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GenderPayGapPulseReportNovember2017
GenderPayGapPulseReport–November2017| 1
GenderPayGapPulseReportNovember2017
ContentsIntroductoryremarks.....................................3
Currentposition.............................................4
Inthepress....................................................5
Reportingbysector.......................................6
Thebiggestgap:financialservices................8
Whatthenumberssay..................................9
Diversitygaininggroundamongstassetowners.........................................................13
GenderPayGapPulseReport–November2017| 2
Welcome
WelcometooursecondGenderPayGapPulseReportprovidingasummaryofgenderpaygapreportingactivityandrelatedissuesduringOctoberandearlyNovember2017.ThereportprovidesasummaryandanalysisofthegenderpaygapreportingdatasofarreportedtotheGenderEqualityOfficeasat21November2017.Thenumberoforganisationsreportingduringtheperiodhasrisen119percentto250sinceourlastreporton9Octoberwhenatotalof114organisationshadreported.
DataSource&methodologyThereportisbasedoncompanydatasubmittedviatheGovernment’sGenderPayGapreportingwebservice.ThecontentisusedundertheOpenGovernmentLicencev3.0.AlthoughitiswidelyrecognisedthatcalculationsusingtheMedianaveragegiveamoreaccuratespreadofpay(becauseitremainsrelativelyunaffectedbyextremevalues),themostcommonlyreportedfiguresseemtobeMean.Thiscouldbebecausethoseextremevalues,usuallyinthetopquartile,areearnedpredominatelybymen;therefore,thesegapsshouldbehighlighted.
GenderPayGapPulseReport–November2017| 3
IntroductoryremarksThenumberoforganisationsreportingduringtheperiodhasrisen119percentto250sinceourlastreporton9thOctoberwhenatotalof114organisationshadreported.FionaHathornofWomenonBoardsUK(WOBUK)commented:
LibbyLyons,DirectorofAustralia'sWorkplaceGenderEqualityAgency,tellsusinherlatestreportthat:
Itissurprisingthatonly250companieshavereportedsofar.Outofthosethathave,veryfewareFTSEorganisationsandmostaresmallandmediumsizedenterprises(SME's).Wehavewaitedyearsforemploymentequality,anddatareportingmatters.InAustralia,theyhavebeenreportinggenderpaygapsviaascorecardforfouryears,enablingthegovernmenttomeasure,trackandtargetspecificcompaniesandsectors.Sofar11,000Australianemployershavereportedandincreasingnumbersofemployersareprioritisinggenderpayequityasabusinessimperative.WhilemoreemployersintheUKrecognisethevalueandbenefitsofacreatingabalancedworkforce,moreneedstobedonetoofferallemployeesanequalfutureintermsofopportunity,employment,payandpension.
overhalfofreportingorganisationsnowhaveformalstrategiesandpoliciesonremuneration…therehasbeenasubstantialincreaseinemployersadoptingtargetedstrategiestosupportgenderequalityinareassuchassuccessionplanning,retentionandpromotion…Moreemployersreporthavingkeyperformanceindicatorsformanagerslinkedtogenderequalityoutcomes.
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GenderPayGapPulseReport–November2017| 4
CurrentpositionAsofthe21stofNovember2017,only250organisationshadreportedtheirfigurestotheGovernment.Genderpaygap’sforadjustedhourlyratesofpayacrossallsectorsareshownbelow(seeFigure1).Thenewregulationsprovideslightlymoredetail,notonlyonnormalpay,butbonusesaswell(seeFigure2).Figure1.GenderPayGaps–Allsectors
▴ONSASHEdata(Allemployees)
Figure2.Genderpaygapreporting–Paygaps
Aswellasthesegenderpaygaps,theregulationsrequirethesubmissionoftwofurthertypesofinformation:
• ProportionsofMalesandFemaleswhoreceivedabonusinthepreviousfinancialyear;and• RatiosofMalesandFemalesperquartile
YoucanfindthesemetricsinFigures9&10shownlaterinthereport.
11.8 12.4
18.2 17.5
MedianGPG MeanGPG
Current 2016▴
12.4 11.8
14.813.7
PayGaps
AdjustedHourly(Mean) AdjustedHourly(Median)
BonusPay(Mean) BonusPay(Median)
GenderPayGapPulseReport–November2017| 5
InthepressInthelastsixweeks,therehavebeenregularreportsandarticlesongenderpaygapreportingandmorebroadlydiversityinthepress.Here’sasummaryofsomeofthearticlespublished.
STAFFMETRIXintheFinancialTimes.OurOctoberGenderPayGapPulsereportprovidedthebasisofanarticleintheFinancialTimes(October15,2017)whichhighlightedthatfinancialservicescurrentlyhasthehighestgenderpaygapofallsectors.Youcanfindthearticle–HERE.
DeloitteUKannouncedtheyhadimplementedagileworkingandanunpaidleaveprogrammetoimproveitsorganisationcultureandgenderdiversity.Focusgroupsfoundthatfemalestaffwerestrugglingtobalancehomeresponsibilitieswithwork;womenwhoheldseniorpositionswerefoundtobedisengagedduetothecorporateculture.Thiswasreflectedintheorganisation’srecruitmentstatistics,whichshowthatonly36%ofnewgraduatesenteringthebusinessarewomen.
Sodexoreportedameangenderpaygapof14.9%acrossitsfivelegalentitlesthatwererequiredtoreport.TheorganisationplanstocombatgenderimbalancethroughinitiativessuchastheSodexoWomen’sInternationalForumforTalent(SWIFt)programme.Sodexoplansonusingitstotalrewardstrategytohelpreduceitsgenderpaygapinthefuture.
Weetabixreporteda5.4%meanpaygapwhichisa4.3%improvementfromanalreadyimpressive9.7%reportedin2016.Interestinglyitreportedthattherehadbeennobonuspaymentsmadetoemployeesintheyearleadinguptothe5thApril2017(snapshotdate).
FTSE350wastoldtoimprovegenderdiversity.Agovernment-backedreviewurgedFTSE350companiestorenewtheircommitmenttodiversitybyextendingatargettothemoffillingonethirdoftheirseniorleadershippositionsbelowboardlevelwithwomen.
Almost28%ofboardpositionsinFTSE100companiesareoccupiedbywomen-upfrom12.5%in2011.Inthattime,thenumberofall-maleFTSE350companyboardsfelltoeightfrom152.Thereview’stargetforFTSE100companiesis33%representationforwomenonboardsby2020.
ThereviewfoundthebestperformerintheFTSE100tobetheretailerNext;47%ofitsseniorleadershipwerefemale,followedbyMarks&Spencerwith43.2%.Sevenall-maleexecutivecommitteeswereintheFTSE100,theseincludedStJames’sPlace,BarclaysandBP.
EYreportedameangenderpaygapof19.7.Justoverathird(35.5%)ofemployeesinthehighestpayquartileatEYarewomen,comparedto47.8%inthesecond,53.7%inthethird,and51.4%inthelowestpayquartile.EY’s2017reportincludessomeinterestingvoluntarydisclosures,suchasitsethnicitypaygapandthefactthatithasimplementedmorethan20initiativesaimedatimprovingdiversityattheorganisation.
GenderPayGapPulseReport–November2017| 6
ReportingbysectorWithjustoverfourmonthslefttoreport,thereisamarkeddifferencebetweenthesectorsintheirapproachtoreporting.SomehavebeenquicktosubmitwhereasothersseemtobeholdingouteitherfortheNewYearorforsomeoneelseintheirsectortoreportfirst.Organisationsinthemanufacturingsectorleadthewayonnumberofsubmissions,closelyfollowedbyhumanhealthandsocialwork.
Interestingly,boththesesectorshaveverylowmeangenderpaygapsof8.1%and5.6%respectively.Figure3showsthetopfivesectorswiththehighestnumberofsubmissionssofar.
Figure3.Topfivesectorswithhighestnumberofsubmissions
Sector No.reported %oftotal %GPG1
1.Manufacturing 36 14.4 8.1
2.Humanhealthandsocialwork 30 12.0 5.6
3.Wholesaleandretail;vehicles 25 10.0 11.3
4.Education 23 9.2 11.7
5.Professional,scientificandtechnical 23 9.2 19.2
Attheotherendofthespectrum,threesectorshavezerosubmissions:miningandquarrying,activitiesofhouseholdsasemployersandactivitiesofextraterritorialorganisationsandbodies.Somesectorsarealsostillinsinglefiguresforreporting;thefinancialservicessectorhasthehighestmeangenderpaygapeventhoughonlysixorganisationshavereportedsofar.Thefeedbackwearereceivingisthatmanyorganisationswillreportclosetothedeadlineduetoconcernsovernegativemediacoverage.Figure4.Sectorswiththeleastnumberofsubmissions
Sector No.reported %oftotal %GPG1
16.Financialservices 6 2.4 28.7
17.Realestate 6 2.4 8.2
18.Transportandstorage 5 2.0 9.5
19.Agriculture 2 0.8 19.4
20-22.Mining&quarrying,householdsasemployers&extraterritorialorgs 0 nodata nodata
1Meanpaygapusingtheadjustedhourlyrateofpay–EqualityAct2010(GenderPayGapInformation)Regulation2017
Notably,22organisationshavenotdeclaredtheirStandardIndustryClassificationcode(SIC),sotheycannotbeplacedintoasector.ThemajoritywillhaveknowledgeoftheirSIC,butforunknownreasons,havefailedtodeclare.TheseorganisationsincludethelikesofPwCandShoosmithsLLP.Thispseudo-sectorhasameangenderpaygapwhichis1%higherthanthecurrentoverallfigure.
GenderPayGapPulseReport–November2017| 7
ReportingbysectorIforganisationsdemonstratecredibleandmeaningfulstepstowardschange,alesspositivebackstorycanbeturnedintoapositivefutureone.Wehavefoundinmanycasesthatthesedelaysinsubmissionareduetochallengeswiththecollectionandprocessingofdata.Manyorganisationshaveunderestimatedtheworkrequiredtocarryoutthiscriticalprocess;indeed,eventheGovernment’sassertionthatthisprocesswouldtake,onaverage,15hoursishugelyoptimistic.
Datamaybeincompleteorstoredonmultiplesystems.Theremaybecomplexbenefitsarrangementsandincentiveschemesthatmeanindividualemployees(typicallyseniormanagement)mustbeassessedonacase-by-casebasis.
Thereareanumberofreasonsfordelaysandcomplications,butthisshouldnotpreventallorganisationsintheirpursuitofafairworkplaceforeveryone,regardlessofgender,race,sexualorientationorreligion.
GenderPayGapPulseReport–November2017| 8
Thebiggestgap:financialservicesAlthoughonlysixfinancialservicescompanieshavereported,thegenderpaygapinthissectorremainsthehighestonameanandmedianbasiswith28.7%and31.0%respectively.Below(seeFigure5),wehighlightthetopfivesectorswiththehighestgenderpaygaps.Figure5.Sectorswiththebiggestpaygaps
Sector %Mean21November
%Mean10October
%Median21November
%Median10October Ranking▴
1.Financialservices 28.7 28.7 31.0 31.0 1
2.Construction 23.6 20.2 28.2 23.1 3
3.Agriculture 19.4 19.4 16.3 16.3 4
4.Professional,scientific&technical 19.2 15.4 19.7 13.3 5
5.Electricity&gassupply 18.0 23.6 20.7 25.5 2
▴Asof21stNovember2017
TheimprovedgenderpaygapinelectricityandgassupplycanbeattributedtoNpowerYorkshireLimited.TheirbusinessinYorkshirehastheunusualsituationwherebyonaveragewomenearnmorethanmen(-9.0%meangenderpaygap).Thebusinessreportsthat:
Justasmallnumberofhigherearnersisenoughtosignificantlyinflatetheaveragefemalesalary
However,themediangenderpaygapis10.0%which,alongwiththefactthatonly4%ofwomenareintheupperquartilewouldsuggestthatthereareagreaterthanaveragenumberofmeninseniorpositionswithintheorganisation.
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GenderPayGapPulseReport–November2017| 9
WhatthenumberssayMeanandmediangenderpaygaps
Thefirstchart(seeFigure6)showsthemeanandmediangenderpaygapsoverlaidwiththeONSASHEestimatefor2016.Youcanseethatseveralsectorsarealreadyveryalignedwiththedatafrom2016,mostnotably:financialandinsuranceactivitiesandprofessional,scientificandtechnical.Figure6.Meanandmediangenderpaygaps
GenderPayGapPulseReport–November2017| 10
WhatthenumberssayMeanandmedianbonusgaps
Toascertainthesegapsbonusinformationmustbeexaminedusingdatafromtheperiod6April2016to5April2017inclusive.Figure7showsfivesectorswiththebiggestbonusgaps.Topofthelistisfinancialandinsuranceservices(51.1%),closelyfollowedbythearts,entertainmentandrecreation(49.7%).Figure7.Fivesectorswiththebiggestbonusgaps
Novemberranking/Sector %Mean21November
%Mean10October
%Median21November
%Median10October
OctoberRanking
1.Financialservices 51.1 51.1 35.5 35.5 2
2.Arts,entertainment&recreation 49.7 55.0 26.0 42.8 1
3.Professional,scientific&technical 40.6 3.8 31.1 31.9 12
4.Wholesale&retailtrade 33.9 2.5 1.1 7.6 13
5.Electricity&gassupply 28.1 37.7 14.8 22.0 3
Asmoreorganisationsreporttherangeofgapsincreases.Thelargestnegativebonusgaps(seeFigure8)existinwater&waste(-49.2%mean)andeducation(-26.9%mean).Figure8.Meanandmedianbonuspaygaps
GenderPayGapPulseReport–November2017| 11
WhatthenumberssayProportionsofmalesandfemalesinreceiptofabonusinthepreviousFY
Lookingatthesectorswhereemployeesareawardedabonus,financialservicespaysthemtojustunder90%ofbothitsmaleandfemaleemployees.Theinformationandcommunicationssectorpaysjustover60%ofbothitsmaleandfemaleemployees.However,therealstoriesresideinthesectorswherefemalesarelesslikelytoreceivebonusthantheirmaleco-workers.Figure9showsthreesectorswhichhavethebiggestdisparitiesbetweenthesexes.Figure9.Sectorswherefemalesarelesslikelytoreceivebonusesthantheirmalecounterparts
Novemberranking/Sector %Male %Female DeltaOctoberRanking
1.Transportation&storage 52.2 37.4 14.8 4
2.Construction 33.1 22.5 10.6 1
3.Arts,entertainment&recreation 19.6 12.5 7.1 2
4.Wholesale&retail;vehicles 50.3 43.9 6.4 3
Sectorswherebonuspaymentsarerarelypaidincludehumanhealthandsocialworkandeducation.Figure10showsafullbreakdownbysector.Figure10.Employeeswhoreceivedabonusinthepreviousfinancialyear
GenderPayGapPulseReport–November2017| 12
WhatthenumberssayProportionsofemployeesineachpayquartile
Figure11showsthebalanceofmenandwomenineachofthepayquartiles:lower,lower-middle,upper-middleandupper.Unfortunately,thechartshowsawell-knownpictureinthattherearegenerallymorewomeninthelowertwoquartiles.Oncewemoveintotheupper-middleandupperquartilesthenumbersareincreasinglystackedinfavourofmen.Intheupperquartilethereisa25.8%deltawithmenaccountingfor62.9%ofthehighestearnersasopposedtoonly37.1%women.Interestingly,sincewestartedtrackingthedatainJuly2017,theproportionofwomenintheupperquartilehasdroppedby7%.Figure11.Proportionsofemployeesineachpayquartile
GenderPayGapPulseReport–November2017| 13
DiversitygaininggroundamongstassetownersEarlierthismonthfinancialthinktankNewFinancialpublishedresearchtitled‘Diversityfromaninvestorsperspective’lookingatwhyandhowmostforward-thinkingassetownersareaddressingdiversityandinclusion.Somekeyfindingsfromthereportwerethat:
• diversityismovinguptheagendaofassetownersglobally(pensionfunds,insurersandsovereignwealthfunds),withinterestandactivityacceleratinginthepasttwoyears
• mostassetmanagersareatanearlystageofworkingouthowdiversityfitsintotheirstrategy
• thelargeUSpublicpensionschemesareleadingthewayondiversity
• thekeyissuesrelatingtodiversityhavelargelybeencovered–researchisnowfocusedonansweringdetailedquestionsthatrequireaccesstodata
• diversityisincreasinglybeingimbeddedinprocessesandstructuresamongassetownerstoformalisecommitmenttodiversity
• assetownersaretacklingdiversityinternally(acrosstheirinvestmentfunctionandontrusteeboards),andexternally(bysteppingupengagementwithinvesteecompaniesaswellasraisingdiversityasathemewiththeirinvestmentconsultantsandassetmanagers)
• diversityisbeginningtoinfluencemanagerselectionwithmorequestionsbeingaskedinquestionnaires–howeverreadyaccesstoaccuratedataremainsanissueforassetmanagersandinvestmentconsultant
InanInvestmentWeekarticlepublished15November(2017)linkedtotheNewFinancialreport,MichelleScrimgeour,CEO,EMEAatColumbiaThreadneedleInvestments,whichhasplacedmaintainingdiversitydataasaprioritywithinthebusiness,commented:
Assetownersarebeginningtoholdassetmanagerstoaccountastheyknowdiversitymakessenseandcanenhancefinancialperformance
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AboutWomenonBoardsWomenonBoardsexiststoprovideinformation,encouragementandconnectionstohelpwomengettothetopwithintheirowncompanyortotakeonaboardorcommitteeroleasanon-executivedirector(NED),trusteeorgovernor.Wearebreakingdownthebarrierstoentrytotheboardroomandbuildingthepipelineofboard-readywomen.WOBoperatesfromtheprinciplethatastalentandambitionareequallydistributedbetweenmenandwomen,organisationsinallsectorsneedtoworktowardsgenderbalanceatboardandleadershiplevel,inordertoreachtheirfullpotential.Formoreinformation,contact:
[email protected]:02070994907AboutStaffmetrixWespecialiseinprovidingworkforceanalyticstoolsanddataanalysissupporttoprivateandpublic-sectororganisations.Weprovideacosteffectiveandeasytousecloud-baseddataanalyticsplatformthatenablesorganisationstoobtainreal-timeanalysisoftheirworkforceprofileandkeytrendswithinacrossareassuchasdiversityandinclusion,compensation,talentmanagementandgenderpaygapreporting.Weassistorganisationswiththeirgenderpaygapreportingrequirements–fromdatagatheringandanalysis,toreportwritingandprovidingthenarrativeandactionplanstoaddressanyshortfalls.Formoreinformation,contact:
[email protected]:02038580778
GenderPayGapPulseReport–November2017| 15
STAFFMETRIX|Analytics|Pulsereport|MediaAboutStaffmetrix
Staffmetrixisaninnovativestart-upthataimstobringafreshperspectivetoHRDataAnalytics.OurimmediateobjectivesaretobringtransparencyandaccountabilitytotheGenderPayGapissueandtobeastrongadvocatefortheintroductionofbenchmarkingsothatsectorscanunderstandtheircollectivepositionacrossthefullspectrumofissuessuchasethnicrepresentation,salarydeltasanddisabledrepresentation.©2017StaffmetrixLimited.Allrightsreserved.SM-018(UK)11/17.Theinformationcontainedinthiscommunicationisstrictlyconfidentialandmaybelegallyprivileged.Itisintendedsolelyforusebytheaddressee(s).Ifyouarenottheintendedrecipientyouareherebynotifiedthatanydisclosure,copying,distributionortakingactioninrelianceofthecontentsofthisinformationisstrictlyprohibitedandmaybeunlawful.Youarerequestedtotelephoneoremailthesenderanddeletethismessageandanyattachmentfromyoursystem.Unlesstheintentiontocontracthasbeenexpresslymanifestedinthismessagebyadulyauthorisedrepresentative,thismessageshallnotbeconstruedasasolicitationtocontractnoranofferoracceptanceofanycontractualobligations.Anyviewsoropinionspresentedinthisdocumentaresolelythoseoftheauthoranddonotnecessarilyrepresentthoseofthecompany.Thisdocumentisintendedforinformationalpurposesonly.
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