Impact of Gender Pay Gap on Employee Performance

This study focuses on analyzing the impact of gender pay gap on employee performance in Austin Fraser Ltd. It explores the practices that can be implemented to reduce the gender pay gap and improve overall performance. The research aims to identify the influence of gender pay gap, measure its negative impact on employees, and determine practices for reducing the gap.

Managing a Successful
Business Project

Table of Contents

TITLE
“To determine the impact of gender pay gap on performance of employees”. A study on
Austin Fraser Ltd.
INTRODUCTION
Equality is about ensuring each person has an equal chance, and it not treated differently
as well as not discriminated against because of their characteristics. Diversity is about valuing
and celebrating how divers all are. This is mainly related with promoting freedoms and rights of
an individual which is based on certain principles such as dignity and respect. Therefore, equality
and diversity within a workplace is important in improving organisational as well as employees
performance (Abendroth and et. al., 2017). Gender pay gap introduces as a major issue that
negatively influence on employees performance and also decrease productivity of company. For
this project Austin Fraser Ltd is a chosen IT service company that are specialise in engineering,
life science and information technology recruitment. Gender pay gap is a main problem in this
organisation and to reduce this issue company must follow Equality act 2010. It is an useful and
effective act that support company to promoter equality and diversity within a workplace.
TASK 1
P1
Overview of the project
Gender pay gap refers to the difference in between the men and women as reflected in
cultural, social, economic or intellectual attitudes or attainments. This is a main issue that mainly
impact on women workforce by reducing their lifetime earnings and also impact on its pension.
It is a main issue in the workplace of Austin Fraser Ltd. For overcoming this issue company must
use number of practices such as implementation of equality act 2010, development of inclusive
workforce, provide equal pay etc. These are main practices that will be beneficial for company in
reduction of gender pay gap and improvement of employees as well as an organisation
performance (Abraham, 2017).
Research aim
To analyse the impact of gender pay gap over performance of workers in the workplace
of an enterprise. A study on Austin Fraser Ltd.
Research Objectives
1

 To identify the influence of gender pay gap in Austin Fraser Ltd by the end of 1 month.
 To measure the negative impact of gender pay gap on employees using performance
appraisal within 2 months. To determine 3 main practices for reduction of gender pay gap in Austin Fraser Ltd up to
10%.
Research Questions
 What are the influence of gender pay gap gender pay gap in Austin Fraser Ltd by the end
of 1 month?
 How to measure the negative influence of gender pay gap on employees using
performance appraisal within 2 months?
 What are the 3 main practices for reduction of gender pay gap in Austin Fraser Ltd up to
10%?
P2
Project management plan introduces as an useful document that is used to describe each
phase of a project in systematic manner. Project management plan includes different components
such as cost, communication, risk, resources etc. (Ali, 2016). These are consider important and
useful elements of project management plan that will be beneficial for project manager to
systematically complete project within given time period and systematically.
Sources of
Project
Management
Plan
Description
Cost For overcoming impact of gender pay gap by using Quality act 2010, company
will require appropriate amount of capital.£150 is sufficient amount of capital
that will be require by Austin Fraser Ltd in order to implement effective ways
for overcoming gender pay gap. Along with this, investigator also require
sufficient amount of fund for performing entire tasks of project including
development of aims and objectives, utilisation of primary sources etc. For
completing this activities in sufficient manner, researcher need approximately
£200.
2

Scope For collecting qualitative and quantitative information about the gender pay
gap and its impact on employees performance have wide scope. As it will help
other organisation by providing accurate data regarding the issue of gender
pay gap. Therefore scope of qualitative and quantitative researcher are wide
for researcher or project manager (Auspurg, Hinz and Sauer, 2017).
Time Time is major component of project management plan because it help project
manager in completion of each activities of study in given time duration. Gantt
chart will be used for identifying time duration of each activities. As it will be
useful for project manager to complete whole project in allotted time period
and systematic manner.
Quality Quality is major part for successfully completion of project. Qualitative and
quantitative are introduces 2 method of investigation which is used for this
project. Within an investigation, both types of research will be used for
collecting information in form of quality and numeric. As it will be beneficial
for project manager to done research in effective and efficient manner.
Communication For this project, there are require of some media i.e. video, conferencing,
voice calls, e-mail etc. These are effective ways that will be going to used by
company and researcher for communicating each information about the
project to employees as well as respondents also (Bishu and Alkadry, 2017).
Risk There are some common risks that will be going to faced by company and
researcher. Lack of time, inappropriate communication and lack of capital are
consider major limitations that have negative impact on researcher as well as
organisation also. On researcher, these limitations impact on them while
completion of project in given time period and systematic manner. On
organisation this will impact on them in adoption of effective ways for
reducing gender pay gap within a workplace.
Resources There are requirement of some resources such as time, communication, fund
etc. These are main resources that will be needed by company to implement
number of ways for reducing impact of gender pay gap. Along with this,
researcher also require some sources for collecting primary information
3

effectively. Interview and questionnaire are consider main source of primary
data collection.
P3
Gantt chart and also WBS (work-breakdown structure) are consider main tools that help a
project manager in completion of their project within a given time period and systematic manner.
These techniques will be explained as below in detailed manner:
Gantt chart: It is an important tool shows number of activities performed against time
duration. Main purpose of using this chart is it help in identification of starting and ending data
of project (Flabbi and et. al., 2019). In this technique, various activities that will be included
which are shown as below:
4

Work-breakdown Structure: This is another technique that will be used for completing
this project in systematic and effective manner. WBS is a an effective project deliverables that
5

set up the certain team's into administrable sections. In addition, it is a deliverable-oriented
breakdown of an entire project into smaller elements.
Drawing 1: Work-breakdown structure
TASK 2
P4
There are usually two methods such as qualitative and quantitative. These are important
type of research that will be used for analysing data about the gender pay gap and its impact on
workers and its overall performance in qualitative and quantitative form. There are some
important methods of qualitative and quantitative research which will be determined as below:
Qualitative research: It is a method of inquiry that mainly develops proper understanding social
science and also human to analyse the way people feel. In order to collect qualitative
information, there are some methods such as group discussion, in-depth interview etc. These are
important but within an investigation in-depth interview will be going to used because it gives
information in detailed manner (Fortin, Bell and Böhm, 2017).
 Interview: This is a method of qualitative research that is used by researcher for
collecting information from a small group of subjects on a specific area of study. 5
manager of Austin Fraser Ltd will be recruited for analysing information about the
impact of gender pay gap over employees performance.
Interview
Q1) How to promote diversity and equality in a workplace of Austin Fraser Ltd?
Q2) How gender pay gap influence within Austin Fraser Ltd?
Q3) How to measure the negative influence of gender pay gap on workers?
Q4) What are the ways through which unfavourable influence of gender pay gap can be
minimise?
6

Q5) Does Equality Act 2010 help in reduction of gender pay gap?
Quantitative research: It is another kind of investigation that is used to generate hard facts and
numerical information , by using statistical, mathematical and logical techniques. In order to
gather quantitative information, there are various methods such as observation, questionnaire and
survey. These are important but for collecting data about the current topic, questionnaire will be
used as it provide reliable and repeatable information (Guimarães and Silva, 2016). Questionnaire: It is a research instrument that consists number of questions for the aim
of collecting reliable and valid information from the respondents. 20 employees of
Austin Fraser Ltd will be recruited for analysing their opinion about the gender pay gap
in the organisation.
Questionnaire
Questionnaire
Q1) Are you have idea about the idea of equality and diversity in the organisation?
a) Yes
b) No
Q2) What is the main issue of equality and diversity of Austin Fraser Ltd?
a) Gender Pay Gap
b) Ethnic and cultural differences
c) Discrimination
Q3) According to you, gender pay gap is main issue that have unfavourable impact on your
performance?
a) Yes
b) No
Q4) As per you point of view, what are the major problem of gender pay gap on your
performance within a workplace of Austin Fraser Ltd?
a) Lack of motivation
b) Lack of productivity
c) Mental and health issue
Q5) According to you , what are the causes of gender inequality within a workplace of Austin
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Fraser Ltd?
a) Unequal pay
b) Sexual harassment
c) Racism
TASK 3
P5
There are number of tools and techniques that will be used for analysing data about the
topic in systematic manner. Some useful tools will be determined as below:
Data collection: There are essentially 2 methods which helps researcher in data
collection such as primary and secondary. In order to gather primary data, questionnaire is a
main method and for collecting secondary information magazines, books etc. are main sources.
Both method of data collection are important but for collecting information regarding the gender
pay gap and its impact on employees performance, primary method of data collection will be
used. As this method help in gathering of reliable and valid information (Mihăilă, 2016).
Research Approach: Inductive ad deductive approach of research will be used for
analysing qualitative and quantitative information systematically. Inductive approach help in
analysing of qualitative information whereas deductive approach is used for analysing
quantitative data. Therefore, both approaches of research will be used for analysing qualitative
and quantitative information regarding the impact of gender pay gap over performance of
workers.
Sampling: Probability and non-probability are consider two techniques of sampling.
Within an investigation, convenience sampling as a type of non-probability will be used. Main
research behind using this type of sampling as it not take more time and also help in selection of
sample size conveniently. By using this technique of sampling 20 employees and 5 managers of
Austin Fraser Ltd will be recruited (Perryman, Fernando and Tripathy, 2016).
Data Analysis: Thematic analysis will be used for analysing qualitative data whereas
content analysis is used for analysis quantitative information. Both methods of data analysis are
useful in analysation of quantitative and qualitative information in systematic and effective
manner (Popescu, 2016).
Quantitative data analysis
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Q1) Are you have idea about the equality and diversity within an organisation? Frequency
a) Yes 15
b) No 5
Table 1:
a) Yes b) No
0
2
4
6
8
10
12
14
16 15
5
Frequency
Figure 1:
Interpretation: Above given table has been concluded idea regarding the diversity and
equality among employees of Austin Fraser Ltd. 15 out of 20 employees have knowledge about
the equality and diversity whereas remaining 5 respondents not have any idea about the same.
Q2) What is the main issue of equality and diversity at working environment of
Austin Fraser Ltd?
Frequency
a) Gender Pay Gap 12
b) Ethnic and cultural differences 3
c) Discrimination 5
9

Table 2:
a) Gender Pay Gap
b) Ethnic and cultural differences
c) Discrimination
0
2
4
6
8
10
12
12
3
5 Frequency
Figure 2:
Interpretation: From the above figure, it has been interpreted major issue of quality and
diversity faced by employees within a workplace of Austin Fraser Ltd. 12 out of 20 workers of
company said as gender pay gap is main issue of equality and diversity that have negative impact
on performance. 3 respondents have idea as ethnic and cultural differences is main problem
issues whereas 5 participants idea as discrimination is main problem. Therefore, majority of
participants said gender pay gap is main problem that arisen due to equality and diversity.
Q3) According to you, gender pay gap is main issue that have negative impact on
your performance?
Frequency
a) Yes 15
b) No 5
Table 3:
10

a) Yes b) No
0
2
4
6
8
10
12
14
16 15
5
Frequency
Figure 3:
Interpretation: It has been concluded opinion of respondents about the gender pay gap.
Most of the participants said as gender pay gap is main problem that arise due to unequal pay and
discrimination. They also said as gender pay gap negatively influence over performance and
motivation of employees.
Q4) As per you point of view, what are the main issue of gender pay gap on
your performance within a workplace of Austin Fraser Ltd?
Frequency
a) Lack of motivation 7
b) Lack of productivity 8
c) Mental and health issue 5
Table 4:
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a) Lack of motivation
b) Lack of productivity
c) Mental and health issue
0
1
2
3
4
5
6
7
8 7
8
5
Frequency
Figure 4:
Interpretation: This graph has been interpreted main issue of gender pay gap that are
experienced by employees in the workplace of Austin Fraser Ltd. 7 out of 20 employees
experienced lack of motivation due to gender pay gap. 8 respondents said as gender pay gap
impact on productivity and remaining 5 respondents said as it increase health and mental issue.
These are main issues faced by employees due to gender pay gap.
Q5) Explain main causes of gender inequality within a workplace of Austin
Fraser Ltd?
Frequency
a) Unequal pay 8
b) Sexual harassment 6
c) Racism 6
Table 5:
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a) Unequal pay b) Sexual harassment c) Racism
0
1
2
3
4
5
6
7
8
8
6 6
Frequency
Figure 5:
Interpretation: It has been concluded causes of gender inequality. 8 out of 20 employees
said as unequal pay is main cause of gender inequality and have negative impact on employees
performance and productivity. 6 respondents have knowledge as sexual harassment is main cause
that impact on overall performance of workers. Remaining 6 respondents have idea as racism is
main cause that impact on employees as well as an organisational performance.
13

Qualitative data analysis
Theme 1: Ways to promote diversity and equality
Q1) How to promote diversity and equality in a workplace of Austin Fraser Ltd?
Ans: One manager of Austin Fraser Ltd have idea as creation of diversity-friendly workforce
policies is effective way that help them in promoting of diversity and equality within a
workplace. Remaining 4 managers have idea as there are also some ways through which
diversity and equality can be promoted in effective manner. It includes clear communication,
divers opportunities for employees engagement, development of mentorship program etc. These
are main ways through which Austin Fraser Ltd can easily promote diversity and equality.
Theme 2: Influence of gender pay gap
Q2) What are the influence of gender pay gap in Austin Fraser Ltd?
Ans: All managers of Austin Fraser Ltd said as gender pay gap has unfavourable influence on
employees as organisational performance by reducing their productivity level. There is no
positive impact of gender pay gap on employees and organisation also.
Theme 3: Ways to measure negative impact of gender pay gap
Q3) How to measure the negative impact of gender pay gap on employees?
Ans: 3 out of 5 managers of company said as collection of feedback from employees is one of
the best way for measuring negative impact of gender pay gap. In this way, employees are free
to provide their opinion about the equality and diversity policies that were used by Austin
Fraser Ltd.
Theme 4: Ways through which negative impact of gender pay gap can be minimise
Q4) What are the ways through which negative effect of gender pay gap can be minimise?
Ans: There are number of ways though which gender pay gap and its impact can be reduced by
Austin Fraser Ltd. All managers have idea as development of inclusive and diversity training
will be more effective and essential ways in reduction of such issue.
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Theme 5: Effectiveness of Equality Act 2010 in reduction of gender pay gap
Q5) Does Equality Act 2010 help in reduction of gender pay gap?
Ans: 5 managers of the company said yes as equality act 2010 plays an important part in
reduction of gender pay gap within a workplace of Austin Fraser Ltd. This act help an
individual in reducing impact of age, marriage and civil partnership etc. These are consider
main issues that have negative impact on employees. In order to overcome these issue, adoption
of equality act 2010 is useful for the organisation.
P6
It has been recommended that one of the main issue of equality and diversity is gender
pay gap that have unfavourable influence over entire performance of employees. There are some
recommendation such as encourage salary discussion by displaying salary range, use structured
interview for recruitment and promotion, include diverse female workers in shortlist for hiring
and promotions, reward and pay process, establish diversity managers etc. These are consider
main ways by which company can easily reduce impact of gender pay gap on employees
performance. There are some another ways that must be use by company and to promote
diversity and equality within a workplace. These are:
 Company must develop inclusive workplace that will support them in reduction of gender
pay gap and increment in employees performance and productivity.
 Austin Fraser Ltd must follow Equality act 2010 that turn to help them in ministration of
gender pay gap. The aim of the Equality Act is to raise equal job possibilities as well as
fairness for workers and job applicants.
 Company must also develop different policies which are mainly related with diversity
and equality. As it will support them in reducing high employee turnover and also help
them in increasing motivation among employees.
TASK 4
P7
I am happy that I get an effective chance to perform project over an interesting topic i.e.
“To determine the impact of gender pay gap on performance of employees”. A study on Austin
15

Fraser Ltd. By performing this investigation I become able to improve my knowledge criteria
about the equality and diversity. This project helped me by enhancing my number of skills such
as literature review, time management, data collection, data analysis and many other qualities
relevant to the project or topic. In order to collect information regrading the current study, I used
questionnaire and interview also. These are effective method when I need data in form of
qualitative and quantitative form. Apart from this, I also faced certain issues that were impacted
on my performance during collection of appropriate information. Lack of time, lack of resources,
insufficient amount of capital, unethical behaviour from respondents side etc. are main issues
that were faced by me. To overcome these issues I taken number of actions such as following
ethical consideration for reducing issue of unethical behaviour, using Gantt chart for overcoming
time issue, utilising optimum resources etc. These are best way for me that help in completion of
research project in ethical and systematic manner.
CONCLUSION
Gender pay gap is main issue of equality and diversity. This issue has negative impact
over performance of employees as well as organisation also. Lack of motivation, lack of
productivity, mental and health issues are main problems that were faced by employees due to
gender pay gap. In order to reduce this issue, equality act 2010, development of inclusive
workplace etc. practices were used by company that turn to support them in reduction of gender
pay gap. Along with this, number of methods have been used for gathering qualitative and
quantitative information in systematic manner. Interview and questionnaire are consider main
method that helped in collection of information in form of qualitative and quantitative.
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REFERENCES
Books and Journals
Abendroth, A. K. and et. al., 2017. Women at work: Women’s access to power and the gender
earnings gap. ILR Review. 70(1). pp.190-222.
Abraham, M., 2017. Pay formalization revisited: Considering the effects of manager gender and
discretion on closing the gender wage gap. Academy of Management Journal. 60(1).
pp.29-54.
Ali, M., 2016. Impact of gender-focused human resource management on performance: The
mediating effects of gender diversity. Australian Journal of Management. 41(2).
pp.376-397.
Auspurg, K., Hinz, T. and Sauer, C., 2017. Why should women get less? Evidence on the gender
pay gap from multifactorial survey experiments. American Sociological Review. 82(1).
pp.179-210.
Bishu, S. G. and Alkadry, M. G., 2017. A systematic review of the gender pay gap and factors
that predict it. Administration & Society. 49(1). pp.65-104.
Flabbi, L. and et. al., 2019. Do female executives make a difference? The impact of female
leadership on gender gaps and firm performance. The Economic Journal. 129(622).
pp.2390-2423.
Fortin, N. M., Bell, B. and Böhm, M., 2017. Top earnings inequality and the gender pay gap:
Canada, Sweden, and the United Kingdom. Labour Economics. 47. pp.107-123.
Guimarães, C. R. F. F. and Silva, J. R., 2016. Pay gap by gender in the tourism industry of
Brazil. Tourism Management. 52. pp.440-450.
Mihăilă, R., 2016. Female labor force participation and gender wage discrimination. Journal of
Research in Gender Studies. 6(1). pp.262-268.
Perryman, A. A., Fernando, G. D. and Tripathy, A., 2016. Do gender differences persist? An
examination of gender diversity on firm performance, risk, and executive
compensation. Journal of Business Research. 69(2). pp.579-586.
Popescu, G. H., 2016. Gender, Work, and Wages: Patterns of Female Participation in the Labor
Market. Journal of Self-Governance and Management Economics. 4(1). pp.128-134.
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APPENDIX 1
Logbook
18

19

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APPENDIX II
Performance Review
Template for Performance Review to be attached with the report by the learner:
 What was the Project supposed to accomplish?
To determine the influence of gender pay gap over employees and their performance in the workplace
of Austin Fraser Ltd. It is a main aim of this project that have been done by me in systematic and
effective manner by applying qualitative as well as quantitative research.
21

 Did the project succeed in its aims/ how do you know? Specifically, please outline any
evaluation and assessment undertaken.
Yes this project succeed in its aims which is know by me by following Gantt chart andWBS. These are
main techniques that supported me in completion of each activities of project within a given time
period and systematic manner.
 What things do you think worked well and why? Evaluate all aspects of the project?
Data collection is main part of research project as it help in collection of valid and reliable data about
the topic. For this activity I worked more well because it support me in gathering of reliable
information regarding the gender pay gap. Apart from this, there are different aspects of project such as
scope, time, communication, quality, time, cost, resources etc. These are useful for me while
completion of project in given time period.
 What problems emerged during the project and how were they tackled? Was there timely
identification of issues and resolution during the project process?
There are certain problems that I faced during the project such as lack of time, unethical behaviour
from respondents side etc. In order to tackled this issues I used Gantt chart and followed each activities
of project in ethical way. Thus, Gantt chart is essential tool for solving time issue in effective manner.
 What did you learn from undertaking the project?
For undertaking this project I learned about the impact of gender pay gap on employees as well as an
organisation performance. By performing each activities of project I improved my time management
skill, data collection skill and data analysis skill.
 How would you rate your performance as a management consultant leading the project?
9 out of 10.
 What strengths and weakness of your performance did you identify?
Communication is my strength and time management is my weaknesses while performing each
activities of research.
22

 How will this inform and support your continuous professional development?
This will inform by e-mail and it highly supported me in my continuous professional development by
improving knowledge about the impact of gender pay gap within a workplace of an organisation.
23