It’s time to mind the gap

Legislation is only the first step towards closing the gender pay gap, writes Helen Bradley

ON January 1, Iceland became the first country in the world to legally enforce equal pay between men and women.

The legislation means that companies with 25 employees or more will have to prove their male staff are not paid more than women by obtaining official government certification of their equal pay policies.

Iceland has been ranked by the World Economic Forum as the world’s most gender-equal country for the past nine years, and the change in law is part of a move to completely close the gender pay gap by 2022.

It’s important to understand that the gender pay gap is different to equal pay. It measures the difference in average earnings between men and women. It therefore provides an indication of the extent to which the types of jobs women are working are impacting on their earning potential.

So what else is Iceland doing better than us?

Other than enforcing equal pay legislation on businesses, many schools in Iceland take an active approach to teaching girls from a very young age that they can be just as physically strong and successful as boys.

And since as far back as the year 2000, parental leave legislation in the country means that every new parent, regardless of their gender, receives three months’ paid leave with the choice of an additional three months to share. This means that the usual barriers preventing women from returning to work after having children are largely removed.

Yet, despite a world-leading approach to gender equality in schools and the workplace, a stubborn gender pay gap still persists even in a country as progressive as Iceland.

Although almost half of board members of listed companies are female and 41% of the country’s MPs are female, men still continue to dominate economic power, and on average women still earn around 14% less.

What this shows us is that the problems of a gender pay gap go far, far deeper than family commitments and unequal salaries.

Here in Wales, studies show women’s employment is concentrated in low-paid areas of the economy, and this divide extends to the Welsh Government’s nine priority sectors for supporting investment. Statistics show that in 2014, some 30% of women in work were employed in a priority sector, compared to 56% of men.

A particular issue for women in work is under-utilisation, which is when employees have skills and qualifications above those required for their current role.

Under-utilisation in Wales takes place most prominently in public administration, education, and health and social work, all sectors in which the workforce tends to be more dominated by women.

The causes of the gender pay gap are varied and complex, but if we are to take workplace equality seriously, businesses must start investing in career progression for women. We need to create a labour market that delivers for everyone and enables both women and men to reach their full potential, regardless of gender.

Chwarae Teg’s Agile Nation 2 project, which is funded by the European Social Fund and the Welsh Government, offers practical support to individual women and employers to help them make their workplaces more accessible and to improve career paths for female employees.

We have also just launched the Fairplay Employer Benchmark, which helps businesses establish a realistic action plan for achieving a balanced and equal workforce.

The UK Government has shown it is taking gender equality seriously, having introduced new regulations in April last year requiring companies with over 250 employees to publish details of their gender pay gap.

The legislation should be encouraging more businesses and organisations to be transparent about their own gender pay gaps, which will allow them to start addressing the underlying causes.

There are direct benefits to businesses to undertaking this work – understanding how to better utilise women’s skills and potential will enable employers to access the widest talent pool, plug skills gaps and ensure that their workforce better reflects their client base.

Greater transparency when it comes to pay is undoubtedly positive, and Iceland certainly sets an excellent example of showing how governments can take more direct action to enforce gender equality in the workplace.

But as Iceland’s own persistent gender pay gap also demonstrates, addressing pay will only be effective if we truly understand the wider reasons behind gender inequality within our society.

What we know for sure is that a more diverse workplace can bring endless advantages, both to businesses and to our wider economy and society.

As an organisation, we applaud Iceland for taking such a proactive approach to achieving a truly equal nation.

We look forward to a time when Wales too can lead the way for gender equality and eradicate the gender pay gap for good.

For now, though, there is still lots of work to do.

Helen Bradley communications Chwarae Teg.

Businesses looking for advice and support in improving gender equality in the workplace can get in touch by calling 029 2082 8097 or emailing fairplayemployer@ chwaraeteg.com is strategic lead at