IFS UKI GENDER PAY GAP REPORT JO HILL AND JO RAZZAQ Payroll Manager UKI and Snr HRD Europe

Transcription

1 IFS UKI GENDER PAY GAP REPORT 2018 JO HILL AND JO RAZZAQ Payroll Manager UKI and Snr HRD Europe

2 EXECUTIVE SUMMARY Analysis and Results: The Ordinary pay gap remains static compared to the previous report The Proportion of Male to Female remains static with just a slight improvement compared to the previous report The Bonus pay gap has improved compared to the previous report. Communications: Manager and employee communication 3rd April 2019 Report IFS overall results and supporting narrative on HMRC website - deadline 4 th April 2019 Publication on IFS Website 4 th April 2019 Next Steps: Annual reporting requirement 2019 analysis to kick off April/May 2019 Revisit high risk areas and put improvement plan in place to correct gaps Renewed focus on diversity and inclusion in recruitment and talent practices 2

3 LEGAL REQUIREMENT On 6 th April 2017 The Equality Act (Gender Pay Gap Information) Regulations 2017 came into effect. Companies with 250+ employees must publish salary and bonus differentials by Gender: Gender pay gap in hourly pay, as a mean and median average Bonus gender pay gap, as a mean and median average Proportion of male and female employees receiving a bonus payment Proportion of male and female employees in each pay quartile Based on a snapshot of data from April, employers have a further 12 months to analyse and publish the data. Report & Publish Snapshot Date Extract Data Analyse Data Organisations are required to complete the following by 4 th April Upload the information to a Government website - Publish the information on their public website and retain online for 3 years. (A narrative is optional.) Assess Findings 3

4 INDUSTRY OVERVIEW 2017/18 Employer Employer Size % Difference in hourly rate (Mean) % Difference in hourly rate (Median) % Women in lower pay quartile % Women in lower middle pay quartile % Women in upper middle pay quartile % Women in top pay quartile % Who received bonus pay (Women) % Who received bonus pay (Men) % Difference in bonus pay (Mean) % Difference in bonus pay (Median) Sage (UK) Ltd Not Provided MICROSOFT LIMITED 1000 to EPICOR SOFTWARE (UK) LIMITED 250 to ORACLE CORPORATION UK LIMITED 1000 to INDUSTRIAL AND FINANCIAL SYSTEMS, IFS UK LTD 250 to HEWLETT - PACKARD LIMITED 1000 to SAP (UK) LIMITED 1000 to INFOR (UNITED KINGDOM) LIMITED 500 to The table shows the industry overview for 2017/18. This information is available to the public on the Gov.uk website. IFS ranks in the middle of our competitors across the UK based on the 2017/18 data. There are negative trends within the IT industry common to all employers. For example, the lack of senior females in the industry is reflected in the data showing the % of females in the upper pay quartile. IFS has already taken steps to rectify this and will show much better results in this segment in the future. 4

5 2018 GENDER PAY GAP REPORT 5

6 A FEW WORDS FROM JANE KEITH - CHRO I joined IFS in November 2018 largely due to the amazing culture and people. To me, a truly balanced workplace isn t just about special treatment, but it s about the equal treatment of all despite age, ability, race, sexual orientation and of course, gender. At IFS, 29% of total IFS Group manager positions are held by women (up from 19% in 2017). Although this statistic highlights our commitment to creating a more inclusive and balanced workplace, we know our work is not done. Equality only becomes a reality when legislation, social norms and company policies like those instituted here at IFS, demand it. IFS has recently revitalised our Global Equal Opportunities Statement. Our company culture and our people are the things that differentiate us from our competitors. IFS recognises that fostering a diverse and inclusive workforce fuels our innovation and connects us closer to our customers and the communities we serve. IFS will continue the honest work to make inclusion and equality a company wide priority and reality. This is not a commitment we take lightly. The technology industry has historically been and remains imbalanced in terms of the gender mix of its workforce and with still too few women choosing to study STEM subjects, or follow careers in this sector, this picture is unlikely to change. At IFS we are taking steps to address this, which can be seen in the increase in our female population. We have increased from 26% globally to 33% and our executive leadership team has increased from 1 female to 5, which constitutes 40% of the executive team. It is not easy breaking the long standing norms, but we believe there are three pillars to affecting sustainable change in gender balanced workplaces: commitment to transparency, female (and diverse) leadership and a supportive company culture. IFS are committed to ensuring we continue to focus on this and celebrate the achievements of all our employees. 6

7 HEADCOUNT COMPARISON & RATIO 2018 Total of 326 employees 238 men (73%) 88 women (27%) 2017 Total of 249 employees 177 men (72%) 72 women (28%) Headcount Comparison and Ratio: The overall headcount for IFS UK has increased by 77 from April 17 to April 18. The ratio of women to men has slightly declined. However, an immediate improvement is expected due to increased female hires since the data was collated. From January 18 we ve hired 75 roles into the UK, 31% of which are female, with a concentration in mid and senior roles. 7

8 THE 2018 GENDER PAY GAP FOR IFS UK New UK regulations require employers with 250 or more employees to report specific statistics on their gender pay gap. A gender pay gap is calculated as the difference between the average earnings of men and women, expressed as a percentage of men s average earnings. It analyses the total hourly rate for female employees versus the total hourly rate for male employees in the entire organization. These results are for our IFS employing entity in the UK, based on data as of April Ordinary Pay Gap: Bonus Pay Gap: Proportion of employees in each pay quartile 2017 Median 22.8% Mean 29.7% 2018 Median 21.9% Mean 31.7% 2017 Median 39.8% 2018 Median 31.6% Mean 67.9% Mean 56.11% Year Male Female % 91.7% % 82.9% Bonus Pay Gap: This year the proportion of men and women who received a bonus remains comparable and the bonus gap has decreased. The reduction in employees who receive a bonus can be attributed to graduate cohorts we currently have 2 successive years of graduates who are not yet on bonus schemes, whereas last year we only had 1. In addition we had a lower number of females in sales commissionable roles vs non commissionable. Traditionally the payments for sales commissions can exceed the normal bonus payments made. This is a similar issue across the industry and an area for improvement. Pay Gap: Whilst we have seen a slight increase in the Mean (average) pay gap overall, the Median (middle earner) has shown a slight decrease. Contributory factors for our pay gap increase include that whilst we grew our overall population considerably in the period , we did not improve our proportions of females in senior leadership roles (Quartile3&4). Since then several senior female hires have joined the company, so our expectation is that the proportions will improve considerably in the next report. It is also an area we will focus on to ensure we are bridging the pay gap at the senior levels. In addition the impact of acquisitions i.e. MPL systems and FSM in 2017/2018 increased our headcount significantly but we were not able to influence the proportions of male to females that joined. 8

9 UNDERSTANDING THE GAP What is equal pay? The Equality Act 2010 requires that men and women be paid the same for carrying out the same job or work of equal value for the same employer. How does the gender pay gap differ from an equal pay gap? A gender pay gap is not the same as an equal pay gap. It is possible for a company to have no equal pay issues and a large gender pay gap or conversely, no gender pay gap and significant equal pay issues. An equal pay gap refers to a pay difference between men and women who carry out the same job or work of equal value. A comparison is made to the opposite sex working for the same employer, doing work of equal value. The gender pay gap is an aggregate figure which shows the difference in the average earnings between all men and all women in a workforce, expressed as a percentage of men s average earnings. Thus, a gender pay gap figure does not measure the pay difference between men and women at the same pay grade, in the same role, or with the same working arrangements. It also does not incorporate any of the personal characteristics that may determine a person s pay, such as qualifications and experience. Is the gender pay gap really a talent gap? At IFS, we re committed to achieving greater gender balance within the business and recognize that there is still much progress to be made in this area. Whilst we have increased our overall female population from 26% to 33% globally there is still work to be done. If we look at the proportions of females in mid and senior level roles we still need to do more work. Whilst we expect to see a significant difference at the senior levels due to the volume or females that have joined in the last 12 months we still have a gap at mid level, most likely around our sales commissionable roles. We know there is a gap in the industry around the number of women in sales but this is an area that could be focused on further. Focusing on our talent mix within the organization can make a difference along with the continued focus on our flexible working policies and practices to encourage more females into the industry. 9

10 A FEW WORDS FROM ALAN LAING MD UKI I joined IFS in October 2018 as Managing Director for the UKI. I joined IFS because I know the company has always placed huge importance on delighting our customers. This is something many organisations talk about, but don t fulfil in practice. IFS is growing rapidly in the UKI and needs to ensure we bring our customers on the journey with us. To do this we need the best people from all walks of life, and having a diverse workforce is fundamental to this. Our recent Great Place to Work Survey shows positive results. An 84% response rate and overall 72% favourable towards IFS being a great place to work. Our diversity results are particularly high, at 89% favourable and 94% favourable for people being treated fairly regardless of sex. This is all very positive and suggests we are moving in the right direction, but we cannot be complacent and need to ensure this is also reflected in the pay and reward of our employees. Like many organisations in the Technology sector, we can struggle at times to find the required volume of female employees available in the market. However, we remain incredibly committed to ensuring that our policies and practices are balanced and very attractive to all potential candidates and existing employees. As MD for the region I am personally committed to working closely with my leadership team to keep diversity in all areas a priority for the future. 10

11 SPOTLIGHT ON OUR EMPLOYEES WHY IFS? Vee Baker Global Campaigns Director I have been with IFS for 2 years and originally joined as the Senior Manager of Campaigns. I was then promoted to Director following some changes we made in the Marketing organisation. I joined IFS as it came across as a very happy and familial organisation and once I joined that was confirmed as it is incredibly friendly and everyone is committed to finding a way forward. My career started in chemical engineering and I have spent many years in marketing functions with organisations of all sizes. Within IFS we are in a situation of positive change and I relish the opportunity to prove the success of our newly expanded industry model. Leveraging investment in new technology to enhance how we best serve our customers is really exciting and this is also great for our regional teams as this lets them deliver the our messages in the most appropriate way. The changes we have had and will continue with are giving the whole team opportunity for personal development and the combination of experienced existing colleagues and new ideas from new colleagues gives us a great platform to build on. Ieva Rituma - After moving to the UK from the Netherlands to do my internship I then joined IFS as part of the graduate program in After 18 months I completed the program and moved into a consulting role which is were I continue to work. I was really excited to continue with IFS as it s such a nice work environment, very collaborative and supportive. The work I do is really diverse with tasks and requirements changing a lot. I am also given a lot of independence and autonomy to manage my own time and make decisions for and with my customers. I have been really fortunate to work on quite a few international projects with global customers which has given me the opportunity to travel around Europe. Looking forward I m excited to continue my journey with IFS working on more complex, global projects and continuing to deliver on customer expectations. Adrian McDonald Support Director UKI I remember when I first joined IFS back in 2002, working as a Junior Consultant in the Technical Services Team, being extremely excited as a recent graduate at the prospect of joining a dynamic global technology company. I also remember feeling pretty daunted at the prospect of going to work with so many intelligent, experienced and talented people and particularly as this was my first real job since graduating university a nagging doubt that I wouldn't fit in and might not be able to do the job. It quickly became clear that this wouldn t be an issue as I soon realised that there is a strong culture of collaboration and a team ethic across the company where colleagues support one another, you never feel that you are left to struggle with a challenge on your own. Equally, fitting in wasn't much of an issue as working at IFS has always felt like a level playing field and regardless of experience, role and certainly background people have a voice and are treated with respect, we have a very diverse workforce both here in the UK as well as globally and that is something I am proud to be a part of as well as being conscious not to take for granted. During my time at IFS I have always felt empowered and encouraged to make choices and take decisions which was and sometimes still is at times a little intimidating but that freedom and the knowledge that others have that level of trust in you is a great way to develop and grow. At IFS we pride ourselves on working closely with our customers and having spent most of my IFS career working in Customer Support I have had an excellent opportunity to do this, understanding a customer s needs, helping them to use the products we develop and sell, as well as building some great relationships along the way. I think that direct interaction with customers really forces you to care about the work you do, perhaps a little too much at times, but it's definitely a great motivator. Ultimately though I think being able to work amongst and be inspired by so many good people from all sorts of backgrounds across the world, building trust with colleagues and customers and the motivation that comes from the variety of challenging work is a great combination for me and weirdly I think I'm even more excited to be working here today than I was when I started 17 years ago! 11

12 PROCESS AND COMMUNICATIONS 12

13 PROCESS TIMELINE April - May June - July Aug - Dec Jan - March Data Extract Extract Data for next submission Plan improvement activities Data Analysis Begin analysis of data extract. Take additional insights to add to improvement plans Comm s Present to senior leadership (UK and Corporate) Agree further amendments to improvement plan Cascade outcomes to UK managers and employees Publish Publish required data to HMRC site Publish data and narrative on Company Website 13