The realities of the gender pay gap are well known and well documented, nationally and internationally. It’s recognised that often women are not paid as much as men for the same or similar roles, with plenty of reasons put forward around why this is the case. While many employers in the actuarial and financial services market are trying to find ways to rebalance this, there is still a long way to go.
Hayley Dunbar, Business Director, International Actuarial for Emerald Group, has a first-hand view of how the market is evolving to embrace equity. We spoke to her about what employers, employees and prospective employees can do to ensure that individuals get a fair salary for the work that they’re doing, regardless of gender.
Hayley’s extensive recruitment experience has highlighted three essential elements that will ultimately contribute to the end of the gender pay gap, “Addressing the gender pay gap requires a shift in thinking, transparency in information sharing and a collaborative effort to drive equity. First, we need to approach this from the goal of bringing women’s salaries up to meet men’s salaries. This is not about men earning less. Once this principle is accepted, the steps needed to make the gap smaller become easier to put in place.”
Candid Candidates
Information sharing and transparency are also vital to reducing pay disparity. Hayley explains that there are complex factors involved that make this challenging to address, “We definitely need greater transparency around salaries but there are a whole range of reasons why this doesn’t currently happen. For example, there are clear patterns around what candidates feel comfortable sharing. In my experience, men are more likely than women to want to reveal current salaries to recruiters or prospective clients. While this diminishes as candidates reach levels of experience or seniority, it can be a real barrier to equality.”
The pay gap is definitely wider in more junior roles. Hayley explains, “When we see women reach a senior role within a fairly male dominated industry like the financial services and actuarial sector, we usually see the pay gap lessen. These women are often skilled negotiators and have fought their corner for this equality. When they are near the top of the tree, they are proud of what they are earning and are comfortable disclosing it.”
Clearly the balance of pay needs to filter through the entire workforce, but how can this be addressed when candidates are reluctant to reveal their salaries? “If a candidate really doesn’t want to disclose what they’re earning, then at Emerald Group we respect that and don’t put them under unnecessary pressure: it’s a very personal decision,” Hayley continues. “Nevertheless, we always have a conversation about the impact of this. If they are the only applicant that won’t reveal their salary or give a range, they may put themselves at a disadvantage. Clients don’t want to go down a long interview process with no idea of whether or not they can afford that candidate. Representing a candidate that doesn’t want to share this information is challenging but our strong client relationships mean that we can highlight why a candidate should be considered and how they compare to other applicants, alongside discussion of salary aspirations where possible.”
Client Clarity
Emerald Group consultants also advise clients across the financial services sector about their role in addressing the gender pay gap. A challenging concept for many clients centres around how team members would feel if everyone suddenly knew what everyone else was paid. Some clients are proactively addressing this by giving team members identical base salaries then having differentiation in bonuses or other variables, but this is still fairly rare. It can feel like a brave step but this approach has some clear advantages around transparency and equity, particularly when advertising new roles.
Hayley has consistent advice for her clients, “I always suggest that clients should be as transparent as they can about salaries, especially with their recruiter. We can then find the best candidate for the right role, for the right salary. It works both ways. If a hiring company is not transparent, then we can’t expect candidates to be transparent. You’re more likely to get honesty on salaries and expectations if you allow recruiters to advertise a role with clear salary expectations. Sometimes clients don’t want to have figures in writing or in the public domain. As long as we have the correct information, we can screen candidates based on salary expectations, maintaining confidentiality while still advising both parties.”
Internal Influence
What about current employees? Hayley feels they also have a pivotal role in addressing the gender pay gap, creating a collaborative voice around the drive for equity. “Performance reviews and promotions are really good moments for negotiation around salary, and can be better leverage for pay rises than moving to a new role elsewhere. I’d always recommend looking at sector information to see if your rewards are fair. There’s a lot more transparency around salaries and benefits now, from published salary surveys to online resources about benefits and sector-specific publications that highlight ways of working and flexibility standards. Do some research, then have a chat to your manager about your rewards to ensure your remuneration is keeping pace with the market. Most companies will seek to retain a valued employee. And if you do feel undervalued, have a chat with a trusted recruiter. At Emerald Group, we have oversight of a lot of companies, roles and salary ranges, so we can help you understand whether your demands are realistic or not.”
What does the future hold?
There’s clearly still a journey ahead to reach gender pay equality. In the US, it’s illegal for an employer to ask prospective candidates about current earnings. There will no doubt be a political discussion in the UK and other countries around whether similar legislation is needed at some point in the future. In the meantime, it’s incumbent on everyone to keep pushing for change. Hayley concludes, “Conversations need to continue between clients, candidates, employees and recruiters. Transparency is clearly key: while we understand and respect preferences for confidentiality, working in a secretive environment inevitably wastes time, can cause dissatisfaction and isn’t productive. Until we resolve such issues, recruiters can be effective and trusted confidantes for all sides.”
Emerald Group recruitment consultants use their marketing knowledge and experience to place the right candidates in the best roles. If you’re looking for a new job, a new team member or even a career in recruitment, Emerald Group can help. For the best recruitment solutions in the actuarial and financial services sectors, call us on +44 (0)207 283 2520.
The Emerald Group
Industry Leading Recruitment Expertise
for the Actuarial and Financial Services Sector