We will need 1.5 million new female managers to achieve a 50/50 split of management jobs between men and women by 2024
The Chartered Management Institute (CMI) has launched CMI Women, a new initiative designed to achieve gender parity across the UK’s management population by 2024, and to help employers unlock more value in Britains workforce to address the productivity gap.
It says it has created a ‘Blueprint for Balance’, an innovative open source tool which helps organisations achieve 50/50 management. The tool is a free online resource that allows employers to share information and learn from others the practices and policies that have helped improve gender balance in their organisations.
According to the CMI, The UK economy needs two million new management roles for it to achieve predicted growth. The problem for many organisations is the ‘missing middle’. While women out-number men at junior levels, not enough make it through middle management and to the top.
It says that to achieve a 50/50 split of management jobs between men and women by 2024, we will need 1.5 million new female managers over the period. Today there are over half a million ‘missing’ women from management. On today’s diversity forecasts, we’ll still have 480,000 ‘missing women’ from UK management in 2024.
Supporting research from the CMI
73% of entry-level roles are occupied by women, this reduces to just 43% of women in middle management roles.
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.
Four in five managers (81%) have witnessed some form of gender discrimination or bias at work in the past 12 months.
Half (50%) of managers have pointed to gender bias in recruitment/promotion decisions, while 42% said they had seen inequality in pay and rewards.
Over two-thirds of managers (69%) said they saw women struggling to make their views heard in meetings, and four in five (81%) said they had witnessed inappropriate remarks (such as comments with sexualised overtones masquerading as ‘banter’).
The difference in promotion rates is one of the main causes of the gender pay gap, which remains largely unchanged this year at 23.1% compared to 22.8% in 2015.
The average full-time equivalent salary for male managers now stands at £38,817, £8,964 more than the average female manager’s. The pay gap is even higher for those in the ranks of director and CEO, with men on an average basic salary of £131,673 earning £16,513 more than women at the same level.
Ann Francke, CEO at CMI, said: “On International Women’s Day employers need to be bold for change and look at ways they can fill the ‘missing middle’ of women absent from management roles. Filling the missing middle of women managers is essential to widen the talent pool as UK businesses face up to the challenge of tackling the productivity gap that currently leaves us lagging 18% behind our G7 competitors.
“Through CMI Women we will provide organisations with a Blueprint for Balance, while also enabling individuals to play their part in accelerating their own careers and supporting others to do the same. It is by working together in this way that we can find the solutions needed to find the 1.5 million extra women managers we’ll need by 2024 to achieve the gender balance that is critical for future UK business success.”