Government announcement to affect running of all large rec firms

From 2018, recruitment firms with over 250 people will have to reveal their gender pay gap.

Bonuses, which are suspected to be a big factor of gender pay inequality, will also be included in the listings.

PwC is a company that already voluntarily reports its gender pay gap publicly. Gaenor Bagley, Head of People and Executive Board Member at PwC, explains the benefits of this: “Publishing our gender pay gap has been a really positive move. It has increased awareness across our firm of the underlying issues and allowed us to take action as part of our wider diversity and inclusion initiatives.”

However, she says that making this information public knowledge is about bringing the issue into the spotlight, not “naming and shaming.” She says: “This is about companies learning from each other on best practice on how to create equal opportunities for all across the workplace. Irrespective of whether businesses like this approach, the Women on Boards review shows that reporting drives change.

“Importantly, any gender pay or bonus numbers need to be supported by commentary. The size of the gap itself isn’t the most important factor – it is whether organisations understand the drivers of the gap and say what they are doing to close it. A key driver will be female representation at senior versus junior levels.”

Not only will recruitment consultancies be affected internally, their approach externally will have to be adapted. Jo Wiggins, a Careers Trends Analyst at Glassdoor, says: “[This] will the change the recruitment landscape beyond recognition in coming year.”

With all pay for large organisations public knowledge by 2018, an important factor in placing talent will be the size, or lack, of a gender pay gap. One sector that may be affected is the already much publicised STEM sector.

Dianah Worman OBE, Diversity Adviser at the CIPD, explains why: “We are, however, concerned about the use of league tables across economic sectors to highlight problems. This will likely draw the attention of women to the lower earnings potential they will have to face in forging a career in the STEM areas, where they are already seriously under-represented. It could [discourage] women from exploring opportunities in the very areas Government wants to see more women working, in order to remove the gender pay gap.”

How do you think this news will affect the recruitment industry?