New findings have revealed a drastic pay gap in the City.
Statistics show men are earning up to 80 per cent more than women in bonuses, taken from a survey of leading companies. Last month figures were revealed of the 55 per cent pay gap, but recent findings show that men are earning up to £14,554 in bonuses, whereas women are earning substantially less with £2,875. The research was carried out by the Equality and Human Rights Commission of 44 companies.
Of all the job sectors, the financial sector is said to have the biggest pay difference which has been revealed in the wake of the recent recession, suggesting that the financial sector needs to have a rethink of way the sector is run and pay equality. Chairman for the Commission, Trevor Philips, states: ‘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.’
One reason behind this pay difference is the due to recruiting patterns meaning women are failing to attain the top jobs in the sector which have the biggest rewards. Another is that women often start out on a lower pay and are being left behind in their career.
However Equality minister Harriet Harman claims the government is using tough new measures to rectify the pay gap. The survey was commissioned by Ms Harman, and has provided an accurate picture of the banking and insurance companies.
Promisingly, one in four of the companies surveyed, agreed to undergo a pay audit to work out if they had a pay gap. Trevor Phillips welcomes this, ‘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 Gemma Parmar