The Chartered Management Institute has welcomed the Government’s publication of its gender pay gap reporting regulations, hailing it as “a big boost to productivity”. The reporting regulations, which come into effect in April 2017, will require private companies with 250+ employees to disclose how many men and women they employ at every quartile, and how much they pay them.
The move will affect 8,000 employers, requiring them to publish their data on their website, as well as submit it to an online Government database open to the public.
CMI has welcomed the move, citing it as not only a critical step in tackling the gender pay gap, but also as a driver of productivity for UK business.
CMI has played a big role in the development of the regulations, working with the Government Equalities Office’s Business Reference Group to help shape the regulations and feeding in the latest evidence on the pay gap and good practice. Last December, CMI’s chief executive Ann Francke gave evidence to the House of Common’s Women and Equalities Select Committee, as part of the consultation on the new measures.
Commenting on the regulations, Ann Francke said:
“Gender balance provides a big boost to productivity which is one reason why the Government’s gender pay regulations are especially timely. Large organisations will have to report the number of men and women they employ at every quartile, and the difference in their salaries and bonuses. Too many organisations resemble a glass pyramid, with the majority of entry-level roles filled by women, and the number of women reducing the higher up you go.
“According to CMI’s long-running research, the gender pay gap has stuck stubbornly around 23%. Men are 40% more likely than women to be promoted in management roles. The combination of transparency and targets will help employers become more aware of their own glass pyramid and encourage them to do something about it. This is great for business because diverse teams are more productive and boost employee engagement. Through our CMI Women campaign we’re working with employers to use best practice and the regulations as a launch pad to achieve gender balance in their teams to drive productivity.”
CMI has published practical guidance for employers on how to work with the new regulations, and is working with its members to use the regulations as an opportunity to increase the value that women add to their organisations. Recent research shows that gender-diverse management teams deliver an 18% return on investment premium and diverse companies are 15% more likely to outperform competitors. Diversity could add $12 trillion annually to the global economy and £150 billion a year to the UK economy in 2025.
In November, CMI launched its CMI Women campaign, aimed at getting 1.5m women into management by 2024. As part of the campaign, CMI has developed a free open source tool for employers to use to achieve 50/50 management. ‘Blueprint for Balance’ enables employers to share information and learn from other the practices and policies that have helped improve gender balance in their organisations.
Full press release on www.managers.org.uk