Addressing the Gender Pay Gap in Ryanair

The assignment focuses on the gender pay gap in Ryanair, highlighting its effects on employees' morale and retention. It proposes regular internal and external audits, embedding a culture of equal pay, and leveraging the business case for equality as potential solutions. The analysis draws from relevant studies, including Equality Pay Act 1970, and considers the company's responsibility to minimize this gap.

INTRODUCTION TO HRM

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
Ryanair situation with reference to gender pay gap....................................................................1
Legal regulations.........................................................................................................................2
Cost and benefit for organisation in dealing with this issue........................................................3
Recommendations........................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Gender pay scale is the serious issue in UK, around three out of four companies of UK are
not paying equal salaries to its workers. Male staff is getting more wages as compare to female
employees (O’Reilly and et.al., 2015). Statistical records show average income of men is 10%
more than women. In order to minimise this discrimination government of UK has made several
legislations that supports nation in providing equal opportunities to all candidates. Companies
are required to treat people on the bases of their performance rather then their gender. Present
study is based on Ryanair that operates in aviation industry. Gender pay gap in the organisation
is approx 72% that is very high. There are only 554 UK based female pilots, rest staff is men.
The main aim of current assignment is to describe issues related to gender pay gap in Ryanair
and legal regulations related to gender equality in UK.
TASK
Gender pay gap in aviation industry
Gender pay gap can be defined as difference between average earning of women and men in
organisation. Office for National statistics (ONS) records 2017, show that UK is the country
where men earn18.4% more than women. Pay gap is the term that describes the payment method
of companies to its employees. Entities are required to pay equal salaries to its men and women
both employees if they are at the same post (Conley, 2014). But there are many UK companies
those which are not paying equal wages to its staff and promoting gender bias.
One of the main causes of unequal pay scale is gender discrimination. Many
organisations dismissed female candidates those who are new mothers. Firms don’t treat them
well and do not give them promotional opportunities. Companies give majority of senior roles to
the men candidates. Entities believe that men staff can stretch working hours and can go outside
of place for commercial purposes (Gregory‐Smith, Main and O'Reilly III, 2014). Thus, these
firms promote these persons for higher posts.
Ryanair situation with reference to gender pay gap
Ryanair revealed that 72% gender pay gap exist in the company. This is considered as
imbalanced records in any sector. Ryanair is the low cost carrier where only 554 pilots are
working (Laurison and Friedman, 2016). It is essential for UK companies that have more than
250 employees to publish report of number of men and female staff in organisation. In the year
2017 Ryanair has sent this report in which it has revealed that there is 72% gender pay gap.
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Company does not provide awarded bonuses to female as it is offering to its male candidates.
2017 records show that median of this pay gap for fixed hours are around 71.8%. Out of 554
pilots there are 546 male pilots (Foster, 2016). Apart from this, there are only 17 women those
who are working at the post of non- crew carbine out of 42. As duties of pilots are very hard
thus, enterprise provides higher bonuses to its pilots as compare to cabin crew employees. That
automatically creates gender pay gap because there are less women at the post of pilots
Company has announced that it is proud to have such skilled employees those who are
contributing well in providing excellent services to customers. It has revealed that one of the
major causes of gender pay gap is relatively low number of female pilots in this sector. Most of
the management and administration staff belongs from Ireland. Thus, it hires pilots and cabin
crew staff from UK only (Klesment and Van Bavel, 2017). But as there is less number of female
candidates those who have degree and experience of working as pilot thus, entity is unable to
minimise this gap. Recently, large number of female candidates is applying for the post thus;
Ryanair is expecting to involve large number of women in the airline.
Statistical records show that Ryanair has only 3% women those who are at higher paid
jobs in company.
Figure 1: gender pay gap in Ryanair
(Source: Gender pay gap: Six things we've learnt, 2018)
Ryanair Airline Company is having low female lower paid cabin crew.
Legal regulations
UK government has made several laws in order to minimise the gender equality in the
country. These legislation bund companies to treat all its employees equally and provide them
salaries on the bases of their post rather than their gender (Ryanair reveals gender pay gap of
67% between men and women, 2018).
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Equal pay act 1970
This regulation has been made by UK government in the year 1970. The main agenda of
this law is to provide equal pay to men and women. Now companies are required to give equal
salaries to its male and female staff working at same level. It has to ensure giving promotional
opportunities to both equally. If enterprise fails to maintain this, then it would have to pay huge
penalties. Equality act 2017 regulation has made it compulsory for companies to publish their
report of number of male and female candidates in business every year. Firms those which are
having more than 250 employees are required to fulfil this legislation and have to submit report
at the end of financial year (What is the business case for equal pay, 2018). If there is mean
difference between hourly rate paid to male and female, then entity will have to bear huge
penalties. Authorities determine the equal pay gap in companies on the bases of mean hourly
rate, median hourly rate, bonuses paid to its employees on the bases of gender. It is essential for
Ryanair that to follow this regulation and if it fails to implement its effectively then it would be
considered as breach of regulation. In this situation government of UK will enforce necessary
action on the entity.
Employment Equality regulation 2003
This is secondary legislation that has been made by UK government to prohibited
employees from discrimination in companies on the bases of their gender (Klesment and Van
Bavel, 2017). This law has come into force in the year 1972 and after that several modifications
have been done in this legal regulation. This regulation ensures protecting people from direct and
indirect harassment in companies.
Cost and benefit for organisation in dealing with this issue
Cost
Ryanair offer low cost airline services to consumers. It has good reputation in this
industry but equal pay gap is very high in this sector. Due to this issue enterprise has to bear
huge cost. Description of cost related to equal pay gap is as below maintained:
 Expensive legal fees: One of the major risk that is associated with this issue is that
company will have to bear legal charges (Gender pay gap: Six things we've learnt.,
2018). As Ryanair is low cost airline firm thus, its profit is comparatively low as
compare to other aviation enterprises. If Ryanair fails to minimise this gap of unequal
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pay of male and female employees, then firm may have to pay claim of thousands of
Pounds. This will incur cost to business and will decrease its net profit to great extent.
 Productivity loss: Dealing with equal pay claims is such a time consuming task (What is
the business case for equal pay, 2018). Company will have to communicate with its legal
representatives so that individual can attend tribunal hearing. This will reduce overall
productivity of business to great extent.
 Damaged relationship with employees and affect staff moral: High equal pay gap
decrease motivation level and moral of staff members. By this way they become negative
towards brand and they do not contribute well in success of business unit. By this way
entity lose its skilled employee and fail to retain them in business for longer duration. As
female staff of Ryanair see that there is wages discrimination thus, they feel dishearten
and this affects overall productivity of business (Ryanair reveals gender pay gap of 67%
between men and women, 2018).
 Cost of tribunal decision: It is another cost that is bear by Ryanair due to high equal pay
gap issue in the organisation. Thus, Ryanair has to pay high legal charges event after
winning the case in court. This may increase burden on business and it fails to gain
competitive advantage (Laurison and Friedman, 2016).
 Loss of reputation: This is considered as major cost that needs to be faced by Ryanair due
to such condition in business. As salary discrimination on the bases of gender negative
affect brand reputation in front of customers and stakeholders as well.
 Possible further audits: If claim of equal pay gap has been proved then Ryanair will have
to bear the possible further audits risk (Gregory‐Smith, Main and O'Reilly III, 2014).
Benefits
Equal pay gap is also beneficial for Ryanair because company does not have more female
staff thus; it has to pay them limited as per their working in business. This supports entity in
reducing the cost and enhancing net profit as well. It encourages people to do their best in order
to get more incentives. By this way male staff members put hard efforts to raise demand of
company (Conley, 2014).
Recommendations
The entire activities will be completed within 2 months.
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In order to minimise the issues related to equal pay gap, Ryanair is required to make
changes in its policies and practices. This may support the firm in improving its market
reputation and sustaining in market for longer duration. There are several recommendations to
deal with issue of equal pay gap:
 Ryanair should provide fair wages to all its staff members, people those who are at same
post needs to get equal salaries without considering their gender. This will enhance
moral of employees and they will feel valued. By this way staff will pout hard efforts to
satisfy need of consumers. Thus, it would be beneficial in order to attract more people
towards brand and increasing profitability of company.
 Ryanair should conduct regular internal and external audit. This will help in analysing the
issues in business and finding best solution to rectify the issue of pay discrimination
through litigation.
 Company should have embedded the culture of equal pay, that will motivate staff
members will firm will be able to retain its skilled people in business for longer duration.
CONCLUSION
From the above study it can be concluded that equal pay gap is the difference between men
and women’s remuneration. This affects average earning of women and female candidates do not
get chance of promotions in business. Government of UK has made several legislations in order
to minimise this wages gap. Equality pay act 1970 is the most effective law that force companies
to publish their data related to number of female and male candidates in the firm every year. If
there is gap in salaries then firms may have high legal penalties.
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REFERENCES
Books and Journals
Conley, H., 2014. Trade unions, equal pay and the law in the UK. Economic and Industrial
Democracy. 35(2). pp.309-323.
Foster, D., 2016. Lean Out: Dawn Foster asks: If one percent are leaning in, what are the other
99% supposed to do?. Duncan Baird Publishers.
Gregory‐Smith, I., Main, B. G. and O'Reilly III, C. A., 2014. Appointments, pay and
performance in UK boardrooms by gender. The Economic Journal. 124(574). pp.F109-
F128.
Klesment, M. and Van Bavel, J., 2017. The reversal of the gender gap in education, motherhood,
and women as main earners in Europe. European Sociological Review. 33(3). pp.465-
481.
Laurison, D. and Friedman, S., 2016. The class pay gap in higher professional and managerial
occupations. American Sociological Review. 81(4). pp.668-695.
O’Reilly, J. and et.al., 2015. Equal pay as a moving target: International perspectives on forty-
years of addressing the gender pay gap. Cambridge Journal of Economics. 39(2). pp.299-
317.
Online
Gender pay gap: Six things we've learnt. 2018.[Online]. Available through <
https://www.bbc.com/news/business-43668187>
Ryanair reveals gender pay gap of 67% between men and women. 2018.[Online]. Available
through < https://www.independent.co.uk/travel/news-and-advice/ryanair-gender-pay-
gap-67-percent-men-women-airline-employees-michael-oleary-a8286006.html >
What is the business case for equal pay. 2018.[Online]. Available through <
https://www.equalityhumanrights.com/en/advice-and-guidance/what-business-case-
equal-pay >
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