As an equal opportunity employer, we ensure that all employees are treated fairly and consistently relating to all areas of employment.
Salaries and hourly paid employees are all governed by the HR & Payroll department to ensure any inconsistencies are addressed and only authorised if they fit within the company’s salary banding which is based upon the job role, duties and level of responsibilities.
The Gender Pay Gap Reporting has offered a fantastic opportunity for us to review the data in a different way alongside the company’s annual pay review.
Although we are confident that we offer fair pay to all employees this report also addresses the fact that we have more senior males than we do senior females. Further detail will be provided regarding this within the quartile area of this report.
What is important to remember within this report is that we are providing numerical averages without an explanation of the data, which is why I would like to take this opportunity to explain what the data means.
What is The Gender Pay Gap?
A gender pay gap is a measure of the difference in the average hourly pay and bonus pay received by men and women, irrespective of their roles, across a whole business. It can be determined by a difference in the number of men and women across all roles.
The Mean Gender Pay Gap is the difference in average hourly rate of pay between men and women. This is also affected by the variance of men and women in different roles. Our Mean average is an 11% difference between men and women. This result is driven by the fact that all our Directors are all male and have been in their roles many years. The rigidity of this role and the employee numbers remaining fairly consistent, has also resulted in no requirement to recruit another Director or to replace someone that may have left which has given us no opportunity to plan a recruitment drive which is female centric. If we were to remove the Director roles from the equation, the difference is reduced significantly. Future recruitment at the senior levels will not only give us the opportunity to balance the Gender Pay Gap but will also be centred on diversity and inclusion.
To calculate the Median Pay Gap, we had to list all of our female employees in line in order of hourly rate up to the highest paid. We also did this with our male employees. The Median Pay Gap is the difference between the female employee in the middle of their line and the male in theirs.
Our Median Gap is 0%.
This is due to the fact that all employees are engaged at the same hourly rate when they start work at ADFWS regardless of their gender and role rates are set within salary bands which cannot be amended. We also have a fair split of male and female employees within the lower paid operational roles, outside of the senior or specialist roles which contributes to this result.
The collection of data gave us evidence that 9% of our females and 41% of all males in the Company received a bonus. This result is driven by the fact that there are very few females in the business who perform roles where a monthly bonus is paid, whereas, a very high percentage of men are in operational positions where achieved monthly KPI’s are rewarded with a bonus.
Mean and Median Bonus Payments
Women’s mean bonus pay is 8% lower than men’s and Women’s median bonus pay is 13.6% lower than the men in the Company. This is due to the Women performing more administration tasks and our Sales Force being mostly men.
Pay quartiles are calculated by listing the rates of pay for each employee across the Company from lowest to highest, before splitting that list into four equal sized groups and calculating the percentage of females and males in each one.
The graph and results of the review demonstrate that 22% of the first quartile are female. This shows us that there is a fairly good split as we have 39% (in the business overall) that are female.
In the upper middle quartile, we have 47% and in the lower middle, the percentage is 4%. This again demonstrates that the pay banding systems in place are effective and that both females and males are paid accordingly within these systems regardless of their Gender.
In the lower quartile 37% of the group are female. This is driven by the fact that the lower paid operational positions are mainly taken by females. This is due to the flexibility these roles can offer and there also being part time positions included in this list.
Upon scrutinising this report, overall it can be viewed that by looking at the Median value this is something we as a company should be very proud. Our ethics are put into practice by offering equality across all roles.
The benefits and salary banding came into play in February 2017, to ensure a fair and consistent review is taken. This has proven a successful management tool based on the figures we have produced.
We also have many new unique upcoming roles within the company’s operational structure. These are able to offer a more flexible approach to working, which we hope will encourage more women to apply for exclusive positions. This will most definitely have a positive desired impact on our overall mean gap. In addition to this, any future positions on the horizon at Director level need to be offering similar flexibility which will also give further opportunity to close the gap as considered necessary.
Plans are in place to go live within the near future, ensuring more roles are able to offer target based KPI’s. This will have a fundamental impact on the figures reported of females receiving bonus pay.
With these changes coming over the next year it will make next year’s Gender Pay Gap report a very exciting read, this report will be available in spring 2019.