Slow Progress Shows Limits of Gender Pay Gap Reporting

Nearly one year on from the introduction of gender pay gap reporting, the latest analysis from the Chartered Management Institute (CMI) reveals slow progress in closing the pay gap for female managers.

New CMI research with XpertHR shows that female managers in 2018 experienced a mean gender pay gap (GPG) of 23% - around £8,500. The equivalent GPG for female managers in 2017 was 27%.

The concentration of women in junior and in lower-paid management roles is likely to be a key driver of the gender pay gap for female managers. The CMI analysis shows that women comprise over a quarter (27%) of the most senior leaders (CEOs, senior directors and directors), but make up nearly two thirds (59%) of managers in entry-level management roles.

This is not down to a lack of ambition amongst female managers. A recent CMI survey of managers showed that women are hungry for promotion, with 45% of female managers expecting to apply for promotion in 2019.

On International Women’s Day, CMI is calling for action to redress the gender imbalance in our businesses and boardrooms and to accelerate work to close the gender pay gap.

CMI CEO, Ann Francke, said:

The latest CMI analysis shows that, despite the rhetoric, the reality is that closing the gender pay gap will take time, hard work and real determination.

A key driver for the gender pay gap is the lack of women in senior management and leadership positions. No organisation can be successful in closing their gender pay gap unless they have a plan in place to support more women into senior roles - and a leadership team that is committed to delivering it.

Pay transparency is a necessary first step - but we need to see action. This is why CMI is calling on every organisation covered by the gender pay reporting rules to publish an action plan showing how they plan to close their pay gaps.

At CMI we support ‘transparency with teeth’. The UK Corporate Governance Code requires companies to set out their board’s policy on diversity, the measurable objectives in place for implementing the policy, and progress against achieving those objectives. If organisations fail to comply with these requirements, they should face consequences.

Ann Francke, CEO of the Chartered Management Institute

- Ends -

Further Information

For further information please contact:

Notes to editors

Gender Pay Gap (GPG) figures are calculated from the most recent data from The National Management Survey which is undertaken for CMI by XpertHR. 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 by nearly 250,000 individual employees.

Data on the career prospects in 2019 for women is taken from CMI’s Managers Voice Survey. This is a survey of 940 UK based CMI practising manager members and was undertaken between 6th November and 4th December 2018. 326 respondents to the survey were women.

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.