IEA - Gender pay gap reporting produces another round of misleading statistics

4 Apr 2019 09:31 AM

IEA publishes updated gender pay gap briefing

It has become increasingly clear that the influx of data from the gender pay gap reporting measures fails to provide any meaningful insight into fair pay for men and women in the workplace, according to a new briefing paper from the Institute of Economic Affairs.

Now into the second year of mandated gender pay gap reporting for large organisations, the briefing provides examples – including data from KPMG, EasyJet, Npower, Thomas Cook and the National Health Service – to illustrate how the crude figures create a misleading picture, especially for companies that have hired large numbers of female staff into lower paid roles.

The author of the briefing, the IEA’s Associate Director Kate Andrews, argues that the reporting measures contribute to the narrative that women ‘are paid less than men’, despite this statement remaining categorically untrue for many women in their respective organisation.

Pay gap reporting measures vs. official data

Many organisational statistics produced by the pay gap reporting measures are notably out of line with the official data from the Office for National Statistics (ONS) in 2018, which: