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Revealed: the true extent of the gender pay gap

27 September 2017

Revealed: the true extent of the gender pay gapNew research has found that the gender pay gap for the UK's 3.3m managers is wider than previously thought.

Analysis of managers' salaries conducted by the Chartered Management Institute (CMI) and XpertHR reveals that the gender pay gap now stands at 27% for UK managers. It means that on average, women managers are paid £11,606 less than men per year. The gap increases to £34,144 for director-level positions. This includes salary and bonuses, as well as perks such as car allowance and commission.

The revelations come six months after the Government introduced new regulations requiring large employers (with 250+ employees) to publicly disclose the size of their gender pay gap. So far, just 72 out of 7,850 eligible employers have met these obligations.

This is the first time that pay gap data, compiled by XpertHR, has been published taking into account the new rules. It is based on analysis of salary data of 118,385 managers from 423 organisations over the past year.

The findings also show that bonus payments are exacerbating the problem, with the gender bonus gap across all managers standing at 47%. In addition, the research shows that women are far more likely to fill junior management positions than men (66% vs 34%).

Mark Crail, content director of XpertHR, said: "Some people have tried to explain the gender pay gap away as being the result of different working hours or individual career choices. But when the analysis is based on the pay of more than 100,000 individuals in well over 400 organisations, it is clear that the pay gap is a very real fact of life for UK managers."

Ann Francke, CMI chief executive, said: "Too many businesses are like 'glass pyramids' with women holding the majority of lower-paid junior roles and far fewer reaching the top. We now see those extra perks of senior management roles are creating a gender pay gap wider than previously understood.

"We need the Government's gender pay gap reporting regulations more than ever before. Yet, less than 1% of companies have reported so far. [It's] time for more companies to step up and put plans in place to fix this issue."

Last year, CMI launched CMI Women, a network that aims to achieve gender parity across the UK's management population by 2024.

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