Gender pay gap in franchising

The pressure is on businesses to disclose how much they pay their employees by gender. Under new legislation, since Spring 2018, businesses with over 250 employees have been legally required to publish their gender pay gap.

The reason for this legislation is to gain a better picture of what the national gender pay gap is; in other words, the disparity between the average wages that men and women receive. Although it isn’t against the law for a business to have a gender pay gap, failing to share the figure publicly is.

Businesses are also urged to prepare an action plan if they have a significant gap, to work out how they can tackle the issue. The Equality and Human Rights Commission, which is collating the data, has stated that it will be hitting businesses that don’t comply with the pay gap legislation with unlimited fines.

Initial figures show that, unsurprisingly, most firms pay men more than women. In fact, over three quarters of companies that have published their figures have a gender pay gap. In comparison, approximately 14 percent pay women more than men on average, while 8 percent said they have no pay gap at all.

What are women doing to overcome the gender pay gap?

More is being done than ever before to address the issue of lack of equality in the workplace, but unfortunately, there’s no quick fix. Some women have decided to take things into their own hands, however, and are choosing to invest in franchise companies to progress their career.

This is likely to be the main reason why the number of female franchisees has been steadily increasing over the last couple of years. Women get to be their own boss and boost their pay packet without encountering any of the obstacles that can come from being an employee.

>> Read more:

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Also, the best franchise opportunities give women the much-needed flexibility they crave once they’ve had children. Many employers understand that workers may need to work non-standard hours to achieve a good work-life balance, but are still slow to make changes. Whereas, some of the most popular franchises offer the opportunity for women to work from home or run their business on a part-time basis.

In the franchise world, women benefit from being part of established franchise companies that have been tried and tested, along with the freedom and flexibility of being a business owner. This means that female entrepreneurs no longer have to choose between their career or their family; they can have both.

Three reasons why the most popular franchises are searching for female franchisees

Franchising provides fantastic business opportunities for women, but hiring female franchisees works well for franchisors too. Women make great business leaders and, often, the best franchise opportunities are ideally suited to female entrepreneurs. Here are three attributes required by franchises and exhibited by many women.

1. Organisation skills

Owning and operating a franchise can be tough at times, as they require exceptional time management and organisation skills. Franchisees need to wear several hats and take responsibility for a multitude of tasks at once. And days aren’t just busy; they can be long too. Trying to find the right balance between work and home life means that time has to be managed efficiently to make sure everything gets done.

It’s not just hearsay that women are better at multi-tasking. Scientists have proven that women are less affected by interference when performing tasks. This makes the ability to juggle the different roles and responsibilities of being a franchisee comes as second nature to many women.

2. Persistence

The great thing about franchise companies is that if franchisees are faced with any challenges or problems, they can consult their franchisor for help. Franchisees usually pay ongoing royalty fees, so they should have access to guidance, training and support as and when it's needed.

As well as offering franchisor advice, the best franchises encourage their franchisees to create a support network and take the time to consult each other to discuss problems. There is bound to be a more experienced franchisee that has ‘been there and done it’, and they’ll be able to offer help during tough times.

But despite all the support that franchising offers, there will still be tough times when running a franchise. Just as with any other business, there will be days that make franchisees want to give up and pursue a less stressful career.

The good news is that women are typically great at carrying on when the going gets tough. Whether it's having experience of overcoming barriers in other areas of life or of negotiating with a stubborn toddler, for example, women are usually accustomed to being persistent.

3. Willingness to learn and conform to rules

To be a successful franchisee you need to follow a system. This won’t be for everyone, but adhering to a business format with a track record of success is what franchisees pay for. Those who have a strong entrepreneurial spirit and a desire to innovate tend to be more suited to starting an independent business rather than investing in a franchise opportunity.

But why reinvent the wheel when there’s no need to? Resourceful women embrace the fact that there are many benefits to franchising, and they often outweigh the advantages of running an independent business.

Perhaps the most significant advantage of franchising for women is the training that's provided once the franchise agreement is signed. Many female entrepreneurs lack business and leadership skills due to shortage of certain types of career opportunities outside of franchising. The fact that the franchisor teaches women all they need to know to run a profitable business is a massive plus point, and conforming to the rules seems like a small price to pay in return.

Why mums should consider becoming a franchisee

You may not have thought of maternity leave as the ideal time to start a business, but it could actually be a fantastic career move. Here’s why you should consider becoming a franchisee if you’re a mother.

• It puts you in the driver’s seat. As an employee, you’re working underneath your boss and are tied to their specific requirements and deadlines. You probably have to commute to work, arrive by a certain time and rush back after your lunch break. As a franchisee, you have control. Admittedly, you do have to work to the standards of the franchisor to maintain the reputation of the business as a whole, but you have the freedom to push the franchise unit in the direction you want to in general.
• You’ll have the chance to improve your work-life balance. Most franchises allow their franchisees to adapt their working hours to suit them – as long as it makes sense for the business. If you join a franchise that gives you the chance to be a part-time franchisee, you can take this a step further. You’ll have time to play with your children, do the school run or even meet with friends for coffee whilst managing a profitable business.
• You can get financial support. Becoming a parent is an expensive process – you have to buy a whole range of new gear as well as food preparation gadgets, clothes and toys. But you won’t have to invest your life savings into your new business venture. There are many low-cost franchises that can be set up with just a few thousand pounds. On top of this, a variety of banks are happy to lend up to 70 percent of the initial set-up fee, as they understand that franchises are less financially risky than independent start-ups.
• You don’t need experience or specialist skills. Many people are surprised to learn that you can start a franchise business without extensive industry knowledge. This is because franchisors want new recruits to join their businesses without preconceptions or bad habits. By imparting their wisdom and teaching you their operating techniques, they can ensure their business is managed in the way they want it to be. As a result, you can enrol onto a comprehensive training scheme when you first join, which will give you an insight into business operations, IT systems, sales, marketing and the industry as a whole, among other aspects. As long as you are self-motivated and have a passion for the business, you’ll be just fine.

Summary

So, if you’re a woman who is fed up with businesses paying their female talent less than the men, franchising could be your chance to take control of your career and your future. There’s no need to be hesitant; franchisors are there to support you throughout the process. If you have any questions, concerns or problems, they’ll be able to offer you guidance to help you maintain your business’ profitability. Ultimately, they rely on your business succeeding, as their reputation and income could be negatively affected if you fail, so they’ll be there to lend a hand when you need it.

To browse our current list of franchise vacancies, see our directory here.