Today it was announced that new league tables will hi-light pay differences between male and female employees. Those businesses with more than 250 employees (around 8,000 employers in the UK) will be forced to reveal their pay gap.

Latest figures suggest that women in the UK still earn on average 20% less than men and businesses will need to start calculating the pay gap from April 2017 - 12 months ahead of the first tables being published.

Dr Shainaz Firfiray of Warwick Business School says that "the risk of such an approach is that it might offer only a simplistic depiction of the variations that occur at different pay levels. Providing explanations about how the data is segmented might help in removing such ambiguities.
"League tables can produce an incomplete or even an inaccurate picture because often gender pay gaps could also be explained by differences in seniority, performance and competence. So it would be important to isolate the specific effect of gender on the pay gap from other factors that may also contribute to it.
"Nonetheless, such regulations can help companies in identifying their pay gaps and the reasons for their existence and trigger dialogue on what actions need to be taken to eradicate them."