Women working in the UK’s financial sector receive around 80% less in performance-related pay than men, according to the Equality and Human Rights Commission (EHRC).
The commission’s Finance Sector Inquiry found that women employees earned an average of £2,875 in bonuses, compared to an average of £14,554 for men. The inquiry included a survey of 50 companies employing 22.6% of workers in the sector.
EHRC chair Trevor Phillips said that the financial sector has the potential to play a central role in Britain’s recovery, but it has to address this shocking disparity of rewards first.
"For business to thrive in the new economy it simply can’t afford to recruit and reward in the way it has done in the past. By bringing down arbitrary barriers, and changing practices that, intentionally or not, inhibit women’s success, financial firms have the chance to boost morale, bring on new talent, and maximise the potential of their existing employees."
Sarah Williams-Gardener, director of Opportunity Now, a charity which campaigns for equality for women in the workplace, said:
"Pay and reward are essential for motivating staff and engendering loyalty – ensuring equality of pay is part of being a responsible employer. Lack of progress in removing the persistent and shocking gender pay gap appears to be due to many factors including complacency, fear of costs and ignorance about the importance of looking beyond headline figures to the genuine causes."
Other findings from the inquiry revealed that 86% of women who had started their jobs in the last two-and-a-half years had lower starting salaries on average, than men starting in the same period; whilst only 23% of respondents reported that they have undertaken an equal pay audit.
