Female Resignations Hit New High Despite Rapid Promotion And Bonus Payouts In Scotland

3rd September 2007

Female resignation rates have hit a new high in Scotland, despite women achieving promotion at a quicker rate than men. Figures, from a survey of 42,205 individuals, also show that female pay rises have stalled for the first time in more than a decade.

The findings, released today by the Chartered Management Institute and Remuneration Economics, show resignation rates amongst women stand at 4.9 per cent in Scotland. Representing employees from trainee level to chief executive, this figure is up from 2.7 per cent last year. Fewer women (2.6 per cent), than men (3.7 per cent), are also inclined to ask for 'internal transfers' if they are dissatisfied with their current role.

Now in its 34th year, the National Management Salary Survey reveals, however, that loyalty to employers is highest in Scotland, where 4.9 per cent of women resigned in the twelve months to January 2007. The highest female resignation rate is in the North West (9.2 per cent). In terms of industry, female resignations are highest in the retail sector, where they have doubled to 11.7 per cent, over the past year.

Institute Of Management
www.managers.org.uk

These findings come, despite women enjoying faster career progression than their male colleagues. At 37 years old, the average female team leader is 5 years younger than her male counterpart. Aged 40, female 'department heads' are 3 years younger than their male equivalent. The age gap expands in more senior roles as, at an average age of 44, women still achieve director roles quicker than men (age 48).

However, despite rapid promotion, the survey reveals that efforts to redress the pay gap have begun to stall:

- bonuses are only worth 12.9 per cent of total female income, compared to 16.4 per cent, for men. At £3,853, actual value is also 45 per cent lower than the amount received by men (£6,964)

- a 6.3 per cent increase in female earnings in Scotland is accompanied by an 8.4 per cent increase for men - the first time in 11 years male earnings have grown at a faster rate

- in real terms female managers earned an average of £42,315, last year - £9,464 less than the male equivalent of £51,779. Rather than closing, the difference is worse than reported in 2006 (£7,170).

Jo Causon, director, marketing and corporate affairs at the Chartered Management Institute, says: "It is clear that the pull of promotion is not being matched by parity in pay. Despite the weight of legislation and the reality that reward should match responsibility, gender bias seems to be getting worse, not better."

The findings come alongside evidence that the proportion of women as part of the UK workforce, continues to grow. This year's survey shows 35.7 per cent of managers and directors are female, compared to 31 per cent, last year.

Val Lawson, chair of the Women in Management Network, says: "The fact that the proportion of women in senior positions continues to grow is encouraging, but their increasing likelihood to resign is a cause for concern. If employers allow this trend to continue the knowledge gap in UK organisations will be exacerbated at the very time we are trying to challenge the skills crisis."