CMI says Government Bill to close gender pay gap "good for women and business alike"

With Parliament set to debate today [11 March] new rules requiring large businesses to report on how much they pay men and women, the Chartered Management Institute (CMI) has spelled out the changes they need to close the pay gap.   

According to the latest gender pay gap data from the CMI*, professional females earn three-quarters of the pay of their male counterparts – an average gap of £9,069. The pay gap becomes more pronounced with age and seniority. For women aged 45-60 the average pay gap grows to 34% (£16,680).

CMI’s chief executive Ann Francke says the legislative change will benefit both employers and employees:

“Transparency is the most powerful driver we have for achieving change and this legislation will be good news for women and business alike. It will mean there’s no hiding place for employers who don’t pay women fairly.

“But businesses should report on more than just average pay rates. Given that the gender pay gap is widest at the top, it is vital that companies track pay across different job levels.

“And, of course, the pay gap isn’t the only problem facing women at work, as the lack of women in senior roles is still a huge problem. Whilst we embrace this push for transparency, employers must focus on three things to galvanise wider cultural change when it comes to diversity – data, recruitment and culture. 

  • Data: Collecting and analysing data on employee demographics is essential - after all ‘what gets measured, gets managed’
  • Recruitment: Recruiting has to be a demonstrably fair and open process, one which precludes the possibility of candidates being preferred because ‘their face fits’
  • Culture change: Businesses must make employees’ working environment more inclusive. Flexible working arrangements, greater support for those caring for children or relatives, and mentoring by senior managers – all are fantastic ways to retain and help employees of both sexes

“These measures will help unblock the talent pipeline and deliver real diversity across the next generation of managers and leaders.”

Additional information

The legislation will make it mandatory for large businesses of 250+ employees to publish the average salaries for men and women in their workforce, under threat of a £5,000 fine. The law is likely to come into force in 12 months.

*National Management Salary Survey 2014:

Tristan Garrick, Head of Strategy, Planning and Campaigns

Tel. 020 7421 2705