Abstract
Analysing the current gender pay gap regarding employment worldwide and Great Britain in particular. This research paper examines the significance of addressing the gender pay gap in the workplace, focusing specifically on two prominent multinational corporations:
Unilever and HSBC are the two global organisations selected for the case evaluation. Thus, this method of secondary research in line with the research onion approach identifies and analyses various studies, statistical data and themes regarding the occurrences and causes of the gender pay gap and its impact on the organisation’s efficiency and employees ‘motivation.
Therefore, shutting the gap, that is, promoting gender equality at the workplace can help promote organisational image, and boost employee satisfaction, as well as efficiency and profitability.
The present work is designed to be useful for students studying gender segregation in the labour market while offering an extensive view supported by numbers and qualitative assessments.
Introduction
The concept of gender pay gap which is a measure of how much men earn per hour in comparison to women remains an essential issue of organisations globally.
There is continued discrimination in the remunerations therefore women still earn less than men and this is due to cultural and structural factors that are hardwired within most organisations.
It is in this regard that the UK requires intervention to close the gender pay which is currently at 8.9% for full-time staff in 2023 (Office for National Statistics, 2023).
This paper investigates the issue of the gender pay gap and its impact on organisational dynamics, with a specific focus on two leading multinational corporations: Unilever and HSBC.
Aim and Objectives
This research paper seeks to find out more about the gender pay gap prevalent in organisations, particularly in multinational companies in the UK.
The objectives are to:
- To critically evaluate the current position on the gender pay gap in the UK using two organisations: Unilever and HSBC
- To define and analyse the rationale of the necessity to tackle the gender pay gap for the organisation’s effectiveness.
- To analyse the measures that these corporations have adopted in their bid to minimise the disparity in the remuneration for workers.
- To evaluate these strategies in terms of their effectiveness for organisational performance, employee satisfaction and organisational reputation.
Literature Review
Studies on the gender pay gap reveal some causes of wage differential, as given below: occupational segregation, gender wage discrimination and differences in the experience and education of male and female employees (Blau, & Kahn, 2017).
Various findings suggest that gender pay difference is not only an ethical question but an economic one as well. McKinsey pointed out that while carrying out their studies of chief executive offices around the world, it was revealed that those organisations with a larger representation of female directors were 21% more likely to generate larger profitability.
In the UK, legal initiatives like the Equality Act 2010 and Gender Pay Gap Reporting Regulation 2017 have been implemented so that organisations must disclose the gap.
It tried to close the gap between male, and female employees’ remunerations. Nevertheless, most of these organisations still indicate they have substantial gaps in place, indicating that much more needs to be done to bring about desired changes.
Methodology
The present study is empirical and uses secondary data that includes literature, published reports and accessible available data to examine the gender pay gap in the Multinational Companies operating in the United Kingdom.
The research onion framework developed by Saunders et al. (2016), is applied to implement the methodology beginning with the outermost layer containing the philosophical stance and proceeding to the approach, strategy, decisions, time frame, and finally, the techniques and procedures.
Philosophical Stance: The study is therefore based on a positivist epistemology that deals with operations and quantifiable elements concerning the gender pay gap.
Approach: This is an example of a deductive method of research since the author starts with theories and hypotheses about the gender pay gap and then goes ahead to analyze the specific example.
Strategy: The chosen research approach is a case study based on two multinational companies — Unilever and HSBC, which have given much attention to gender diversity.
Choices: Primarily, there is a complete reliance on secondary data-collection techniques, consequently employing a mono-method approach.
Time Horizon: The data collection is cross-sectional, hence, analysing information within the set time frame of 2020-2023.
Techniques and Procedures: Information is obtained from scholarly articles, official country reports, organisational documents, and newspapers that are widely circulated and considered reliable. Thematic analysis is used to analyse the findings of the study.
Findings and Discussion
Thematic Analysis
The thematic analysis is organised around three key themes identified in the literature and data analysis: The thematic analysis is organised around three key themes identified in the literature and data analysis:
Collection of gender pay gap statistics in the United Kingdom
As reported in the Office for National Statistics (2023), the civil and public employees’ gender pay gap is 15.4 %, but there is a vast difference in various industries and jobs.
As per the 2023 data of the Online Bureau of Statistics, the gender pay gap in the financial services market is still one of the highest at 23.2%, and this reflects the lack of women in management.
It is, however, noteworthy that both Unilever and HSBC have provided their gender pay gap whereas for HSBC’s UK branch, the gap is 46.5% in 2022 which is one of the largest when it comes to the financial sector (HSBC, 2022).
This was much lower than the previous year with Unilever having a median gender pay gap of 6.7% this year despite the company’s continued pursuit of gender equality (Unilever, 2022).
Measures Taken by the Organisation to Combat the Issue of the Gender Pay Gap
Currently, multiple strategies have been observed across the two organisations regarding the gender pay gap.
Unilever has been dedicated to increasing the proportion of women in management by 2025, providing new policies on working flexibly which are helpful for women and also provides opportunities for women to be mentored (Unilever, 2022).
The important business changes that have been implemented by HSBC include the Gender Balance Action Plan which seeks to improve the proportion of women in top management positions and also places greater emphasis on pay equity (HSBC, 2022).
Effects of Eliminating the Gender Pay Gap on the Commercial Success of an Organisation
Studies show that the gender pay gap can be reduced if organisations try to eliminate it and ramifications associated with it include increased levels of morale, greater staff retention, and a stronger reputation among clients (McKinsey & Company, 2020).
For instance, Unilever has recently pointed out that their practices had led to the overall rise in gender-related engagement in the organisation and employee engagement scores rose by 5 per cent (Unilever, 2022).
Gender diversity has also brought benefits for the company such as improved brand image and employee satisfaction as evidenced by the HSBC business case (HSBC, 2022).
Summary
The research findings presented in this paper therefore call for the need to tackle this issue appropriately in places of work.
Citizens have been given legislative instruments that compel MNCs to disclose information, but it has remained a myth because a lot of MNCs such as HSBC have posited significant gaps.
Why the gender pay gap should be closed is not only an issue of equity but also comes with benefits such as organisational performance and employee satisfaction.
Large global organisations especially those in the United Kingdom need to maintain commitment in issues to do with gender equity to enhance workplace productivity.
References
Blau, F. D., & Kahn, L. M. (2017). The Gender Wage Gap: Extent, Trends, and Explanations. Journal of Economic Literature, 55(3), 789-865.
HSBC. (2022). Gender Pay Gap Report. Retrieved from HSBC UK.
McKinsey & Company. (2020). Diversity Wins: How Inclusion Matters. Retrieved from McKinsey.
Office for National Statistics. (2023). Gender Pay Gap in the UK: 2023. Retrieved from ONS.
Saunders, M., Lewis, P., & Thornhill, A. (2016). Research Methods for Business Students. Pearson.
Unilever. (2022). Gender Pay Gap Report. Retrieved from Unilever UK.
8. Appendices
Appendix A: Gender Pay Gap Statistics in the UK (2020-2023)
Appendix B: Unilever Gender Pay Gap Report 2022
Appendix C: HSBC Gender Pay Gap Report 2022
Appendix D: McKinsey & Company Report on Diversity Wins (2020)
