CMI gender pay transparency will boost productivity and financial results
The Chartered Management Institute (CMI) has welcomed new measures to tackle the gender pay gap announced today [12 February] by Women and Equalities Minister Nicky Morgan. These include requiring 8,000 firms of more than 250 employees to publish details of pay and bonuses for men and women. The Government will publish the data in league tables and will “shine a light” on sectors not closing the gap.
Last December, CMI’s chief executive Ann Francke gave evidence to the House of Common’s Women and Equalities Select Committee, as part of the consultation on the new measures.
Francke said that the legislation should be welcomed by businesses to boost employee engagement and productivity.
“Transparency of reporting on gender pay and pipeline - at all levels- is a proven effective way of getting progress and we applaud today's announcement by the Minister and GEO. Publishing, and then acting to close, the gender pay and pipeline gap brings real benefits for everyone in organisations - it boosts productivity and financial results, improves culture and helps employees to trust their employers.”
Gender pay gap reporting will be extended beyond the private and voluntary sector to include the public sector. The announcement follows the Government’s drive to eradicate gender inequality in the workplace and tackle the root causes that prevent women from excelling at the same speed as their male counterparts. Transparency around hiring, pay and progression will accelerate the rate of change, which has stalled at executive levels.
Closing the gender pay gap is a progressive step for businesses. Clearer, improved recruitment and will help unblock the talent pipeline and CMI’s own data has shown that diversity delivers better results. Clearer employee data and a reinvigorated focus on business culture will support more women to become senior managers and leaders.
Despite the Government’s records which show that the gender pay gap is the lowest on record and there are more women on FTSE Boards than ever before, CMI’s research reveals the pay gap is growing for female managers over the age of 40. The pay gap stands at 35%, more than 10% higher than the average. Steps must still be taken to tackle the inconsistencies in pay and progression and erode ingrained perceptions of gender which lead to unconscious discrimination.
“Shining a light on what men and women are paid at every level, as well as monitoring the percentage of women at every level, is proven to speed up progress. Today, women make up 60% of junior managers, 40% of middle managers, 20% of senior managers and just single digits at the C-suite. Transparent reporting of pay at every level will tackle the ‘glass pyramid’ that stifles potential and productivity in business.”
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