New ways of measuring how much men and women are paid under far-reaching Government reporting requirements have revealed that the gender pay gap in the retail sector sits at 19.4%.
According to analysis of managers’ salaries conducted by the Chartered Management Institute (CMI) and XpertHR, male managers in this area of work on average earn £4,315 more than their female peers.
While the average salary of a female manager stands at £17,937, this jumps to £22,252 for men. This includes salary and bonuses, as well as perks such as car allowance and commission.
But while the gender pay gap in retail is significant, it is still considerably lower than it is across all UK businesses, with the average male manager earning 26.8% more than female colleagues.
The gender pay gap is particularly high in finance, with male managers earning 33.9% more than female peers, equating to an average salary difference of more than 18K.
The news comes as it is revealed that just 1% of large employers have publicly disclosed the size of their gender pay gap.
Regulations that came into effect in April state those employers with 250 or more members of staff must fulfil these obligations, but only 80 of the 7,850 UK companies to which the new law applies have done so.
This is the first time that pay gap data, compiled by XpertHR, has been published taking into account the new rules.
The report is based on analysis of salary data of 118,385 managers from 423 organisations over the past year.
CMI’s chief executive Ann Francke said: “Too many businesses are like ‘glass pyramids’ with women holding the majority of lower-paid junior roles and far fewer reaching the top. We now see those extra perks of senior management roles are creating a gender pay gap wider than previously understood. The picture is worst at the top, with male CEOs cashing-in bonuses six times larger than female counterparts’.
“Our data show we need the Government’s gender pay gap reporting regulations more than ever before. Yet, one per cent of companies have reported so far. Time for more companies to step up and put plans in place to fix this issue. It’s essential if UK companies are to survive and thrive in the post-Brexit world.”
The findings today also reveal that women are far more likely to fill junior management positions than men (66% vs 34%), and men much more likely to occupy senior positions (26% of director-level roles occupied by women, 74% by men).
Yet, even for those women who do progress to more senior roles, the pay gap begins to widen considerably: at director-level positions, it rises to £34,144, with men earning an average of £175,673 and women £141,529.