• Female managers in financial sector face biggest gender pay gap

        • Six months after the Government’s new reporting regulations came into effect, a study has revealed the gender pay gap in a number of sectors, seeing finance coming up on top with a 33.9 per cent gap. According to an analysis of managers’ salaries, conducted by the Chartered Management Institute (CMI) and XpertHR, male managers earn an average of £53,456 in this sector, compared to £35,338 for female managers, equating to an average salary difference of more than £18K.

          Finance is not the only sector facing gender gap problems as across all UK businesses, the average male manager earns 26.8 per cent more than female colleagues. At the other end of the spectrum, the pay gap is at its lowest in IT, where male managers out-earn female colleagues by £3,758, or 8.2 per cent.

          Ann Francke, CMI’s chief executive said, “too many businesses are like ‘glass pyramids’ with women holding the majority of lower-paid junior roles and far fewer reaching the top. We now see those extra perks of senior management roles are creating a gender pay gap wider than previously understood. The picture is worst at the top, with male CEOs cashing-in bonuses six times larger than female counterparts’.”

          Under the Government’s reporting regulations, that came into effect in April 2017, large employers (250+ employees) must now publicly disclose the size of their gender pay gap but as of 22nd September, just 77 of the 7,850 UK companies to which the new law applies have fulfilled their obligations. This is the first time that pay gap data, compiled by XpertHR, has been published taking into account the new rules. This is based on analysis of salary data of 118,385 managers from 423 organisations over the past year. 

          Ann added, “our data show we need the Government’s gender pay gap reporting regulations more than ever before. Yet, less than one per cent of companies have reported so far. Time for more companies to step up and put plans in place to fix this issue. It’s essential if UK companies are to survive and thrive in the post-Brexit world.”

          The findings today also reveal that women are far more likely to fill junior management positions than men (66% vs 34%), and men much more likely to occupy senior positions (26% of director-level roles occupied by women, 74% by men). Yet, even for those women who do progress to more senior roles, the pay gap begins to widen considerably: at director-level positions, it rises to £34,144, with men earning an average of £175,673 and women £141,529. 

          Bonus payments are also exacerbating the problem, with the gender bonus gap across all managers standing at 46.9 per cent. This increases considerably at C-suite level, where the average bonus for a male CEO is £89,230 compared to £14,945 for a woman – an 83 per cent bonus pay gap.

          Pressure has been building on companies to not only follow the new regulations in disclosing gender pay, but also to publish an action plan detailing the practical steps they are proposing to close the gap. 

          According to research published last year by management consultants McKinsey, closing the gender pay gap would add up to £150bn a year to the UK economy by 2025. But analysis by CMI shows the scale of the challenge: with the economy needing 1.9m new managers by 2024, 1.5m would have to be women in order to achieve balance.

          The table below illustrates the gender pay gap across various sectors

          Sector

          Male

          Female

          GPG £

          GPG %

          Average pay 

          Average pay

          Average

          Average

          Retail

          22,252

          17,937

          4,315

          19.4

          Finance

          53,456

          35,338

          18,118

          33.9

          IT

          46,055

          42,297

          3,758

          8.2

          Marketing

          45,555

          37,692

          7,863

          17.3

          PR/press/publishing

          44,956

          38,723

          6,233

          13.9

          HR

          44,646

          40,177

          4,469

          10.0

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