Alcumus Gender Pay Gap Report 2017

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1 Alcumus Gender Pay Gap Report 2017 alcumusgroup.com

2 Introduction At Alcumus, we are working hard to put our people at the heart of everything we do. The Alcumus Board and Senior Management Team are committed to supporting our People Strategy. This includes the launch of our new values in January 2018 derived from our employees feedback which are critical to the development of our culture. Our values describe how we aim to interact with each other, and the intention is that these become embedded in our culture and part of our core DNA. We recognise the strength of our people, and welcome the introduction of gender pay gap reporting. This transparency will create the right environment to facilitate change and bridge the pay gap that exists in the UK today. Our gender pay gap figures demonstrate that we have a way to go, but we are already implementing changes to encourage a top down approach to diversity and inclusion throughout our business. We pride ourselves on being an open organisation and have made the decision* to publish data on our gender pay gap to demonstrate our commitment to our people, and to show that facilitating change and making real improvements are at the top of our agenda. Amanda Jenkins, Group HR Director * Based on our employee snapshot data as at 5th April 2017, we technically do not have to publish data on our gender pay gap (as there was no single group company at that date employing 250 or more employees). At Alcumus, we consider our people to be our primary asset, and with this in mind, providing an inclusive working environment is at the top of the Board s agenda. I confirm the accuracy of our gender pay gap figures, and look forward to reporting on our progress in a year s time. Alyn Franklin, CEO, Alcumus 2

3 What is a gender pay gap report? A Gender Pay Gap report is not about equal pay. Equal pay looks at whether men and women that are performing broadly comparable roles are paid the same amount and we believe at Alcumus that this is the case. Gender pay is about the distribution of pay across the whole of Alcumus regardless of job role. We have employed a greater number of men than women which creates a gender gap and we are committed to encouraging more women to join Alcumus and to develop within it. Understanding the gender pay gap There are six calculations that employers must publish relating to the total workforce population: The gender pay gap as a mean average (i.e. the difference in the average hourly rates of pay for male and female employees). The gender pay gap as a median average (i.e. the difference in the middle point of the hourly rates of pay for male and female employees, calculated by ranking all the highest hourly pay rate to the lowest hourly pay rate for each, and then comparing the middle number). The bonus gender pay gap as a mean average (i.e. the difference in the average bonus pay for male and female employees). The bonus gender pay gap as a median average (i.e. the difference in the middle point of the bonus pay for male and female employees, calculated by ranking the highest bonus to the lowest bonus for each, and then comparing the middle number). The proportion of males receiving a bonus payment, and the proportion of females receiving a bonus payment (i.e. the total percentage of male employees and the total percentage of female employees that receive a bonus payment). The proportion of males and females when divided into four groups ordered from lowest to highest pay (i.e. the percentage of male and female employees in each quarter of our pay bands). 3

4 Our results The following demonstrates our mean and median hourly gender pay gap, at the snapshot date of 5th April Gender Pay Gap Bonus Proportions 19% 30% Mean Median Males 33% receive a bonus Gender Bonus Gap Females 30% receive a bonus 14% -30% Mean Median 4

5 Quartile Bands Upper Quartile Upper Middle Quartile 100% 100% 50% 50% 0% 70% 30% 0% 67% 33% Lower Middle Quartile Lower Quartile 100% 100% 50% 50% 0% 47% 53% 0% 43% 57% 5

6 The detail behind the data Excluding the Board from our mean gender pay gap calculation reduces the gap from 19% to 14%. We have a high number of women at a senior level within our organisation. Four of our five Business Unit Directors are women, and a number of our central group functions are led by women, including HR, legal and finance. Gender breakdown by Grade Grade Male Female Board 5 0 Senior Manager 13 8 Manager Below Manager TOTAL The median pay gap of 30% is skewed by the higher number of females in lower grade administrative roles and more males in the middle grade audit and consultancy-based field roles. Analysis of our gender pay gap figures tells us that our gender pay gap arises because women hold fewer senior positions in Alcumus than men. Whilst women made up 43% of the workforce in April 2017, 32% were at a Manager level or above. The Standard Industrial Classification 2007 (SIC) codes for the industry in which we operate indicate that there is a higher proportion of male to female employees 1. There are various bonus and commission schemes in operation from monthly sales and productivity bonuses to annual schemes based on corporate performance. Although a similar proportion of men and women receive bonuses, the schemes are role specific and the mean and median bonus gaps are impacted by the distribution within grades. 1 Standard Industrial Classification (SIC) 2007, Professional, Scientific and Technical Activities category (date of publication: 21 February 2018). 6

7 Our commitment to tackle our gender pay gap We face several challenges in managing our gender pay gap. There is an absence of female representation on our Board an imbalance we are seeking to address. Our newly established People Strategy includes a wide range of measures which focus on equalising opportunities for men and women. This does not just focus on pay, but looks holistically at providing our colleagues with the flexibility, skills and reward to do well, thus ensuring a diverse and inclusive workforce underpinned by a culture of equality. What have we done so far? During the previous twelve months, initiatives have included: A full harmonisation exercise across the Alcumus Group of companies to align terms and conditions of employment and ensure that salary bands across each grade are consistent and fair. Promoting and recruiting women to more senior positions, including our Senior Management Team. Collaborating with partners in the recruitment industry for specialist support on salary benchmarking. Investing in a new talent management team, and reviewing and updating our recruitment processes to eliminate bias. Our internal recruitment team supports our leaders to consider inclusion in their decision making. Appointing an Internal Communications Manager to lead on employee engagement, and undertaking detailed employee surveys and dedicated focus groups across our offices to gauge employee satisfaction. Testing a pilot graduate placement scheme, with the intention of establishing a permanent scheme to source a diverse range of future graduates. What will we be doing? One of the key issues for us is addressing the absence of female representation at executive level. This is a priority for our leadership team, and actions are underway to consider how we can remedy this by appointing female leadership to the executive team. We are proposing to review our family friendly policies which will include our maternity and parental leave provisions before the end of 2018, with a view to encouraging female colleagues to return to work. We are undertaking a review of our approach to flexible and part time working, with a view to launching new policies and encouraging new models of working. As part of our commitment to improve line management, we will be introducing inclusion and equality training as well as upskilling in equal opportunities. We will be introducing new coaching and mentoring programmes which will provide enhanced support for females who are considered high potential business leaders of the future. 7

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