Employers urged to use previous remuneration details wisely

The Industrial Society is urging employers to consider how they use job applicants’ previous pay details when negotiating terms and conditions.

In a recent report the campaigning body says that employers often use previous salary history to pay women less – perpetuating the gender pay gap.

‘Small step or giant leap? Towards gender equality at work’, written by Dr Sam Hardy, Policy Specialist at The Industrial Society, said that equal opportunities in the workplace has stalled and the Government should be prepared to make gender audits compulsory if employers remain indifferent to pay gap.

The report rejects suggestions that men are becoming the second sex. It identifies the link between the pay gap and women’s difficulty in getting higher status, better paid directorship or senior management positions. Fewer than ten women are executive directors in FTSE 100 companies and women are clustered at the lowest levels of management.

Mr Hardy said: “The way we view, discuss and analyse inequality in the workplace is out of date and apologetic. If we really want to remove the barriers to women in the workplace, one of the first things we have to do is stop tinkering with a worn-out engine.”

According to the report, the pay gap also exists because male employees benefit from work cultures, job structures and the traditional career structure. Employers often rely on previous salary data as an indication of an individual’s market worth when making an offer. For women, whose, existing salary is likely to be much lower than a male counterpart, the use of salary history by employers often serves to keep them lower down the pay scales in comparison with men.

A US survey revealed that a large minority of people still believe staying at home to look after the children should be the mother’s role. Only one in a hundred thought fathers should stay at home. (CD)