CYBG a target of 40% of females in

Topic: BusinessComparative Analysis
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Last updated: June 3, 2019

 CYBG (parent company of Clydesdale Bank and Yorkshire Bank) hasa GPG of 37%, which it states was ‘driven largely by the higher number of men insenior 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). Thisrelates to Hertzberg’s Two Factor Theory as by CYBG enhancing their pay, it allowswomen 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 levelsby signing up to the Government’s Women in Finance Charter ad has committed to reachinga target of 40% of females in senior management roles by 2020 with an ambition ofreaching a 50:50 balance in the long term (CYBG, 2017). The commitments of CYBGinclude the likes of; reviewing their approach to parental leave and other workingpolicies 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.

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Response of CYBG PLC Tesco PLC is the UK’s biggest private sector employer withover 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 itsGPG and 2013 its GPG was at 0.45%, which is significantly lower than thenational average of 18.6% (Government Equalities Office, 2014). Tesco suppliescoaching support for females with the capability for leading roles in thefuture and are associated with Everywoman; an abundant network for women inbusiness. Tesco prides themselves in facilitating the opportunity of all staffto build their own network, which supports them through every stage of theircareer (Tesco PLC,2017). By doing this, Tesco provide women with recognitionand opportunity for promotion, hence meaning their overall GPG is reduced asthey enter higher payed jobs. Also, the scheme enables women to meet theirself- actualisation needs on Maslow’s hierarchy (1943), therefore they aremotivated to a greater extent.

Response of Tesco PLC   The GPG has been a long standing international problem asonly in Colombia, Fiji and the Philippines do more women than men occupyleadership roles (Grimley, 2015). ADD MORE TOINTERNATIONAL PROBLEMS GPG is an issue inthe public sector as well as the private sector. For instance, the NHS has apercentage variance for the average hourly rate of pay of 14.81% and a variancefor 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 andclinical excellence awards which are only applicable to certain groups ofmedical staff (NHS, 2017). This is another prime example of limited promotionfor women as the majority that fall within a distinction bracket are male,therefore allowing them to achieve a better bonus than women, hence wideningthe gap. It can be acknowledged that larger organisations requiremore managers therefore control by the head office is weakened, hence making itmore difficult to overcome a gender pay gap. Within the chain of command inlarger organisations, men maintain within the higher rankings compared towomen. This relates with the fact that CEOs tend to be paid more the larger thefirms size (Murphy, 1985; Kostiuk 1990; Rosen 1992, Bertrand; Hallock, 2001)and if the pay-size correlation also holds for other top executives, it’sreasonable to ask how much of the gender gap can be attributed to the under-representation of women in larger firms (Bertrand; Hallock, 2001). RegardingHertzberg’s Two Factor Theory (1959), as women in larger organisations don’t oftenget the opportunity be on higher payed salaries, it means they haven’t obtainedthe hygiene factors required to be effectively motivated.

ADD PUBLIC SECTOR STATS AND INFOHerzberg’s two factor theory is essential to every manageras it marks the importance of providing hygiene factors sufficiently to theemployees as a way of motivation (Nguyen, 2017). Herzberg hypothesized thatoccupation fulfilment and employment disappointment act autonomously of eachother (G. Yamuna; R. Jyothsna Devi, 2016). Herzberg suggests that to eradicatejob dissatisfaction, you must fix the problems associated with the hygienefactors. This is ambiguous when managing a company with a gender pay gap. Challenges whenManaging Organisations  The safety needs of women are also threatened as they lackjob security especially when pregnant.

The law states that employers are notallowed to dismiss a woman for being pregnant, nor should she be disadvantagedin terms of pay or promotion (Gatrell and Swan, 2008) nevertheless, this is notalways the case. Many women who return to work after maternity leave earn lessthan men as they are less likely to receive a pay increase or promotion. Thisis thought to be due women requiring part-time work, hence challenging managerswith a GPG as they don’t feel employees with children to be as reliable asthose without, which in turn contributes further to the demotivation of womenas they don’t feel recognised or appreciated. IFS (Institute for Fiscal Studies)research shows that the GPG is smaller when comparing young women, before theybecame mothers, with their male counterparts (Dias, Elming and Joyce, 2016).The gap widens for twelve years after the first child is born, by this pointwomen receive 33% less pay per hour than men (Dias, Elming and Joyce, 2016). Overallthis makes it difficult for managers to comply with the 2010 Equality Act byproviding equal opportunity for promotion as many women have other priorities.Also by many women doing part-time hours it means their pay will be unavoidablyless than males working full time so in many cases a GPG is inevitable. When motivating employees, managers needto acknowledge that people respond to recognition, freedom to contribute,opportunity to grow, and fair compensation (Boldea and Dr?goi, 2011).

Thesefactors 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’tmeeting their physiological needs as their salary isn’t equal to their malecolleagues, thus women are prevented progressing up the hierarchy. This indicatesthat women are unable to be completely motivated. Challenges whenManaging Individuals The gender pay gap(GPG) refers to the difference between theaverage earnings of men and women, expressed as a percentage of men’s earnings(Advisory, Conciliation, and Arbitration Ser-vice (ACAS), 2017). In the UK, theEquality Act 2010 attempts to hinder gender inequality by allowing; claims fordirect gender pay discrimination where there is no actual comparator and makingpay secrecy clauses unenforceable (Government Equalities Office and Equalityand Human Rights Commission, 2015). The contemporary issue of the GPG triggersthe barrier of a glass ceiling as although an employee may be meritorious ofpromotion; their sex prevents them from advancement. This universal andcontinuous issue in turn causes less motivation and lowered expectations, thuswidening the gap.

Figure 1 shows that the average pay for women on a global scalein 2017 was $12,000, whereas men received $21,000; and that there haven’t beenany real improvements over the last 10 years for women (Harris, 2017). ADD MORE THEORY/LITIntroduction of theissue

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