Women are less likely to be promoted at work and more likely to earn less than their male colleagues, according to data gathered by the Chartered Management Institute (CMI).
Men also occupy more management jobs than women the higher up the business they go.
In 2015 it was 40% more likely that men would be promoted into management positions, with 14% of male managers promoted into more senior roles, compared with just 10% of women.
The survey revealed that fewer women occupy executive positions compared to men. Although women may make up 73% of the workforce in entry and junior level positions, this falls to 42% when women reach a senior management level. Less than one-third of director-level jobs are occupied by women.
Men who are in director or CEO roles are earning an average basic salary of £131,673, which is a huge £16,513 more than their female counterparts.
When it comes to bonuses in the last year, 43% of men were given an annual bonus, compared to only 36% of women. Men were also awarded an average bonus of £22,687, whereas women received only £13,699.
According to Government figures, the private sector has the worst pay gap of 25.3%, compared to the public sector’s 18.5%.
Gender pay gap reporting
Gender pay gap reporting will come into effect in April next year, but as this survey has revealed, the average full-time earnings for male managers was found to be almost £9,000 more than the average female manager’s. The hope is that this legislation will encourage employers to close this large pay gap.
Employers with 250 or more staff will be required to publish their gender pay and bonus gap information.
The Government has recently confirmed its schedule for public sector gender pay gap, bringing it into line with the voluntary and private sectors. It hopes that by extending gender pay gap reporting to large employers in the public sector, this will lead to more transparency and fairness for the 3.8 million employees.
There are some proposed changes to the Regulations:
• Employers will now also have to publish their mean and median gender bonus gap data, along with their mean and median gender pay gap information.
• The date that organisations will be required to collate the information is 5 April every year – it was previously set to be 30 April.
• The first publication of gender pay gap data is to be by 4 April 2018 – this was previously set to be 30 April 2018.
• The term ‘employee’ is now based on s.83 of the Equality Act 2010, which includes workers on zero hours contracts and apprentices.
Before the new legislation starts, employers should already start focusing their attention on their recruitment, promotion, and pay practices. Setting targets and being transparent are key for employers to avoid problems from the new regulations.