Gender pay gap report

Transcription

1 Gender pay gap report 2018

2 The automotive industry has been a traditionally male-dominated environment, but Arnold Clark is working hard to redress any gender imbalance still present within our organisation. At Arnold Clark we support government action requiring large employers to be transparent about their gender pay gap figures. Our continuing aim is to ensure all departments and divisions throughout the business are committed to attracting, retaining, and developing the careers of female employees. We want to make sure our workforce is more reflective of our customer base, which is more equal in gender terms. What have we been doing about it in 2018? During the past 12 months, we have focused on increasing the number of females within our Sales division. The first half of the year, we carried out research on how best to change the perception that sales roles are solely for men, by holding a series of focus groups with our current female sales employees. This gave us a clear insight into what factors might dissuade women from applying for Sales roles, and what Arnold Clark could do to support females within sales more effectively, once on board. We also embarked on a tour of the UK to meet with all of our branch General Managers, to understand the barriers they ve encountered in recruiting females into sales. We also discussed the advantages of a more balanced sales force. Further to this, we ve taken the following steps: Rebranding the Sales Executive role by removing the shirt and tie from the uniform and moving towards a more casual look, changing the sales role title to Product Consultant to modernise the position and make it more accessible, and using information gathered from the female focus groups, there has been a move away from sales targets towards annual expectations. These changes take away the traditional image of car sales, removing the competitive element of car retailing and making the job less threatening to new recruits, particularly women. Launching a full recruitment campaign to increase the number of female sales employees, which integrated online and digital platforms. The campaign aimed to combat the traditionally maledominated image of car sales, and position the product consultant role as a fulfilling career path accessible to all. The campaign targeted women from retail, hospitality, banking and remote customer service backgrounds, in a bid to move away from the traditional sales focus and towards a customer experience-minded environment. Targeted social media campaign showcasing our successful sales females, our five-day week and our new, more casual uniform. Sub-conscious bias and recruitment practices training for all line managers. Targeted coaching for all branches with no females in the sales team. Recognising that a change of this kind may be a challenge for some managers, a support system has been put in place whereby managers can get any help they need in dealing with the changing demographic. A dedicated female mentor programme for sales new starts who may need some extra guidance and support to settle in to the company.

3 The combination of the above efforts has been a success and we ve seen a significant increase in females joining our sales team. But it s not just about the sales division, we re also challenging ourselves to increase our female demographic across the board. We re continuing our efforts to raise the profile of our female role models in the business to ensure that our female employees are aware that there is a career path open to them. One example of this is the video we published on International Women s Day: We ve continued to roll out flexible working to various areas of the business to make sure employees have a good work-life balance. We are now also publishing a Happy to talk Flexible Working logo on our careers page to encourage females applying to the company to feel confident about discussing working patterns at interview stage. Youth education is something we see as essential to ensure that young girls are aware that the automotive industry is a career option for them. As such we continue to partner with Dare to be Different, an organisation led by former racing driver Susie Wolff MBE which seeks to inspire young girls to pursue a career in motorsport. We have again this year offered our employees daughters the opportunity to attend a daughters day to experience various STEM activities to open their minds to the opportunities available: We have also been working on Girls with Skills, our own STEM youth education piece aimed at young girls. This will be trialled early 2019 with a view to taking it on the road to high schools all over the UK via our interactive STEM van. Finally we are very proud to have been recognised for all of our efforts to ensure diversity within our workplace. Arnold Clark received a Commendation at the 2018 Herald and GenAnalytics National Diversity Awards. The company was also recognised as the Employer of the Year at the Business Women in Scotland Awards where special mention was made of the fact that we are frontrunners in the automotive industry with regards to our diversity efforts. What s next for us? We intend to build on the good work we ve already got underway. We recognise that culture change is not an easy task and to achieve this will require many years of work. Here s what we ll be doing next: Diversity training for all line managers. The collaborative approach to our targeted female recruitment drive was extremely successful, the intention is to stay with this approach until the gender imbalance within sales is addressed. Establish a female network group to ensure a long-term support system is in place for females in our workplace. We have established a new partnership with BWS, an organisation whose aim is to support businesswomen in industry. BWS will be delivering pop-up events within Arnold Clark to train our females on confidence and leadership skills. It is hoped that through these events we will see more of our females putting themselves forward for promoted roles. Our commitment to diversity We want to provide an open and inclusive environment where people can simply come to work, be themselves and do a great job. Further roll out of our female mentor programme. Continual promotion of our female role models. Introduction of flexible working to areas of the business that have not yet been addressed. Our commitment is to have every employee on a flexible working scheme by the end of 2019.

4 Gender pay and bonus reporting statistics for staff employed at 5th April 2018 The gender pay gap explained A pay gap is the difference in average pay between two groups within a workforce. It is not to be confused with equal pay. This is a different matter and is concerned with being paid equally for the same or similar work. Below we will consider the gender pay gap. Arnold Clark Automobiles Ltd (Incorporating Harry Fairbairn Ltd) Our workforce Being part of the historically male dominated automotive industry, it is no surprise that the Arnold Clark Group has an uneven gender split between men and women. In the past five years we have made significant improvements in the following areas: Sales: The number of women in our sales division has trebled. Apprentices: The number of female apprentices has increased tenfold. Aftersales: The number of women within our aftersales division has increased by 30%. We are proud to have more women involved in all areas of our business and we are looking forward to building on the progress we have made. 76% male 24% female Figures at April 2018

5 The figures for both mean and median hourly rate and bonus are entirely reflective of the demographic of our organisation. Our business has more males at senior level and as such our average male salary (mean and median) is higher than our average female salary. This pay gap will continue to exist until we achieve a fair representation of men and women at all levels, which is something we are working hard to achieve. The bonus pay figures confirm that most employees receive a bonus, however the males receive an average of 50% more. Our sales division earn commissions for cars sold and are some of the biggest bonus earners in the company. The bonus gap is a consequence of the company having a significantly larger proportion of men within sales. The gap has widened in 2018 due to a number of factors. The introduction of the industry leading 5 day working week within sales and the associated commission structure is compulsory for all new starts, this is a positive move to ensure that the role appeals to a wider, more diverse population of people. The previous 6 day structure is now closed to new entrants, the majority of those remaining on this structure are male and as they are continuing to work an extra day per week they are on average earning higher commissions. The females we have recruited into sales during our successful recruitment drive have not yet reached their full earning potential as they are still within their training phase. The bonus gap will close as we redress the gender imbalance within sales, it will take time to significantly increase our female numbers but we are fully committed to seeing this through. Gender pay mean 13.4% median 10% Gender bonus 89.1% 89.6% Percentage of men and women receiving bonus mean bonus pay 50% 45.6% median bonus pay Pay banding Upper quartile Upper middle quartile 87.2% 12.8% 75.1% 24.9% Lower middle quartile Lower quartile 64.7% 35.3% 81.7% 18.3%

6 Arnold Clark Finance Within our finance division the picture is very different. Women in this area are paid more (mean and median) than men. Within this area of the business the majority of senior individuals are female, which is testament to the equal opportunities available within Arnold Clark as a whole. The bonus pay figure confirms that the average bonus for a female within the finance division is 6.2% higher than that of men. Again, this is a reflection of the number of senior females within Finance. Movement in median female bonus figure is down to additional employees in this area receiving a bonus, as this group is small in numbers this has caused a shift. Our workforce 61% male 39% female Figures at April 2018 Gender pay mean -6% median -15.7% Gender bonus 92.7% 83.4% Percentage of men and women receiving bonus mean bonus pay -6.2% 3.6% median bonus pay Pay banding Upper quartile Upper middle quartile 50.8% 49.2% 49.7% 50.3% Lower middle quartile Lower quartile 75.7% 24.3% 73.5% 26.5%

7 It starts from the top I m proud to say that Arnold Clark has a robust equal opportunities policy that ensures that women are as successful within the organisation as their male counterparts. In recent years, we ve made some changes to improve our workplace culture and make Arnold Clark a more attractive place to work. Eddie Hawthorne Group Managing Director and Chief Executive We want every employee at Arnold Clark to feel welcomed, empowered and valued, and we ve made it our mission to put our people at the heart of what we do. I m looking forward to another exciting year of making this vision a reality. Carol Henry Human Resources Director