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Female Interim Managers in the U.K. Earn 7% Less Than Men, Research Finds

March 4, 2010 — Female interim managers in the United Kingdom earned 7% less than men between July and December 2009, according to a snapshot survey.

The survey of 11,000 interim managers from Russam GMS found that women were paid on average £553 (US$836) a day, compared with £592 (US$895), the average daily rate for men. The gender pay disparity was pronounced in sales and marketing, HR and financial services but not so in general management, where women were paid an average of £650 (US$982) a day, compared with £634 (US$958) for men, the research found. The research also showed that while women only accounted for 12% of the database, 51% of women who responded to the survey were on assignment compared with 45% of the total number of Interims on assignment.

The research also showed there is very little difference between the way men and women negotiate their rates — 54% of all interims said they occasionally negotiate their fees with clients and interim providers, and 42% of men and 41% of women admitted they negotiate often. Only 3% of men and 4% of women said they never negotiate rates.

According to survey results, interims were divided on the question of reducing rates — 47% of women and 43% of men said they had reduced their fees over the last 18 months but 40% of all interims stated they hadn’t reduced their fees. Those that had reduced their rates believed it was far more profitable to work at a reduced rate than not work at all, while others urged interims not to reduce their rates, stressing that interims should compete on quality and not on price.

Research also found that men and women faced similar challenges, especially now that the market is saturated with people they termed ‘in-betweeners;’ individuals who were laid off and were trying out interim management as a stop gap. These people were squeezing the market rates and intensifying competition for jobs, respondents said. One interim described the bun fight for jobs saying, “At a recent interview, 28 qualified accountants were interviewed and put through two hours of psychometric tests for one four month maternity assignment.” Others said that management consultants had also reduced their fees and were competing for the same roles.

Clients were also more cost conscious than ever said 8 out of 10 interims, according to the research. They were more specific and exacting about the skills they needed for each role and less willing to pay expenses. They urged interim providers to educate clients about the difference between ‘career’ interims and ‘in-betweeners.’

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