uk

Follow me on Twitter: https://twitter.com/SherryRB

Connect with me LinkedIn: https://www.linkedin.com/in/sherrybevan/

Listen to the podcast here

Addressing The Gender Pay Gap: Why Equal Pay Is Not The Only Solution

My name is Sherry Bevan and you are reading the blog Closing The Gender Pay Gap.

In this episode, we are going to be looking at the difference between equal pay and the gender pay gap. Very often, what I find at the start of a relationship with a client is that they tell me, “We have an equal pay policy. We are okay. We don’t have a problem. We don’t have a gender pay gap because we apply equal pay for equal work.” That is brilliant and fantastic. I applaud you for having that equal pay policy in place. It’s certainly a foundation step to closing your gender pay gap. However, the fact that you have an equal pay policy does not mean that you don’t also have a gender pay gap because the two are quite different and measuring different things. That’s what we are going to explore. We are going to take a look and dive deeper into what we mean by equal pay. We are also going to explore what we mean by the gender pay gap and how the two are related.

That’s a very quick plug for that. If you want to send people, it’s £3,000 per person but as I said, the door is closed on the 25th of June 2021 so you do need to get in touch very quickly.

And very briefly about the program itself: it follows a structured format running over 24 weeks and we will explore key principles of authentic leadership, negotiation skills, communication skills and emotional intelligence. It’s blended learning so it includes an element of one-to-one coaching with each individual participant as well as group work and some online resources. Do get in touch.

Email me if you would like to talk about sending somebody on that course.

What Is Equal Pay?

Let’s get back then to equal pay and the gender pay gap. What’s the difference between the two and how do they relate to each other? Equal pay is the right for men and women to be paid the same by their employer for doing equal work. If you’ve got an equal pay policy, then that’s fantastic. It’s very much a foundation for closing that gender pay gap because you can have equal pay and have a gender pay gap. Barbara Castle was the Labour and Employment Minister who introduced the Equal Pay Bill back in 1970, though it didn’t come into force until 1975 – on the same day as the Sex Discrimination Act.

Why tech companies need to understand the difference between equal pay and the gender pay gap

When we talk about equal pay, it applies to pay, salary, and all the other terms and conditions of employment including your pension, working hours, the annual leave allowance, holiday pay, overtime pay, redundancy pay, sick pay and performance-related pay. For example, if there’s a bonus in the employment contract as well as other benefits such as gym membership or a company car, equal pay is a legal obligation. The original Equal Pay Act came in 1970 but the Equal Pay law is now covered by the Equality Act of 2010 and the Equality and Human Rights Commission’s Statutory Code of Practice on Equal Pay.

Let’s think about who has a right to equal pay, what that means, when might differences be allowed, and then how does that relate to the gender pay gap? Let’s start by thinking about who has a right to equal pay in the UK. In fact, it’s all employees, workers, apprentices and agency workers. It’s applicable regardless of, whether somebody works full-time, part-time if they are on a temporary or permanent contract. It also applies to self-employed people who had to personally do the work.

CGP 1 | Gender Pay Gap
Gender Pay Gap: It’s important that you understand why you have a gender pay gap so that you can do something about it.

When we are looking at the equal pay law, equal work means like-work where the job and the skills are the same or similar but it can also apply to work rated as equivalent. That’s usually done using a fair job evaluation and it could be rated as equivalent because it’s the level of skill, the responsibility and the effort needed to do the work. We also have work of equal value so work that is not similar but it is of equal value and that might be because of the skill and training required, the responsibility or the demands of the working conditions. Two different jobs can be classed as equal work even if the roles themselves are completely different.

When are differences allowed? There are occasions when you might be allowed by law to pay somebody differently than someone of the opposite sex who does similar work. You can do this if that person is better qualified. If their skills are crucial to the job and they are hard to recruit. You can also do that. I pay them more depending on where they are located. For example, if your staff is based in London where the cost of living is higher, you might pay those staff more than you pay staff who perhaps based in Plymouth. You can also pay somebody differently if they do night shifts and the employer can prove that they can only cover those night shifts by paying staff more. Those are when the differences can be allowed for equal pay.

If you don’t do anything about gender pay gap, it’s likely that you’ve failed to attract the best talent out there.

There was a European Court ruling against Tesco. The female workers at Tesco who worked on the shop floor argued that they fail to receive equal pay for work of equal value when they compare themselves to the workers in a different location in the warehouses in the distribution centres, and this follows on from a ruling from the Supreme Court back in March 2021, that workers on the shop floor Aster could compare themselves with employees or workers in their work warehouses and distribution centres. You can see the people working on the shop floor are doing something quite different to the warehouses and distribution centres. However, it has been deemed that those two different jobs are of equal value and therefore, those workers should receive equal pay. That’s likely to be quite an expensive ruling for both Aster and Tesco.

The Gender Pay Gap

Let’s move on then and think about the gender pay gap. The gender pay gap relates to the shape of your workforce and the difference in average earnings between women and men. There are lots of reasons why you might have an equal pay policy and have a gender pay gap. For example, if you’ve got lots of women who are on predominantly lower grades or working in less well-paying parts of the business if women tend to leave before promotion, if you’ve got lots of men in the more senior roles or if a high number of your female workforce only work part-time, the gender pay gap in itself is not unlawful.

You must understand why you have a gender pay gap so that you can do something about it and you can protect your reputation as somebody else decides that you should be doing something about it. It’s not only your reputational damage that is at risk. If you don’t do anything about your gender pay gap or you don’t even understand, whether or not you have one and what the causes are, then it’s likely to be that you’ve failed to attract the best talent out there. You will find that your attrition rates are much higher than they ought to be. If you are producing diverse products and services for a diverse audience, then you should be having a diverse and inclusive team working on those products and services.

CGP 1 | Gender Pay Gap
Gender Pay Gap: If you’re producing diverse products and services for a diverse audience, you should be having a diverse and inclusive team working on those products and services.

There are financial or business benefits as well. Companies in the top quarter for gender diversity are 15% more likely to outperform industry medians. A study by Morgan Stanley showed that when you have a better balance or more even balance of men and women in the workforce, those organizations delivered better returns and were less volatile. The more diverse your team, the better it is for profitability. When it comes to the technology sector, in particular, we know that around 78% of large organizations do have a gender pay gap. In fact, when we look at smaller businesses, their gender pay gap appears to be larger. There are lots of reasons for this. We know for a start that fewer women come into technology than into other sectors but there are other reasons that you might be having a gender pay gap as well.

Questions About The Gender Pay Gap You Should Be Asking Your Organisation

Let’s explore some of the questions that you can ask yourself so you can start to understand your gender pay gap, why you have a gender pay gap, and therefore, what can you do about it? The first question to think about is, “Do people get stuck at certain levels?” You can do this by looking at your quarterly breakdowns. Look at the percentage of women versus men in the top quarter, in the upper-middle quarter, your bottom middle and your lower quarter. What we sometimes see in some organisations is that the split between men and women is pretty even in the bottom-middle and the lower quarter and it’s much more out of balance in that upper-middle and top quarter. Look at your quarters and breakdowns of talent, men versus women. Does it look like perhaps women are only getting to a certain stage in your organization and then quitting?

The next thing for you to look at is the gender imbalance in promotions. If you have several men and women in a certain grade or role, start by looking at the proportion of men versus women in that given grade or role. What would you expect to see is that when it comes to applying for promotion, the proportion of men and women applying matches the proportion of people in that grade and then you need to start looking at, “If I have 40% women and 60% men in that particular role, am I getting 40% women applying for promotion? Am I getting 40% women making it to the assessment stage and getting shortlisted and am I promoting 40% of women? Does the proportion of who gets to what stage match what you would expect? Is it relevant to the proportion actually working in that grade?” You can start to analyse and think about what it is because women aren’t applying for promotion or are it because they are not making it through?

You can have equal pay and have a gender pay gap.

The next question for you to think about is, “Are you more likely to recruit women into the lower-paid roles?” You would be looking at where people are coming into the organization and what roles they are being recruited into. Are you finding that your men and women are leaving at different rates, particularly looking at your more senior, higher-paid roles? Does the proportion of men and women leaving match or relate to the number of women at that grade? Are there particular aspects of your pay that differ by gender, for example, starting pay or bonuses? When it comes to starting salary, do you allow for negotiation at that starting stage? What we do know from all the research is that men tend to negotiate more often on their starting salary. Women do it less often, perhaps have less confidence about it but interestingly, if women do negotiate, they are often judged more harshly because it’s not what we are expecting of a typical female coming into a position.

The next thing to look at then is, do men and women receive different performance scores on average? You need to delve into your data, break it down by job and grade. Another thing to think about is, does it incorporate a self-assessment of performance and look at that separately?

Again, what we know from the research is that men tend to overinflate their self-assessment scores and women tend to underrate themselves. They rate themselves lower than what their manager would rate them.

CGP 1 | Gender Pay Gap
Gender Pay Gap: Companies in the top quarter for gender diversity are 15% more likely to outperform against industry medians.

Another aspect to think about are your part-time employees or your remote workers. How do you actively support them to progress in their careers? Is it a well-known thing in your organisation that if you are working part-time that you don’t get promoted? What about your remote workers? That perhaps is even more important to think about now that we are starting to see a more hybrid workplace in 2021 as we are coming out of lockdown.

The next thing to think about is, “Are you supporting both men and women to take on caring responsibilities?” This is where I would encourage you to look at the uptake of flexible working. What about shared parental leave or paternity leave? If you do an employee engagement survey, what do employees feel about taking up flexible working? Do they feel supported to do it? Do they feel supported if they work part-time? Are your staff even aware of what options are available?

The gender pay gap relates to the shape of your workforce and the difference in average earnings between women and men.

You may well have an equal pay policy but you might also have a gender pay gap for all of those different reasons that we have outlined. We know that 15% of people working in STEM in the UK are female and only 5% of leadership positions in STEM are female. The pay gap overall in the technology sector is around 19% and the bonus difference is around 41%, which is pretty big. We have looked at the difference STEM between equal pay and the gender pay gap and why you could have an equal pay policy but actually, you have a large gender pay gap. It’s not that the gender pay gap on its own is unlawful but it does make sense for you to be understanding why you have a gender pay gap so that you can do something about it.

Otherwise, you have and you also risk losing out on market share. We have looked then at the difference between equal pay and the gender pay gap. We have explored why having an equal pay policy on its own does not mean that you don’t also have a gender pay gap. It’s not that the gender pay gap is unlawful but it makes sense that you understand why you have a gender pay gap so that you can understand what’s causing it and do something about it. We know that organizations that invest in their female talent and close that gender pay gap will do better in the long-term. I will be back very soon with the next episode. I hope you have enjoyed this one. If you do want to send women to my Women in Technology Leadership Programme, please get in touch very quickly because doors close on 25th of June.

I will talk to you next time.

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About Sherry Bevan

A former Global Head of IT Service in a City law firm, my 25+ years’ leadership experience at firms such as Arthur Andersen (now Deloitte), Credit Suisse and McDermott Will & Emery gives me a first-hand understanding of the challenges faced by women in technology.

At the heart of what I do is creating clarity for women so that they get the confidence to lead in a way that amplifies their natural strengths and styles.

We all know that inclusion should be the norm and that inclusive organizations are more successful, more productive and more impactful. We feel the pressure to reduce the pay gap and improve pay transparency while maintaining company culture.

You can speed up the change by bringing in an experienced consultant, trainer and coach to help you close that gap.