Women climb career ladder faster - but paid less for doing same job

by Frances Gibb and Marcus Leroux

Women are beating men up the career ladder but are still being paid less and getting smaller bonuses for doing similar work.

A study of 42,000 managers found that at the age of 37, the average female manager was five years younger than her male equivalent. But despite women's career success, they are still being paid an average 12 per cent less for working in a similar role - and at director level the gap rises to 23 per cent.

The National Management Salary Survey also reveals that resignation rates among women directors, managers and professionals are at their highest level for five years. Women are 20 per cent more likely than men to resign from their jobs.

The findings coincide with a warning from the Government's leading equality watchdog that new laws are urgently needed to tackle the pay gap, which is 17 per cent nationally.

The Equal Opportunities Commission (EOC) said that the gender pay gap in the private sector was worse than in the public sector - at 22 per cent compared with 13 per cent.

The warning coincides with a sharp rise in the number of equal pay cases being lodged with tribunals. A total of 44,013 claims were lodged over equal pay in the 12 months up to April - up 155 per cent on the year before.

The survey, published by the Chartered Management Institute (CMI) and Remuneration Economics, found that women managers earned on average œ43,571 last year, some œ6,000 less than the average male manager.

But the higher women rise up the promotion ladder, the greater the pay gap becomes. Women directors earned an average œ164,564 last year compared with œ213,797 for men - a 23 per cent gap. The North West has the highest rate of resignations among women, at 9.2 per cent. The lowest rate is in Scotland, where only 4.9 per cent of women left their jobs in the year to April.

Women in the retail sector are the most dissatisfied, with resignations in the past year doubling to 11.7 per cent.

The high level of walkouts comes despite women's faster career progression. Women department heads are on average aged 40, three years younger than their male counterparts. They also reach more senior directorship roles sooner, at an average age of 44 compared with 48 for men.

It is not only in basic pay that women are disadvantaged. Their bonuses, although paid more frequently, are smaller, being worth 10.2 per cent of their total income compared with 13.8 per cent for men. The amount is also 48 per cent lower at an average of œ3,077 compared with œ5,860 for men.

Jo Causon, director of marketing and corporate affairs at the CMI, said that there were several factors behind the pay gap, including the fact that women tended to be in jobs that were less well-paid.

She added that companies were able to get away with paying women less because there was "very little transparency about pay, particularly in the private sector".

The EOC said that women working full-time lost out on more than œ330,00 over their working lives. Camille Waxer, head of Canary Wharf Group's retail operation, said that the onus should be on companies to address discriminatory pay.

Ms Waxer, who was last night named Harper's Bazaar & Aquascutum Businesswoman of the Year, said: "It's obviously something that's happening and it's not right. It should be based on your ability and the job at hand. It has to be reviewed and it should be company-led. First of all they have to be more proactive."

Jenny Westaway, of the Fawcett Society women's rights group, said: "Women know from bitter experience that once they have children, advancing their careers becomes very difficult. Companies aren't very flexible, particularly in senior positions and that's reflected in the higher number of resignations. Women know they have to rise more quickly than men."

Another factor, the CMI said, in women being promoted faster than men was the higher percentage of women recognising the benefits of qualifications. Some 75 per cent of women viewed qualifications as benefiting their career prospects compared with 66 per cent of men.

The study also found that while 89 per cent of women were looking for a move, only 74 per cent of men were.

Times, UK