Gender pay gap widens to £10,500 for managers, CMI says

 
City workers walk over London Bridge in central London Although the general pay gap remains, at junior management level, women now earn more

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The gap between how much male and female managers are paid has widened by £500 to £10,546 in the past year, a study suggests.

Female managers are now paid an average £31,895 per year, compared with £42,441 for men doing the same job, according to the Chartered Management Institute.

Despite women's pay rising faster than men's, the CMI said it would take 98 years to gain parity at current rates.

However, junior female managers earned more than males for the first time.

According to its survey, junior women managers now earn £21,969 on average, £602 more than men at the same level.

These are typically recent graduates who are managing projects rather than teams of people, the institute said.

"Some of that I'm hoping is that younger women have become more confident and smarter at negotiating a better pay deal," Liz Field, chief executive of the Financial Services Skills Partnership, told the BBC, adding that older, more senior women could learn from their younger colleagues.

'Damaging businesses'

The CMI said that women's salaries had increased by 2.4% this year, compared with 2.1% for their male colleagues.

The CMI's director of policy and research, Petra Wilton, said: "While CMI is delighted that junior female executives have caught up with males at the same level, this year's salary survey demonstrates, yet again, that businesses are contributing to the persistent gender pay gap by alienating top female employees by continuing to pay men and women unequally.

"This kind of bad management is damaging UK businesses and must be addressed."

Gender pay gap graphic

Across the nations and regions of the UK, the gender pay gap is biggest in Northern Ireland, where on average, male managers are paid £13,793 more than their female counterparts, said the CMI.

It found that the Midlands had the next largest gap, £11,346, followed by London with £11,129.

Salaries are most equal in Wales, where the pay gap is £2,441, said the CMI.

'Ongoing war'

Start Quote

Many companies can be proud that they have set out their own targets towards achieving greater diversity on their boards, but there are others who are dragging their feet”

End Quote Lord Davies Head of government-commissioned review into women on boards

To help close the gap, Ms Wilton said the CMI wanted the government "to scrutinise organisational pay, demand more transparency from companies on pay bandings and publicly expose organisations found guilty of fuelling the gender pay gap".

However, the CMI said it was not calling for the imposition of quotas or for organisations to be forced to reveal staff salaries.

Its survey of 34,158 managers across the UK also found that more female managers (4.2%) were choosing to quit their jobs than their male colleagues (3.6%).

At the same time, exactly the same level (2.2%) of managers of both sexes had been made redundant.

Sandra Pollock, national chair of the CMI's women in management network, said: "Too often managers are male and aged 45-plus, and we are fighting an ongoing war to ensure that professions attract people based on their talent, and not their age or gender.

"The research launched today does, however, show that we have won our first battle - it is wonderful to see that the gender pay gap at junior executive level has closed - and we hope this continues as this generation climb the ranks of management."

'Dragging feet'

In February, an independent report for the government told firms to more than double the number of women on their boards by 2015 or face government measures.

The report's author, former minister Lord Davies of Abersoch, urged FTSE 350 companies to boost the percentage of women at the board table to 25% by 2015.

But he stopped short of imposing quotas, unless voluntary measures fail.

Lord Davies said on Wednesday that the progress he had seen since February had been "encouraging", but more needed to be done.

"Many companies can be proud that they have set out their own targets towards achieving greater diversity on their boards, but there are others who are dragging their feet," he said.

"The rate of female appointments since March is still well below the 25% target that my panel has set, with 47% of all FTSE 250 companies continuing to have all-male boards.

He added: "There is more work to be done and the panel will be reconvening in the autumn to assess progress and agree next steps."

However, the diversity challenge for company boards encompasses race, as well as gender, according to Ms Field of the Financial Services Skills Partnership.

"We're finding within our industry that organisations are actively looking at the reasons why there isn't diversity in the boardroom," she told the BBC.

"It does impact on a firm's value, it does impact on image, and it does impact therefore on profitability."

 

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  • rate this
    +10

    Comment number 138.

    It's strange that the CMI is not advocating raising the retirement age of women, to reflect that they live on average, 5 years longer. Men 67 and Women 72 should do it. That will give them a bit longer to catch up a bit of pay...

  • rate this
    -23

    Comment number 137.

    It is sad to read and see mens attitudes on equal pay. I think some men feel threatened by women who earn more than them, hence they feel that they don`t have much to offer except from economic safety. Wierd since we are living in 2011. Men should be more secure in them self. Masculinity is not about being the provider, if you are a real man than you will fight for your fellow sisters rights

  • rate this
    +2

    Comment number 136.

    @polkie - whether or not the same position can be demanded on return, the fact that the business has to keep any vacancy open (and, if even, partially paid) with no value added is enough to cripple a small business - be it a year or a month. Not only financially but also in terms of skills, admin, etc. As a small employer myself, I panic at the prospect of any of my female staff becoming pregnant.

  • rate this
    +3

    Comment number 135.

    Another interesting point about these statistics is that every role that I see advertised these days either stipulates the exact salary, gives a strict banding or states that it is subject to negotiation. Are men better negotiators? I wouldn't have thought so.

  • rate this
    -1

    Comment number 134.

    "chiptheduck
    Hey come on!

    Women have that oxymoron "positive discrimination" acting in their favour."

    "positive discrimination" is illegal in the UK.

  • rate this
    +1

    Comment number 133.

    The only reason the average is higher is that gender pay equality has taken longer than it should have to catch up. I would suggest that in 15 years when many of the current top management retire (of whom more are probably men) the pay gap will probably swing towards favoring female managers (it already does at junior level). Sadly change doesn't happen overnight.

  • rate this
    +4

    Comment number 132.

    "49.Total Mass Retain
    2011 and we still have inequality of the sexes in employment,disgusting and inexcusable.Such injustices should be put right within a term of government."

    Yes women should be made to work till 65, get the same maternity leave & payments deal as men, made to work down the mines and in the front line fighting armed forces, not sneak off early to pick up the kids.

  • rate this
    +4

    Comment number 131.

    Misogyny, you are probably right, is there an equivalant word for a view on men ? The work force is also full of brilliantly smart and dynamic men, or all we all evil latent rapists ? That comment it ott of course but from some of the views I read I do wonder. Someone earlier made a comment about it being a rich/poor thing. Can someone explain in real terms why most of us are skint at the mo

  • rate this
    +2

    Comment number 130.

    I agree with Zakmann that there appears to be a bit of misogyny hidden in some of the comments here. However I do question the findings of the report in that it does not appear to take into account the fact that most (not all) female managers will take a career break to have children, take a year or so out, come back at reduced hours (on average 3 days per week), adjust plans and hence earn less.

  • rate this
    +2

    Comment number 129.

    Articles like this are meaningless and wouldn't even appear if they didn't portray the poor downtrodden women in our "sexist" society.
    You can't define "Manager" as a job as clearly as say Teacher
    or Doctor where equal pay for does exist. The fact is that we have an education system that favours women who mature more quickly and end up with better results and better opportunities.

  • rate this
    0

    Comment number 128.

    "TheSingleVoice
    I love being single. And I have as much right to be respected for it as anyone else!"

    Fine, you have made your life choice in full knowledge of the consequences, so stop moaning about those consequences. You would be respected more for your choice if you didn't portray yourself as a martyr.

  • rate this
    0

    Comment number 127.

    @89. Agreed!

  • rate this
    +2

    Comment number 126.

    Hey come on!

    Women have that oxymoron "positive discrimination" acting in their favour.

    Try putting through laws that favour males and you would get locked up.

  • rate this
    -2

    Comment number 125.

    "CameBlunt
    I think we should get out of Europe."

    Do you mean to tow the British Isles away from the Eurasian continental shelf?

    Or do you mean having the same relationship with the EU that Norway and Iceland enjoy?

  • rate this
    -2

    Comment number 124.

    48 - Stokkevn

    Still live at home with mummy do we?

  • rate this
    0

    Comment number 123.

    There isn't any basis for this article whatsoever? So, if a man and a woman go for an interview, does well on the interview, and the woman asks for the min in the wage bracket offered as she thinks she'll undercut on costs for them, The man wants 5K more but gives a better more attractive interview to the company, is that the guys fault he gets the job and is paid more? NO! It's the company!

  • rate this
    0

    Comment number 122.

    A real example:
    Female employee tells employer she is going on maternity leave in July. Employer advertises for temporary replacement (can't be permanent - she might return but won't say). Replacement female starts work and on day one announces she is pregnant and also going on maternity leave in July. Employer fires her and she successfully takes him to industrial tribunal. What would you do?

  • rate this
    +2

    Comment number 121.

    Given that tyoung women now perform betteer in school and get into higher education in larger numbers, it would be natural to assume that we will see women's pay rise (over a period of years) as this feeds through into the work place.

    Expecting overnight change is unrealistic- there will be a large cohort of women who grew up in the 60s and 70s who had low aspirations, depressing average wages.

  • rate this
    +1

    Comment number 120.

    "105 There appears to be a huge amount of misogyny embedded in the comments here."

    Yeah, right. Anyone who disagrees with you must be a misogynist. Nice.
    Or perhaps this story just isn't very convincing.

  • rate this
    +9

    Comment number 119.

    It appears that the tacit assumption of the article here is that women are better than men. First senior female managers are not paid as much as senior male managers (seen as inequitable), but notice there are no complaints made that junior females are earning more than men, no calls for equal pay at a junior level. Is it wrong for senior men to earn more, but okay for junior women to earn more?

 

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