Pay gap: Men get bigger bonuses than women

The pay gap increases the higher women rise in careers. Picture: Phil Wilkinson
The pay gap increases the higher women rise in careers. Picture: Phil Wilkinson
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THE pay gap between men and women in Britain has widened further, with bonus payouts for male managers more than double those of female counterparts, new research has revealed.

Male managers earned average bonuses of £6,442 over the last 12 months compared to £3,029 for women.

This was on top of average basic salaries almost 25 per cent bigger, said the Chartered Management Institute’s (CMI) annual Gender Salary Survey for 2013.

The CMI urged employers to take steps to encourage greater diversity in the workplace.

These include targets for the percentage of women and men at all levels and the extension of flexible working policies for both men and women.

The survey, by UK benchmarking group XpertHR, also found both the gender bonus and gender pay gaps are more pronounced at senior levels.

At £36,270, female directors’ bonuses are dwarfed by the average amount taken home by male directors in the last year – £63,700.

Even without taking bonuses into account, the data shows that the gender pay gap increases with each rung of the management ladder.

At entry level women are faring better, earning £989 more than men on average, but by middle-management they receive £1,760 less than men and at director level the gap widens to £15,561 – with average basic salary of £140,586 for men and £125,025 for women.

The CMI said the gender pay gap was being aggravated by the bonus gap.

The study of 43,000 managers also showed that male managers stand to earn over £141,000 more in bonuses than women doing the same job over the course of a working lifetime.

The gap in pay and bonuses are bigger at senior levels, with female directors paid an average bonus of £36,270, while men are given £63,700, said the report.

Ann Francke, chief executive of the CMI, said: “Despite genuine efforts to get more women onto boards, it’s disappointing to find 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. If organisations don’t tap into and develop their female talent right through to the highest levels, they will miss out on growth, employee engagement and more ethical management cultures. And that’s not good for business.”

Mark Crail of salary specialists XpertHR, which helped with the research, added: “There is no good reason for men to still be earning more in bonuses than women when they are in very similar jobs.

“But it’s often the case that men and women have different career paths, with ‘male’ roles more likely to attract bonuses.

“While women are generally getting lower bonuses than men, especially at senior levels, they may be entering occupations where there is less of a culture of bonus payments.

“The question for employers is, why that’s the case.”