Companies in England have “failed to take control” of the gender pay gap

Companies in England are showing almost 12% Gender pay gap for median gross hourly earnings (excluding overtime), ONS figures 2018


GPG Deadline reporting date (Private Sector): 4 April 2019

Ann Francke CEO of The Chartered Management Institute (CMI) ahead of the deadline for private sector companies to report the gender pay gap in their workforce has said that companies in England are not doing enough to address the gender pay gap (GPG).

The median pay gap appears to have widened across the board, with many companies expected to report a greater gap than last year. The numbers are clearly not moving in the right direction. We have failed to take back control of our gender pay gap (GPG).

Too many organisations have settled for ticking boxes rather deal with gender pay gap, an outcome I think can be laid at Brexit’s door. Most leaders have been preoccupied preparing plans for a dizzying array of outcomes whilst in parallel investing in no-deal preparations they hope won't come to pass. They only have a discrete amount of time in the day, and Brexit has taken up all the breathing space. Gender Pay Gap has been starved of oxygen in businesses and boardrooms across England.

ENDS

 


Notes to Editors

Key findings from the Managers Voice (MV) survey of senior and middle managers all paying members of The Chartered Management Institute.

The Chartered Management Institute (CMI) in a survey conducted between 6 November and 4 December 2018 of 940 UK based middle and senior management found that despite the GPG reporting requirements entering its second year, over two fifths (41%) of managers in large business were unaware whether their organisation published their GPG:

Development of action plans to tackle the GPG

  • Overall 32% of managers in large organisations reported that their organisation had developed an action plan to tackle the GPG
  • 12% stated that no action plan had been developed
  • 19% stated that no action plan had been developed as there was no GPG to tackle
  • 37% stated that they did not know
  • Within large organisations where managers were aware that their organisation published its GPG and the level of GPG, this increased to over half having developed an action plan (54%).
    • 11% had not developed an action plan
    • 24% stated they had not developed an action plan, as their organisation did not have a GPG.
    • 10% did not know if their organisation had developed an action plan.
  • Managers in large organisations in the public sector were more likely than those in the private sector/not for profit to say that an action plan had not been developed as their organisation did not have a GPG:
    • 31% of managers in the public sector sector stated this, in comparison to 17% in the private sector.

Concerns about GPG reporting in large organisations

  • Overall 6% of managers in all large business stated that a member of their team had raised a concern about their organisation’s GPG.
    • Managers who were at least aware that their organisation reported the GPG were more likely to state that a team member had raised a concern (9%) than those not aware that their organisation had to publish (2%)
  • Managers who stated an action plan had not been put in place to tackle the GPG were more likely to state that a member of staff had raised a concern about the GPG (20% where an action plan was not in place, compared to 8% where an action plan was in place)
    • Although bases are low - this was higher in private sector than the public sector (29% compared to 10%)
  • Indicatively, although a small segment of respondents, where managers were at least aware that their organisation reported the GPG and they reported no action plan was in place - they were more likely to report a member of their team raise concerns (24% of managers).

Confidence in tackling discriminatory language

95% of managers in large organisations stated they were confident in tackling discriminatory language.

  • This was broadly the same in the public and private sectors (96% in the public compared to 94% in the private sector)

Key findings related to public sector middle and senior managers:

  • Managers in the public sector were more likely to report that no action plan was required as there was no GPG (31% in the public sector, compared to 17% in the private sector).
  • There appear to be differences between the private and public sector, with more managers reporting complaints where an action plan to tackle the GPG is not in place in the private sector (29% in the private sector compared to 10% in the public sector). However these findings should only be considered indicative due to the low base sizes.
  • Overall awareness of the GPG among all managers (regardless of employer size) was low. Only 37% of managers were aware of that their organisation published their GPG, and knew what their organisation’s GPG was.
  • Overall 45% of all managers across all business sizes (who were aware that their organisation published the GPG and the level) stated that their organisation had developed an action plan to tackle the GPG.
  • Overall 5% of managers across business of all sizes suggested that a member of their team had raised a concern with them about their organisation’s GPG
  • The number of managers in large public and large private sector/not for profits around both awareness of publication of the GPG and the level of the GPG in their organisation was broadly the same.
  • 44% of managers in large public sector organisations were aware of publication and level, compared to 46% in large private/not for profit
  • There were no difference in awareness by gender.

Action Plans:

  • Overall 32% of managers in large organisations reported that their organisation had developed an action plan to tackle the GPG:
    • 12% stated that no action plan had been developed
    • 19% stated that no action plan had been developed as there was no GPG to tackle
    • 37% stated that they did not know
    • Within large organisations where managers were aware that their organisation published its GPG and the level of GPG, this increased to over half having developed an action plan (54%).
    • 11% had not developed an action plan
    • 24% stated they had not developed an action plan, as their organisation did not have a GPG.
    • 10% did not know if their organisation had developed an action plan.
  • Managers in large organisations in the public sector were more likely than those in the private sector/not for profit that an action plan had not been developed as their organisation did not have a GPG
    • 31% of managers in the public sector sector stated this, in comparison to 17% in the private sector.

Male managers in large public sector organisations were more likely to say that an action plan had not been developed as there was not a GPG than women in large public sector organisations:

  • 41% of male managers, in comparison to 17% of female managers.
  • This was because female managers were more likely to select that an action plan had not been developed (13% of women compared to 8% of men), or they did not know whether an action plan had been developed (15% of women compared to 5% of men).
  • The composition of male and female managers was comparable in terms of levels of management seniority.
  • There were no significant differences in the private sector between male and female managers.