Gender pay gap between management roles

Women working in management roles are effectively working unpaid for almost 2 hours each day, according to analysis from the Chartered Management Institute (CMI).

A survey of 72,000 British managers found that female executives earn an average of £8,524 less than men in equivalent full-time roles- a 22% gap in pay.

Using official labour market statistics, the CMI found that the pay difference means that effectively female managers work 1 hour and 40 minutes unpaid each day – a total of 57 days each year.

The survey found:

  • the average male salary is £39,136
  • women earn an average £30,612.

This is an improvement on the 2014 survey findings which showed that the gender pay gap was £9,069 – a difference of 23%.

The survey suggests that the pay gap increases in line with age and seniority:

  • the pay difference is 6% for women aged 26-35
  • this rises to 38% for women over 60 years-old
  • the gap increases to £14,943 for women working at senior and director-level management.

The survey also found that the gender pay gap was worst in companies with between 250-999 staff, a problem likely to be further illuminated by 2016 legislation requiring larger organisations to report publicly on their pay rates.

Ann Francke, chief executive of the CMI, urged employers to recruit more women into management roles:

“Working for free two hours a day is unacceptable. While some progress is being made, it’s clear from our research that Lord Davies is right to target the executive pipeline.

“Having more women in senior executive roles will pave the way for others and ensure they’re paid the same as their male colleagues at every stage of their careers.”

Mark Crail from XpertHR, said:

“An entire generation has now worked its way through from school leaver to retirement since the first equal pay legislation came into effect in 1970, yet the gender pay gap persists, and many employers still prefer not to know just how bad it is in their organisation rather than getting to grips with the data and doing something about it.”

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