Despite 40 years of legislation aimed at closing the gap between male and female earnings, disparities still exist – and Women and Equalities minister Maria Miller says it is now time for Britain’s biggest companies to make increased efforts to resolve the issue. Speaking at a breakfast summit at 11 Downing Street, Miller told a room of FTSE 250 representatives that they were at risk of under-utilising the skills of women: a mistake that was sure to damage their businesses.
“It is simply not right that women’s skills are being overlooked,” she argued. “As we continue the economic recovery we cannot afford to ignore the huge additional contribution that women could make.”
A TUC report from November 2012 revealed that on average, men earn £5,000 more than women – with that gap widening to £16,000 in some professions, such as health care. Additionally, an October 2012 report from the Cranfield School of Management showed that, despite the proportion of women in FTSE 100 boardrooms rising slightly to 18%, there is still some way to go before the UK meets its target of 25%.
Making her address on Equal Pay Day, the Basingstoke MP produced a three-point action plan that she believes will help women towards greater success at work.
1. Government departments and companies should publish details of the pay gap between men and women and actively develop the progress of female workers through the various tiers of management by signing up to the government’s progress initiative Think, Act, Report.
2. CEOs should commit greater personal leadership and engagement to drive change – for example, by setting up women’s networks, or sponsoring talented women within their organisations.
3. Supply chains should be educated on the benefits of incorporating diversity into their businesses.
Miller added: “The government is playing its part by introducing flexible working and shared parental leave, and providing a new tax break for childcare costs for working families – but we cannot act alone. That’s why I am calling on business leaders today to personally commit to help sweep away the barriers that stop women reaching their full potential.”
The gathering was co-hosted by the Chancellor George Osborne, who pointed to the development of female professionals in the workplace as essential for both business and government. “Backing women has, and will always be, at the heart of the government’s approach to economic growth,” he said. “We’re introducing better flexible working; we’ve recently announced £1 million to help tackle pregnancy discrimination in the workplace; we set up the Women’s Business Council; and Tax-Free Childcare will help working families with the cost of childcare across the country.”
Osborne added: “Women are vital to the success of UK businesses. But as we continue down the road to economic recovery, there is still more to do. Harnessing the talent of woman in the workplace today will ensure that UK businesses reap the benefits of this in the future. Forward-thinking businesses know this, and are already ahead of the game in taking action and recognising the business benefits. It’s time others joined them.”
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