A new report has revealed that some progress has been made towards closing the gender pay gap in the retail sector, despite the turbulence caused by the pandemic.
The study exploring the gender pay gap within the retail sector, published by Diversity in Retail (DiR) in partnership with PwC, reported falls in both the mean and median pay gap percentages; for those companies who reported in and 2020/21, as well as 2018/19 (the last ‘normal’ reporting year before the pandemic). According to the report, the mean pay gap in retail was 13.1% in 2018/19; and this year it’s 11.8%. Relative to other sectors, retail has a low pay gap and, despite a volatile couple of years, the report found it has improved.
Following the announcement of the six month delay of the gender pay gap disclosure deadline, the number of retail companies who reported for 2020/21 by 5 October was nearly 75% of the number that had reported in 2018/19, compared to nearly 80% in the wider market.
REASSURING GENDER PAY GAP PROGRESS
However some “caution” should be taken in interpreting the statistics, noted the report. Due to their large, stable workforces, “there is a tendency for retail organisations to report more consistently compared to other industries”. Such large workforces also mean a significant shift in employee numbers is required in the retail sector for the pay gap to move.
Generally speaking, retail movements this year have mirrored those in the wider market; but the retail sector saw a higher proportion of companies report a pay gap reduction between -15% and -10%. This contributed to the greater reduction in the pay gap seen in the sector when compared to the wider market this year.
“It is reassuring to see the gender pay gap in the retail sector continue to decrease, especially given it is a sector with lower pay gaps than the rest of the market,” stated PwC’s Inclusion and Diversity Consulting Senior Manager, Jason Buwanabala. “However, it is critical for companies to continue making progress and sharing narrative around reducing their gender pay gap; especially given the disproportionate impact on women of the pandemic, which saw female workers lose jobs more frequently and being more likely to take on additional childcare responsibilities.”
PLANS TO CLOSE GENDER PAY GAP
The report also highlights how retailers have responded to overcoming the gender pay gap with detailed action plans, which address the disparity in numerous ways. Updating policies, fostering inclusive cultures, prioritising flexible working and focusing on talent attraction and development are some of the shared actions seen across the published reports.
“The Diversity in Retail team analysed a multitude of gender pay gap reports from across the sector. Unfortunately not all retailers had published a narrative around their actions and their work in diversity and inclusion,” shared Tea Colaianni, Founder & Chair, Diversity in Retail shared. “While UK legislation does not currently mandate organisations to produce action plans to address gender pay gap disparities, it is inspiring to see the breadth and depth of the actions put in place by many retailers across the country who did share this. It’s clear that the retail industry as a whole recognises how important a diverse workplace is for business to both grow and attract talent.”
LOOKING AHEAD
The report also found that there are a growing number of organisations choosing to voluntarily calculate and disclose wider diversity metrics. The most common addition in the UK is the ethnicity pay gap. “It is great to see many organisations being proactive with diversity reporting beyond gender,” noted Buwanabala. “A recent 2020 paper by PwC found that in the UK the number of companies who have voluntarily disclosed their ethnicity pay gap has moved from 3% in 2018 to 10% in 2020, with around half of organisations planning to disclose within the next three years.”
Colaianni also hoped that more retailers are |reporting on wider diversity statistics including the Ethnicity Pay Gap, which can help give a deeper understanding of the challenges faced by different groups will inspire others”. “At Diversity in Retail, we believe that having a broader approach to pay gap analysis will help drive more meaningful change in pay equality, and diversity and inclusion,” she concluded.
Click here to download a copy of the report.
Compared to the retail sector, there was a disappointing lack of progress towards closing the gender pay gap in hospitality, travel and leisure. Click here to read more.
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