Two new reports, published by PwC UK in collaboration with WiHTL and Diversity in Retail, reveal the impact of Covid-19 on gender pay gap reporting in both the retail and hospitality, travel and leisure (HTL) sectors.
More companies in the retail sector reported their gender pay gaps than the wider overall market, confirmed PwC and Diversity in Retail (DiR). Approximately 36% of retail companies reported their gender pay gaps, compared to 32% of organisations across all sectors; as at 31 May 2021. However, reporting within the HTL sector was significantly below this, at 19%, according to the findings. PwC and WiHTL attribute the disappointingly low figure on the impact of Covid-19 on HTL businesses.
LOW GENDER PAY GAPS IN RETAIL
The retail sector has consistently reported some of the lowest gender pay gaps, noted the Gender pay gap reporting in the retail industry 2020/21 study. In fact, retail companies that have reported to date saw the most progress; with one of the largest falls in pay gaps.
The low gender gaps in retail is primarily driven by the large workforces of many retailers and similarities in pay levels for the (prevalent) junior roles; which are often well balanced between men and women. The report also revealed stable median pay gaps; the gap between the “middle” male and female employees in an organisation. However, given that the majority of employers have yet to disclose, it’s important to continue to monitor the industry’s progress for the full picture to become clearer.
LACK OF PROGRESS IN HTL
A different story, however, emerged in the HTL sector. The report reveals a lack of progress in the gender pay gap figures. While average mean and median gender pay gaps in the wider market fell in 2020/21, the HTL sector actually saw an increase for the first time in three years. This could reflect the “limited movement in the most senior and junior roles”, according to the Every step can make a difference: Closing the gender pay gap in Hospitality, Travel and Leisure report. The pay gaps continue to highlight the fact there are far more men than women in the best paid senior and technical roles; and far more women in lower paid jobs across the HTL sector.
The average HTL company that reported by 31 May had 61% males in the highest paid 25% of their workforce; compared to 54% females in the lowest paid 25%. Besides contributing to pay inequalities, this distribution means that female jobs are much more likely to be casual; and vulnerable to reactionary business decisions (such as furlough) than male roles.
ADDRESSING INEQUALITIES
“Every step, however small, can contribute to making a significant difference in closing pay inequalities and advancing the broader diversity and inclusion agenda in HTL and retail,” stated Tea Colaianni, Founder & Chair at WiHTL and Diversity in Retail. “It is crucially important to continue to focus on transparency, reporting and meaningful action to address some of the inequalities that existed prior to the pandemic and have been exacerbated since.”
Adding to her comments Alastair Woods, Human Resource Consulting Partner at PwC UK, said: “It’s important to remember that reporting deadlines were extended this year. The gender pay gap data and the story it tells may change by the October reporting deadline. However, these emerging trends show the diverging way different industries – and people – may have been impacted by Covid. Once pandemic-related challenges abate, there will be a heightened focus on the Environmental, Social and Governance agenda. Inclusion and diversity will be an ever more pressing priority for many employers; and the gender pay gap is an important indicator of progress.”
TAKING MEANINGFUL ACTION
Both interim reports reveal how companies in retail and HTL are responding to the gender pay gap; and provide guidance on how to close the gender pay gap. This includes focusing on recruitment and attraction, retention and development, internal progression, celebration and recognition. They also recommend that companies in these industries consider the following:
- If you are yet to disclose results as of April 2020, when do you plan to do so? Have you considered a joint 2020 & 2021 report to present the full picture on pay gaps?
- If you did not disclose as of April 2019, will you do so voluntarily as part of April 2020 and/or 2021 reporting?
- Are you monitoring the impact of other reporting requirements globally? For example, will you be impacted by the proposals for similar regulation in the Republic of Ireland?
- Have you calculated or considered the impact of COVID-19 (for example, employees furloughed in April) on your reporting numbers? How will you communicate this impact?
- Have you considered reporting on diversity more widely than gender? If and when this is required, will you have the data available given the prevalence of disconnected workers in retail/HTL?
Click here for more information about Every step can make a difference: Closing the gender pay gap in Hospitality, Travel and Leisure report and here for details on Gender pay gap reporting in the retail industry 2020/21 study.
Despite a turbulent year, the HTL sector has made some diversity and inclusion progress this year. Click here to read more.
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