Gender Pay Gap A Serious Issue, New Statistics From U.K. Show Harsh Reality

In HSBC Bank Plc., an average female employee makes 59 percent less than male counterparts. While at Goldman Sachs International, women earn 55 percent less than men.

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The world has been discussing the concerns regarding gender equality and feminism. People have been raising their voices for equal treatment, rights, and opportunities to both, men and women. Various statistics, incidents, and researches showed that the world is too far from achieving the equality in different fields. One of the major issues in the world is gender pay gap. Victims of this issue have raised their voice against the culture of discrimination in many companies around the world. Surprisingly, they are giant companies having global presence. Although these companies deny having such culture, a sad reality of pay gap still exists in some of the companies.

“You can whittle the pay gap down when you control for more and more variables,” said Henry Farber, an economics professor at Princeton University. “But you can never make it go away.”

The U.K. has forced companies to state their pay gaps without any whittle. All the businesses having more than 250 employees in the U.K. must report pay gap between their male and female employees. Around 9,000 firms with 15 million employees need to report the pay gap. Out of those, two-third of firms have already done that. The pay gap revealed some shocking facts.

In HSBC Bank Plc., an average female employee makes 59 percent less than male counterparts. More than half of the total workforce of the bank (54 percent) is female. However, most of them are at lower paying scale and lower positions. Only 23 percent of its senior executives are female. At Goldman Sachs International, women earn 55 percent less than men. On the other hand, this figure is 48 percent at Barclays Plc., while, it is 43 percent at Deloitte. Outside the finance sector, the gap is not too wide. Female employees at BP Plc. earn 23 percent less as compared to men. The figure is 14 percent at 3M Co. and 11 percent at Amnesty International. The gap at these two companies is less than the average of the U.K. According to the statistics of the Office for National Statistics, a national average pay gap is 17.4 percent.

Most companies analyzed and presented the statistics on gender pay gap for the first time. However, these figures do not tell whether male and female employees with the same positions at a specific company are paid equally. But these statistics show that careers of working women proceed slower than men.

“If men are doing all the top jobs and the women are making the tea, then there’s something wrong,” said Vince Cable, leader of the U.K. Liberal Democrat party, which led the law’s passage. “The gap is actually a lot worse than I think anybody anticipated.”

The statistics released in the reports of companies in the U.K. also showed that the global society is structured for men to hold certain types of jobs and women to hold others. There is around 18 percent pay gap in the U.K. However, the issue of pay gap is not restricted to the U.K., it is a global issue. The restructuring of firms and business models are required to close the gender pay gap. The same opportunities, advancements, and treatments need to be given to female employees as male employees.

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