The pay gap regulation is currently relatively simple: it looks at the difference in average earnings between men and women. While this is a start, the average does not begin to account for variation across different groups. In short, it is too simplistic.

A pay gap is very rarely a simple, binary issue for an organisation to address. Often, it is a complex, multi-layered mesh that cannot be fully understood by looking simply at gender, ethnicity or disability.

The pay gap, for example, is unlikely to be the same for all women. Women of colour experience a more significant pay disparity than their white peers and these discrepancies can be attributed to various factors including occupational segregation, discrimination, unconscious bias and differences in education and life experience.

To gain a clearer picture of systemic inequality, and how it plays into pay disparity, we need a more nuanced understanding that takes into account the intersectionality of social identities.

What is Intersectionality?

Intersectionality was coined by legal scholar Kimberlé Crenshaw in 1989 and refers to the interconnected nature of social categorisations such as race, gender and class, which overlap to create unique scenarios of discrimination. It is based on three key ideas:

1. People are affected by belonging to multiple interconnected social groups at the same time
2. The way different social groups interact happens within a context of interconnected systems and structures of power
3. Structural inequalities result from the interaction between social groups, power relations, and contexts

Applying intersectionality to the Pay Gap

When applied to the Pay Gap as an analytical tool, intersectionality can reveal a complex web of inequality that affects different groups in diverse ways, helping an organisation to gain a deeper level of understanding.

When used for equality monitoring it can flag pay disparity and discrimination where multiple categories of social identity overlap in addition to race and gender. These might be disability, sexual orientation, occupation or socio-economic level, not all of which an organisation will carry data for.

Intersectional approach - A way of identifying, understanding and tackling inequality in each context that accounts for the lived experience of people with intersecting identities.

Intersectional data – data that considers two or more combinations of individual, socio-cultural and environmental characteristics and - where the dataset allows – highlights the context in which these combinations give rise to relative advantage and disadvantage.

Intersectionality in practice: Case studies

Oxfam - uses equality data to provide intersectional pay gap reporting for ethnicity and LGBTQIA+ and states: “Our commitment to grow our diversity and ensure people from minoritised groups can contribute from their lived experience and fulfil their potential, must remain paramount. By strengthening and fully utilising our Equality data we can be both targeted and nuanced in our efforts to address inequalities. However, at present only 75% of our UK-based employees have completed the equalities monitoring form, meaning we should be cautious when interpreting the data and view it as simply one indicator of the systemic and cultural change we aspire to. We continue striving to increase the proportion of staff who have shared their Equality data.”

City, University of London - employs an intersectional focus to ensure a positive impact on the institution, and states: “We are committed to continuing to prioritise intersectional data analysis, aiding in the identification and understanding of barriers and inequities. This approach enables us to take appropriate actions and facilitates the implementation and monitoring of further progress in addressing pay gaps. City understands that there are clear, systematic differences in the hourly pay of staff within the sector specifically related to gender and ethnicity. To address this, City reported on the Ethnicity Pay Gap in 2023, collecting pertinent data. This approach allows us to explore areas where the intersectionality of gender and ethnicity may influence pay differentials. By leveraging data insights, we aim to make informed recommendations to effectively address and narrow both the gender and ethnicity pay gaps.”

Practical Policy change

Addressing the intersectional pay gap requires targeted policies that acknowledge and address the specific challenges faced by different groups. Examples include:

• Promoting pay transparency
• Conducting pay audits
• Implementing diversity and inclusion training
• Creating mentorship programmes to support the career advancement of underrepresented groups
• Supporting a work/ family balance and caregiving responsibilities, such as paid family leave and affordable childcare

Summary

To close the pay gap for everyone we need to recognise and address the unique challenges faced by different groups. While the gender pay gap and ethnicity disparities are widely recognised, understanding pay disparity in more detail requires the intersectionality of different social identities.

Innecto supports clients with pay gap reporting, wider pay equality review and pay transparency readiness, all of which can diagnose inequity and bias with a view to creating policies and actions. If your organisation is looking to understand pay equality in more detail, please contact sarah.lardner@innecto.com, or Get in Touch with our consultants today.

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