CYBG a target of 40% of females in

 

CYBG (parent company of Clydesdale Bank and Yorkshire Bank) has
a GPG of 37%, which it states was ‘driven largely by the higher number of men in
senior roles, compared to their female counterparts’ (BBC, 2017). To overcome this,
the bank decided to increase their pay by lifting its minimum salary by 11% to £17,000,
boosting the pay of about 600 women in its workforce of 5813 (Arnold, 2017). This
relates to Hertzberg’s Two Factor Theory as by CYBG enhancing their pay, it allows
women to be more motivated as the issues associated with hygiene factors are reduced.
CYBG are also making progress in promoting a more diverse population at senior levels
by signing up to the Government’s Women in Finance Charter ad has committed to reaching
a target of 40% of females in senior management roles by 2020 with an ambition of
reaching a 50:50 balance in the long term (CYBG, 2017). The commitments of CYBG
include the likes of; reviewing their approach to parental leave and other working
policies to make flexible working easier, particularly in more senior roles (CYBG,
2017).  By encouraging women towards advancement,
it obliges them to be rewarded externally (extrinsic) as well as internally (intrinsic)
as their feeling of pride, challenge and job satisfaction may flourish.

Response of CYBG PLC

 

Tesco PLC is the UK’s biggest private sector employer with
over 300,000 colleagues in the UK, of which more than half of them are female
(Government Equalities Office, 2014). Tesco has a scheme in place to narrow its
GPG and 2013 its GPG was at 0.45%, which is significantly lower than the
national average of 18.6% (Government Equalities Office, 2014). Tesco supplies
coaching support for females with the capability for leading roles in the
future and are associated with Everywoman; an abundant network for women in
business. Tesco prides themselves in facilitating the opportunity of all staff
to build their own network, which supports them through every stage of their
career (Tesco PLC,2017). By doing this, Tesco provide women with recognition
and opportunity for promotion, hence meaning their overall GPG is reduced as
they enter higher payed jobs. Also, the scheme enables women to meet their
self- actualisation needs on Maslow’s hierarchy (1943), therefore they are
motivated to a greater extent.

Response of Tesco PLC

 

 

 

The GPG has been a long standing international problem as
only in Colombia, Fiji and the Philippines do more women than men occupy
leadership roles (Grimley, 2015). ADD MORE TO
INTERNATIONAL PROBLEMS

 GPG is an issue in
the public sector as well as the private sector. For instance, the NHS has a
percentage variance for the average hourly rate of pay of 14.81% and a variance
for the average hourly bonus pay of 38.70% (NHS, 2017). As an NHS organisation,
the only pay elements that are under the bonus pay criteria are distinction and
clinical excellence awards which are only applicable to certain groups of
medical staff (NHS, 2017). This is another prime example of limited promotion
for women as the majority that fall within a distinction bracket are male,
therefore allowing them to achieve a better bonus than women, hence widening
the gap.

It can be acknowledged that larger organisations require
more managers therefore control by the head office is weakened, hence making it
more difficult to overcome a gender pay gap. Within the chain of command in
larger organisations, men maintain within the higher rankings compared to
women. This relates with the fact that CEOs tend to be paid more the larger the
firms size (Murphy, 1985; Kostiuk 1990; Rosen 1992, Bertrand; Hallock, 2001)
and if the pay-size correlation also holds for other top executives, it’s
reasonable to ask how much of the gender gap can be attributed to the under-
representation of women in larger firms (Bertrand; Hallock, 2001). Regarding
Hertzberg’s Two Factor Theory (1959), as women in larger organisations don’t often
get the opportunity be on higher payed salaries, it means they haven’t obtained
the hygiene factors required to be effectively motivated. ADD PUBLIC SECTOR STATS AND INFO

Herzberg’s two factor theory is essential to every manager
as it marks the importance of providing hygiene factors sufficiently to the
employees as a way of motivation (Nguyen, 2017). Herzberg hypothesized that
occupation fulfilment and employment disappointment act autonomously of each
other (G. Yamuna; R. Jyothsna Devi, 2016). Herzberg suggests that to eradicate
job dissatisfaction, you must fix the problems associated with the hygiene
factors. This is ambiguous when managing a company with a gender pay gap.

Challenges when
Managing Organisations

 

 

The safety needs of women are also threatened as they lack
job security especially when pregnant. The law states that employers are not
allowed to dismiss a woman for being pregnant, nor should she be disadvantaged
in terms of pay or promotion (Gatrell and Swan, 2008) nevertheless, this is not
always the case. Many women who return to work after maternity leave earn less
than men as they are less likely to receive a pay increase or promotion. This
is thought to be due women requiring part-time work, hence challenging managers
with a GPG as they don’t feel employees with children to be as reliable as
those without, which in turn contributes further to the demotivation of women
as they don’t feel recognised or appreciated. IFS (Institute for Fiscal Studies)
research shows that the GPG is smaller when comparing young women, before they
became mothers, with their male counterparts (Dias, Elming and Joyce, 2016).
The gap widens for twelve years after the first child is born, by this point
women receive 33% less pay per hour than men (Dias, Elming and Joyce, 2016). Overall
this makes it difficult for managers to comply with the 2010 Equality Act by
providing equal opportunity for promotion as many women have other priorities.
Also by many women doing part-time hours it means their pay will be unavoidably
less than males working full time so in many cases a GPG is inevitable.

 When motivating employees, managers need
to acknowledge that people respond to recognition, freedom to contribute,
opportunity to grow, and fair compensation (Boldea and Dr?goi, 2011). These
factors can be identified in the esteem category of Maslow’s Hierarchy of Needs
(1943). However, where there is a GPG present, it can be argued women aren’t
meeting their physiological needs as their salary isn’t equal to their male
colleagues, thus women are prevented progressing up the hierarchy. This indicates
that women are unable to be completely motivated.

Challenges when
Managing Individuals

 

The gender pay gap(GPG) refers to the difference between the
average earnings of men and women, expressed as a percentage of men’s earnings
(Advisory, Conciliation, and Arbitration Ser-vice (ACAS), 2017). In the UK, the
Equality Act 2010 attempts to hinder gender inequality by allowing; claims for
direct gender pay discrimination where there is no actual comparator and making
pay secrecy clauses unenforceable (Government Equalities Office and Equality
and Human Rights Commission, 2015). The contemporary issue of the GPG triggers
the barrier of a glass ceiling as although an employee may be meritorious of
promotion; their sex prevents them from advancement. This universal and
continuous issue in turn causes less motivation and lowered expectations, thus
widening the gap. Figure 1 shows that the average pay for women on a global scale
in 2017 was $12,000, whereas men received $21,000; and that there haven’t been
any real improvements over the last 10 years for women (Harris, 2017). ADD MORE THEORY/LIT

Introduction of the
issue