Female managers have finally closed the pay gap

Female managers have finally closed the pay gap but are more likely to resign than their male counterparts, according to research conducted by the Chartered Management Institute and Remuneration Economics.

The National Management Salary Survey 2003, currently in its 29th year, reveals that despite higher levels of pay, the turnover of management-level staff is still high.

The findings released today show that for the seventh year running women managers received higher salary increases (5.9 per cent) compared to men (5.0 per cent). The increase in pay means that the average female department manager is now earning just 475 less than her male counterpart (53,257 compared to 53,732).

However, parity in pay does not necessarily equate to job satisfaction. Annual labour turnover amongst UK managers is 10.8 per cent, but the research reveals that more women (6.4 per cent) than men (3.3 per cent) are walking away from their jobs. The majority of women move voluntarily, with less than 2 per cent leaving because of redundancy or retirement.

Commenting on the findings, Karen Charlesworth, head of research at the Chartered Management Institute, says: The closure of the pay gap may be due to an increasing number of women managers working in higher-paid disciplines. There are certainly more women leading teams within functions such as finance and marketing compared to this time last year.

The number of female managers has increased again, as it has in each of the previous seven years. At 29.6 per cent, the current level of women in management roles is more than double that recorded in 1996 (12.3 per cent).

Charlesworth says: The growth in the number of female managers, often better qualified and educated than previous generations, reflects social changes and cultural shifts. More women return to work after having children and the number of dual-income families has steadily increased. However, it will still be some years before the UK achieves parity between men and women in management positions. It’s a situation that many employers need to address as they cannot afford to miss out on the talents of half the workforce.