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Gender Pay Gap

 

Introduction

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 Annual Gender Pay Gap Reporting has offered a fantastic opportunity for us to review the data in a different way alongside our 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.  We have made considerable headway in this area by promoting female employees within the organisation to more senior roles.

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.

 

Mean

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 2% difference between men and women. This is a 9% improvement on our results taken from last year’s figures.  We are confident that we can continue to address the balance in our Gender Pay Gap due to our focus on promoting our female employees into more senior positions, and ensuring that we create roles that are suited to all employees and are centred on diversity and inclusion.

 

Median

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 9%.

This is due to the fact that most of our lower paid positions are held by males.  This male/female split was considerably higher this time last year in favour of females.  Unfortunately, we are not able to offer that much flexibility in the Operational roles due to timescales and KPI’s required for the completion of work and therefore, with some women having to parent younger children, this isn’t something that they are able to adapt to.

However, even with this in mind, 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.

 

Bonus Payments

The collection of data gave us evidence that 5% of our females and 44% 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 31% lower than men’s and Women’s median bonus pay is 43% lower than the men in the Company.  This is due to the Women performing more administration tasks and our Sales Force being mostly men.  This is also driven by the fact that our Transport team, who are paid several bonus payments attached to KPI’s, are mostly males due to the inflexibility of the role itself and the times which their shifts begin.

 

Quartile Percentages

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 results of the review demonstrate that 30% of the first quartile are female.  This shows us that there is a fairly good split as we have 33% (in the business overall) that are female.

In the upper middle quartile, we have 43% and in the lower middle, the percentage is 38%.  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 24% of the group are female.  This is a considerable reduction from last year’s results and this is driven by the fact the lower paid operational positions are now mainly taken by males. This is due to the flexibility these roles can offer and there also being part time positions included in this list.

 

Conclusion

Upon scrutinising this report, overall it can be viewed that by looking at the Mean and Median value this is something we as a company should be very proud of. 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 the new unique roles in place which were planned in for last year, bringing a considerable number of female employees up via promotions.  This has had the desired impact on our Gender Pay Gap.

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 2020.

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