Making meaningful progress on the Gender Pay Gap
Gender Pay Gap (GPG) reporting was introduced in the UK in 2017 and the initial hope was for rapid progress. However, as we write this in 2025, the latest figures still reveal persistent disparities. While some organisations have made commendable strides, many continue to publish pay gaps exceeding 13.1% on average across all industries, with sectors like financial and insurance activities reporting alarming gaps as high as 29.8%. Such statistics remain unacceptable and highlight the urgent need for systemic change.
The path to improvement is clear but requires deliberate effort. Organisations must approach pay equity with the same rigour as any critical change programme. For example, a workplace accident rate of 13.1% would prompt immediate and substantial investment to address the issue. Yet, when it comes to GPG, we still encounter excuses such as a lack of women in the market or half-hearted initiatives like women’s development programmes that fail to tackle root causes.
It doesn’t have to stay this way
By adopting a holistic and comprehensive strategy, organisations can make tangible progress. The journey begins with examining the entire employee lifecycle, starting with job design. Identifying and dismantling barriers to inclusivity is critical for recruiting diverse talent. For instance, reviewing language and tone in job advertisements and targeting diverse channels can help attract female candidates. However, these efforts will only succeed if backed by a workplace culture that embraces diversity and supports retention.
Not just a women’s issue
It’s equally important to move beyond viewing the gender pay gap as a singular “female issue.” Women bring diverse experiences and identities—some may be from different cultural backgrounds, some may have disabilities, some may identify as LGBTQ+, and others may have caregiving responsibilities. A one-size-fits-all approach is insufficient and will only address a fraction of the problem. This multi-dimensional perspective will become increasingly crucial as Ethnicity Pay Gap reporting becomes mandatory, amplifying the need for intersectional strategies.
Key initiatives to address the gender pay gap include revisiting maternity policies, adopting flexible working arrangements, and extending support to women experiencing menopause. However, true progress requires a deeper examination of internal processes. Few organisations evaluate the equality impact of performance management, change management, succession planning, or absence management. Those that do often uncover biases that hinder women’s ability to thrive and be recognised at work.
Money talks
Remarkably, this discussion has yet to touch on pay or reward mechanisms. Structural issues like service-based pay increments, still common in the public sector, disproportionately disadvantage women due to career breaks or part-time work. Performance-related pay also tends to favour men, who are statistically more likely to self-promote and secure rewards. Bonuses, often reserved for senior roles, further exacerbate disparities. Inclusion demands rethinking bonus structures—every employee contributes to an organisation’s success, and recognition should reflect that.
The 2024 figures highlight notable industry-specific gaps. For instance, the financial and insurance sector’s 29.8% gap demonstrates the entrenched challenges in traditionally male-dominated industries. Similarly, professional, scientific, and technical activities report a gap of 20.1%, while education and health and social work show significant disparities at 17.2% and 11.2%, respectively. Conversely, some sectors such as accommodation and food services (2.1%) and transportation and storage (4.7%) report relatively smaller gaps, though part-time workers in these industries face unique challenges.
GPG data, while essential, does not paint the full picture. Some organisations with predominantly male workforces report low pay gaps due to limited comparators, while others with large gaps may be actively driving meaningful change in traditionally male-dominated industries. The common denominator for success is prioritising inclusion. By treating it as a strategic imperative, organisations can unlock talent, innovation, profitability, and long-term workforce stability.
How to succeed
Organisations must start by understanding their current state beyond mere numbers. A comprehensive gender pay gap review—engaging stakeholders across genders—can provide invaluable insights and lay the groundwork for transformative action. Investing in a well-structured change programme will not only enhance equity but also position businesses as leaders in their industries.
The Clear Company’s Pay Gap Audit leverages over two decades of expertise in Diversity, Equity, and Inclusion (DEI). Our tailored research and practical solutions deliver measurable, lasting change, supported by cutting-edge tools and resources. Contact us to discuss how we can support your journey towards a more inclusive workplace.
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