PwC report on gender pay gap reports of over 550 companies

PwC Ireland analysed the gender pay gap reports of over 550 companies who reported gender pay gap details in December 2023 to assess the data reported and the key trends. This follows PwC’s inaugural analysis published in February 2023. 31 December 2023 marked the second year companies with more than 250 employees were obliged to report gender pay gap information under the Gender Pay Gap Information Act 2021.  

Doone O’Doherty, PwC Ireland People Leader and Workforce Tax Partner, said: “Due to the complexities of what is involved in the gender pay gap, the improvement we see year on year is not due to a single initiative or effort.”   

“Gender pay gaps are created by a complex combination of factors, including female workforce participation, promotion rates, allocation of performance ratings, access to the best opportunities to progress and recruitment criteria.  In some organisations, for example, flexible working or changes to recruitment processes may have a pronounced effect. It’s critical to understand the nature and origin of the problem and not jump to convenient conclusions or make generalisations. The starting point should always be the organisation’s own data and experience.”

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

• The largest gender pay gaps are in:

  • The legal profession (35.1%)

  • The aviation sector (33.5%)

  • The insurance (22.9%) and banking (18.9%) sectors, and

  • The construction sector (21%)

• Retail, administration, government/health and charities continue to report single-digit gender pay gaps with minor movements over the two years.

• Aviation experienced the largest improvement (-4%) in the gender pay gap compared to last year.

• The most significant deteriorations in the gender pay gap were in the legal profession (+6%), the entertainment & recreation sector (+3%) and utilities (+2.5%).  

• 66% of males and females received a bonus. The mean bonus gap across the companies analysed was 23%, compared to 22.9% the previous year.  

More female representation at more senior levels is critical 

The mandatory reporting of disclosures on pay quartiles is key to understanding the representation of males and females in the workforce. Three-quarters (75%) of companies analysed demonstrated a greater relative concentration of males in the ‘highest-paid’ quartile.  

Female participation in the workforce plays a significant role in shaping the gender pay gap. For example, 24% of the total workforce in construction and engineering companies that reported gender pay gap numbers in December 2023 were females, with most of these in the lower and lower middle quartile. On the other hand, 69.5% and 50.8% of the total workforce in retail and healthcare respectively were females. 

Closing the gender pay gap can take time - and it may widen in the short-term

The analysis highlights that closing the gender pay gap can take time. For example, hiring more relatively low-paid women with a view to nurturing those individuals as they climb the ladder to more senior, higher paid roles, may make the gender pay gap worse in the short-term.

In the longer term, however, if that female talent can be retained and developed, the gender pay gap will narrow and the organisation’s gender pay gap will be better at every level.

Doone O’Doherty concluded: “The pressure is now on companies with 250 or more employees to demonstrate progress on the efforts that they are making to reduce their gender pay gap. This may include reviewing and amending people policies and processes from recruitment to retention and promotions  Focus and momentum are needed to continuously evaluate the organisational strategy in addressing the gender pay gap and refine measures to sustain meaningful change.

“Gender pay gap reporting is only starting. For example, 2024 marks the first year in which companies with 150 or more employees will fall within the mandatory reporting requirements, which will bring new and interesting dynamics to the analysis. Also, both CSRD and the EU Pay Transparency Directive will require in-scope companies to report on their gender pay gap, bringing new requirements.  

“What’s important to remember is that improvements in the gender pay gap will enhance the organisation all-round, creating a fair and inclusive workplace where everyone thrives. This in turn can boost a company’s attractiveness to talent, improve morale, productivity and retention and ensure that diverse viewpoints are factored into decision making across all levels in the organisation.” 

Ends

Notes to editors:

PwC Ireland 

PwC Ireland’s mean gender pay gap as reported in December 2023 is 1.6% 

Link to PwC Ireland’s December 2023 Gender Pay Gap report: https://www.pwc.ie/reports/2023-gender-pay-gap-report.html

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.

The report notes the key actions businesses can take:

• Leadership commitment to gender diversity, equity and inclusion initiatives is important.

• It’s not a ‘one size fits all’ issue. The starting point should be the organisation’s own data and experience.

• Organisations must continuously monitor and evaluate the effectiveness of initiatives and adjust strategies as needed.

• Genuine lasting change will be powered by the behaviours and actions of those within the organisation where all employees can thrive and feel a sense of belonging.