With the April 2018 deadline looming, women in all sectors will no doubt be waiting eagerly for signs of progress on this issueThe Chartered Management Institute and XpertHR’s research dismisses previous arguments of career choice and differing working hours for such gender pay gaps.
Instead, through analysis of over 100,000 individuals and more than 400 organisations, it identifies that across all management roles within the UK, the average gender pay gap is worse at 26.8%, which equates to £12,000!
Put this into context, and the average woman will receive an annual salary of £31,637, compared to a man’s earnings of £43,243, for doing the same role.
The new research reveals that within the finance industry, the gender pay gap is particularly high. Male employees earn nearly 34% more than their female counterparts, equating to £18,000. IT, by contrast, is the lowest at just over 8%, a differential of £3,758.
The more senior you become, according to the new research, the bigger the gender pay gap is, with just 26% of women making it to director level. Here, the gender pay gap is a staggering £34,114.
However, the biggest gap the research identifies is at bonus level with male CEOs achieving an average of £89,230, compared with just £14,945 for females – a differential of 83%, and 6 times greater than their female counterparts. The average bonus gender pay gap across the UK comes in at a hefty 46.9%.
While this may sound shockingly disparate, this evidence has been checked and verified directly from employer payroll systems, Mark Crail, XpertHR content director attests.
At the other end of the spectrum, the research identifies that 66% of women are also more likely to fill lower paid junior management roles, compared to just 34% of men. Anne Francke, chief executive of the CMI, compares today’s businesses as ‘glass pyramids’ with the majority of the bottom tier filled with women and few making it to the top.
From April 2018, all companies with 250+ employees will have to disclose pay gaps, yet to-date just 77 out of 7,850 have published these, state the CMI and XpertHR.
Commenting on this disturbing gender pay gap, Ms Francke urges companies to redress this imbalance so that they can thrive and grow in post-Brexit Britain. With the April 2018 deadline looming, women in all sectors will no doubt be waiting eagerly for signs of progress on this issue.
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