Gender Pay
Inequality:
Lessons from the
World of Sports
In recent years, the world of sports has become a powerful catalyst for change, transcending the boundaries of stadiums and arenas to shine a spotlight on a pressing societal issue: gender pay inequality. The lessons derived from these disputes extend far beyond the confines of sports, holding valuable insights for businesses across all industries.
Here’s all you need to know to ensure you’re building a business culture that’s fair for everyone...
What is the latest?
Recent high-profile disputes in the world of sports have brought the issue of gender pay inequality to the forefront. In the build up to this summer’s Women’s World Cup, players from the England Women’s National Team (Lionesses) and Jamaica’s The Reggae Girlz publicly voiced their concerns about unequal pay and treatment in football and called for more action from their respective governing bodies. A number of governing bodies have also faced legal fall-out over equal pay in the past couple of years, including in the US, Canada and Scotland. Disputes such as these emphasise the growing importance of addressing gender pay disparities and unequal treatment not only in sports but across all industries.
Equal pay in sports, as in business, relates to the amount paid to male and female participants for similar roles and responsibilities. It encompasses salaries, bonuses, appearance fees, and other forms of compensation. Equal treatment extends beyond pay to the treatment, support, and resources provided to athletes.
Strides have been taken in the last few years to address pay inequality in sports. In football, a range of nations including Wales, England, the Republic of Ireland, Spain, Brazil, Australia and Norway have moved towards equal pay for their men’s and women’s national teams. The England and Wales cricket board also recently announced that test and match fees would be equalised between the England men’s and women’s international teams. Tournament prize money in women’s sport has been on the increase along with women’s salaries and sponsorship deals.
However, huge discrepancies still exist in many areas. In football, men’s players can earn more in a week than the top women’s players might earn in a year. Tournament prize money is still worlds apart for some tournaments, with 2022/23 football FA Cup winners receiving £100,000 in the women’s tournament, in contrast with the £2m received by the men’s winners. In cricket, concerns have been aired recently about the huge pay discrepancies in the Hundred tournament, not only affecting players but officials too. In this year’s edition of the tournament, umpires for the women’s matches received less than a third of the pay received for men’s matches.
In some cases, although pay discrepancies exist, they are not necessarily illegal. This is due to the relationship between the organisation and those being paid. For example, the protections relating to equal pay afforded to employees and workers do not apply to the self-employed or those contracting through their own businesses. What’s clear, though, is that the increasing level of attention paid to these issues in women’s sport has raised the bar for businesses in all fields to take a look at their own frameworks with these high-profile disputes signalling that potential consequences include not just legal but also reputational implications.
What are the challenges for businesses?
- Salary disparities: gender pay gaps persist in various industries. High-earning male executives often receive significantly more than their female counterparts, leading to disparities in overall compensation.
- Resource allocation: unequal distribution of resources, such as training facilities, medical support, and opportunities for professional development, can hinder women’s advancement in the workplace.
- Reputational risk: gender pay inequality can harm a company’s reputation. As gender equality gains more attention, businesses that fail to address disparities may face public backlash, damage their brand image, and struggle to retain and attract talent.
- Legal liability: failure to address gender pay disparities may result in legal challenges. Laws, like the Equality Act 2010 in the UK, prohibit unequal pay and treatment based on gender. Non-compliance can lead to costly legal actions.
What actions should your business take?
Assess pay disparities: conduct a comprehensive review of your organisation’s pay structure. Identify gender pay gaps and analyse the factors contributing to them.
Assess pay disparities: conduct a comprehensive review of your organisation's pay structure. Identify gender pay gaps and analyse the factors contributing to them.
Equalise pay: take steps to close the gender pay gap. This may involve adjusting salaries, bonuses, and benefits to ensure equitable compensation for all employees performing similar roles.
Equalise pay: take steps to close the gender pay gap. This may involve adjusting salaries, bonuses, and benefits to ensure equitable compensation for all employees performing similar roles.
Resource equality: ensure that resources, opportunities, and support are distributed fairly among employees, regardless of gender. Address disparities in training, mentorship, and professional development.
Resource equality: ensure that resources, opportunities, and support are distributed fairly among employees, regardless of gender. Address disparities in training, mentorship, and professional development.
Transparency and accountability: promote transparency in pay and career progression. Establish clear criteria for promotions, raises, and bonuses, and ensure that they are applied consistently.
Transparency and accountability: promote transparency in pay and career progression. Establish clear criteria for promotions, raises, and bonuses, and ensure that they are applied consistently.
Engage with employees: encourage open dialogue with employees about gender pay issues. Create channels for employees to voice concerns and provide feedback on company policies and practices.
Engage with employees: encourage open dialogue with employees about gender pay issues. Create channels for employees to voice concerns and provide feedback on company policies and practices.
Legal compliance: familiarize your business with relevant employment laws and regulations related to gender pay equality. Ensure that your policies and practices align with legal requirements.
Legal compliance: familiarize your business with relevant employment laws and regulations related to gender pay equality. Ensure that your policies and practices align with legal requirements.
Reputation management: take a proactive approach to reputation management. Publicly communicate your commitment to gender pay equality through internal and external channels.
Reputation management: take a proactive approach to reputation management. Publicly communicate your commitment to gender pay equality through internal and external channels.
Diversity and inclusion: promote diversity and inclusion within your organization. Encourage diverse hiring practices and foster an inclusive workplace culture that values all employees.
Diversity and inclusion: promote diversity and inclusion within your organization. Encourage diverse hiring practices and foster an inclusive workplace culture that values all employees.
Benchmarking: compare your organisation’s gender pay data with industry standards to identify areas where improvements can be made.
Benchmarking: compare your organization's gender pay data with industry standards to identify areas where improvements can be made.
Continuous improvement: gender pay equality is an ongoing process. Regularly review and update your policies and practices to adapt to changing norms and expectations.
Continuous improvement: gender pay equality is an ongoing process. Regularly review and update your policies and practices to adapt to changing norms and expectations.
Expert opinion
Gender pay inequality is not limited to the world of sports; it is a pervasive issue that affects businesses across industries. Although pay discrepancies might not always be illegal, it’s clear that resultant reputational damage can be significant. By taking proactive steps to assess and address pay disparities, promoting equal treatment, and prioritising diversity and inclusion, businesses can create a more equitable and inclusive workplace while mitigating legal, reputational, and operational risks.
Tom Barnard
Partner