According to new research by job site, Glassdoor, 65 per cent of women would not apply for a job at a company where “men and women are not equally paid for equal work”.
This comes on the back of the impending introduction of new rules whereby companies with over 250 staff are required to publish gender pay differences. Although, there are some who are concerned that the lack of public understanding regarding the difference in equal pay and gender inequality will confuse the two.
The poll of 2,000 workers last month shows a strong support for greater transparency around pay with two thirds (65 per cent) believing that employers who choose to embrace equal pay transparency will help to eliminate the gender pay gap.
Speaking about the results, Andrew Chamberlain, Glassdoor’s chief economist, said:
“The gender pay gap is set to be a major issue in the UK this year, not least because employers are grappling with the challenge of how to analyse their own data and there is a relatively low level of understanding amongst the workforce about what causes the gap.
“Both male and female employees want more transparency around pay, and companies that offer this will have the advantage when it comes to recruiting.”
He added: “Simple gender pay gap reporting doesn’t give any real insight unless people know what the causes of the gap are or if men and women are paid equally for equal work.
“We know that men and women can be paid differently for doing the same job, both in the UK and other countries too.”
According to an analysis of Glassdoor user data, uploaded anonymously by 22,500 employees in the UK, the gender pay gap is 22.9 per cent, with women earning 77.1 pence for every pound earned by men.
Glassdoor then analysed the data to provide statistical controls for differences in age, education, experience, industry, company and job title and found women to be paid 5.5 percent less than men.
Mark Crail, head of salary surveys at XpertHR, said:
“In almost every organisation, most if not all of the gender pay gap can be explained by structural differences in employment, some of which are beyond the control of an individual employer, rather than by equal pay issues. But that is not going to be the first thing that springs to mind for an employee who comes across their employer’s gender pay gap data.”
Our advice is to study your internal data well before publishing it. Sometimes the numbers can be misleading and are often explainable with simple controls attached. Alternatively, if you do see an unexplained gender pay gap within your organisation, now is the time to do something about it.
According to a recent study by totallymoney.com, Brits are working more overtime than ever and it’s mostly unpaid.
The study, run by OnePoll, surveyed over 2,000 workers in February 2017, across all sectors and the results were surprising. On average, British workers are putting in 8.4 hours of overtime each week, adding up to 68 days of unpaid work a year.
The study found that 64% of respondents weren’t paid for their overtime hours, and only 13% did overtime for the love of the job.
The region you work in also plays a big part in how much overtime you do and whether you are paid for the privilege. Londoners put the most overtime hours in (9.6) closely followed by workers in the West Midlands (9.2) and East Anglia (8.5). Those in the East Midlands do the most unpaid overtime (71%), while workers in the West Midlands are the most likely to be paid for their endeavours (47%).
The study also found that:
Gender pay gap
The results of the study revealed yet more evidence of the gender pay gap with 43% of men receiving pay for overtime, compared to just 30% of women.
Almost a quarter of women surveyed (24%) said they felt pressured into working the extra hours to progress in their career as opposed to 11% of men. And that doesn’t just extend to the office, 24% of women admitted to working while on holiday compared to just 13% of men.
For more information about the survey or to discuss any issues this may have raised in your business contact Opsium today.
Increase in employee compensation limits and awards
From 6 April 2017, the compensation limits on Employment Tribunal awards and certain other amounts payable under UK employment legislation will increase.
The changes, set out in the Employment Rights (Increase of Limits) Order 2017 SI 2017/175, include:
Alongside these changes will be increases to the National Living Wage, Minimum Wage, Statutory Sick Pay and family friendly statutory pay, these include:
What does this mean for employers?
The changes relating to redundancy and unfair dismissal payments will take effect on the 6th April and apply only to dismissals that occur on that date or following. It is important to take note that:
If you’re unsure about any of these changes and how they may affect your business please contact us on 0161 603 2156.
According to research conducted by City and Guilds skills group, a third of eligible employers are unaware of the Apprenticeship Levy despite it being introduced in April this year.
The survey of more than 500 organisations has produced some surprising results with only 33% feeling they had received enough information about the scheme; 28% were unsure how it would affect their business while 15% thought they would have to cut recruitment costs to cover the additional cost. Only 31% expected to hire more apprentices because of the Levy.
Kirsty Donnelly, managing director of City and Guilds, hit the nail on the head when she said:
‘We still have a mountain to climb in convincing people about the benefits apprentices can bring to businesses.’
If that observation blew your mind just wait until you read her book – ‘The grass is green, the sky is blue’.
According to the survey, 47% felt the Levy was a good way to encourage employers to pay for training, 43% felt it gave them more control and 34% believed it would improve the quality of apprentices.
We don’t need no education
A spokesperson for the Department for Education said:
‘Employers are at the heart of our apprenticeship reforms and have been working with us since 2013 to create the apprenticeship standards and ensure they are high quality and deliver the skills that they need.
‘We have also published a detailed levy guide for employers and an online calculator that enables them to understand how much levy they will pay and how they could use their digital funds to pay for training in future.’
The Apprenticeship Levy requires businesses with an annual wage bill of £3million or higher to pay a 0.5% fee into a digital apprenticeship fund which smaller businesses can draw from to fund their own apprenticeship schemes.
The Levy will be launched in April 2017. For more information about the scheme please contact Opsium Employer Support on 0161 603 2156 or email email@example.com
The tale of 5,000 CVs and boredom
The economic research arm of Glassdoor reviewed 5,000 CVs submitted to the job site to determine why employees are rushing for the door as opposed to carving out long and fruitful careers with one firm.
The report doesn’t tell you anything you don’t already know, but it’s nice to confirm it in writing. Career advancement, employer culture and values and decent pay are the top reasons why employees stay with companies and with employee turnover costing on average 21 per cent of an employee’s annual salary it’s a pricey lesson to learn.
Surprisingly, factors such as work-life balance, senior management and the quality of benefits and compensation have no statistical effect on employee turnover.
The study revealed that a strong brand is enough to not only draw in new applicants but also retain existing employees.
A one-star increase in an overall five-star review will see a four per cent increase in the likelihood an employee will stay with an employer. It also confirmed that a one-star increase in career opportunities and culture and value will see a five percent increase in staying with a company.
Pay to stay
While a pay increase is a nice to have, apparently it’s not a necessity. The study revealed that a 10 per cent increase in base pay would increase the odds of an employee staying by only 1.5 per cent.
Turns out money doesn’t buy happiness, good reviews do!
Growing roots can be toxic
In the past, the idea of a person staying in a job for 20+ years was commonplace; nowadays the average worker stays in one role for 15 months with only slight differences per sector. For example, workers in Government roles tend to stay on average 18.6 months compared to 10.6 months for construction, repair and maintenance.
Employees that stagnate in a role for too long run the risk of developing a wandering eye. For every additional 10 months that an employee does this, the risk of them leaving increases by one per cent.
For more information and to understand the full methodology to the study please visit Why Do Workers Quit?
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