Press Release

Proposed Equalities Bill to be applauded, but could go further on equal pay

26 June 2008

Intellect comments on Equality Bill

Intellect, the UK trade association for the technology industry, believes that much of the proposed Equalities Bill unveiled by Harriet Harman, leader of the Commons, today is very positive and will bring long term benefits to technology businesses. The technology sector, which contributes around 10% of UK GDP, is one of the hardest hit UK industries by both the skills shortage and a low number of female employees.

Intellect is particularly interested in the section entitled ‘requiring transparency’ in the proposed Bill. It supports the overall principle of transparency, but believes that ideas like the kite-mark scheme need additional detail and work to ensure that they have a real impact on businesses and do not just become another meaningless stamp.

Commenting Gillian Arnold, Chair of Intellect’s Women in IT Forum, said:

“Removal of the salary gagging clause in contracts, as proposed by Harriet Harman would be a very positive action and the establishment of a kite-mark system, if properly resourced, could also be effective in promoting equality within organisations. We would also like to see a more widespread adoption of equal pay audits. For some time now we have been urging technology companies in the private sector to follow the lead of the public sector and implement equal pay audits as soon as possible and we will be continuing to do so.  

“Equal pay audits are inexpensive, are not time-consuming to conduct and are a valuable tool in the retention of women. They are relevant for the smallest company right up to the largest organisation. In fact, 72% of women working in technology say that if a company has conducted an equal pay audit, it would encourage them to work for that company.

“These are important issues. Our annual survey looking at perceptions of equal pay shows that over 50% of women working in technology believe they are victims of unequal pay and more than a third have evidence that this is the case. This lack of equality is pushing away from the workplace and consequently costing the economy billions.”

The most recent Perceptions of Equal Pay’ survey, conducted by Intellect last summer, shows that:

·         54% of women working in technology think their pay package is not comparable to male colleagues performing a similar role. 35% have evidence of this.

·         While in theory most organisations support equal pay, in practice only just over one third are perceived to.

·         56% of respondents feel the pay structures in their organisation are not transparent

·         Only 4% of technology companies have conducted an equal pay audit that employees are aware of, yet 62% of respondents said by doing so the company had improved its image in their eyes. 81% think that equal pay audits should be compulsory and 72% say it would encourage them to work for a company.

·         70% of organisations are perceived to encourage women as much as men to apply for promotions. 71% of respondents believe they would be treated fairly when applying for promotion.

·         Experience and skills (33% each) are perceived to be the factors most reflected in technology workers pay packets, coming ahead of hours worked (13%), qualifications (12%) and workload (10%).