Female Managers work for free: Equal Pay Day highlights “inexcusable” Gender Pay Gap

  • On Equal Pay Day the Gender Pay Gap for managers in the UK is 26.8% - meaning employers need to take further action to reduce the gap
  • CMI and XpertHR analysis shows that female managers in fact lose over 3 months pay each year in comparison to their male colleagues
  • CMI is calling on employers to put action plans in place to support gender diversity in the management pipeline

On Equal Pay Day exclusive CMI and XpertHR analysis has revealed that female managers across the UK are working for free for over 3 months a year. For female managers, who face an average gender pay gap of 26.8%, Equal Pay Day actually fell over a month earlier than for most working women on the 25th September 2018.

The large gender pay gap that female managers still face is being driven by the gross under representation of women at the top levels of management which has shown no signs of improvement: 75% of Directors are male and just 25% female, with men earning nearly £35k more on average than their female counterparts. At the bottom in entry level management roles women represent 66% of the workforce compared to 34% of men.

CMI identifies this effect as the "glass pyramid" – too many women at the bottom of organisations and too few at the top – and believes business must fix the "broken windows" of gender bias that impede women’s careers and mar their day-to-day experiences in the workplace.

CMI’s Chief Executive Ann Francke has dubbed the situation “inexcusable.” She added:

Although in recent years we have seen some improvements in the Gender Pay Gap, we need to dramatically up the pace. There are huge benefits to ensuring companies promote workplace equality – with McKinsey estimating that it could add £150bn to the UK economy by 2025. If we don’t act now, we risk further damage to the economy, and given the uncertainties of Brexit we need this now more than ever.

Male managers are 40% more likely to be promoted than women – so the gender pay gap among managers still stands at a staggering 26.8%. CMI strongly believes that in addition to reporting transparency, businesses must follow through with action plans to support female talent in the management pipeline. Mentoring and sponsorship is key to tackling this persistent gender pay gap head-on.

Even in top FTSE 250 companies in the UK only 8% of companies reported on progress against their board’s gender diversity objective. All organisations need to vastly improve gender equality in the workplace, especially among managers. CMI’s Blueprint for Balance and its CMI Women network offers a wealth of advice to businesses to help them boost equality, and support the rise of female leaders.

Ann Francke, CEO, Chartered Management Institute

- Ends -

Further information:

For further information, interviews or case studies please contact:

Notes to editors

About CMI

The Chartered Management Institute (CMI) is the only chartered professional body for management and leaderships, dedicated to improving managers' skills and growing the number of qualified managers.

Our professional management qualifications span GCSE to PhD equivalents, including the unique Chartered Manager award, which increases earning potential and improves workplace performance. We have been registered as an apprentice assessment organisation by the Skills Funding Agency.

CMI has led the way in developing a suite of trailblazing management apprenticeships with a 40-strong group of employers. These start from Level 3 (team leader) and Level 5 (operations manager) through to Chartered Manager Degree Apprenticeship. The Senior Leader Master's Degree Apprenticeship gives employers the option to upskill up to executive and C-suite level. CMI is a Skills Funding Agency-registered apprentice assessment organisation.

We provide employers and individual managers with access to the latest management thinking and with practical online support that helps them to embrace change, create high-performing teams and keep ahead of the curve.

With a member community of more than 157,000 managers and leaders, we promote high standards of ethical practice through our Professional Code of Conduct, and help managers to build their expertise through online networks, regional events and mentoring opportunities.

About CMI and Xpert HR GPG data

Gender Pay Gap (GPG) figures are calculated from The National Management Survey which is undertaken for CMI by Xpert HR. The methodology for calculating the GPG has been revised to align as closely as possible with Government Gender Pay Gap Reporting Requirements. Where we report the GPG this is the mean GPG so that our data is more comparable with our previous GPG figures. The Gender Pay gap figure is based on data provided for 118,385 individual employees.

We have calculated the number of days that female managers work for free for by using the Guardian interactive Gender Pay Gap calendar, and h by using a company with the same Gender Pay Gap as managers (26.8%) as a proxy.