The pay gap between male and female managers has widened, with women earning £12,000 less on average than their male colleagues.
Chartered Management Institute (CMI) and XpertHR’s study found that just one per cent of the UK’s large companies followed the Government’s new pay transparency rules.
So far, just 77 of the 7,850 companies have followed the Government’s reporting regulations, which requires companies with more than 250 employees to disclose the size of their gender pay gap.
Of the data compiled so far, female executives and managers were earning on average £12,000 less than male managers, £3000 bigger than previous data had suggested.
The study also found that the higher position a female employee had, the wider the pay gap. For director-level positions, women earn an average of £141, 529, whilst men receive £175, 673 on average, a 19 per cent gap.
CMI’s report suggested that the reason for this gap is due to bonuses, in which a male director’s bonus is 83 per cent more than a females.
“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,” said Mark Crail, content director at XpertHR.”
A survey of 118,385 managers from 423 organisations also showed that female employees were more likely to fill a junior management position, with 66 per cent in these roles, in comparison to just 34 per cent of men.
Meanwhile, men usually have more senior roles, with just 26 per cent of director-led roles being female compared to 74 per cent by men.
Ann Francke, CMI’s chief executive, described UK businesses as “’glass pyramids’ with women holding the majority of lower-paid junior roles and far fewer reaching the top”.
She explained: “Our data shows we need the Government’s gender pay gap reporting regulations more than ever before. Yet, less than one per cent of companies have reported so far.”
“It’s time for more companies to step up and put plans in place to fix this issue.”