Pay Gaps, Promotions, and Progress: What’s changing in Workplace Equity
Dear readers,
Although there has been some progress in closing the gender wage gap, which has been a hot topic for years, we are still a long way from achieving real equality. In the UK, women earn 7.07% less than men on average—a gap that widens to 9.1% for women over 40 (ONS, 2024). Despite efforts from businesses and policymakers, the reality is that many women still struggle to earn what they deserve.
So, what’s actually making a difference? Let’s take a look.
What’s Working?
1. Pay Transparency Laws
Since 2018, UK companies with 250+ employees have had to disclose their gender pay gap statistics. This has forced organisations to explain and resolve pay inequities, even when it does not immediately resolve them. It’s a positive step that several companies are now examining their wage structures and enacting more equitable pay practices.
2. More Flexible Working Options
For years, one of the biggest barriers to pay equality has been the “motherhood penalty”—when women taking career breaks or working part-time due to family responsibilities. However, more women can continue to work full-time jobs without compromising work-life balance because of the growth of remote and flexible work. Employers who provide equal parental leave, job-sharing, and hybrid working typically see higher retention rates for women.
3. Leadership & Mentorship Programmes
There is a clear link between pay gaps and leadership gaps. When fewer women reach senior positions, the overall pay gap remains. Companies investing in mentorship, sponsorship, and leadership development programmes are seeing more women move into higher-paying roles, helping to close the divide.
What Is Still Holding Us Back?
1. The “Women’s Work” Pay Problem
A major issue is occupational segregation—women are still overrepresented in lower-paying sectors (such as care, education, and admin) and underrepresented in high-paying industries like tech and finance. Until these sectors are more balanced, the overall pay gap won’t disappear.
2. Unconscious Bias in Pay & Promotions
Even with progress in HR policies, unconscious bias still plays a role in salary negotiations, hiring decisions, and promotions. Studies show that women are lesslikely to negotiate their salaries (Harvard University). Without active efforts to standardise salary reviews and remove bias, this gap will persist.
3. The Lack of Real Consequences
Currently, UK companies that report significant pay gaps do not face substantial penalties. In contrast to countries like Iceland, which has strict laws requiring equal pay certification, the UK’s reporting system focuses more on transparency than on enforcing compliance. Without stricter consequences in place, some businesses may lack the motivation to take action.
So, What’s Next?
While we’ve made progress, it is clear there’s still work to do. Companies need to go beyond just publishing their pay gaps—they should actively review salary structures, challenge biases, and create real pathways for women into leadership.
Closing the gender pay gap is not just the right thing to do—it makes good business sense. Companies that prioritise fair pay and diverse leadership consistently perform better, retain top talent, and build stronger workplace cultures. The future of work should be one where pay is based on skills and contribution, not gender—and it is up to businesses to make that happen.
Your Thoughts?
What do you think are the biggest barriers to pay equality? Have you seen positive changes in your workplace? Let’s start a conversation—feel free to share your thoughts by emailing ABL Recruitment!
