Male managers earned average bonuses twice as big as those of their female counterparts over the last 12 months, according to research by the Chartered Management Institute (CMI).
Its annual National management salary survey, conducted with XpertHR and including data from more than 43,000 UK workers, found that average bonuses for men were £6,442 compared with £3,029 for women.
This was on top of average basic salaries, which were almost 25% larger for men at £38,169, compared with £29,667 for women.
The research also found that:
- Men stand to earn more than £141,500 more in bonuses than women doing the same role over the course of a working lifetime.
- Female directors are earning, on average, almost half the salary of their male counterparts, £36,270 compared to £63,700.
- At entry level, women are faring better, earning £989 more than men on average.
- By middle management, women receive £1,760 less than men and at director level the gap widens to £15,561, based on an average basic salary of £140,586 for men and £125,025 for women.
Ann Francke, chief executive at the CMI, said: “Despite genuine efforts to get more women onto boards, it’s disappointing to find that not only has progress stalled, but women are also losing ground at senior levels.
“Women are the majority of the workforce at entry level, but still lose out on top positions and top pay.
“The time has come to tackle this situation more systemically.”
In response to its findings, the CMI has set out a roadmap for culture change, which focuses on three key areas:
- Measure and report on equality.
- Extend flexible working for men and women.
- Sponsor, mentor and develop.
It may be shocking to many people to read the news today of the large discrepancy between men and women’s bonuses. However, is this purely evidence of a significant gender pay gap in our society? Well, while the gender pay gap undoubtedly plays a significant part, I think that this is a wider demographic issue than simply one of equal pay.
It is true that more women than men take significant time out of work to raise children, whether as maternity leave or by electing to work part time. On the basis of this fact, it is not surprising perhaps that the average bonus paid to working women is lower. By taking time away from work and working reduced hours, when compared to male colleagues, it is not surprising that women as a generic group, are in less senior, lower paid roles. This is an observation, not a judgement. Women, and indeed men who elect to take career breaks or opt to work part time, cannot expect to make these decisions without realistically expecting it to have an impact on their career, which in turn will impact on their earnings.
While I think that there may be something in Ms Francke’s [comment] about women, on the whole, being less self-promotional than men, which obviously may have an impact on their ability to negotiate bigger packages for themselves, I do not share her view that employers’ failures to embrace flexible working arrangements contributes to the pay gap.
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