The gender pay gap reporting standards will soon be in force and upon all large businesses… the ICAEW is pushing for directors to address how they really measure diversity and inclusion with a view to rectifying the gender pay gap, once and for all.
A study has been done specifically on the accounting industry and while the pay gap is at an all time low, it is widening in the wages of Chartered Accountants working in business.
See below stats taken from the ICAEW’s own blog on the subject:
“While the gender pay gap is at a historic low (Office for National Statistics: 9.4%), the pay gap is widening among ICAEW Chartered Accountants working in business. Male chartered accountants in business earn an average salary of £100.9k compared to females who earn an average of £63.9k, a gap which has increased by 5.4% since 2014
Women over 45 saw their salaries drop by £6.5k from last year, despite men in the same age category increasing by £4.2k. The pay gap is narrowest among chartered accountants under 30, who also enjoyed a slight pay rise from last year.
The gender pay gap remains partly due to demographics and working situations of men and women. Men are more likely to work in senior roles, the private sector and in regions where salaries are typically higher. Women are more likely to work part-time and in public or not-for-profit organisations where salaries are typically lower.*
But the gender gap persists when comparing men and women who work part-time. Female chartered accountants earn an average of £44.1k (with a bonus of £2.1k) with their male counterparts earning £75.8k (with a £8.8k bonus). Average earnings for part-time female chartered accountants fell by £4k from last year. They also fell for men by £9.8k.
New measures will be introduced in 12 months’ time, where organisations of more than 250 employees will have to report gender pay differences annually or face a fine.”
In June this year PwC and Deloitte reported a 13-15% pay gap in favour of men, and the bonus gap was over double that at the former. PwC’s head of people, Laura Hinton, said that a big reason for this was that more men occupy the most senior roles at the firm - a statistic they are keen to balance.
It’s a reputational risk to have a notable pay-gap, expect promotions in the city over the coming months!