Gender pay gap in UK infrastructure sector inches up due to Covid-19 impact

According to data gathered by the government and analysed by Pinsent Masons, the average median pay gap between male and female employees working for companies in the infrastructure sector was 21.2% in 2022-23. The latest figure shows an increase of almost two percentage points from the previous year.

The statistics are based on gender pay gap data published by 348 employers across the sector for the year 2022-23. Among those 348 employers, 66 are large companies with mostly up to 4,999 employees. They have reported a slightly narrower gender pay gap, with women paid 20.4% less per hour than men.

In terms of mean bonus payments, women are paid 5.7% more than men on average in the sector.

Underlying causes of the UK infrastructure gender pay gap

The disparity between the male and female workforces in the construction industry contributed significantly to the gender pay gap. Whilst many companies have strategies to measure and address this, there is still not equal representation, as female employees continue to make up a smaller proportion of the workforce. It is particularly apparent that fewer women occupy senior or more highly paid roles within the sector, and the majority of new recruits tend to be predominantly male.

The impact of Covid-19

In addition to workforce issues, it is expected that the impact of the Covid-19 pandemic has somewhat skewed figures, with several companies citing this as a reason for the reported pay gap worsening over that reported in the 2020-21 period.

Some companies have also reported that activities designed to protect financial stability and preserve jobs throughout the course of the pandemic have had a significant but unintended impact on the gender pay gap.

Steps companies are taking to address the issues

Our analysis found that companies are aware that, in general, construction and civil engineering fail to attract a sufficient number of women into the industry, and that they are taking various measures and initiatives to tackle the female talent issue and improve the gender pay gap.

As a growing trend in the industry, several companies are including targets for diversity & inclusion directly into their business plans in order to drive up the proportion on women across all levels of the business. Efforts have been seen both at the recruitment stage and by developing networks or initiatives to increase awareness of gender equality issues and to provide mentoring, development and leadership opportunities.

Other companies have invested in mandatory e-learning modules to ensure employees are equipped with the knowledge and awareness required to improve diversity and inclusion across all levels.

Some companies are also engaging with young people to attract new talent through STEM campaigns and engagement outreach programmes within local schools to promote the sector, with a focus to increase the proportion of women recruited for graduate and apprentice roles.

There are also companies that are looking to promote, and give prominence to, flexible working practices and policies to solve the female workforce issue. Businesses are encouraged by the results shown by flexible and remote working during the pandemic and the fact that the government’s Equalities Office has identified flexible working as key to attracting and retaining women and improving gender equality.

Examples of positive action

When considering the median hourly gap from 2017 to 2021, it was apparent from the data that most companies remained mostly static, the gap only changing by 1 to 2%. However, our analysis found a number of companies that have gone above and beyond with their efforts to close the gender pay gap, with measures such as returners’ programmes, recruitment targets, and programmes aiming to remove barriers to attract female candidates and promote female employees.

Highways England, for instance, has a returners’ programme which specifically focuses on encouraging women back into the workplace following a career break. Of all the returners, 94% are female and the company has retained 90% of those who have participated in the programme. Of those that have stayed with the company, 13% have then been promoted. 

Dounreay is one of the companies that have committed to a set target of increasing women in the workforce. It plans to grow female representation to 40% by 2030 in order to achieve a more equal gender balance across all roles.

Network Rail, meanwhile, has established a Gender Matters programme which aims to remove barriers that female candidates and employees face at the company. The programme aims to increase the number of women working in the business to 26% and the number of women in leadership and management roles to 32% by 2024.