New research has revealed a 10% gender pay gap between male and female HR managers 

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According to new analysis conducted by Chartered Management Institute (CMI) and XpertHR, while the average salary of a female managers is £40,177, male managers have an average of £44,646. This is a vast difference of £4,469 and includes salary, bonuses, and perks such as car allowance and commission.

Although the gender pay gap in the HR sector is significant, sadly it is considerably lower than it is across other sectors in UK businesses. The average male manager earns 26.8% more than their female colleagues.

 The table below illustrates the gender pay gap across different sectors:

Sector Male Female GPG £ GPG %

Average pay

Average pay

Average

Average

Retail

22,252

17,937

4,315

19.4

Finance

53,456

35,338

18,118

33.9

IT

46,055

42,297

3,758

8.2

Marketing

45,555

37,692

7,863

17.3

PR/press/publishing

44,956

38,723

6,233

13.9

HR

44,646

40,177

4,469

10.0

It may not come as a surprise that the finance sector has the highest gender pay gap, with male managers earning 33.9% more than females which is a staggering difference of more than £18K. The study showed IT sector has the lowest gender pay gap with male managers only earning £3,758 (8.2%) more than their female counterparts.

As we have previously reported, in April 2017 the Government enforced new gender pay gap reporting regulations.

CMI’s chief executive Ann Francke, comments: “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. The picture is worst at the top, with male CEOs cashing-in bonuses six times larger than female counterparts’.”

“Our data show we need the Government’s gender pay gap reporting regulations more than ever before. Yet, less than one percent of companies have reported so far. Time for more companies to step up and put plans in place to fix this issue. It’s essential if UK companies are to survive and thrive in the post-Brexit world.”

The study, which is the first to compile pay gap data, also found that women are more likely to fill junior management positions than men (66% vs 34%). Men were found to be more likely to occupy senior positions with only 26% of director roles being filled by women compared to 74% of males in these positions. What is most disheartening is that even when women do progress to these senior roles, the pay gap considerably widens to £34,144, with men earning an average of £175,673 and women earning just £141,529.

Bonus payments also seem to be limited to a boys club sensibility, with the gender bonus gap across all managers standing at 46.9 percent. This increases considerably at C-suite level, where the average bonus for a male CEO is £89,230 compared to £14,945 for a woman – an 83 percent bonus pay gap.

This year’s analysis suggests that while salary and bonuses are picking up for both men and women, the benefits are going disproportionately to men. Male directors picked up a 5.8% increase in pay and bonuses, compared to 3.7% for women (compared to 4.0 and 3.3% respectively last year). For managers, men outpaced women by 3.7 to 3.5% (whereas they took home 3.0 and 3.2% increases the year before). That means a real-terms widening of the gender pay gap for many managers.

“We have always known that the gender pay gap appears to widen with seniority. But the results we are publishing today enable us to quantify the gap using a large volume of reliable, checked and verified pay data, drawn directly from employer payroll systems. 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.” Adds XpertHR’s content director Mark Crail.

Even though pressure has been building on companies to follow the new regulations in disclosing gender pay and publish action plans detailing the practical steps they are proposing to close the gap, only 77 of the 7,850 UK companies to which the new law applies have fulfilled their obligations.

According to research published last year by management consultants, McKinsey, closing the gender pay gap would add up to £150bn a year to the UK economy by 2025. But analysis by CMI shows the scale of the challenge: with the economy needing 1.9m new managers by 2024, 1.5m would have to be women in order to achieve balance.

Previous research from CMI in January revealed that four out of five managers had witnessed some form of gender discrimination in the workplace, suggesting a wider cultural shift needs to take place if the gender pay gap is to be closed. To help tackle these issues, CMI last year created CMI Women, a network that aims to achieve gender parity across the UK’s management population by 2024, and to help employers unlock more value in the UK’s workforce to address the productivity gap.