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Men trump women on bonuses

(Shutterstock)
(Shutterstock)
Cape Town - Bonus payments given to male managers are on average double those for women, reported the BBC.

Male managers' average extra payments were £6 442 last year compared with £3 029 for women, according to the Chartered Management Institute (CMI).

This further exacerbates the existing pay gap of almost 25% between men and women.

According to the CMI study male managers would earn £141 000 more in bonuses over a lifetime. The pay and bonus gap is even bigger at more senior levels.

Sandra Burmeister, CEO of executive search firm Amrop Landelahni, said the CMI findings are not surprising since the gender pay gap worldwide has widened over the past few years.

“Not only are women paid less than their male counterparts in the same job, but throughout the world women tend to be concentrated in support functions such as human resources or marketing rather than in core production roles such as engineering.

“This is frequently due to outdated stereotypes, compounded by ‘soft’ educational qualifications.”

When it comes to women in senior management, South Africa, at 28%, compares well with the global average of 21%, according to a recent Grant Thornton survey.

“However, even when women do advance through the executive pipeline they tend to get paid less than men for performing the same work," Burmeister said.

Ann Francke, chief executive of the CMI, said that despite genuine efforts to get more women onto boards, it's disappointing to find that not only has progress stalled, but women are also losing ground at senior levels.

The CMI found that women directors' average bonus is £36 270, while men receive £63 700.

Although the majority of the workforce at entry level are women, they still lose out when it comes to top positions and top pay, said Francke, adding that the time has come to tackle this situation more systemically.

She pointed out that it is in the interest of business and economic growth to use, promote and reward women.

For the gender pay gap to narrow, salaries must rise faster for women than those for men.

"Unfortunately, the reality is that salaries tend to rise at the same rate, which has the effect of increasing the gap," said Burmeister.

Burmeister said education, work opportunities and the gender pay gap are inherently linked. A lack of formal education limits opportunities for women in the workplace, restricting them to lower paid jobs.

"Formal education for women is an essential stepping-stone to gender equality in the workplace.”

“We need to draw on the skills of both men and women to meet the challenges of today’s complex, volatile and uncertain business environment," she said.

Research shows that women bring different approaches to business, which positively affect organisational performance and financial results.

“Companies that have succeeded in reducing the gender gap in the workplace display an integrated approach across a range of initiatives," continued Burmeister.

"They demonstrate a high level of management commitment, measure progress continuously, and implement programmes to change attitudes and counter inadvertent prejudice.”

- Fin24

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