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Pay & Benefits supplement: Engendering equality
 
Though the third sector has a much better track record than the private, disparity in pay still exists between men and women. David Adams examines the figures, and asks if a balance will ever be attained
 
Naturally one should retain a degree of scepticism about headline statistics, but the results of the 34th annual National Management Salary Survey, published in September by the Chartered Management Institute (CMI), should give women working in the charity sector some pause for thought.

As you might have thought, the pay gap between men and women managers is smaller in the charity sector than anywhere else: £31,787 for women and £31,995 for men. The overall figures are £43,571 for women and £49,647 for men, and in some sectors, including HR or retail, the gap is more than £10,000.

But the gap still exists. The survey also reveals that while female managers’ salaries in the sector increased by 3.9%, male earnings were up by 6.3%, the first time in 11 years that they have grown faster than women’s earnings.

Perhaps most worryingly, it showed that the resignation rate among women managers had reached 9.7%, up from 4% in 2006, and far beyond the 2.4% rate among male managers (although the figures don’t show how many of those resigning were leaving the sector altogether).

Should we be worried about these figures? “Across the board there has been a reversing of a trend that has been redressing some of those disparities in pay,” says Petra Wilton, head of public affairs at the CMI. But she points out that there was good news for women managers in the sector too, including the fact that women who become managers in the charity sector are doing so, on average, at a younger age than are men: reaching team leader positions at 37, compared to 42 for men; and director levels at 44, compared to 48.

There is also strong growth in the overall numbers of women in senior management and directorships, up to 35.7% from 31% in 2006.

“When it comes to levels of pay between men and women I’ve never heard any negative feedback about the charity sector,” says Rachel Landman, a business consultant at Charity Action Recruitment, which specialises in helping individuals find jobs in the charity sector. “No-one has ever said they feel that any of their male counterparts are earning more than them. And I’ve worked in some other sectors where that has been a big issue.”

There is still plenty for the charity sector to be pleased about, agrees Bridget Warr, chief executive at Guide Dogs for the Blind. “It doesn’t surprise me that the sector does better than others in terms of equal pay,” she says. “If you look at the not-for-profit sector, these were the organisations that led the drive for greater equality some years ago.”

But she is concerned about the reported difference between the sexes in salary increases. “That could be a very worrying statistic,” she muses. “You do have to probe a little deeper behind the figures and ask why that could be. There’s the old chestnut about men being better at asking for pay rises.”

The CMI’s Wilton wonders if the fact that women are rising through the ranks at a younger age than male counterparts might be having a negative effect on salaries in some cases.

“There might be an impact on salaries if women are reaching higher positions with less experience,” she explains. “To us that doesn’t excuse the disparity: if you’re promoting some there should be equality of pay.”

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Women that have reached senior management level dismiss the idea of a glass ceiling for women in the charity sector. Charlotte Imbert has worked in the third sector since she left university. Now in her late 30s, she has been acting general secretary (chief executive) at British Overseas NGOs for Development (BOND) for the last six months, having stepped up from her previous role as learning and training manager. She is also completing a Masters degree in Voluntary Administration (MVA) from London South Bank University.

“It’s been an exciting time, as we’re going through a lot of change and growth here,” she says. “I’ve been given the opportunity to lead, albeit for a temporary period, a very senior strategic organisation. My management team is mostly women, and our board is at least half women, who are all directors and very senior managers at other organisations. And as I look across the sector I can see a lot of women in very powerful positions, like Barbara Stocking [director] at Oxfam, or Jasmine Whitbread [chief executive] at Save the Children. There are a lot of organisations with female directors.”

Indeed, most of the biggest charities in the country, including the RSPCA and the National Trust, as well as the Charity Commission have been, or are being led by women. So why is that pay gap still there?

Salary statistics are still affected by women leaving, or taking a break, to have children. “As far as promotional opportunities go, the issue for women is often about balancing work and family,” says Imbert, who has three children under 12. “For me, doing this job has meant sacrifices at home. As a director I also have to work evenings and weekends, and my husband doesn’t work full-time – for a long time I didn’t have a big enough salary to get all the childcare we would have needed, and it was easier for him than for me to stay at home.”

She has also had to work on her Masters, the only qualification she has that relates to her career in senior management, in the evenings.

“So I rely on the fact that I have a really understanding partner and good childcare,” she continues. “I had children fairly young, but often women are thinking about children in their 30s, and that’s often the most important point in their careers. Keeping all of that in balance is exhausting, and many women think, ‘I can’t do this’, and go part-time, and of course then their salaries really drop. I think often women [continue working full-time] for a while, but sustaining it you need to be prepared to sacrifice a lot, and maybe some guys don’t have to do that. Maybe that’s a stereotype, but that’s true for my life.”

The number of men who take a career break or go part-time to look after children is rising, but not very fast. “From my experience, although it is still overwhelmingly the women taking the career break, there is a gentle trend in men doing it, if they can,” says Guide Dogs’ Warr. “In other sectors it might be difficult for men to get back into work if they’ve taken a career break, but I wouldn’t expect that to be happening in this sector.”

But not everyone resigns to start a family. The CMI’s Wilton wonders if there might be a connection to the fact that more women are moving up through levels of management more rapidly.

“We are seeing determined female managers seeking to develop a lot faster, seeking good training, so they will be ready for more senior roles sooner,” she says. “Those women are leaving the sector not just because they’re looking for better remuneration, but there seems to be a lot more demand for the ability to progress in an organisation. It seems one of the reasons people are moving on to other sorts of organisations is that they can offer a better package in general.”

Warr hopes this is not often a key factor in women leaving the sector. “I would think that the voluntary sector is more enlightened about the need for professional development than some parts of the for-profit sector,” she says. “But the problem is the same with any organisation: if you’re short of money it’s very tempting to cut your training and development budget, because it doesn’t always have an immediate impact.

“I’m reluctant to accept that this increase in resignations is to do with a lack of training and development. It might be that it’s a bit about a lack of promotion opportunities, because the vast majority of charities are very small and have limited promotion opportunities. But I still can’t think of more than a handful of examples of people leaving the voluntary sector to move into the for-profit sectors. Some of our HR and finance people do, but only in small numbers. I think we owe it to ourselves to find out more about what that statistic tells us. If we have to take remedial action we should do so soon, before it gets to be a trend.”

Warr believes more progress is still needed in the direction in which the sector is already moving. Charity and voluntary sector organisations have been among those leading the way in promoting equality and diversity, now more of them need to offer more flexible employment conditions. “There are more people seeking flexibility in the way they work, and I think it’s absolutely vital that as employers we embrace that and make sure we don’t lose talent because we’ve got rigid employment rules,” she says.

Maybe that will make future salary research more palatable. In the meantime, says Warr: “I’m delighted, but not at all surprised if the pay gap is narrowing, and I’ll be disappointed if it hasn’t disappeared altogether in a year or two.”

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