Equal Pay Act: It's time to end the 'motherhood penalty'

It’s been almost 45 years since the Equal Pay Act was passed in 1970. Yesterday, MPs voted overwhelmingly in favour of passing the Equal Pay (Transparency) Bill which could force thousands of companies to publish the gender pay gap between their male and female employees. This comes after attempts to get firms to publish the information voluntarily failed, with only five of 7,000 companies doing so.

The gender pay gap is one of feminism’s most pivotal and enduring issues. While there been progress, especially at entry level, there is still much work to be done, as a new report from Enders Analysis entitled "Women at Work 2014", published today, makes clear. The “motherhood penalty” is one of the biggest barriers to pay equality according to the report. Despite relative gender equality on the ground level, women are consistently failing to reach the top tier of management roles. The pay gap jumps dramatically from an average of 7 per cent for the 30-39 year-olds to 19 per cent for 40 to 49 year-olds and 21 per cent for 50+.

The most obvious reason for this gap is the onset of motherhood. Today, women still typically spend more time than their partners on childcare and life in the home even when working full-time. Aside from the squeeze on their time, women who opt to start a family are also forced to have potentially awkward conversations with employers about otherwise private matters such as maternity leave and flexible working conditions. This can create tension and work against female employees when it comes to considering them for promotion.

Is part of the reason for the motherhood drop-off in earning potential that new mothers tend to take prolonged periods off work, or shift to part-time? ONS data shows that women in their 20s make up half the 10 per cent of earners in the UK, but this falls sharply for those aged 30 and up. Interestingly, the"Women at Work 2014" report suggests that the assumption that women aren’t returning to work after having children is wrong. Instead, there are high rates of return across a spread of professions, with 73 per cent of highly skilled women working full-time. The report goes further to suggest that the real reason is that employers “simply sideline professional women of a certain age.”

A quote from McKinsey & Company in 2011 states that: “Managers—male and female—continue to take viable female candidates out of the running, often on the assumption that the woman can’t handle certain jobs and also discharge family obligations.”

While family life is as an important, and growing concern for both men and women as their careers progress, women are more likely to have their careers cut short by family. In the UK of the 2.2m “managers, directors and senior officials” that constitute the top level of the workforce, 69 per cent are men and 3 out of 4 CEOs are also male. This also feeds the perception of a “glass ceiling” for women and the lack of strong female role models.

What is so frustrating about all this, is that the inclusion of more women in the workplace brings myriad social and economic benefits. “Achieving a more gender-balanced workplace creates efficiency savings, enhances employee engagement, boosts productivity, meets the diverse needs of customers and suppliers, and improves brand reputation,” states a particularly insightful quote in the Enders report from the campaigning group Opportunity Now.

So, let’s enjoy the good news about the Transparency Bill and hope it passes its second reading in February, while making sure we continue to shout loudly about the reasons why women are falling behind in terms of pay and progression. Too many friends of mine have struggled with prejudice and difficulties juggling career and children. It is possible for women to have it all, we just need to work hard, and work together, to make this a reality.

Read the full Women at Work 2014 report by Enders Analysis