FTSE 350 firms that cut gender pay gaps saw double-digit revenue growth

Posted on 21st April 2025

A new analysis of FTSE 350 companies has revealed a clear trend between closing gender pay gaps and double-digit revenue growth. The research from the Chartered Management Institute (CMI) in collaboration with the FTSE Women Leaders Review shows that ten FTSE 350 firms that made the biggest strides in reducing their gender pay gaps between 2019 and 2024 also saw revenue growth in nearly every case.

But while the financial benefits are clear, the analysis comes as a growing number of UK managers believe the push for gender balance has gone too far. CMI’s latest survey finds that over one in four (28%) British managers now say businesses over-prioritise gender diversity – up from 20% in 2023. Men are nearly three times more likely than women (39% vs. 14%) to hold this view, despite persistent gaps in leadership and pay.

"Our analysis shows that the top firms that take gender balance seriously are thriving,” said Ann Francke OBE, CEO of CMI. “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.”

She continued, “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.”

FTSE 350 leaders are clear: closing the gender pay gap isn’t just the right thing to do—it’s good for their business.

Michelle Lydon, Chief People Officer at Croda, says, “There is 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. 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”.

For companies ignoring gender pay gaps, the risks are mounting. New CMI research calculates that nearly half a million British managers say they haven’t joined an organisation due to its gender pay gap – a major talent drain at a time when businesses are already struggling to recruit.

CMI’s report calls for stronger accountability measures across the board, including introducing a requirement for employers with 250+ employees to publish action plans, extending gender pay gap reporting to businesses with 50+ employees, and pushing employers to state salaries in job ads, avoid asking about salary history, and use balanced shortlists and interview panels.

For more information visit managers.org.uk.