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News Release from: Chartered Management Institute | Subject: Salaries
Edited by the Processingtalk Editorial
Team on 07 September 2006
Financial rewards don't stop women
quitting
Women have received higher salary increases than men for the tenth successive year and are more likely to be given a bonus, but still walk out first
Women have received higher salary increases than men for the tenth successive year and are more likely to be given a bonus However, growing pay packets are failing to stem the tide of female resignations in the engineering sector
This article was originally published on Processingtalk on 13 Dec 2007 at 8.00am (UK)
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The findings, released today by the Chartered Management Institute and Remuneration Economics, show an average national movement in earnings of 6.7 per cent for women and 5.6 per cent for men, in the twelve months to January 2006.
It is also the highest movement in earnings for five years.
Women managers in the engineering sector increased their earnings by 3.4 per cent, against only 2.9 per cent for their male counterparts.
Further reading
'Work while you're sick' attitude in engineering
Ill-health, combined with a culture where 'illness equals weakness', is reported to be hitting organisations across the engineering sector, resulting in declining performance and waning enthusiasm
Females resign despite rapid promotion and bonuses
Female resignations hit a new high in the engineering sector despite generally receiving rapid promotions and better bonus pay-outs than men: women are nearly twice as likely to receive a bonus
Engineering career ambition stifled by bureaucracy
Managers in the engineering sector are extremely ambitious, but believe their careers are being held back by organisational red tape and a lack of support from their employers
And female managers in the sector are eleventh in this year's earnings league table - dropping two places in twelve months.
In real terms this means that female managers in the engineering sector earned an average of GBP36,301 in the year to January 2006.
But this is still £3,996 less than the male equivalent of GBP40,297 - an 11 per cent difference.
The gap at director level in the engineering sector is GBP90,222, with the average female director earning GBP135,116.
However, across the UK, in organisations with a turnover of less than GBP25 million women directors come out on top, earning GBP127,369 compared to GBP116,511 for men.
This year's survey also shows that bonuses are playing an increasingly important part in overall 'take home' pay.
The majority of employers (79 per cent) gave bonus payments to staff in the 12 months to January 2006, but women were more frequent recipients.
Almost three-quarters (71 per cent) of female executives were rewarded with a bonus compared to less than two-thirds of men (58 per cent).
In terms of value, smaller organisations, again, were more likely to give women greater rewards.
In organisations with a turnover of less than GBP25 million, women received an average bonus of GBP7,207 compared to GBP5,148 for men.
Yet despite larger pay awards and higher incidents of bonuses, women are more likely to resign.
In this year's survey, female resignation rates stand at 5.7 per cent, compared to 4.0 per cent for men.
The engineering sector has a resignation rate of 2.8 per cent for women and 0.9 for men.
The region with the highest female resignation rate is East Anglia (11.8 per cent) and the manufacturing sector (15.3 per cent) has the highest female resignation rate compared to any other industry.
The 2006 survey also indicates that, despite the narrowing of pay differences for female managers, gender inequalities persist.
For example, the number of women in team leadership roles has fallen to its lowest level for five years (32.5 per cent) and the gender pay gap also grows as individuals get older (from GBP297 at the age of 25 or less to over GBP10,000 from age 50).
Jo Causon, director, marketing and corporate affairs, at the Chartered Management Institute, says: "More than 30 years after Sex Discrimination legislation was introduced, some inroads appear to have been made in the workplace.
However, inequalities are still evident in pay packets and promotion and unless employers address the issue they are in danger of seeing a continuation of the trend in senior female executive resignations".
It is also clear, from the survey, that the proportion of women as part of the UK workforce declines with age.
Amongst the younger management community (aged 29 or less), women occupy the majority of roles (55 per cent), but from age 35 there is a sharp decline.
Between the ages of 35-39 women only account for one-third of managers.
From age 50 onwards this drops to 11 per cent.
Val Lawson, chair of the Women in Management Network, says: "This trend may be attributed to the number of women taking career break and potentially reflects the lower proportion of women in higher education, thirty years ago.
However, it is a pattern that must be reversed because, allowed to continue, it will deny employers access to a considerable pool of talent.".
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