PwC’s Gender Pay Gap analysis reveals a mean gender pay of 12.6%

PwC Ireland analysed the gender pay gap reports of up to 500 companies who disclosed their gender pay gap details to assess the data reported and the key trends. 31 December 2022 was the deadline for the first reporting period under the Gender Pay Gap Information Act 2021 for companies with in excess of 250 employees obliged to report.

The analysis reveals a mean gender pay gap of 12.6% across Irish organisations which have published reports in December 2022. This compares to Ireland’s latest available national gender pay gap of 11.3% (2019) and an EU average gender pay gap of 13% (for 2020), based on Eurostat data.

Doone O’Doherty, Partner, PwC Ireland People & Organisation, said: “Although the exact reason for a gender pay gap varies by company and sector, a key factor appears to be the relatively high number of males in more senior (and so, more highly paid) roles. Looking at disclosures on pay quartiles, three-quarters of companies appear to show a higher relative proportion of men in the ‘highest paid’ quartile. The more males a company has in these top quartiles relative to the number of females, the higher that company’s pay gap is likely to be.”

Other key findings from PwC’s gender pay gap analysis include:

• The gender pay gaps published in December 2022 were widest in the finance, banking, insurance, legal and construction sectors. For example, it is estimated that the mean hourly pay gap for the insurance sector is 21.1%, nearly twice the national average.
• Although the exact reason for the gender pay gap varies by company and sector, a key factor appears to be the relatively high number of males in more senior (and so, more highly paid) roles.
• At the other end of the scale, retailers, health and charity organisations were the most likely sectors to have a larger proportion of women in higher paid roles. For example, the analysis reveals that the mean hourly pay gap for the charity sector is approximately 1.7%. 
• 87% of companies disclosed a gender pay gap in favour of males.
• 71% of companies disclosed a gender pay gap above 5%.
• 48% of companies disclosed a gender pay gap above the most recent national average of 11.3%.
• 82% of companies paying a bonus disclosed a bonus gap in favour of males. The mean hourly bonus gap is estimated to be 22.9%, approximately 1.8 times the size of the reported mean hourly pay gap.  This reflects the representation of males in senior roles, which, in turn, is linked to higher bonus payments.
• The analysis shows that the average reported proportion of females in the workforce is 45%. 
• The proportion of females to men tends to be lowest in the engineering, construction, manufacturing and technology sectors. Conversely, the healthcare and retail sectors have a much higher ratio of females to males. 

Notes to editors

Link to report: https://www.pwc.ie/reports/gender-pay-gap-reporting-analysis-2023.html

PwC Ireland’s gender pay gap is less than 1%

PwC Ireland published its Gender Pay Gap report under the new legislation on 19 December 2022. This revealed PwC Ireland’s mean gender pay gap to be less than 1% (0.9%), reflecting the strong representation of women across all levels across the firm. PwC Ireland has been reporting its Gender Pay Gap and related action plan and inclusion and diversity journey since 2019, being one of the first Irish businesses to do so. PwC Ireland’s first reported pay gap for 2018 was 5.7%.  

What is a gender pay gap:

At a high level, the gender pay gap is the difference in the average hourly wage of all men and all women in an organisation. A gender pay gap does not infer an absence of equal pay for equal work, (which is a legal requirement in Ireland). Instead, it is typically a result of unequal gender representation at different organisational levels.

5 key features to support successful progress

The report notes five key features to support successful progress in improving the representation of women in businesses:

• Business-led action: It is crucial that business leaders actively support and lead any diversity commitments and activities. 
• Evidence-driven: It is important to understand how you operate now in order to understand what needs to change. Use employee analytics to understand where your organisation’s focus on diversity should be, both now and projecting into the future.
• Make diversity and inclusion (D&I) a key item on your agenda: Embedding sustainable and authentic change is driven by organisational values. Critically analysing existing organisational practices, progression opportunities, advertisements and reward procedures, for example, is essential to addressing internal issues that potentially impact your gender pay gap.
• HR supported: To encourage behavioural change the right HR policies and processes must be in place. Checks and balances in core HR processes like recruitment and promotion can help manage the risk of bias in decision-making and improve reporting. 
• Input-focused, Outcome-driven: Whether or not actual targets are introduced, leading companies are thinking about more effective ways to measure improvements in D&I through business KPIs and dashboards. A robust action plan, supported by strong reporting can help business leaders understand what activity is needed to drive change and measure their progress in achieving it.

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