CMI Report: Filling the Gaps Report 2025
The Chartered Management Institute Filling the Gaps Report 2025 examines the UK’s gender pay gap, the impact of mandatory reporting, and its potential extension to ethnicity and disability.
By analysing FTSE 350 companies, the research links reduced gender pay gaps with increased female leadership and improved financial performance.
The report highlights that while reporting has increased awareness, more action is needed, advocating for mandatory action plans and broader reporting requirements for larger employers.
It provides recommendations for employers on recruitment, progression, data handling, and working practices to foster inclusion and close pay gaps. Additionally, the report suggests policy changes for the government, including extending reporting to more employers and reintroducing pay transparency pilots.
Ultimately, the document argues that addressing pay disparities is crucial for fairness and economic growth, offering a roadmap for both organisations and policymakers.
Understanding the Gender Pay Gap: What Every Manager and Leader Needs to Know
In recent years, the gender pay gap has become a critical topic in boardrooms and break rooms alike.
While many businesses are making progress, there’s still work to do—especially when it comes to understanding, calculating the gender pay gap, and meeting requirements around gender pay gap reporting.
For managers and leaders, this is more than a compliance issue. It’s about fairness, transparency, and building a workplace where everyone has an equal opportunity to succeed.
What Is the Gender Pay Gap?
The gender pay gap is the difference between the average earnings of men and women, expressed as a percentage of men’s earnings.
It doesn’t mean women are paid less for the same job (which is illegal), but rather that they are often underrepresented in higher-paying roles or sectors, or impacted by part-time or flexible working patterns.
In the UK, the Office for National Statistics (ONS) reports that the average gender pay gap is narrowing—but it’s still present. According to recent figures, the median gender pay gap for full-time employees was 7.7% in 2023.
Why It Matters
Addressing the gender pay gap isn’t just about legal compliance—it’s about attracting and retaining top talent.
Research shows that organisations with a more balanced approach to gender representation perform better, innovate more, and enjoy greater employee satisfaction.
As a leader, it’s your role to ensure fairness and opportunity for all team members. Understanding your organisation’s position on the gender pay gap is a key part of building trust and a positive working culture.
Calculating the Gender Pay Gap
For UK employers with 250 or more employees, gender pay gap reporting is a legal requirement under the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017.
But even smaller organisations can benefit from calculating and publishing their figures voluntarily. To calculate the gender pay gap, you need to compare:
- Mean and median hourly pay of male and female employees
- Bonus pay differences
- Proportion of men and women in each pay quartile
- Proportion receiving bonuses
Accurate data collection is essential. This includes clear records of working hours, pay, job titles, and bonus structures.
Gender Pay Gap Reporting in the UK
If you’re a UK employer with over 250 staff, you’re required to report your gender pay gap UK figures annually via the government’s reporting portal.
The deadline is 30 March for public sector organisations and 4 April for private and voluntary sector employers.
Reports must be published on your company website and be accessible for at least three years. Many organisations choose to add a narrative to explain the results and outline what steps are being taken to close the gap.
What Managers and Leaders Can Do
As a manager, you’re in a strong position to drive change. Here’s how you can take action:
- Review recruitment practices: Are you attracting a diverse pool of candidates? Are job adverts inclusive and bias-free?
- Support flexible working: Enabling flexible hours and remote options can help retain talented women, particularly those balancing work with caregiving responsibilities.
- Champion development opportunities: Ensure that training, mentoring, and promotion opportunities are equally accessible.
- Conduct regular audits: Don’t wait for the legal requirement. Make pay equity part of your regular people and performance reviews.
- Create a transparent culture: Share the “why” behind pay decisions and promotions. Employees value clarity and consistency.
The Bottom Line
Tackling the gender pay gap is a shared responsibility. For managers and leaders, it’s a chance to create more inclusive, high-performing teams—and to set the tone for a culture of fairness and opportunity. By understanding how to calculate the gender pay gap, meet gender pay gap reporting obligations, and go beyond the basics, you’ll help build a more equitable and successful organisation.
📚 References
1. UK Government – Gender Pay Gap Reporting
https://www.gov.uk/guidance/gender-pay-gap-reporting-overview
This outlines who must report, how to report, and legal requirements under the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017.
2. Office for National Statistics (ONS) – Gender Pay Gap in the UK: 2023
This provides the latest figures and trends on the UK gender pay gap, including median and mean hourly pay differences.
3. Acas – Gender Pay Gap Reporting Guidance
https://www.acas.org.uk/gender-pay-gap-reporting
Offers practical guidance for employers on how to collect data, calculate figures, and create meaningful action plans.
4. Chartered Institute of Personnel and Development (CIPD)
https://www.cipd.org/uk/knowledge/factsheets/gender-pay-gap-factsheet
Gives insights into how organisations can go beyond compliance to address underlying causes of pay disparity.
5. Equality and Human Rights Commission (EHRC)
https://www.equalityhumanrights.com/en/advice-and-guidance/gender-pay-gap-reporting-duty
Information about the legal enforcement of reporting and best practice for improving workplace equality.
