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
    -1

    Comment number 478.

    Oh, for goodness sake.

    Women, come on - we don't have it that bad. What do we demand, nowadays? High-level jobs at equitable pay, which we then want to also be able to drop at a moment's notice to have kids (well, 15 weeks); then when we choose to come back, we want the same job back at the same pay - and never mind that we might be a bit rusty after a year off, it's our RIGHT, dammit!

  • rate this
    0

    Comment number 477.

    @472. Still_Lynne

    plath is quite right about one thing; "don't give in to it" is easy advice to give from someone who doesn't live as the target of an attitude. The actual targets have a much harder time just saying no
    *
    So my views don't count because men never endure any discrimation or pressure, really?

    I always actively support equality at work, but feminists only see their own agenda

    Night

  • rate this
    +2

    Comment number 476.

    Billy Isn't it men who want the 'cake and the ha'penny'? I take it you mean career AND family - why is it seen as a 'right' for men to have both but women are expected to choose?

  • rate this
    -2

    Comment number 475.

    @468. plath

    You replied with "Don't" to ....
    Which itself was responding to your post "If women are under social pressure to be 'Good Stay at Home Mothers' then just say No." #317.

    Which brings us back again to the point about you blaming women
    rather than challenging unequal beliefs
    *
    No, what it brings back is you forcing your bizarre preconceptions onto other people because of their gender.

  • rate this
    +1

    Comment number 474.

    It is warped that womens do not generally reap the same rewards as men in the workplace, though educationally they surpass men because of their ability and the effort put in.

  • rate this
    -3

    Comment number 473.

    Stil_ Lynne 467
    It surely cannot have escaped your notice that it is WOMEN who get themselves pregnant, mostly voluntarily, and then take time off work necessarily to have their baby? Was it ever thus?.

  • rate this
    +1

    Comment number 472.

    plath is quite right about one thing; "don't give in to it" is easy advice to give from someone who doesn't live as the target of an attitude. The actual targets have a much harder time just saying no.

    I've also had mentors and colleagues who provided a counterbalance, and I am also stubborn about what I want to do. But many people are influenced by expectations which they get all their lives.

  • rate this
    +2

    Comment number 471.

    @laughingman

    "thought it would change by now" -- well, I'd kind of hoped it would as well. But there are so many comments available on the internet showing the valiant rearguard action that so many are fighting, against having to give up their sexist assumptions. And institutionalised sexism gets subtle, as well; it doesn't have to be blatant misogyny to be discouraging in the aggregate.

  • rate this
    +2

    Comment number 470.

    452 Women who are very successful in their careers (like Deborah Meaden) tend never to have had children. This is because childcare and responsibility for bringing up children isn't shared equally.

  • rate this
    +2

    Comment number 469.

    462 It isn't 'charm' that gets women to the top in their particular profession but ability & hard work as for men. Unfortunately for women its generally much easier to put in that level of effort when you're not trying to raise a family at the same time. Much of the responsibility for keeping house & family together still falls to women eg its usually the woman who takes time off for ill children.

  • rate this
    0

    Comment number 468.

    463. laughingman it was. you replied with "Don't" to "Why should I be pressured to do anything that's no one else's business?" #327 which itself was responding to your post "If women are under social pressure to be 'Good Stay at Home Mothers' then just say No." #317. which brings us back again to the point about you blaming women rather than challenging unequal beliefs

  • rate this
    +2

    Comment number 467.

    @Billy_the_Bull

    So why isn't childraising and family participation considered equally important for men?

  • rate this
    0

    Comment number 466.

    @464. Still_Lynne

    460 . laughingman
    Poor careers advice is part of it...
    There are still women in the OS community, but they tend to keep their heads down - which also means fewer female mentors.
    *
    Its a shame, when I graduated in the 80s, there were only two women on my course. I fully expected things to have changed by now, but old sexist prejudices take a long time to overcome I suppose.

  • rate this
    +1

    Comment number 465.

    If a man and woman do the same job in the same place, it is illegal for them to be paid differently. You can't compare people in different jobs. Many sportspeople and celebrities are overpaid. Some hospital staff are underpaid. The government should try to cut the gap between the rich and poor and ensure that the lowest paid worker is better paid than the highest paid non-worker.

  • rate this
    +1

    Comment number 464.

    460 . laughingman
    Poor careers advice is part of it. Another part of it is that women programmers become the target of some very nasty behaviour in the Open Source community, which is where a lot of young programmers gain experience before moving into a professional career. There are still women in the OS community, but they tend to keep their heads down - which also means fewer female mentors.

  • rate this
    -1

    Comment number 463.

    @461. plath

    In reply to "why should i be pressured to [choose between family and career]?" (#327) your only response was "Don't" in #357.

    I listen to other views, but there's nothing authoritative about taking a bigoted position..

    *
    Actually, it wasn't.

    357.

    Q2. Why should I be pressured to do anything that's no one else's business?

    A2. Don't.
    *
    Try reading if you are going to hurl insults

  • rate this
    0

    Comment number 462.

    Who is surprised by the latest survey? Women always want "the cake and the ha'penny" and end up in most cases getting neither in the business world. Either they are cut out for motherhood and doing the MOST IMPORTANT JOB THERE EVER WAS or they can forego all that "motherhood stuff" and use their female charms and skills to climb the greasy pole to the senior ranks but it is v.difficult to do both!

  • rate this
    +1

    Comment number 461.

    454. laughingman in reply to "why should i be pressured to [choose between family and career]?" (#327) your only response was "Don't" in #357. that clearly puts more emphasis on changing the actions of women rather than society and therefore preserving inequality. i listen to other views, but there's nothing authoritative about taking a bigoted position and only answering with unexplained denials

  • rate this
    0

    Comment number 460.

    It's strange, I have worked in 'Statistical Analysis Programming' for over 20 years, but whilst there are lots of highly qualified female Statisticians who often outnumber the men, there are very few on the programming side.

    Personally, I just put this down to sexist careers advice in the past as the skills required are not really that different & over time I would expect things to balance out.

  • rate this
    +1

    Comment number 459.

    contd Gender shouldn't matter as to which job you do.

 

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