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Gender pay gap in construction falls to 12%

  • Gender pay gap in the construction industry has fallen from 16% to 12% in the past decade – a 4% decrease
  • National fall in gender pay gap over same period is 4%, from 21% to 17%
  • Gender pay gap across all industries dominated by small businesses has fallen from 22% to 13% in past ten years

The gender pay gap in the construction sector has fallen by 4% in the last decade, according to a report published by Informi, the website offering free practical advice and support for small businesses.

The report shows that women who earned 84p for every £1 a man earned in construction back in 2008 now earn 88p, meaning that the remaining gender pay gap in the industry stands at 12%.

Since 2008, female hourly pay in construction has increased by 22%, while male hourly pay over the same period has increased by 17% – meaning that the overall gender pay gap has narrowed by 23%.

Across all small business-dominated industries, which includes construction, the gender pay gap is falling at twice the rate as that of all companies across the UK.

The research found that while the national gender pay gap was at 21% ten years ago (and at 22% in SME-dominated industries), current wage inequalities in those sectors with a greater number of SME employees has fallen to 13%, compared to a national average of 17%.

With a 9% overall fall in the gender pay gap across these SME-dominated industries over the last ten years, the sectors are set to eradicate the remaining 13% average wage inequalities by 2034, should it continue to fall at current rates.

Darren Nicholls, product manager for Informi, said “Small businesses are the lifeblood of the UK economy, and this report demonstrates that they are blazing a pathway towards wage equality and helping to eradicate the gender pay gap.

“Small businesses are not shackled by tradition, legacy or bureaucracy in the same manner as many large companies can be. That said, clearly a double digit gap is still far too high. There’s a great deal more to be done, with some industries lagging behind others in implementing the necessary changes to ensure that females get just as many opportunities to thrive in their profession of choice.

“The fact that mandatory reporting has been brought in by the Government for larger companies should act as an encouragement for small businesses to consider female progression within their own firms, auditing their own internal data and acting upon their results.”

Chloe Chambraud, gender equality director for Business in the Community, added “Closing the gender pay gap is not just about equal pay, but about a much bigger organisational culture shift.

Employers should understand any factors driving their pay gap, and address the root causes of inequality. This means reducing bias and increasing transparency in the recruitment, appraisal and promotion processes, normalise agile working, and offer financially viable parental leave packages for all.”

Sophia Morrell, chair of Labour in the City, concluded “It is really encouraging to see SMEs leading the charge in the UK on closing the gender pay gap. Legislation can be helpful in pushing us towards equality, but the most forward-thinking companies have already been embedding these principles into their workplaces rather than waiting for regulation to force their hand.”

The full report, ‘Closing the Gender Pay Gap: Are small businesses bucking the national trend?’ is available from the Informi website.
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Sexism in construction

Nearly half of construction workers think the sector’s pay gap between men and women will be lower than the national average within a year.

  • 46% of construction workers think the gender pay gap will be less than 15% by April 2018.
  • More needs to be done to achieve equality and tackle sexism in the sector; 35% of workers believe men are better suited for the skill set needed in construction.
  • Nearly a third (30%) of women cite fears of sexism as holding them back from pursuing senior roles in construction.
  • Workers want organisations to do more, with nearly 39% believing companies are not doing enough to attract females into the sector.

OnePoll survey findings

A OnePoll survey commissioned by the RICS found that despite an optimistic outlook about the gender pay gap figures across the construction sector, with nearly half (46%) of construction workers predicting the gap will be less than 15% by April 2018, businesses need to do more to tackle gender inequality and sexism in the industry.

The future for women in the construction industry

With the national average pay gap recorded at 18.1% in 2016, today’s findings suggest the construction sector could lead the way in closing the gap, if the employees’ predictions are correct. Indeed, more than one in ten respondents (12%) think that there will be no gender pay gap at all by April 2018, which marks the end of the UK Government’s mandatory gender pay reporting period. However, this positive sentiment is markedly absent in the nation’s capital, with Londoners in the construction sector predicting an average pay gap of 21%.

A man’s world?

Despite a positive outlook towards the pay gap, today’s findings reveal the construction sector has significant steps to take if it is to achieve parity. Nearly a third (30%) of women surveyed think sexism holds them back from pursuing senior roles in construction, while 38% of men believe their skills are better suited to the sector than women.

Nearly half (42%) of those surveyed believe companies need to invest more in training their existing female employees. Equally, those in the sector want to see businesses investing in the future pipeline of talent to build a diverse workforce, with 40% recognising that companies need to invest more in encouraging young girls to pursue a career in construction, so that more women enter the profession.

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Salaries of property professionals rise, but gender pay gap worsens

Salaries for property professionals remained robust in 2017, according to the latest survey by RICS & Macdonald & Company, but the gender pay gap has increased from last year.

  • Male property professionals earn, on average, £11,000 more than female counterparts (£7,000 in 2016)
  • Sector salary pay rises up 7.2% overall, above UK wage inflation
  • Average salaries down, but due to changing demographics of the survey

An evident gap

Male property professionals earn, on average, £11,113 more than their female colleagues (£54,931 versus £43,818). The gap is evident across the majority of age groups and is greatest for those aged 46–55, where the difference in average salary is 25.7%.

Encouragingly, the gender pay gap is now less evident in those starting out in property with females earning slightly more than males, a turnaround from last year where the pay gap was most evident in 18–22 year olds.

The survey indicates the attraction of property as a career choice. Of those who received a pay rise in 2017 in the industry, the average increase was 7.7% (up from 7.1% in 2016); this is far above UK-wage inflation, which sits at 2.7%. Considering the sample as a whole, the industry experienced an increase of +7.2% (6.5% in 2016), with 32% also believing that their pay and benefits will be positively affected by market conditions over the next 12 months.

The benefits of being qualified

Once again, the survey also shows the benefits of being professionally qualified. RICS professionals earn 40.6% more than those who are “not professionally qualified” — this has increased by 29.5% since 2016. Those with an FRICS designation earn 83.3% more than those who are not professionally qualified.

The survey recorded the average salary in 2017 as £52,362. While this is a 4.5% decrease compared to 2016, this may be largely explained by changes in the demographics of the survey this time around. Respondents with 10 years’ experience or fewer rose by 9% (from 31% to 40%), while those with 16 years’ experience or more fell 10% (from 56% to 46%).

Respondents working in Greater London continue to earn the highest average salary (£61,141) and command a premium of 15.5% over the South East, and 41.0% over Northern Ireland/Republic of Ireland. The majority of regions have seen a decrease, but East Anglia (+3.4%), South West/Wales (+2.6%) and Northern Ireland/Republic of Ireland (+1.4%) buck this trend with growth in average wages.

More positively, over half of respondents (53%) believe their organisation will increase headcount in 2017. 47% of respondents expect their organisation to modestly increase headcount, while 6% expect a significant increase in headcount in 2017.

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Gender pay gap at 16.3% for construction sector

The Minister for Women and Equalities, Justine Greening has welcomed figures showing the gender pay gap for the construction industry is now the lowest on record.

The Annual Survey of Hours and Earnings, published by the Office for National Statistics, provides the most accurate data on the median average difference between men and women’s earnings. These statistics show that the construction sector has a gender pay gap of 16.3% – that’s 1.8% below the national average.

From next April the government will be taking action to tackle the gender pay gap by requiring all employers with more than 250 employees to publish their gender pay and gender bonus gaps. This will help shine a light on the barriers preventing women from reaching the top.

The benefits of helping women to unlock their talents are huge – tackling the UK gender gap could add £150bn to our annual GDP in 2025. That’s an opportunity that neither government nor businesses can afford to ignore.

Ms Greening commented: “It is fantastic to see we now have the lowest gender pay gap on record. No woman should be held back just because of her gender.

“The changes we’ve made so that men and women can share their parental leave, the support we’re giving to get more women into the top jobs at our biggest companies and our drive to get more girls taking STEM subjects at school are all helping to reduce this gap.

“We’ve achieved amazing things but there’s more to do – that’s why we are pushing ahead with plans to require businesses to publish their gender pay and gender bonus gap for the first time ever from April next year.”

To help drive further progress and help eliminate the gender pay gap in a generation, the government is:

  • Introducing requirements for all employers with more than 250 members of staff to publish their gender pay and gender bonus pay gaps for the first time ever from April next year
  • Working with business to have 33% of women on boards by 2020 and eliminate all-male boards in the FTSE 350
  • Doubling the amount of free childcare available to working parents of three and four year olds, helping to remove the barriers that can prevent women from returning to the workplace.

This builds on the changes the government has already introduced to support women in the workplace, including:

  • Extending the right to request flexible working to all employees
  • Introducing a new system of flexible parental leave
  • Supporting women’s enterprise by helping female entrepreneurs start up and grow their own business
  • Increasing the National Living Wage, of which two-thirds of recipients are women.
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