Unexplained gender pay gap: “It’s just not good enough”
A new analysis shows that there is a considerable difference between what men and women earn in the financial sector. About half of it may be ascribed to differences in education and job tasks, but there is no explanation for 7.1 per cent.
Differences are taken into account
The comprehensive analysis was based on payroll data from 32,313 employees in the sector.
“In the past, an often-heard argument would be that we had failed to consider matters like for how long people had been employed or if they had staff responsibility, but we’ve done so in this analysis,” says Klaus Mosekjær Madsen, Senior Economist at Finansforbundet, who, nonetheless, does offer an explanation to why a difference exists:
“Among the likely explanations are pay-related gender bias, and the fact that it is often said that women are more modest when it comes to negotiating pay,” he says.
Workplaces have a responsibility
Steen Lund Madsen, Vice President of Finansforbundet, finds that equal pay is a structural and cultural problem, and that it is the workplaces’ responsibility to do something about it.
“The key is more pay transparency, but we also need to change the existing corporate structures and cultures that cause men to earn more than women for the same work. Fortunately, things are moving in the right direction. But it is essential that we and the companies are persistent, because this is far too big a difference,” he says.
To illustrate, the companies could ensure a clear and objective pay policy and create pay transparency, he says.
“It can actually be done. “Some companies are actively and successfully working to reduce the pay gap," establishes Steen Lund Olsen.
Employers: There are different methods for calculating pay gaps
In a written reply, Morten Schønning Madsen, CEO Finance Denmark/Employer, maintains that, for many years, ensuring equal pay has been an important focal point for banks, mortgage institutions and the financial sector in general.
However, he notes that wage differentials may be calculated based on different methods, pointing, among others, to one of Finance Denmark's member companies that previously reported to have an unexplained gender pay gap of just over 2 per cent.
“Most likely, Finansforbundet has arrived at a different conclusion because they have chosen to use a model which compares figures across the sector and which uses average pay. To get a truer and fairer view, we find it appropriate to dive deeper and look at intra-company pay gaps, median pay and geographical pay differences,” says Morten Schønning Madsen.
Bring pay up with your manager
It is not the responsibility of the individual to ensure equal pay, but there is no reason not to bring it up with your manager. And rather sooner than later is the advice from Klaus Mosekjær Madsen, Senior Economist.
"Basically, this isn’t something you should postpone. It’s always a good idea to bring it up. It’s also important to see consider it a long process where it’s likely that you’ll be refused, but either way, you have set the process rolling, he explains and encourages you to be well prepared.
For example, you will do well to find out about the pay level in your department, the entire organisation and in the sector. Ask your colleagues and your union representative about the first areas, and for insights about the pay level in the sector, the salary calculator comes in handy, says Klaus Mosekjær Madsen.
