Ethics Hub

How to address pay gaps in your workplace

Introduction

The information on this webpage provides information about differences in pay and earnings in the Costs Lawyers profession, and makes suggestions for how individual Costs Lawyers and their employers can begin discussions around addressing these differences.

Who should read this information?

The information on this webpage is aimed at individual Costs Lawyers at all levels of their career, and employers of Costs Lawyers. Whilst the section titled ‘What can employers of Costs Lawyers do?’ is aimed primarily at employers, individuals with team management or leadership responsibilities might also find that section helpful.

Why is this important?

A recent CLSB diversity survey focused on pay and earnings. That survey showed a substantial pay gap between female and male Costs Lawyers.

Pay gaps are not unique to the Costs Lawyer profession. Data from the Office for National Statistics (‘ONS’) shows that in 2023/24, the median gender pay gap for the legal professions as a whole was 17.6%. Gender pay gaps vary within different branches of the legal profession. For example, the ONS figures for 2023/24 show a 29% median pay gap for barristers and judges, compared to a 10% median pay gap for solicitors.

Pay gaps do not only occur in relation to gender. ONS data on ethnicity pay gaps shows that employees who are Black, African, Caribbean or Black British consistently earned less than White employees between 2012 and 2022. This was the only ethnic group to consistently have earned less than White employees. ONS data on disability pay gaps shows that disabled employees earn less than non-disabled employees, and that this pay gap has increased in recent years. Reports from individual employers and market studies have demonstrated differences in pay between employees who identify as LGBTQ+ and those who identify as straight or heterosexual.

Pay gaps can affect a business’s reputation as an employer, making it harder for them to recruit and retain talented staff. They also negatively affect an individual’s experience and satisfaction at work. With clients increasingly focused on their lawyers’ equity, diversity and inclusion credentials, pay gaps can also influence whether or not clients wish to instruct a particular firm. Closing pay gaps is therefore good business sense, as well as an ethical imperative.

Equality in relation to pay is a priority for the CLSB. Whilst we appreciate that there may be systemic and structural issues outside of our control that could be causing differences in pay and earnings, supporting the profession to close pay gaps is an important part of our work encourage an independent, strong, diverse and effective legal profession. The information on this webpage is intended to provide practical suggestions for action that Costs Lawyers and their employers could take to help tackle this important issue.

What can employers of Costs Lawyers do?

Measure and report data

Employers with over 250 employees are required by law to report gender pay gap data each year.

Ethnicity pay gap reporting is currently voluntary for organisations, as is reporting on pay gaps for other protected characteristics, such as disability and sexual orientation. Many organisations publish this data even though they are not required to do so, in the interests of transparency. Similarly, many organisations also voluntarily report gender pay data even though they do not meet the 250 employee threshold, in the interests of transparency.

Analysing pay information is a way to identify disparities at your organisation and where action needs to be taken to address these. Even if you are not required to measure and publish pay and earnings data, doing so will give you robust evidence with which to lead an informed discussion about pay and earnings at your organisation. Measuring and publishing the data also promotes a culture of transparency and accountability. It can help you to demonstrate to your staff and clients that you are an employer that is committed to proactively addressing barriers to equity and inclusion at your organisation.

Take practical action

Once you have analysed the data, consider what practical steps you can take to address any differences. This might include, but is not limited to:

Ensuring your organisation’s pay, promotion and performance processes are fair and transparent;
Analysing information about bonuses, overtime and other aspects of pay to see if particular types of remuneration are contributing to pay gaps at your organisation;
Assessing the impact of factors such flexible working, caring responsibilities and shared parental leave;
Having open discussions with staff about pay gaps and what could be done to overcome these, and listening to their ideas and concerns.

The Government Equalities Office has published a comprehensive guide to closing gender pay gaps, which includes advice about how to address the gap and a create an action plan. Although this particular guide focuses on gender pay gaps, many of the actions contained in it are applicable to other types of pay gaps. The Equality and Human Rights Commission also provides guidance on action you can take to address pay gaps generally.

Having developed an action plan, consider how you can proactively communicate this to your staff and provide regular updates on progress. Seek staff input and be open and responsive to suggestions. Where there are pay gaps at your organisation, there may not be a ‘quick fix’, so it will be necessary to manage expectations and keep staff informed about what action will happen, how and when.

Consider developing an equal pay policy

As well as developing an action plan, as an employer you could consider developing a specific equal pay policy that sets out how your organisation will measure pay gap data, how it will take action to address disparities and how it will handle complaints about pay. Further information about developing an equal pay policy is available from the Equality and Human Rights Commission.

Avoid making assumptions

When considering the causes of – and how to address – pay gaps, it is important to avoid making assumptions, or following stereotypes about what might be causing pay differences – for example, assuming that men are less likely to have caring responsibilities.

It is also important to recognise that some groups will face different barriers to equal pay than others. Organisations should therefore take action to understand those specific differences rather than taking a one-size-fits-all approach.

Recognise challenges

As an employer, remember that pay and earnings can be a different and emotive subject for staff to talk about. Some staff may feel daunted by the prospect of raising their concerns about pay and earnings, while others will feel confident bringing up issues to senior management. With this in mind, consider using different ways of engaging with staff to seek their views and ideas regarding pay, such as anonymous surveys, focus groups, utilising staff networks and making time to speak to staff who may wish to meet on an individual basis.

What can you do as an individual Costs Lawyer?

If you are a Costs Lawyer, there are many different reasons why you may want to start a discussion about pay gaps with your employer. Perhaps your firm has just published its annual pay gap report and you are concerned by some disparities highlighted in the data. Or perhaps you are part of a staff network and you wish to start a conversation with senior leaders around what could be done to address pay gaps. Perhaps your organisation isn’t required to monitor and publish pay gap data, but you would like them to do so. Or perhaps you are in a leadership position yourself and want to ensure your team is being fairly treated.

Discussing pay gaps at your firm with your employer may feel like a daunting prospect. It can be hard to know where to start, or what to suggest. You might feel worried about what will happen if you broach the topic. You might even feel like it’s not really your ‘job’ to be the person who starts the conversation. If you have concerns like these, remember that as a Costs Lawyer you have a duty under Principle 6 of the Code of Conduct to ensure that you “treat everyone fairly and equitably, with dignity and respect”, and a duty under Principle 1 of the Code of Conduct to “act with honesty and integrity, and maintain your independence”. Taking action around pay gaps doesn’t mean you’re a troublemaker, it aligns with your professional and ethical obligations, which are shared by your Costs Lawyer colleagues.

Gather data

A good place to start is by gathering robust evidence and data about pay gaps at your organisation. Your employer might already publish pay gap information that you can use to start the discussion.

If your employer does not already publish pay gap information, you can use the data highlighted in the information on this webpage which shows that pay gaps exist across the legal sector. You may also find the CLSB’s diversity survey, which focused on pay and earnings, helpful.

You could also encourage your employer to start measuring data for your organisation if they don’t already, by highlighting the business advantages of doing so – such as the positive reputational impact of demonstrating the organisation’s commitment to understanding and addressing inequalities.

Start a conversation

If you feel comfortable doing so, consider how best to begin discussions about pay gaps at your firm. Give consideration to who will be key stakeholders in this discussion, who you may need to influence to create change, and who might have concerns about the subject. You could consider approaching relevant staff networks about the issue, discussing with your firm’s HR team, or raising with senior managers directly.

Whichever approach you decide to use, remember that pay and earnings can be a difficult and emotive topic for many people; not all of your colleagues may feel comfortable talking about this issue. Some colleagues may feel worried by the prospect of raising their own concerns about pay and earnings, while others may feel confident talking openly about this subject.

You may have colleagues at firms who have successfully taken action to reduce or close pay gaps. Talking to those colleagues about their approach, what worked and what didn’t, can be a helpful way to identify how best to start discussions at your organisation.

It might also be useful to point to the information on this webpage in order to highlight that the CLSB, as the profession’s regulator, is encouraging all organisations that employ Costs Lawyers to be open and receptive to conversations about pay gaps.

Promote the business benefits

When discussing pay gap issues with your employer and/or colleagues, you might find it helpful to highlight the impact of pay gaps on business, such as the negative impact on recruitment and retention, the reputational risks associated with pay gaps, and the positive impact that addressing pay gaps can have on winning new business from clients and attracting and retaining new hires.

Share available resources

There is a list of resources at the end of this webpage that it may be helpful to share with your employer and/or colleagues when discussing pay gaps and action that could be taken.

Support ongoing efforts

If you don’t feel comfortable beginning conversations about pay gaps yourself, consider whether you might be able to support colleagues who are doing so, or who wish to do so.

This might could include joining a focus group or staff network, attending events about pay gaps, or sharing relevant online resources, such as the Government Equalities Office guidance.

If your employer already has a pay gap action plan, or wishes to develop one, you could consider whether – and how – you could contribute to those efforts.

If you need more support

Issues relating to pay and remuneration can be emotive and challenging to talk about, and difficult to resolve. If you’re dealing with pay gap-related matters and need additional support, LawCare provides a free, confidential helpline that offers information and support for legal professionals (0800 279 6888).

If you are not being paid equally and efforts to resolve this with your employer have failed, you may wish to consider raise a formal grievance or make a formal claim. ACAS provides more information about how to do this.