Slow progress shows limits of gender pay gap reporting

Posted On: 
8th March 2019

Nearly one year on from the introduction of gender pay gap reporting, the latest analysis from the Chartered Management Institute (CMI) reveals slow progress in closing the pay gap for female managers.

New CMI research with XpertHR shows that female managers in 2018 experienced a mean gender pay gap (GPG) of 23% - around £8,500. The equivalent GPG for female managers in 2017 was 27%.

The concentration of women in junior and in lower-paid management roles is likely to be a key driver of the gender pay gap for female managers. The CMI analysis shows that women comprise over a quarter (27%) of the most senior leaders (CEOs, senior directors and directors), but make up nearly two thirds (59%) of managers in entry-level management roles.

This is not down to a lack of ambition amongst female managers. A recent CMI survey of managers showed that women are hungry for promotion, with 45% of female managers expecting to apply for promotion in 2019.

On International Women’s Day, CMI is calling for action to redress the gender imbalance in our businesses and boardrooms and to accelerate work to close the gender pay gap.

CMI CEO, Ann Francke, said:

“The latest CMI analysis shows that, despite the rhetoric, the reality is that closing the gender pay gap will take time, hard work and real determination."

“A key driver for the gender pay gap is the lack of women in senior management and leadership positions. No organisation can be successful in closing their gender pay gap unless they have a plan in place to support more women into senior roles - and a leadership team that is committed to delivering it."

“Pay transparency is a necessary first step - but we need to see action. This is why CMI is calling on every organisation covered by the gender pay reporting rules to publish an action plan showing how they plan to close their pay gaps.”

“At CMI we support  ‘transparency with teeth’. The UK Corporate Governance Code requires companies to set out their board’s policy on diversity, the measurable objectives in place for implementing the policy, and progress against achieving those objectives. If organisations fail to comply with these requirements, they should face consequences."