Management Report In Hrm Case Study Sample

Introduction to the organisation

Based in London, Barclays PLC is a well-known global financial services provider and one of the biggest and most powerful banks in the world. Barclays which has a long history spanning more than three centuries has provided a wide range of banking, investing, and financial goods and services and has been a key player in the global financial scene (Walker, 2023). Barclays is a global company with operations in several nations, including a sizable presence in the UK. It employs a varied staff, services millions of customers, and manages enormous assets.

Introduction to the Gender pay gap

A prevalent and important topic that has attracted a lot of attention recently is the gender wage gap. It describes the difference in pay between male and female workers within a company or between different industries. The gender pay gap continues to be a major global issue, involving variations in bonuses, promotions, and leadership roles in addition to compensation disparities (Blevins et al., 2019). Not only is it morally and socially imperative to address this issue, but it also has legal ramifications and affects an organization's reputation, staff morale, and long-term success.

The gender pay gap in the UK had conflicting findings in 2023. The gender wage gap increased slightly for full-time workers from 7.6% in 2022 to 7.7% in 2023 (Frolov, 2023). This suggests that the hourly wages of women working full-time were 7.7% lower than those of men. However, there was a slight improvement for all employees, which includes full-time and part-time workers, as the gender pay gap shrank from 14.4% in 2022 to 14.3% in 2023 (Raymo, Park and Yu, 2023). This indicates that although there has been a little improvement in gender pay equality generally, there is still considerable worry regarding the earnings gap between men and women. Full-time female employees' median hourly salary in April 2023 was 7.7% less than that of full-time male employees (Price and Wasserman, 2023). On the other hand, women made 3.3% more per hour than males did for part-time workers.

Analysis of the key issues or opportunities faced by the organisation

The female pay gap in the UK was 35.9% in 2022, according to research by Barclays (Fitong Ketchiwou and Dzansi, 2023). Within Barclays Bank Plc, which houses its investment bank, the disparity was even worse at 42.9%. These numbers show a sizable gender pay gap inside the company, underscoring the necessity of all-encompassing initiatives to support pay fairness and gender diversity across the board. The well-known financial organization Barclays Plc functions as a bank holding company and offers a variety of services. The business offers wealth management services, credit cards, corporate and investment banking, and retail banking. Barclays UK and Barclays International are the two divisions that make up its operations (Hodson, 2021). Barclays UK is a division of the corporation that oversees retail banking activities in the United Kingdom, consumer credit card business, wealth management services, and smaller businesses' corporate banking needs. On the other hand, the Barclays International section consists of an investment bank, a corporate banking franchise, international wealth management services, and the U.S. and worldwide card business (Kitema, 2021). With its headquarters located in London, United Kingdom, and a long history dating back to 1690, Barclays is a major player in the worldwide financial scene.

The data about the racial pay disparity is also quite alarming. The average wage gap for Black employees at Barclays was 19.6% last year, which was 0.4 percentage points higher than the year before (Fooks et al., 2023(Smith and Sinkford, 2022)). At 52.8%, the bonus gap was significantly greater and represented a 1.2 percentage point rise from 2021. The bank highlighted the urgent need to address issues of Black staff participation in leadership positions by attributing this wage discrepancy to a dearth of Black employees in senior management posts.

However, it is critical to recognize that Barclays has made some strides toward expanding the proportion of Black managing directors from nine at the end of 2020 to eighteen by the end of 2022 into the workforce. This accomplishment shows that there is room for improvement inside the company.

Furthermore, Asian employees at Barclays appear to follow a distinct pattern; in 2022, there was a pay difference of -6.1%, meaning that Asian workers made more money overall than their White counterparts (Vecchi and Brennan, 2022). For Asian employees, the average bonus payment differential was -4.9%. Although these numbers point to a better working environment for Asian employees, they also highlight how complicated salary differences may be in diverse workforces.

Figure 1: Change in gender pay gaps from 2017 to 2022

(Source: Barclays, 2022)

The data indicates a significant gender disparity in bonuses, with women at Barclays receiving average bonuses that are 67.5% less than those given to men (Barclays, 2022). In the preceding year, the disparity approached 70%. In addition, women made up just 19% of Barclays Bank Plc's best earners in 2022, which highlights the underrepresentation of women in positions of authority. Notwithstanding these obstacles, Barclays has made efforts to promote diversity and inclusivity, including establishing challenging goals for raising the percentage of Black staff members in both junior and senior positions (Pourret et al., 2021). Similar objectives have also been agreed to by other big banks. Still, making significant improvements is a difficult and continuous task.

Analysis of the sources of issues or opportunities

With its updated Diversity, Equity, and Inclusion (DEI) plan and its five strategic priorities, Barclays PLC has demonstrated its commitment to enhancing diversity and creating an inclusive workplace. These goals, which include data openness, leadership accountability, workforce diversity, culture, and external collaborations, show a thorough approach to resolving problems and taking advantage of DEI-related opportunities (Canady, 2023). The bank directly addresses the issue of workforce representation through its emphasis on drawing in, hiring, and retaining a diverse staff in addition to its specially designed initiatives like Launchpad for underrepresented groups. To further demonstrate its dedication to keeping a diverse workforce, Barclays also emphasizes the development of an inclusive and fair culture through sponsorship, employee resource groups, and mentoring (Dowey et al., 2022).

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Another important factor is leadership accountability, whereby Barclays makes sure that leaders take an active role in advancing DEI.

To help leaders better understand race and ethnicity in the workplace, the bank invests in educational materials, offers resources like insight packs, and incorporates DEI goals into performance appraisals. Key components of Barclays' DEI strategy are transparency and data-driven insights (Barclay, Gibson and Dommett, 2023). Accountability and well-informed action are facilitated by the yearly disclosure of gender and ethnicity pay discrepancies, the regular evaluation of gender and ethnicity representation, and the identification of possible difficulties using data sources. Finally, Barclays expands its DEI initiatives outside of its walls by enhancing external ties with groups like SEO London and assisting Black founder-led digital companies (Barclay, Gibson and Dommett, 2023). These collaborations put conventional wisdom to the test and opened doors for development and transformation.

Details of findings and evidence-based recommendations

The study revealed a notable 43.5% difference in median hourly compensation between basic and bonus pay at Barclays International, which includes the investment banking industry (Fooks et al., 2023b). In contrast, this difference was 14.2% inside the UK high street bank division. The difference between the hourly pay midpoint values for male and female employees is represented by this calculation. In the UK high street firm, the gender pay difference for bonuses was close to 50%, but in the overseas division, it was an astounding 73%. This equates to a significant disparity, with female employees at Barclays International receiving only £27,000 in bonuses for every £100,000 granted to male employees (AR Nikle, 2019). These results highlighted notable gender-based pay disparities at Barclays, especially in bonus schemes that disproportionately benefited male staff members. The findings of the analysis made clear how urgently the company needed to address these differences and put policies in place to guarantee pay equity and fairness for all of its workers, regardless of gender.

Achieving pay parity and creating a more welcoming workplace need a number of critical actions, including extensive pay audits, clear bonus plans, leadership accountability, and diversity efforts (Smith and Sinkford, 2022). These metrics show a dedication to justice, equality, and diversity in addition to being in line with research findings. By following these suggestions, Barclays will have the chance to close the gender pay gap and set a progressive example for the financial industry, ensuring a more fair and inclusive future for its workers and the UK population at large.

Large differences exist between basic and bonus pay for male and female employees at Barclays in the UK, making it difficult for the company to close the gender pay gap. The data highlights the urgent need for action to guarantee inclusion and wage parity inside the company. However, these obstacles also offer Barclays the chance to set an exemplary example for the financial industry. The bank can effectively address the gender pay gap and foster an inclusive and equitable work environment for all staff members by instituting transparent reporting protocols, monitoring leadership performance, allocating resources to diversity and inclusion programs, and modifying bonus schemes (Barclay et al., 2022). Barclays can lead the way in promoting a more diverse and inclusive financial sector, paving the way for a more promising and just future.

Recommendations

• Conduct Comprehensive Pay Audits

It is recommended that Barclays carry out comprehensive and periodic pay audits in order to detect and address gender-based wage discrepancies across all organizational levels. Not only should base pay be included in these audits, but bonuses, benefits, and other aspects of compensation as well. Pay audits are a useful tool for identifying and closing gender pay discrepancies. Pay equity strategies can be more effectively implemented by organizations that regularly undertake pay audits (Hayes, Noseworthy and Farrugia, 2020).

• Implement Transparent Bonus Structures

Barclays needs to make changes to its bonus schemes in order to maintain impartiality and openness (Barclay et al., 2021). Bonuses ought to be linked to precise, quantifiable performance standards that are independent of a worker's gender. All staff members should be informed of the precise rules and requirements for awarding bonuses. It has been demonstrated that bonus payments are less skewed toward certain genders under transparent bonus schemes. Bonus allocation becomes less biased and promotes a sense of justice when employees have a clear understanding of how bonuses are calculated.

• Promote Leadership Accountability and Diversity Initiatives

Barclays' management should be held responsible for closing the gender pay gap by establishing goals and monitoring results. The company should also fund diversity and inclusion projects like mentorship programs and chances for women to advance in leadership (Spector et al., 2019). According to research, companies that have a strong leadership commitment to diversity and inclusion have a greater chance of closing the gender pay gap. Leadership responsibility guarantees the prioritization and long-term sustainability of measures to close the wage gap (Ashford et al., 2020).

Conclusion

In conclusion, Barclays PLC is a well-known bank holding corporation with two main business segments: Barclays UK and Barclays International. The company has a long history, dating back to 1690. The organization provides a wide range of financial services, such as wealth management, corporate and investment banking, credit cards, and retail banking.

The gender pay gap results at Barclays UK have brought to light notable differences in base pay and bonuses between male and female employees, highlighting the urgent need for reform. To address these gaps, evidence-based proposals have been offered, with a focus on the significance of diversity initiatives, clear bonus structures, thorough pay audits, and leadership accountability. Barclays can contribute to the UK's efforts to promote an inclusive workplace culture and achieve pay fairness by proactively putting these ideas into practice. This not only demonstrates a dedication to justice, equality, and diversity but also conforms to research findings and best practices.

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