UK Power Networks. Gender Pay Report. As at 5th April Delivering your electricity

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1 UK Power Networks Gender Pay Report As at 5th April 2017 Delivering your electricity

2 What is Gender Pay Reporting? The UK Government has introduced new legislation (Equality Act 2010 (Gender Pay Gap Information) Regulations 2017) which means that from April 2018, some of the UK Power Networks legal entities are required to report on their Gender Pay Gap. This will need to be calculated and published on an annual basis. It is important to explain that this is not the same as Equal Pay as the statistics are not comparing males and females who are doing equal work but rather looks more broadly at all males and females at all levels within in the organisation and their distribution. What does UK Power Networks overall Gender Pay look like? This report details the overall Gender Pay positon for all of the UK Power Networks employing entities - namely [UK PN (Operations) Ltd, UK PN (South East Services), UKPN (Transport Ltd), UKPNS (Commercial) Ltd, and UKPNS (Contracting) Ltd]. These have been calculated in line with the mechanisms which are set out in the gender pay gap reporting legislation. Gender Pay Gap % Gender Bonus Gap % Percentage difference between male and female mean and median pay for the pay period including 5 April 2017 Difference between male and female mean and median bonus pay in 12 months prior to 5 April 2017 Male Female Mean Median Mean Median

3 Quartiles % Proportion of males and females across four equal size quartiles for the pay period including 5th April Each Quartile contains 1419 employees. Lower Lower-middle Upper-middle Upper Male Female Proportion of Employees in receipt of a bonus Proportion of males and females in receipt of a bonus in the 12 months prior to 5th April Females Males 92% 95% Why does our Gender Pay Gap look like this? UK Power Networks' overall Mean Gender Pay Gap is 17.28%. While this is lower than the UK s national gender pay gap of 18.1%, the Company would like to see this reduced over a period of time. UK Power Networks operates in the electricity sector,which by the very nature of the type of work undertaken, has historically attracted a high percentage of male recruits. Only 18% of the workforce is made up of females. The analysis shows that there are significantly fewer women in the professional, engineering and senior management levels of the organisation. It is also widely acknowledged that there is a shortage of female students progressing into STEM subjects (Science, Technology, Engineering and Manufacturing) through the formal education system, both schools and universities/colleges.

4 How we are closing the Gap UK Power Networks offers a number of career development opportunities for technical/operational roles. This includes Foundation Apprenticeships for school leavers and apprentice opportunities for more experienced staff, an Engineering Development Programme and Graduate Programme. UK Power Networks also offers a number of Leadership training programmes Future Leaders, Aspiring Leaders and New Leader courses. UK Power Networks acknowledge that more needs to be done to encourage women to join the organisation. Work is being done through both School and University engagement which include career events, 1 to 1 presentations, employer workshops and career advice. There has been an active focus for UK Power Networks to promote and recruit more females into these training programmes. This is having a positive effect which can be demonstrated by the 2017 Graduate intake, with the proportion of female graduates appointed from 2016 increasing by 21%. UK Power Networks is also doing more to increase employees awareness of the Company s diversity ambitions, Everyone Matters. UK Power Networks are currently looking to achieve the National Equality Standard Accreditation. An initial assessment has been undertaken by the registered assessors operating on behalf of National Equality Standard and an action plan has been developed with a view to obtaining formal accreditation during Those involved in taking recruitment and promotion decisions are being provided with specific, additional training and support to reduce the chances of any potential unconscious (gender) bias and ensure that decisions are based purely on the 'best candidate for the job'. UK Power Networks Gender Pay by Business Entity As required by the Regulations, UK Power Networks is required to provide a breakdown analysis for any Legal Entity which has 250 or more employees. These details can be found below: Gender Pay Gap difference between male and female Gender Bonus Gap Percentage difference between male and female Proportion of Employees in receipt of a bonus Business Entity* Number of employees Mean Median Mean Median Male Female UKPN (Operations) LTD % 18.33% 43.15% 37.01% 97% 92.75% UKPN (South East Services) % 2.91% 76.66% 79.13% 79.67% 65% *No separate data is required for the following business entities as they employ under 250 employees; UKPN (Transport Ltd), UKPNS (Commercial) Ltd, and UKPNS (Contracting) Ltd

5 Pay Quartiles by Business Entity UKPN (South East Services) Lower Lower-middle Upper-middle Upper Male Female UKPN (Operations) LTD Lower Lower-middle Upper-middle Upper I confirm that the data contained in this report is accurate. Chris Degg, Director of HR - UK Power Networks

6 UK Power Networks Holdings Limited Registered office: Newington House, 237 Southwark Bridge Road, London SE1 6NP Registered number: registered in England and Wales Delivering your electricity