Publicly listed companies that have narrowed their gender pay gaps have seen double-digit revenue growth, according to new analysis.
The Chartered Management Institute (CMI) and the FTSE Women Leaders Review looked at FTSE 350 companies’ gender pay gaps between 2019 and 2024.
Today (4 April) is the deadline for eligible private sector employers to report their gender pay gap to government. For public sector employers, this was 30 March.
The companies that made the biggest strides in reducing their median hourly gender pay gaps also saw revenue growth in nearly every case.
Gender pay gap
For example, Rightmove improved its gender pay gap by 13 percentage points and experienced the highest revenue growth among those listed, with a 77% increase.
The online property portal also increased the proportion of women on its board by seven percentage points, and the number of women in executive roles by 10 percentage points.
Kingfisher achieved a 14 percentage point improvement in its gender pay gap and saw a 13% increase in revenue, having also increased the number of women in executive positions.
Smiths Group improved its gender pay gap by 25 percentage points, the proportion of women on its board by 20 percentage points, and women in executive positions by 10 percentage points. Its revenue rose by 23%.
Although the analysis appears to show a clear trend between gender pay and promotion equality and business growth, CMI’s latest survey found that 28% of British managers think that gender diversity is over-prioritised, up from 20% in 2023.
Ann Francke, CEO of CMI, said: “Our analysis shows that the top firms that take gender balance seriously are thriving. The idea that we’ve ‘gone too far’ on gender diversity is flat-out wrong.
“The smartest businesses are proving that closing pay gaps isn’t just fair—it’s fuelling growth. Those ignoring the issue are losing talent, credibility, and competitive edge.”
Michelle Lydon, chief people officer at chemicals company Croda, where revenue increased by 22%, said there was a “very clear business case” for diversity.
“It is important, now more than ever, to concentrate efforts on creating a business culture that values and embraces difference,” she said.
“This enables organisations to attract and retain the best people, gaining the benefit of the great minds across global workforces, driving innovation, and ultimately delivering stronger business performance”.
Failing to address gender pay gaps could risk companies losing out on talent, furthermore. CMI’s research has also found that almost half a million British managers say they have not joined an organisation due to its gender pay gap.
CMI has called for stronger accountability measures, such as requiring employers to publish action plans as part of their gender pay gap reporting; extending the reporting requirement to businesses with 50 or more employees; and pushing employers to state salaries in job ads.
It also wants the government to introduce ethnicity and disability pay gap reporting for employers with 250 or more employees.
Some of these measures have been proposed in the Employment Rights Bill and are currently under consultation.
Francke added: “FTSE 350 leaders are telling us that gender equality isn’t just a moral issue—it’s a business driver.
“Companies that focus on closing gender pay gaps are seeing stronger performance, more innovation, and a clear competitive advantage. Ignoring gender parity is costing businesses talent, growth, and market relevance.”
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