Female junior executives are now earning as much as their male counterparts, according to figures just released by the Chartered Management Institute (CMI). Earning an average salary of £21,969,
Female junior executives are now earning as much as their male counterparts, according to figures just released by the Chartered Management Institute (CMI). Earning an average salary of £21,969, female junior executives in the UK are currently being paid marginally more (£602) than male executives at the same level, whose average salary is £21,367.
So, is the gender pay gap now a thing of the past? Far from it. The average figures across the whole sample of over 34,000 UK executives, surveyed by XpertHR on behalf of CMI, suggest that equal pay for male and female executives for all seniority levels remains a long way off. CMI states that, according to the 2011 National Management Salary Survey, men continue to be paid more on average than women doing the same jobs (£42,441 compared to £31,895), revealing a gender pay gap of £10,546. According to CMI, if male and female salaries continued to increase at current rates, it would be 2109 – 98 years – before the average salary for female executives catches up with that of their male peers.
Gender equality has been a hot topic recently. Earlier this year, Lord Davies published the Women on Boards report, recommending that chairmen of FTSE 350 companies set out the percentage of women they aim to have on their boards in 2013 and 2015. The report stated that FTSE 100 boards should aim for a minimum of 25% female representation by 2015 and asked chairmen to announce their aspirational goals by September 2011. In relation to pay inequalities, the Government has also published "Consultation on Modern Workplaces", which includes a proposal seeking to address the gender pay gap and improve enforcement of equal pay legislation. The proposal requires employment tribunals to make an employer conduct an equal pay audit where the employer has been found to have discriminated because of gender in contractual or non-contractual pay matters.
While we await the Government's response to the consultation, the figures published by CMI are a timely reminder for employers to tackle equal pay issues in the workplace. Long-running equal pay claims often attract significant publicity and can be particularly damaging for employers. Although addressing pay discrepancies may be daunting, especially for larger organisations, proactive steps can be taken to close gender pay gaps. As our recent article discusses, undertaking an equal pay audit can be a valuable exercise for many employers.
So, is the gender pay gap now a thing of the past? Far from it. The average figures across the whole sample of over 34,000 UK executives, surveyed by XpertHR on behalf of CMI, suggest that equal pay for male and female executives for all seniority levels remains a long way off. CMI states that, according to the 2011 National Management Salary Survey, men continue to be paid more on average than women doing the same jobs (£42,441 compared to £31,895), revealing a gender pay gap of £10,546. According to CMI, if male and female salaries continued to increase at current rates, it would be 2109 – 98 years – before the average salary for female executives catches up with that of their male peers.
Gender equality has been a hot topic recently. Earlier this year, Lord Davies published the Women on Boards report, recommending that chairmen of FTSE 350 companies set out the percentage of women they aim to have on their boards in 2013 and 2015. The report stated that FTSE 100 boards should aim for a minimum of 25% female representation by 2015 and asked chairmen to announce their aspirational goals by September 2011. In relation to pay inequalities, the Government has also published "Consultation on Modern Workplaces", which includes a proposal seeking to address the gender pay gap and improve enforcement of equal pay legislation. The proposal requires employment tribunals to make an employer conduct an equal pay audit where the employer has been found to have discriminated because of gender in contractual or non-contractual pay matters.
While we await the Government's response to the consultation, the figures published by CMI are a timely reminder for employers to tackle equal pay issues in the workplace. Long-running equal pay claims often attract significant publicity and can be particularly damaging for employers. Although addressing pay discrepancies may be daunting, especially for larger organisations, proactive steps can be taken to close gender pay gaps. As our recent article discusses, undertaking an equal pay audit can be a valuable exercise for many employers.