Nonprofit Sector Making Strides in Narrowing the Gender Pay Gap, According to New Report
The nonprofit sector is making strides in narrowing the gender pay gap, according to a new report published on Thursday (15 June 2023) by The Wheel. The report, funded by Community Foundation Ireland, highlights the significant progress made in reducing the mean gender pay gap (GPG) for managers in community, voluntary, and charitable organisations.
According to the report, the mean GPG for managers in the nonprofit sector currently stands at 5.69%. This represents a substantial decrease from previous years, showcasing the dedication and commitment of the sector in achieving gender pay equality. The mean GPG has shown a remarkable downward trend, plummeting from 16.7% in 2017 to 15.2% in 2019, and now reaching the current GPG of 5.69%. The median GPG has followed a similar trajectory, demonstrating consistent progress in closing the gap.
Separately, the report also analysed the GPG for all grades of employees in 30 large community, voluntary and charitable organisations who submitted gender pay gap reports in compliance with the Gender Pay Gap Information Act 2021. While the mean GPG for these 30 organisations is low at 3.8%2 (and a median of 0.1%), a wide variation in GPGs exists between the different organisations.
In comparison to the European Union's GPG of 12.7% in 2021, as reported by Eurostat, and Ireland's GPG of 9.9% in 2020, the nonprofit sector's achievement is particularly noteworthy.
Commenting on the findings, Ivan Cooper, CEO of The Wheel said, “The report emphasizes the importance of continued efforts and collaboration in tackling the gender pay gap. By providing fair and equal opportunities for all employees, an increasing number of organisations in the nonprofit sector has proven that progress is possible.”
However, Ivan warns that women are still underrepresented at the most senior level in charities. "Women overall are still under-represented among the top earners in the sector and over-represented among the lower earners, but to a lesser degree than was the case five years ago”.
Ivan called on community, voluntary and charitable organisations to renew their focus on closing the gender pay gap at all levels. “We need to increase awareness of the issue, and organisations have to adapt their HR strategies and policies to remove all barriers that could prevent women from progressing in the workplace.”
The high proportion of female staff in the nonprofit sector also differentiates it from most other sectors of the Irish economy. In The Wheel’s National Guide to Pay and Benefits in Community, Voluntary, and Charitable Organisations 2022, women represented 75% of the workforce overall, compared to 46.8% in employment generally.