As UK Organizations Publish Gender Pay Gaps, Questions Arise Over Enforcement

As UK Organizations Publish Gender Pay Gaps, Questions Arise Over Enforcement

As an early April deadline draws closer, reports continue to trickle in from organizations in the UK with over 250 employees that are now required to publish their gender pay gaps under rules that came into effect last year. The full list is available for download from the UK government and the press has been busy digging through it to see what the gap looks like at large, household-name brands, as well as to identify the worst offenders. Sky News reported last week that, as expected, most of the reports so far show male employees earning more, including those of some familiar companies:

Government figures show that men are paid nearly 65% more per hour at high street fashion store Phase Eight and nearly 52% more at EasyJet. Organisations with 250 or more workers must publish their figures by April, and so far 527 firms have done so. Nearly half of the organisations pay men at least one tenth more per hour and 426 of them pay men more, on average, per hour. …

Public sector bodies that show a wide divergence in pay per hour include the Royal Orthopaedic Hospital in Birmingham (men paid 34.8% more than women), and the Office for Nuclear Regulation (32.9%). Many of the firms in the top 20 in terms of those with biggest gaps are in financial services, including Virgin Money (32.5%), PriceWaterhouseCoopers (33.1%) and asset management firm Octopus Capital (38.1%).

In addition to financial services, businesses in the construction and information and communication technology sectors are reporting some of the widest gaps, the Financial Times has also reported. They add that a scant 70 employers, or 14.6 percent of those that had released their figures as of earlier this month, reported negative pay gaps as of January 1, most of which are smaller organizations working in health care and education. Nationwide, the median gender pay gap stood at 18.4 percent for all employees and 9.1 percent among full-time employees only.

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H&M Hires First Head of Diversity After Backlash to ‘Racist’ Ad

H&M Hires First Head of Diversity After Backlash to ‘Racist’ Ad

H&M, the Swedish fast-fashion retailer, suffered a major public relations crisis last week when an advertisement depicting a black child modeling a sweatshirt with the slogan “coolest monkey in the jungle” set off a wave of violent protests at its stores in South Africa. The company quickly apologized and removed the ad from all its marketing, but the fallout has not ended: Musicians The Weeknd and G-Eazy have canceled partnerships with the company, activists have called for a global boycott, and the five-year-old model, Liam Mango, and his family have reportedly moved out of their home in Stockholm over “security concerns” after his mother was harshly criticized for defending the company over the controversy.

As part of its damage-control efforts, H&M announced on Wednesday that it had hired its first global head of diversity, the Associated Press reported:

In an email to The Associated Press on Wednesday, the retailer said Global Manager for Employee Relations Annie Wu, a company veteran, would be the new global leader for diversity and inclusiveness. The retailer said on Facebook that it’s “commitment to addressing diversity and inclusiveness is genuine, therefore we have appointed a global leader, in this area, to drive our work forward.”

At Quartz, Lynsey Chutel explains why the ad touched such a nerve in South Africa, and what other global brands can learn from this controversy:

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How the Workplace Will Change in 2018

How the Workplace Will Change in 2018

Over the past few years, we have witnessed a marked acceleration in the pace of change in the workplace. Each year brings with it new innovations, ideas, and passing fads, as well as social, political, and economic events that affect employers all across the world. 2017 was no exception: Tight labor markets driving competition for talent, concerns over automation and displacement amid the growing embrace of new technologies, the first year of the Trump administration, and the rise of the #MeToo movement were just a few of the many events and trends that impacted the working world last year. In 2018, we anticipate that some of these developments will continue to reverberate, while new challenges and opportunities will arrive.

Here are some of the major developments that employers can expect to see this year, in the US and around the world:

The Sexual Harassment Reckoning Will Only Grow

In the second half of 2017, revelations of sexual harassment, misconduct, and assault poured out of Silicon Valley and Hollywood, sparking a long-overdue conversation about the treatment of women and the harboring of known abusers in these male-dominated industries, as well as in politics, media, and other fields. Powerful men, from Hollywood moguls to tech CEOs to members of the US Congress, were toppled by multiple allegations of sexual misconduct ranging from inappropriate workplace behavior to outright assault. Organizations in all sectors are facing unprecedented public attention to their sexual harassment policies, how diligently they enforce them, and whether they uphold an inclusive and respectful work environment. If the reckoning didn’t come to your industry in the past few months, it likely will this year. Business leaders in corporate America and around the world will have their past and present behavior scrutinized, and some will be exposed as abusers and face strong public and investor pressure to step down. Addressing toxic workplace cultures that enable sexual harassment will become an issue of even greater concern for directors and HR leaders. Companies can ill afford to close their eyes and hope for this problem to go away on its own; time really is up.

The Private Sector Will Lead the Way on Raising the Minimum Wage

Congress is unlikely to take action to increase the federal minimum wage in 2018. Some states will raise their minimum wages, as will some cities, while other states will take action to preempt local hikes. Meanwhile, companies will take it upon themselves to increase their pay floors in order to attract and retain talent in a tight labor market. As large employers of low-wage hourly workers like Walmart and Target increase their own minimum wages, other companies will need to follow suit to remain competitive.

Technology, Social Media, and Journalists Will Continue to Bring Transparency into Company Culture

Companies’ cultures and employer brands are in the spotlight now more than ever before. The decisions, approaches, policies, and beliefs through which companies manage their employees will play a dramatically larger role in how consumers and investors (not just candidates and employees) view the company. In 2018, this will put pressure on companies to manage their employer brands through HR as aggressively as they protect their consumer brands through PR.

CEOs Will Be Forced to Take Stands on Political And Social Issues

Throughout 2018, the political polarization and dysfunction that has prevailed in Washington, D.C. recently will almost certainly persist, while gender equality, diversity, immigration, LGBT rights, and other issues with major workplace implications will remain hot-button topics. While some CEOs have already found their voices when it comes to responding to the news of the day, others will feel pressure this year from customers, employees, and investors alike to be more vocal about their beliefs and to back them up with concrete actions within their companies.

AI Will Play a Bigger Role In Hiring, Raising the Risk of Algorithmic Bias

The use of AI and algorithms in hiring decisions has already grown dramatically. In 2018, companies will continue to adopt these technologies, but many will also begin to recognize the danger of algorithmic bias. While these automated solutions have shown promise in terms of improving quality, efficiency, and even fairness in the recruiting process, they also run the risk of harming diversity in the workforce by replicating biases that already exist within the company.

Adoption of Wearables in the Workplace Will Increase

In 2017, 3 percent of companies introduced wearable technology in the workplace, giving employees smart badges to monitor their behavior in order to track productivity and identify inefficiencies in the use of office space. In 2018, as more companies adopt technology that can track the location and behavioral data of employees, companies will begin to use this data to redesign workspaces, schedules, and workflows to maximize employee productivity. As these technologies become more mainstream, employers may not have to worry as much as they think about employees resisting their implementation, but should think carefully about how much actionable insight they are gaining by monitoring their employees.

More Employees Will Change Jobs Due to a Lack of Respect

While compensation continues to be the top driver of attraction for candidates globally, respect was the the fourth most important driver in our Global Talent Monitor Report for Q3 2017. In 2018, the labor market will continue to remain tight and employees will feel that they have enough control to speak openly about the lack of respect or appreciation. If companies aren’t able to provide increased compensation or opportunities for growth, they should look at ways to improve employees’ sense of respect in order to retain talent.

Citigroup Finds Small Pay Gaps, Pledges to Close Them

Citigroup Finds Small Pay Gaps, Pledges to Close Them

In response to pressure from activist investors, Citigroup recently conducted a pay survey of its workforce in the US, UK, and Germany, which found very small (1%) pay gaps based on gender and race. In response to these findings, the company announced on Monday that it would adjust salaries to close these gaps, becoming the first major US financial institution to do so, Reuters reports:

On average, Citi found, women and minorities are paid 99 percent of what men and non-minorities are paid, respectively. Compensation would be raised based on the pay gaps identified in the survey, Citi spokeswoman Jennifer Lowney said. …

[Activist investor Arjuna Capital] asked Citi’s shareholders last year to vote in favor of a proposal requiring the bank to address the gender pay gap. But on Monday, Arjuna withdrew that proposal, saying that Citi’s announcement represented a major shift for U.S. banks and credit card companies.

Arjuna Capital, the activist arm of investment firm Baldwin Brothers Inc, has been using shareholder resolutions to push for action to address gender pay gaps at a number of large US companies, including other big names in finance and tech. Last year, Arjuna succeeded at pressuring Amazon into conducting a pay gap study, which found that women earned 99.9 cents for every dollar that men earned in the same jobs.

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More US Employers Observe Martin Luther King Day

More US Employers Observe Martin Luther King Day

A growing number of US employers are closed today for civil rights leader Martin Luther King, Jr.’s birthday, observed as a national holiday on the third Monday in January (this year it happens to coincide with King’s actual birthday). In fact, more employers give their workers the day off for this holiday than for Presidents Day, Veterans Day, or Columbus Day, Bloomberg’s Jordyn Holman and Jeff Green report:

About 42 percent of American employers will close on Jan. 15 in observance of the civil rights leader’s birthday, according to an annual survey by Bloomberg Law. The U.S. stock market is closed, as it is for the slightly less popular Presidents Day. (It is open on Columbus Day and Veterans Day.)

By comparison, the survey found, 34 percent of employers close for Presidents Day, 19 percent for Veterans Day, and 14 percent for Columbus Day. Over 90 percent shut down for “major” holidays like Christmas Day, New Year’s Day, Thanksgiving, and Independence Day. The survey also showed a marked divide in how many employers observe Martin Luther King Jr. Day in different industries:

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Video: Why Employees’ Perceptions of Pay Equity Matter

In our recent pay equity research at CEB, now Gartner, one of our key findings was that employees tend to perceive pay inequities based on gender or race as larger than they really are. These perceptions have a direct and significant negative effect on retention and morale, creating a bottom-line reason for organizations to communicate more openly with their employees about pay gaps that exist within their workforce, what they mean, and what the organization is doing to address them. Our Total Rewards team has produced the above video to help employers better understand the importance of pay equity perceptions.

Our own Ania Krasniewska also highlighted this subject in her recent overview of the five things most companies don’t realize about pay equity:

[T]he gender pay gap and pay inequality are often conflated in the public consciousness, and most employees don’t have the same nuanced understanding of group-to-group and role-to-role gaps as compensation leaders do. That means they often think pay gaps are larger than they really are or that they exist in places they don’t. In our research, we’ve found that employees tend to overestimate these role-to-role gaps and that women tend to overestimate them more than men.

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‘Weird’ Job Titles May Drive Away Top Candidates

‘Weird’ Job Titles May Drive Away Top Candidates

“Digital solutions ninja” may sound like a more exciting job than “tech support,” but do quirky job titles like these attract or repel candidates? Fast Company’s Lydia Dishman highlights some research that suggests the latter:

According to jobs platform Indeed, the top five are genius, guru, rockstar, wizard, and ninja. The winning titles were identified as the most common “weird job titles” as calculated by the share of postings containing them over the last two years. Rockstar, in particular, has grown in frequency by 19%, followed closely by guru, although the latter has lost some steam as it’s declined by 21%. Ninja itself is experiencing a slow assassination, declining by 35% since its peak in March 2017. But does the quirkiness really result in surfacing qualified candidates?

Paul Wolfe, senior vice president of HR at Indeed, thinks they just serve to confuse people. “When you do your [job] search,” he contends, “you’re not going to put ninja” in the search box. “Companies use these to express what their culture is like,” Wolfe concedes, “but there are other ways to get that point out.” Career pages on a website that contain videos, photos, and other descriptions of what it’s like to work at the company are a better vehicle than a cutesy title.

A 2016 survey by Spherion came to a similar conclusion about these too-clever-by-half job titles, finding that many employees consider them unprofessional and not descriptive of what they actually do. Even more ordinary titles like “specialist” or “project manager” are often seen as too generic.

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