The problem of the gender pay gap has been prevalent for too long. The government seems to share this view, as this year, a requirement for companies with more than 250 employees to publish their pay gap data was issued.
As companies began to submit their data, The Law Society Gazette observed that some of the first companies to do so were law firms. With the expertise of accident at work claim specialist True Solicitors, we explore further.
Data published
The deadline was outlined as 4th April 2018. The results can be accessed here. Though it came as no surprise that the pay gap was still prevalent, the sheer scale of difference between men and women’s pay across businesses was quite alarming. The Independent reported on Ryanair’s revelation that women are paid 67% less in their company for example.
The pay gap in law
The law sector showed the gender pay gap affected them as with any industry, though to an apparently lesser degree. A law firm in South Yorkshire reported that the women in their workplace earned a 15.9% less median hourly rate compared to their male counterparts. However, a London-based law firm saw their women’s median hourly rate at 37.4% lower than men’s.
But how do law workers feel about the issue? The Law Society conducted the largest international survey of women in law in 2018, with 7,781 participants. The study found that while 60% were aware of a pay gap problem in their workplace, only 16% reported seeing anything being actively done about it. 74% of men said there was progress regarding the difference in pay between the genders, but only 48% of women agreed with that statement.
The gap
To find the cause of the gender pay gap, we need to look closer at workplace-level. Is it a difference in bonuses, or are higher job positions less readily available for women? Looking at the same data previously referred to, the South Yorkshire law firm reported that women’s median bonus pay was 20% lower than men’s. The London-based firm noted a 40% lower median bonus pay for women compared to men. It clear that bonuses are also suffering from the same gender discrimination as standard wages.
If bonuses are skewed in favour of men, then are role opportunities also problematic? In terms of job roles, The Law Society’s survey showed 49% of law workers believe that an unacceptable work/life balance is needed to reach senior roles and is to blame for the gender pay gap, so it is feasible that starting a family is deemed a disadvantage for women. The Balance Careers notes the difference in perception too — if a man starts a family, it is a note in his favour, showing stability and reliability. But for a woman, having children brings an unfair stigma of unreliability, that they may put their family first. This can cause discrimination when aiming for higher roles within the firm, such as partner positions.
Partner status pay
But the pay gap remains for women who do end up earning partner status. In fact, according to The Financial Times, female partners in London-based law firms earn on average 24% less compensation than men. 34% of women earn less than £250,000, where 15% of men earn less than £250,000.
How firms can start to close the gap
Where should companies begin in order to resolve the issue? The BBC offered a variety of suggestions for businesses in general in order to close the gender pay gap. These suggestions include:
- Better, balanced paternity leave — allowing fathers to take paternity leave, or having a shared parental leave, would allow mothers to return to work earlier.
- Childcare support — childcare is expensive! Support for childcare expenses would help both men and women in the workplace.
- Allowing parents to work from home — the ability to work from home while raising a family would open up additional opportunities for women to balance both a career and a family.
- A pay raise for female workers — a simple solution, but a pay raise for women can quickly equalise the pay rate between men and women.
Sources:
http://www.lawsociety.org.uk/news/press-releases/largest-ever-survey-on-gender-equality-in-legal-profession/
https://www.lawgazette.co.uk/practice/handful-of-law-firms-among-first-batch-to-report-gender-pay-gap/5064238.article
https://www.thebalancecareers.com/understanding-the-gender-wage-gap-in-the-legal-profession-4000621
https://www.ft.com/content/6f022ee4-02cb-11e8-9650-9c0ad2d7c5b5
http://www.lawsociety.org.uk/news/documents/law-society-women-in-law-infographic/
https://www.bbc.co.uk/news/uk-37164297
https://gender-pay-gap.service.gov.uk/
https://gender-pay-gap.service.gov.uk/viewing/employer-%2c78LQ34kFQ8r4tpuT3hGIHA!!/report-2017
https://gender-pay-gap.service.gov.uk/viewing/employer-%2ctB1kULyUMSK8gge-4wiMGw!!/report-2017
https://www.independent.co.uk/news/business/gender-pay-gap-live-updates-deadline-midnight-men-women-salary-report-uk-business-numbers-a8288161.html