Press releases

Female resignation rates have hit a new high, despite women achieving promotion at a quicker rate than men.  Figures, from a survey of 42,205 individuals, also show that women are more likely to receive a bonus, but female pay rises have stalled for the first time in more than a decade.

The findings, released today by the Chartered Management Institute and Remuneration Economics, show resignation rates amongst women stand at 7.8 per cent.  Representing employees from trainee level to chief executive, this figure is the highest since 2002.  The survey also reveals that resignation rates are lower amongst men (6.4 per cent), ensuring continuation of the recent trend that sees women more likely to quit their jobs.  Fewer women (2.6 per cent), than men (3.7 per cent), are also inclined to ask for ‘internal transfers’ if they are dissatisfied with their current role.

Now in its 34th year, the National Management Salary Survey reveals that women in the North West are the most likely to leave their jobs, with female resignation rates in the region at 9.2 per cent.  Loyalty to employers is highest in Scotland, where only 4.9 per cent of women resigned in the twelve months to January 2007.  In terms of industry, female resignations are highest in the retail sector, where they have doubled to 11.7 per cent, over the past year.

These findings come, despite women enjoying faster career progression than their male colleagues.  At 37 years old, the average female team leader is 5 years younger than her male counterpart.  Aged 40, female ‘department heads’ are 3 years younger than their male equivalent.  The age gap expands in more senior roles as, at an average age of 44, women still achieve director roles quicker than men (age 48). 

Although bonuses play less of a role in overall ‘take home pay’ than in previous years, more women (63.4 per cent) are receiving one-off payments than men (55.9 per cent).  They are more likely to receive a bonus in the North East (79.2 per cent) than elsewhere in the UK and are twice as likely to be awarded bonuses, than men, in the North West (79.6 per cent, compared to 49.6 per cent, for men). 

However, despite rapid promotion and a higher incidence of bonus payments, the survey reveals that efforts to redress the pay gap have begun to stall:

- bonuses are only worth 10.2 per cent of total female income, compared to 13.8 per cent, for men.  At £3,077, actual value is also 48 per cent lower than the amount received by men (£5,860)

- a 5.2 per cent increase in female earnings represents their lowest movement since 2004.  This slowdown is accompanied by a 5.4 per cent increase for men – the first time in 11 years male earnings have grown at a faster rate

- in real terms female managers earned an average of £43,571, last year - £6,076 less than the male equivalent of £49,647.  The difference (12.2 per cent) is up from 11.8 per cent, last year.  At director level the gap is £49,233 or 23 per cent, up from 20 per cent, last year.

Jo Causon, director, marketing and corporate affairs at the Chartered Management Institute, says: “It is clear that the pull of promotion is not being matched by parity in pay.  Despite the weight of legislation and the reality that reward should match responsibility, gender bias seems to be getting worse, not better.”

The findings come alongside evidence that the proportion of women as part of the UK workforce, continues to grow.  This year’s survey shows 35.7 per cent of managers and directors are female, compared to 31 per cent, last year.

Val Lawson, chair of the Women in Management Network, says: “The fact that the proportion of women in senior positions continues to grow is encouraging, but their increasing likelihood to resign is a cause for concern.  If employers allow this trend to continue the knowledge gap in UK organisations will be exacerbated at the very time we are trying to challenge the skills crisis.”

- ends -

Further information:
Mike Petrook /Julia Brook, Institute Press Office
Tel: 020 7497 0496; outside office hours: 07931 302 877
Email:press.office@managers.org.uk

NOTES TO EDITORS
Representing 73,000 individual managers and 450 corporate members, the Chartered Management Institute is the only chartered professional body dedicated to management and leadership. The Institute supports individual members with practical guidance on the issues that affect managers in their day-to-day working lives and, as the guardians of national standards for management and leadership, it is also in a unique position to work with employers to identify and develop the necessary management and leadership skills that drive performance in the UK and internationally.  Through its research and policy programme, the Institute also analyses and shapes the issues that matter to employers and individuals, using its knowledge in open communications with key policy makers and government departments responsible for skills development.  The Chartered Management Institute came into being on 1 April 2002, as a result of the Institute of Management being granted a Royal Charter.