Closing The Gap: Why The Gender Pay Gap Deserves Your Attention

Did you know that the gender pay gap in the UK still stands at nearly 15%? Despite significant progress, women continue to earn less than men across all sectors. As business leaders, it’s time we ask ourselves: why should this matter to us, and what can we do about it?

In today’s business landscape, aligning with ethical standards and societal expectations is more important than ever. One critical metric that should be at the forefront of every progressive organisation’s agenda is the gender pay gap. Understanding, measuring, and addressing this gap is essential not just for compliance but as a reflection of our commitment to fairness, inclusivity, and responsible business practices.

“As a B Corp, our commitment to ethical business practices is at the heart of everything we do. The gender pay gap is more than just a statistic—it’s a reflection of the values we uphold as a society. At Mackman Group, we believe that true leadership means creating an environment where fairness, equity, and inclusivity are not just ideals, but realities. By addressing the gender pay gap and fostering a culture of equality, we not only do what is right, but we also build a stronger, more resilient business.”
Paul Mackman, Managing Director, Mackman Group

Why Closing the Gender Pay Gap is Essential

The gender pay gap is more than just a number; it’s a reflection of deep-rooted inequalities in the workplace. The UK’s Office for National Statistics (ONS) reports that the gender pay gap among all employees in 2022 was 14.9% in favour of men. This disparity undermines the principle of equal opportunity and hampers economic growth by failing to fully utilise the talents of half the population.

For progressive businesses, closing the gender pay gap is not just a moral imperative—it’s also a business one. Research by McKinsey & Company has shown that companies with greater gender diversity are 25% more likely to outperform their peers financially. Creating a workplace where everyone, regardless of gender, has equal opportunities to thrive is key to long-term success.

“Equality and inclusivity are fundamental to the ethical foundation of Mackman Group. As a certified B Corp, we are proud to lead by example in closing the gender pay gap and ensuring that all our employees, regardless of gender, are rewarded fairly for their contributions. Our commitment to these values is unwavering, and we encourage other businesses to join us in taking meaningful action towards a more just and equitable workplace.”
Dr Gemma Mackman, Director of Research & Insight, Mackman Group

Mackman Group’s Commitment to Gender Pay Equality

At Mackman Group, we take our responsibility as an employer seriously, it’s why we are an accredited Living Wage. We are committed to creating an inclusive and equitable workplace, which is why we have signed up for the MRS Inclusion Pledge. This pledge, spearheaded by the Market Research Society (MRS), is designed to drive greater inclusivity and diversity within the market research industry, but its principles are relevant across various sectors. Our market research division, Mackman Research is a MRS Company Partner.

In addition to our commitment through the MRS Inclusion Pledge, we have taken steps to measure and address our own gender pay gap. At Mackman Group, we have calculated our gender pay gap as -12.13%. This means that, using the mean (average), women at Mackman Ltd are paid 12.13% more than men. In practical terms, this equates to women earning 112.13p for every £1 earned by a man at Mackman Ltd.

This positive pay gap reflects our commitment to ensuring that our remuneration practices support gender equity and reward our talented workforce fairly.

What is the MRS Inclusion Pledge?

The pledge includes five key commitments:

1. Educate and Upskill: Ensuring that leaders and employees are trained to recognise and combat unconscious bias.
2. Champion Diversity: Actively working to ensure that diverse voices are heard and represented in decision-making processes.
3. Create Opportunities: Offering equal opportunities for career development and advancement, with a focus on underrepresented groups.
4. Measure and Report: Regularly measuring and reporting progress on diversity and inclusion initiatives to ensure accountability.
5. Engage with the Industry: Collaborating with other organisations in the market research sector to share best practices and drive systemic change.
   

By joining this initiative, Mackman Group is not only committing to these principles but also aligning itself with other industry leaders who recognise the importance of diversity and inclusion as drivers of innovation and business success.

Other Relevant Initiatives for Addressing the Gender Pay Gap

While the MRS Inclusion Pledge is highly relevant for organisations within the market research industry, there are several other initiatives that companies from different sectors can consider:

• The Equality and Human Rights Commission’s (EHRC) Working Forward Pledge: Supports working parents and addresses gender pay gap issues linked to pregnancy and maternity rights.
• The 50:50 by 2030 Foundation: Encourages gender parity in leadership roles by the year 2030.
• The HeForShe Campaign: Invites men and boys to advocate for gender equality, including pay equity.
• The Tech Talent Charter: Promotes diversity and inclusion in tech roles, with a focus on reducing the gender pay gap.

For more information on these initiatives and to find the right fit for your organisation, visit the respective links provided.

How to Calculate the Gender Pay Gap in Your Organisation

Understanding your organisation’s gender pay gap is the first step towards addressing it. Here’s how to calculate it:

1. Gather Data: Collect payroll data for all employees, ensuring that you include bonuses and other forms of compensation.
2. Calculate the Mean Pay: Add up all the wages paid to men and divide by the number of male employees to get the average (mean) male wage. Do the same for female employees.
3. Calculate the Median Pay: Arrange all male wages in order and identify the middle value (median). Do the same for female wages.
4. Determine the Pay Gap: Subtract the average female wage from the average male wage, then divide by the average male wage and multiply by 100 to get a percentage. Repeat this process using the median figures to understand the middle of your pay distribution.

For more detailed guidance, visit the UK government’s Gender Pay Gap Reporting Overview.

Insights from Industry Leaders

Respected figures in the UK’s gender equality movement have underscored the importance of addressing the gender pay gap. Denise Wilson, CEO of the Hampton-Alexander Review, asserts, “Achieving gender balance isn’t just about doing the right thing—it’s essential for business success. Addressing the gender pay gap is a vital part of that journey.”

Ann Francke, CEO of the Chartered Management Institute (CMI), echoes this sentiment: “The gender pay gap is a sign of broader inequalities in the workplace. If we don’t tackle this issue head-on, we are failing to unlock the full potential of women in the workforce.”

Insights from CIM and CMI on Gender Pay Equality

The Chartered Institute of Marketing highlights the significant gender pay gap within the marketing industry, which stands at around 23%, especially pronounced at senior leadership levels. This disparity highlights the need for urgent action and engagement from the marketing community to address and promote gender equality actively. CIM advocates for marketers to leverage their positions and skills to initiate and support meaningful changes within their organizations. These changes could include transparent salary benchmarking, embracing flexible working conditions, and ensuring diversity in recruitment and career advancement practices.

Furthermore, the Chartered Management Institute emphasises the slow progress towards gender equality, labelling it as “glacial.” They express disappointment that despite the relaxation of mandatory gender pay gap reporting during the pandemic, companies have not made significant progress. CMI highlights the importance of this reporting not just for compliance but for ensuring fairness and maximising organisational success. They stress the need for systemic changes in how companies manage and promote gender equality, urging businesses to adopt practices that support a fair and inclusive workplace.

Why Business Leaders Must Take Action

As leaders, we have a responsibility to set the standard. Addressing the gender pay gap is not merely a matter of compliance—it’s a reflection of our values and our commitment to doing what is right. I urge all business leaders to calculate the gender pay gap within their organisations and take meaningful steps to address any disparities.

By doing so, we can collectively contribute to a fairer, more equitable society—one where everyone, regardless of gender, has the opportunity to succeed.

Next Steps

Take the first step in closing the gender pay gap today:

• Calculate Your Organisation’s Gap: Use the guidelines provided by the UK government to understand where your organisation stands.
• Sign an Appropriate Pledge: Join a growing movement of businesses committed to fairness and equality, such as the MRS Inclusion Pledge, the Women in Finance Charter, or the 50:50 by 2030 Foundation.
• Engage with Employees: Ensure that everyone in your organisation is aware of your commitment to closing the gender pay gap and how it will benefit them.

Let us all take this important step towards closing the gap and building a better future for our businesses and society.