Public Sector Equality Duty Reporting 2017

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2 CONTENTS 1. Introduction by our CEO 3 Page 2. Mainstreaming Report 4 3. Equality Outcomes Review Outcome Outcome Outcome 3 4. Our Updated Equality Outcomes for Gender Pay Gap Gender, Disability and Race Pay Statement Board Gender Composition and Future Actions Gender Composition 7.2 Future Actions 8. Workforce Data High Level Dashboards 8.2 Protected Characteristics Statistical Analysis 8.3 New Starters, Leavers and Part-Time Workforce 8.4 Promotions 8.5 Length of Service 9. Appendix A 34 2

3 Scottish Water is the fourth largest water and waste water services provider in the UK. We provide clean, safe and high quality drinking water to 2.49 million households and 152,000 business premises across Scotland. Every day we provide 1.37 billion litres of clear, fresh drinking water and take away 921 million litres of waste water, which we treat before returning to the environment. 1. Introduction by our CEO Douglas Millican, CEO As a major employer and vital service provider in Scotland, we recognise that we are in an influential position to positively contribute to social justice, through advancing equality of opportunity and fostering good relations in our day to day business. In 2015 we signed up to the Scottish Business Pledge - a voluntary commitment made by companies in Scotland to uphold some of the best in modern business practices, embracing the principles of fairness, equality, opportunity and innovation. Our 4,000 employees are at the heart of our business and critical to fulfilling our Vision of being Trusted to Serve Scotland. Providing an excellent customer experience for every one of our customers is a top priority for us and we aim to ensure that our workforce recognises and values the needs of individual customers and communities across the length and breadth of Scotland. We have long recognised that diversity in the workplace makes good business sense and leads to fresh thinking, better decision making and strong performance. Creating an inclusive work environment helps everyone to feel that their contribution is valued and that they are able to reach their full potential. This 2017 Public Sector Equality Duty report describes how we have worked to mainstream equality and outlines the progress we have made, as well as setting out our ambition through a refreshed set of equality outcomes for the next four years. Douglas Millican 3

4 2. Mainstreaming Equality Our Vision Scottish Water aspires to be a leader in terms of our behaviour and attitudes to diversity and inclusion. The SW Vision to be Trusted to serve Scotland and the 6 Pillars of the Vision shown below guide all our actions and behaviours. Serving Responsible Committed Showing our customers that we care We always do the right thing for Scotland Together we are Scottish Water Leading Growing Strong We shape our future for the benefit of customers We enable a thriving Scotland We work hard to keep customers prices low Within the context of diversity and inclusion, we interpret the 6 pillars in the following ways:- Serving Focusing on really understanding our diverse customer base and lifestyles so that we can better relate to our customers needs. Responsible Responding in a fair and inclusive way during our interactions with all the communities we serve across Scotland. Committed Demonstrating that all our employees have talents and that we represent Scottish Water both individually and collectively. Leading Encouraging diverse thinking and innovative working practices so we can continue to meet the future requirements of our customers. Growing Contributing to social inclusion in Scotland and creating an environment where individual differences are respected and all our employees can thrive. Strong Ensuring robust decision-making which benefits customers through gaining multiple perspectives and insights. Customer and Community Engagement Our approach to community engagement was developed in conjunction with Consumer Focus Scotland, following the 7 principles of best practice in consumer engagement. It meets Scottish Water s responsibilities under the Water Industry (Scotland) Act 2002 and is approved by Scottish Ministers. This aligns with Our Customer Promise that details our commitments to deliver services for all our customers. Through the Assessed Customer Service programme, Scottish Water monitors the accessibility of customer service information and reports annually on this to the Water Industry Commissioner. Since the implementation of this measure, Scottish Water has achieved maximum points each year. GREAT Leadership All our leaders are encouraged to create a working environment that supports our organisational diversity and inclusion aims. Our Leadership behavioural framework defines behaviours under the headings of Genuine, Resilient, Aware and Engaging that make for Trusted leaders (G+R+E+A=T). A key requirement of Engaging leadership is being inclusive and valuing diversity. 4

5 Through training and other interventions, we develop line managers understanding of their role in mainstreaming equality and creating an inclusive environment. For example, in 2016 a series of leadership events, led by our CEO, were held across Scotland where the risks of unconscious bias were highlighted, along with group sessions designed to challenge the status quo and encourage flexible mindsets. Employee Networks and Communication Under the collective banner of Diversity and Inclusion Umbrella Groups, five self-organising employee networks have been established. Membership of these groups continues to increase and the scope of activities of each network continues to grow. Carers Network this group offers advice and peer support to employees with caring responsibilities. Activities include arranging for local carer organisations to visit the workplace to offer surgeries for individual support, advice and information. LGBT and Allies Network for Lesbian, Gay, Bisexual and Transgender employees. This group raises awareness and encourages LGBT visibility within Scottish Water. Activities include taking part in Glasgow Pride and working with Stonewall as diversity champions. Disability Forum - for employees with a disability or long term limiting health condition. Activities include inputting to policy and promoting relevant initiatives. Women in Scottish Water for women (and men) committed to creating an environment in Scottish Water where women can flourish. This network was initially formed by women in leadership positions and has recently extended its scope and ambition. Activities include organising events aimed at inspiring and supporting women; mentoring and coaching; and strengthening links to external networks. NxtGen for employees early in their careers. Most members are under 30 years in age and activities include networking, learning and exploration of new ideas. 5

6 Public Sector Equality Duty Reporting 2017 In 2016, through our bi-annual leadership conferences which are held across Scotland and are led by the CEO, we refreshed our entire leadership population on the benefits of a diverse and inclusive workforce. The concept of Bring your Whole Self to Work was introduced, stressing the importance of employees feeling comfortable and confident to be themselves at work, and to be valued and respected for their differences as well as their similarities. We actively promote diversity and inclusion through our various communication channels such as our intranet and the Scottish Water Vision Magazine. Some examples are shown below of recent articles highlighting the benefits of membership of our Diversity and Inclusion Umbrella Groups and improving gender diversity. 6

7 Public Sector Equality Duty Reporting 2017 Policies and Procedures We have recently replaced our Equal Opportunities Policy Statement with a more comprehensive Diversity and Inclusion Policy. This policy references the 9 protected characteristics and outlines both employer and employee responsibilities and commitments towards encouraging a diverse and inclusive work environment in which every employee is able to fulfil their potential. We also have a suite of complementary policies that reference Diversity and Inclusion and these are: Dignity at Work Maternity, Adoption and Paternity Family, Carer and Special Leave Agile Working Recruitment Shared Parental Leave. Our Shared Parental Leave policy offers our working fathers and partner s payment for shared parental leave on the same basis as our enhanced maternity provisions. We have reviewed all our principal employment policies and customer code using a structured equality impact assessment framework. We also use impact analysis as part of our approach to the effective management of change and project teams are required to consider the expected impact of the change on a range of criteria on all affected employee groupings. Agile Working Our Agile working practices mean that employees have the opportunity to work in a flexible way, accommodating both their work and home life demands. All roles are classified as either fixed, fluid, field or free and each role-holder is enabled through appropriate technology to carry out their role effectively regardless of their location. Being trusted to work in an agile way is important to our employees and contributes to ensuring equality of opportunity between those who share a protected characteristic and those who do not. Our Glasgow office The Bridge is designed to be a flexible, sociable space that encourages collaboration 7

8 Learning and Development During 2016, we refreshed our diversity and inclusion offerings so that the majority are now web-based e- learning courses that are very accessible to employees. The newly designed Diversity and Inclusion for Leaders and Diversity and Inclusion for Employees courses form part of Scottish Water s suite of essential training modules, meaning they are mandatory for all employees whether experienced or new to Scottish Water. This ensures that all our employees have an understanding of Scottish Water s diversity and inclusion aims and expected behaviours. We also provide specific training on Creating a Respectful Environment, Effective Interventions to Bullying and Harassment, Unconscious Bias and our corporate induction module outlines the requirements of the Equality Act, PSED and respect and dignity at work. Talent Lifecycle We believe that all our employees have talent and we have intentionally built processes that encourage diversity and inclusion into each of the 5 stages of our talent lifecycle: Attraction & recruitment Identification Development Deployment Retention and release. This deliberate focus on each stage of the lifecycle helps embeds appropriate behaviours and attitudes and ensures equality is hardwired into our routine working practices. Some specific examples are given later in the equality outcomes section of this report. Procurement Scottish Water is fully compliant with our duties under equalities legislation when undertaking procurement activity. All new suppliers are screened to ensure that their policies comply with equality legislation. Where a supplier directly impacts on our equality duties, assessment of their capability to meet them forms a significant part of our award criteria. Our Procurement team s implementation of the equality duty also involves: Guidance documents for Procurement employees Assessment checklist for supplier policy documents Training for Procurement employees on the impact of the PSED specifically. Recognition of our Achievements 8

9 We are proud to have been awarded the following:- Best Public Sector Employer award by Family Friendly Working Scotland in 2015 Scotland s Best Large Employer in the Business Insider Awards 2015 Large Scottish Employer Graduates and Interns Most Aspire to Work For 2015 Investors in Young People Gold Award Finalist in the 2016 Scottish Diversity Awards Best Workplace 2016 in the HR Network Awards Fair Work Employer of the Year 2016 at the Scottish Business Awards Female Director of the Year at the Scottish IoD awards 2017 (Shirley Campbell Director for People). These accolades help to establish Scottish Water as an employer of choice and demonstrate that we take our commitments seriously in creating an environment where everyone can flourish and achieve their full potential. 9

10 3. Our Current Equality Outcomes In 2013 we identified 3 organisational equality outcomes that supported achievement of our strategic objectives and overall engagement strategy; were applicable to all protected characteristics; balanced internal and external responsibilities and that would deliver long term sustainable change: 1. To deliver and demonstrate effective engagement with our diverse customer base and ensure that disability is properly supported in community communication, and in the workplace 2. To demonstrate a positive commitment to diversity and inclusion in our workforce demographics via a more managed approach 3. To foster an interest in STEM careers, particularly for women. The tables below highlight the protected characteristics the outcome relates to; which of the three needs of the general equality duty they were designed to meet and what success factors we had expected to see. Realised and planned progress towards achieving the outcomes is described after each table. 3.1 Outcome 1 Outcome 1 Characteristics Deliver and demonstrate effective engagement with our diverse customer base and ensure that disability is properly supported in community communication and consultation and in the workplace Potentially all with a particular focus on disability Aims Eliminate discrimination Indicators Advance equality of opportunity Foster good relations Maintaining equity of customer satisfaction levels across all equality strands, improving data on disability, increasing awareness, widespread use of tailored adjustment agreements in the workplace, optimising involvement of our disabled customers. Communication and Community Engagement Scottish Water is committed to effective engagement with our diverse customer base and strives to ensure that our communications are accessible and effective. We support our growing customer preference for online and social media channels whilst also ensuring other communication channels are equally accessible. Our Customer Service Strategy reflects our customers diverse range of needs and expectations and ensures a consistent level of service is received no matter which communication channel is chosen. Following each customer transaction, Scottish Water measures satisfaction with easy-to-use survey methodology developed specifically to make providing feedback straightforward. This multi-channel approach has increased the amount of customer feedback Scottish Water receives informing areas for improvement. Whilst the Customer Experience Score does not provide demographic analysis it does facilitate collection of qualitative feedback that is used to inform significant service improvements. Additionally, the Customer Experience team has established a standard set of questions with all its partners delivering the wider research programme to enable standard insights to all demographics needs and perceptions. Most critically, this research will identify any differences that should be accommodated and whilst the most recent data has not identified any notable differences the demographic analysis will be continually monitored. As all of our customers should have equal right to access our services we have reviewed our practices and implemented adaptations to our main contact methods so that we can effectively communicate with all our customers and ensure they are informed and updated. We are aware that 20% of Scotland s population has a long-term limiting health condition or disability and recognises that this statistic will be reflected in our customer base. 10

11 By utilising the services of ContactSCOTLAND BSL and promoting this facility on our external website, we are supporting customers that use British Sign Language to be able to contact us through our customer service centre. ContactSCOTLAND BSL uses on-line visual interpreters to facilitate a discussion from the customer to the Scottish Water contact centre employee We also maintain a critical register of our customers who require additional support from us in a stop to water supply or emergency situation. For instance this may be a customer with limited mobility requiring bottled water dropped off directly to their door because they cannot access the bottle collection point, or someone requiring a constant water supply for home dialysis who might need alternative accommodation. To ensure accessibility to information, the Customer Service Centre provides customers with access to translation services for anyone who does not speak English as their first language. Our customer commitment documents (Code of Practice and Charter) are available in Polish to cater for the 61,000 Polish speakers in communities across Scotland. Scottish Water is now part of a utility group in Scotland that is proposing the introduction of a new central priority customer database. Initial proposals are currently part of a wider consultation in the industry and will mean the establishment of a single priority customer database for use in Scotland by public services and utilities. This approach will mean that customers no longer need to register separately with all service providers and that just one data entry will be required. This approach will not only secure consistency across all service providers in Scotland but make it easier for customers to ensure they receive priority services when needed. Supporting Disability in the Workplace From our Employee Engagement Your Voice 2016 survey, we know that approximately 4% of our employees identify themselves as having a long terms health limiting health condition or disability. This has risen by 1% from the previous survey conducted in We provide guidance for line managers on supporting team members with disabilities. Particular focus has been placed on seen and unseen disability and any adaptations in the workplace that might be required. We record all additional support or adjustments that employees require in our HR systems and review regularly. Tailored Adjustment Agreements enable us to proactively assess where and when additional support or communication may need to be provided. We also work closely with the external body Access to Work to enable our employees access to specialist equipment to help them in their role, eg adapted laptops and telephony devices. If support is unavailable by this route, Scottish Water will make the required adjustments. To help our leaders recognise and support employees who may be suffering from a mental health condition, we recently piloted a one day course, designed by Mentally Healthy Working Lives, aimed at raising awareness and offering practical support. The workshop was received positively and plans are being considered to run a workshop each quarter. Progress Indicator March 2013 March 2015 March 2017 Customer Experience Score * % workforce disclosing disability information ** Monitored and recorded reasonable adjustments *The CES score from 2017 reflects a change in methodology. The survey is now managed through a multi-channel real time approach (using SMS, IVR and ). The new system utilises the customer s choice of channel to elicit feedback. The new approach has been analysed alongside the previous methodology to confirm that it is more inclusive and accessible by a wider range of customers. Initially the new score was 7% lower than the previous methodology due to its real time nature; however, improvements in services have led to this gap closing. ** The numbers of employees declaring disability information has decreased since our All Employee Survey; this is in part due to the option of Prefer not to say being visibly available where it wasn t previously. 11

12 3.2 Outcome 2 Outcome 2 Characteristics Demonstrate a positive commitment to diversity and inclusion in our workforce demographics via a more managed approach Encapsulates all protected characteristics, promoting diversity in its broadest sense. Aims Eliminate discrimination Indicators Advance equality of opportunity Foster good relations Increasing awareness, changes in behaviour, a gradual increase in the diversity of the workforce, equality of opportunity for younger and older candidates/employees, more varied career progression routes, better data on disability and sexual orientation for our employees, workforce profile that closely matches the communities we serve. Managing Workforce Demographics Scottish Water is committed to increasing diversity in our workforce and we recognise the importance of encouraging and attracting all under-represented groups to apply for roles at Scottish Water. Gender - As Scottish Water is a mainly operational business, we are aware that our current gender demographic has a significant imbalance particularly in our Customer Service Delivery (CSD) function. Implementing strategies to smooth out our workforce profile and adjust imbalances will take time; however we are pleased to have seen a slight positive shift. In terms of gender, females now account for 27% of our workforce. We continue to address this issue via our recruitment talent pipeline and 44% of our current graduate intake is female, and of the 27% of female employees, 15% are Band C (first level professional) and above. We recently introduced our Employee Referral Scheme that aims to introduce more female candidates to under-represented roles in our CSD function in Scottish Water. These roles are:- Tanker Driver Network Service Operator/Inspector Field Service Advisor Network Maintenance Operative (Sewer and Water Response) Treatment Operator (Water and Wastewater) 12

13 All current employees can refer female candidates and if they are successfully appointed they are eligible for 100 cash reward. Age - Over the last four years our commitment to create career opportunities in the water industry has included the recruitment of 114 Modern Apprentices, 67 Graduates and 36 Interns onto structured development programmes. Scottish Water was one of the first public bodies to be recognised as an Investor in Young People for supporting a broad range of activities and we are now recognised as a GOLD standard IIYP organisation. We are mindful of the imbalance in our age demographic / profile in favour of those over 50 years and we have been addressing this over the last four years. We are actively recruiting graduates and modern apprentices to boost our younger workforce see equality outcome 3. Disability - We have partnered with the Business Disability Forum to ensure our recruitment process accommodates any candidate with a disability or a long term health condition. We have also placed an advertisement in Able, Scotland s highest circulation disability lifestyle magazine, to promote the benefits of working for Scottish Water and plan further targeted recruitment campaigns aiming to widen the candidate pool. We are also considering introducing the Disability Confident (Committed) scheme that enables individuals who consider themselves to have a disability, and who meet our minimum criteria, will be passed through to role interview stage. Sexual Orientation - Our data on sexual orientation shows that 3% of our workforce identify as gay, lesbian or bisexual, and have the support of the LGBTA Diversity and Umbrella Group. Scottish Water were also represented at Glasgow Pride in 2015 and 2016, where we made the community aware of the work that we carry out, but also they could be a part of our team by applying for our live vacancies. Ethnicity While our percentage of ethnic minority employees is increasing overall as shown in section 8, the percentage of Black and Minority Ethnic employees has dropped from 1.4% to only 1% over the past two years. This is of some concern, and while it reflects a reduction in numbers of only 5 individuals, it will be an area for focus moving forwards. Work is already underway to select publications where our employment opportunities will be more accessible to ethnic minority groupings 13

14 Progress Indicators March 2013 March 2015 March 2017 % workforce female % female Band C and above % workforce from an Ethnic Minority % workforce < % workforce > * Our minority ethnic calculation includes White Other. Non White employee numbers have reduced by 0.4% since our 2015 report. The indicators above suggest we are making gradual progress in the right direction. We intend to continue to take a holistic view of our talent management processes going forward as we believe that all our employees have talent and that those talents should be developed and deployed to best effect across the business. At the same time we are mindful of the need to balance our demographics as best we can, particularly through our recruitment policies and practices, in order to ensure a diverse workforce and a sustainable business. 14

15 3.3 Outcome 3 Outcome 3 Characteristics Foster an increased interest in STEM careers, particularly for women Potentially all but with a particular focus on females Aims Eliminate discrimination Indicators Advance equality of opportunity Foster good relations Strengthening Scottish Water s employer brand, a more diverse pool of candidates including more females, increasing variety of STEM opportunities, better internal and external networks. STEM Careers A key recommendation of Developing Young Workforce (Wood Commission review) was that every high school in Scotland should have a 3-5 year formal business partnership with an employer. Through our participation in the Glasgow Youth Employment Group and subsequently DWY, we closely aligned our youth talent strategy with the recommendations of Scotland s DYW strategy and Scotland s economic strategy with respect to promoting inclusive growth. As an active group member of the group, Scottish Water agreed to a formal partnership with St Andrews Secondary School in Glasgow in February The partnership model represents a change in the way that business co-invests with education and it has enabled us to work in a more focussed way with the school, aligning both our own and the school s talent, equality and strategic priorities. One of our strategic priorities has been to encourage more females into careers in Science, Technology, Engineering & Maths (STEM). To help this we encouraged our female graduates and apprentices to engage with the young people. To date we have delivered over 1,000 pupil interactions with St Andrews through a variety of events including Women into STEM event for S2 girls, two career fairs, mentors for a Smart STEM Competition (that the school won) and a site visit to the SW laboratory in Edinburgh. We evaluated our Women into STEM event after 4 weeks and found 55% of the girls stated their learning was that girls can do boys jobs and 38% said they had selected science subjects in S3 as a result. This is a significant outcome. Due to the success of this partnership, Scottish Water plans to create additional formal school partnerships. Regional DYW boards are being established across the country and we are now in discussion with 3 other boards regarding school / business partnership in their area. In addition we continue to work in collaboration with others to set a 12 week engineering challenge related to the water industry for four Glasgow secondary; this integrates the school curriculum with the world of work. In addition the partnership acts as a catalyst to involve SW partners more closely with other school activities such as careers fairs and employability events. We also work with Career Academies UK which links business with education to prepare young people for the world of work. Throughout the UK, 4,000 employee volunteers from over 1,400 organisations contribute time and skills to the Career Academy programme of mentoring, master classes, workplace visits and an 15

16 internship. Scottish Water has 12 trained mentors and last year each mentor was matched to a student for 18 months with the student undertaking a 4-week paid internship last summer. In addition SW employees participated in the delivery of Career Academy Masterclass sessions in both Edinburgh and Glasgow schools. At postgraduate level we continue to work with universities across Scotland and the wider UK. We currently sponsor 8 EngD projects under the STREAM (Industrial Doctorate Centre for the Water Sector) programme funded by EPSRC (Engineering and Physical Science Research Council). We fund PhD projects aligned to our research agenda with University of Glasgow and University of Edinburgh. We actively support the Hydro Nation Scholars programme of PhDs through the James Hutton Institute as steering group member and industrial supervisor for relevant projects. We also conduct research activity through CREW (Centre of Expertise for Waters) and UKWIR (United Kingdom Water Industry Research). Our graduate and intern intake for 2016/17 are all from STEM disciplines at degree or post graduate level. Unfortunately, the percentage of female applicants for our modern apprenticeships remains low at only 5.8% total applications in 2016 and 5.1% in 2017, and remains an area for focus moving forward. Our graduate level opportunities attract a much more balanced gender demographic both as candidates and new starts. Modern Apprentice Intake Female Male Total % Female Graduate Intake Female Male Total % Female We continue to advertise 10 paid STEM Internships, targeted at those in their third year of STEM subject degrees. This has proved to provide valuable opportunities for interns to learn project management skills, build contacts, understand the water industry and careers as well as getting an insight into future Scottish Water Graduate Programme opportunities. 16

17 We send a strong message that Scottish Water embraces equality through our recruitment advertising for youth development programmes. For example our promotional recruitment videos now feature female MAs prominently, and we showcase the fact that over the past few years our gender mix of our graduate scheme is very evenly gender balanced. We encourage our Diversity and Inclusion Umbrella Groups to stimulate debate on STEM careers for all their members. Our Women in Scottish Water network provides an excellent opportunity to extend professional and mentoring networks across the water industry in Scotland to others. Our NxtGen group also heavily networks with external organisations to learn, network and share ideas and also partner with other organisations to showcase our work carried out with our youth on STEM careers. Progress Indicators STEM Graduate Intake * Interns * Modern Apprentices * Career Ready * * total recruitment numbers are not fully confirmed for 2017 and may flex due to specific STEM requirements but are expected to be higher overall than in

18 4. Our Updated Equality Outcomes We are aware that eliminating discrimination and advancing equality of opportunity takes time. Whilst progress has been made on the journey towards achieving our original equality outcomes, there is a still some way to go before we reach our desired destination. We therefore believe that our stated equality outcomes for the period should be a refocus and refresh of our existing outcomes rather than a major shift in direction. We are therefore presenting four updated equality outcomes: Outcome 1 Evidence Characteristics Ensure that disability and ethnicity are not seen as a constraint for access to our services National customer data suggests that 1 in 3 of our customers will be disabled or close to someone who is. We estimate that at least 4% of our employees consider themselves disabled and 1% has caring responsibilities for a child with a disability. We also know that 3% of the Scottish population are from a minority ethnic grouping and that locations within the Scottish Water estate don t fully reflect local community representation. Potentially all with a particular focus on disability and ethnicity. Aims Eliminate discrimination Advance equality of opportunity Foster good relations Indicators Maintaining equity of customer satisfaction levels across all equality strands, optimising involvement of our disabled and minority ethnic customers and increasing awareness of support available. We are committed to continuing our dialogue with our customers with disabilities or long term health conditions. Recently released figures from the National Audit Office showing that, of the 17% of UK citizens who don t use the internet, around half some four million - are disabled. It is vital therefore that whatever digital services that we provide, they must be tailored to the needs of the most vulnerable members of the community, particularly with an ageing population. We also believe that it is vitally important to be able to engage effectively with our customers within minority ethnic communities, where language and cultural differences can be a barrier. Outcome 2 Evidence Characteristics Continue to increase our development of STEM careers for women Within Scottish Water, there is still a significant gender imbalance, and due to Scottish Water having a particular focus on recruiting candidates from a STEM background, we believe this continues to be an area where we can increase gender diversity. 27% of our workforce is female and 73% is male. Scottish Water has breadth of technical expertise and opportunity in STEM areas to support broad based career development. Potentially all but with a particular focus on females Aims Eliminate discrimination Advance equality of opportunity Foster good relations Indicators A greater number of females in the pool of candidates applying for roles, an increase in the number of STEM roles across the organisation. Growth of the Women in Scottish Water D&I Umbrella Group. Our commitment to gender equality through development of STEM careers for women is truly gaining traction and it is important to continue to drive this through an equality outcome. Through a combination of mainstreaming activities such as employee wellbeing, agile working and accelerated development programmes and targeted initiatives such as the Employee Referral Scheme, our talent pipeline will become more gender balanced in the years ahead. 18

19 Outcome 3 Evidence Characteristics Ensure that our recruitment and selection practices encourage applications and hires from all underrepresented groups Scottish Water currently has areas of recruitment where a mixed candidate pool is not achieved. With specific recruitment activities in place, we can increase our candidate pools and create potential to achieve more diverse hires. Encapsulates all protected characteristics, promoting diversity in its broadest sense. Aims Eliminate discrimination Indicators Advance equality of opportunity Foster good relations Use of varied recruitment mediums, use of varied communication methods using multiple languages. Potential use of the Disability Confident Scheme. Attendance at community events such as LGBT Pride in search of candidates. Tailored campaigns that positively change our demographic Our attraction strategy must aim to ensure that our candidate pools are as diverse as they possibly can be, therefore giving our hiring managers the best possible talent from which to select. We will continue to evaluate our recruitment and selection practices with this in mind and seek to build a reputation in the employment market for valuing difference. Outcome 4 Evidence Characteristics Demonstrate a positive commitment to work of our Diversity and Inclusion Umbrella Group and support them in extending their reach both within and outside Scottish Water Scottish Water s Diversity and Inclusion groups were formed to give a collective employee voice to those who hold a particular protected characteristic. By promoting employee involvement, we believe that peer learning will become a vital educational tool. Compared to Scottish Census data, many protected characteristics are underrepresented within Scottish Water. Underrepresented groupings can find it hard to be themselves and bring their whole selves to work in an individual context and without group support. Encapsulates all protected characteristics, promoting diversity in its broadest sense. Aims Eliminate discrimination Advance equality of opportunity Foster good relations Indicators Increasing awareness, changes in behaviour, a gradual increase in the diversity of the workforce. Emergence of new Diversity and Inclusion protected characteristic groups. Also emergence of social inclusion led groups. Finally, through an outcome focusing on support networks mechanisms for employees with protected characteristics, we aim to continue to build an inclusive work environment where everyone feels comfortable to bring their whole self to work, and where all our employees feel that their interests are heard and represented. We see the current list of groups as only the beginning, with the potential to add further inclusive groupings where there is interest and energy to do so, in order that working at Scottish Water is a positive employee experience for all. 19

20 5. Gender Pay Gap 2017 In March 2017 the median average hourly pay for full time men is and for full time women is 14.28, a pay gap of 1.78% in favour of women. Our gender pay differences reflect distribution by job role and grade rather than equal pay issues. Overall occupational gender segregation remains the most pertinent issue with a significant number of single gender job roles. Median Female Male Full-time Part-time Overall Gender pay gap reporting for PSED focusses on basic salary only. New gender pay gap legislation that applies only in the private sector comes into effect from April 2017 across the UK, requiring that pay comparisons are made between men and women including base salary, paid leave, pay allowances, shift pay and on-call & standby payments. Although Scottish Water is a public corporation, in the interests of transparency we have decided to adopt a reporting approach on the gender pay gap comparable to the new private sector legislation, the results of which can be found in Appendix A to this report. 6. Gender, Disability and Minority Racial Group Pay Statement 2017 Scottish Water is committed to mainstreaming equality of opportunity and diversity in employment, including in the way we reward our employees. This means ensuring there is no bias on the basis of any of the protected characteristics: gender, race, disability, pregnancy and maternity, gender reassignment, sexual orientation, religion or belief, marital or civil partnership status, ethnic origin and age. Pay and benefits cover a range of items including the evaluation of jobs, our pay ranges, pay progression, employee bonus, pensions and other employee benefits. Our approach is based on ensuring we have a reward framework that is consistent, transparent and fair with a single job evaluation scheme ensuring the level of reward is appropriate to the size and content of the job. 6.1 Gender Occupational Segregation The tables below show the distribution of men and women in different parts of Scottish Water showing that while our overall workforce is 27% female / 73% male, this varies considerably depending on the type of job being done. The following 2 tables detail employee grades, with Band A being senior, descending to Band F. Capital Invest SCSP CEO Corp Comms CSD Finance Female Male Female Male Female Male Female Male Female Male Female Male A 22% 78% 37% 63% 40% 60% 20% 80% 39% 61% B 26% 74% 34% 66% 50% 50% 21% 79% 61% 39% C 46% 54% 39% 61% 73% 27% 29% 71% 43% 57% D 36% 64% 52% 48% 100% 100% 0% 12% 88% 55% 45% E 100% 0% 55% 45% 0% 0% 14% 86% 87% 13% F 0% 0% 24% 76% 0% 0% 74% 26% 0% 0% (Capital Investment, Strategic Customer Service Planning, CEO Executive Assistants, Corporate Communications, Customer Service Delivery, Finance) 20

21 Horizons International People SWS TI&BC Female Male Female Male Female Male Female Male Female Male A 22% 78% 0% 100% 87% 13% 0% 100% 41% 59% B 28% 72% 0% 100% 75% 25% 11% 89% 46% 54% C 50% 50% 75% 25% 73% 27% 33% 67% 68% 32% D 42% 58% 100% 0% 41% 59% 0% 100% 48% 52% E 25% 75% 100% 0% 80% 20% 0% 0% 75% 25% F 0% 100% 0% 0% 0% 0% 0% 0% 100% 0% (Horizons Commercial, Scottish Water International, People, Scottish Water Solutions, Technology, Information and Business Change) The following table details job grades, from Chief Executive to Team Member. Job Grade Female Male Chief Executive 0% 100% Director 14% 86% General Manager 24% 76% Business Manager 23% 77% Team Leader 31% 69% Team Member 27% 73% 6.2 Minority Racial Group Occupational Segregation Table 1: Percentages are the proportion of whole workforce per category (MA = Modern Apprentice) Job Grade Minority Ethnic Prefer Not to Say Non-Minority Ethnic Managers 0.1% 0.3% 3.8% A 0.2% 0.3% 7.6% B 0.9% 1.2% 15.2% C 0.8% 0.8% 14.7% D 0.8% 1.4% 19.6% E 0.5% 1.6% 23.5% F 0.1% 0.1% 3.6% MA 0.0% 0.4% 2.5% Grand Total 3.3% 6.2% 90.5% Table 2: Percentages are the proportion of grade per category (MA = Modern Apprentice) Job Grade Minority Ethnic Prefer Not to Say Non-Minority Ethnic Managers 2.4% 6.5% 91.1% A 2.7% 4.2% 93.1% B 5.0% 7.0% 88.1% C 4.7% 5.0% 90.3% D 3.7% 6.2% 90.1% E 1.9% 6.4% 91.7% F 2.5% 3.2% 94.3% MA 0.0% 14.5% 85.5% 21

22 While efforts have been made to persuade employees to submit data on their race, it can be seen that it is more common for individuals to decline to categorise themselves than to record themselves as belonging to a minority racial group. We cannot make any assumptions about the reasons that individuals may choose not to submit such information or about the racial identities of those employees. However, it can also be seen that there is no particular pattern or trend by job grade amongst those who do identify themselves as members of a minority racial group. 6.3 Disability Occupational Segregation Table 1: Percentages are the proportion of whole workforce per category (MA = Modern Apprentice) Job Grade Disabled Non-Disabled Manager 0% 4.1% A 0% 8.2% B 0.1% 17.2% C 0.1% 16.2% D 0.1% 21.6% E 0.1% 25.6% F 0% 3.9% MA 0% 2.8% Grand Total 0.4% 99.6% Table 2: Percentages are the proportion of grade per category (MA = Modern Apprentice) Job Grade Disabled Non-Disabled Managers 0.0% 100.0% A 0.3% 99.7% B 0.4% 99.6% C 0.8% 99.2% D 0.5% 99.5% E 0.3% 99.7% F 0.0% 100.0% MA 0.9% 99.1% The above data is taken from our core HR system where only 0.42% of Employees have chosen to disclose that they have a disability. By comparison, ten times this proportion (c4%) of employees volunteered such information anonymously in our Your Voice employee engagement survey in late However, as that data is anonymous it is not possible to use it in the type of analysis above. These tables show no particular pattern or trend by job grade amongst those who do record themselves as having a disability, but with such a low level of data it would be inappropriate to draw any conclusions. Instead, work will focus on encouraging more employees to record such information in a way that will allow for more meaningful analysis in future. Work begun in 2017 and extending through 2018 will see the introduction of a new HR and Learning Management system across the company, with improved employee self-service functionality. This will be used as an opportunity to increase the level of personal data that employees disclose and on which we can subsequently report. Further information on our workforce by gender, disability and race is shown in Section 8 of this report. 22

23 7. Board Gender Composition and Future Actions 7.1 Gender Composition As at April 2017, our board gender composition is 3 female and 8 male. This is a 27% / 73% split which mirrors our current all employee gender split and is an improved balance on previous years. 7.2 Future Actions Scottish Water is fully supportive of achieving equal gender representation on our Board, in line with our published commitment to the Partnership for Change. We believe that diversity is good for business and diversity on Boards is an enabler of strong corporate governance and effective decision-making, better representing the stakeholders, customers and communities we serve. Scottish Water expects its Public Board to hold an appropriate balance of knowledge, skills and experience to ensure diversity of perspective and enable their corporate governance duties to be discharged effectively. Core requirements for the role are the ability to challenge constructively, foresee risk and influence strategically, as well as the time to commit to the role and to Scottish Water. Achieving gender diversity would be a first step to achieving full equality and although not directly responsible for Board appointments, Scottish Water is already undertaking initiatives to attract a more diverse pool of applicants for all our board opportunities. These include us: Continuing to focus on external organisational image, and sharing our values, to encourage attraction of candidates from all minority protected characteristic backgrounds. Working closely with the Scottish Government to craft director appointment materials (role specifications, etc.) to make posts accessible and appealing to all potential candidates. Encouraging the use of multiple advertising methods to promote the visibility of the role to new candidate pools. Continuing to discuss and highlight gender diversity within our board and focus on internal succession planning to provide a clear line of sight to board positions. 23

24 8. Workforce Data 8.1 High Level Dashboards Data gathering has been vital to understanding the demographic make-up of our workforce, but also to monitor Diversity and Inclusion through our recruitment, retention and training. The figures below detail national demographics, drawn from Scottish Government data sources; and reportable information for Scottish Water taken in March Figure 1: Scottish National Demographics Figure 2: Scottish Water Demographics *PNTS= Prefer not to Say 24

25 8.2 Protected Characteristics Statistical Analysis Scottish Water holds data sourced from a blend of our employee information system and our all employee survey Your Voice. Both are statistically valid sources. References to current figures primarily refer to March 2017, although information sourced from the Your Voice survey is dated November There has been significant work completed with regards to data gathering, which allows us a fuller picture than before of all protected characteristics within Scottish Water. The following analysis considers each protected characteristic in more detail Gender Table 1: Gender Distribution Female Male Total March 2013 Total % 75.8% 100% March 2015 Total % 74.8% 100% March 2017 Total % 72.8% 100% The overall gender balance in Scottish Water is 27.2% female, 72.8% male. Whilst this does not reflect the Scottish population as a whole where 51% are female (Census 2011), the proportion of female employees in Scottish Water has slowly improved from 24% in 2013 to 27% in This is a general reflection of the utilities sector, which through traditional gender job stereotyping, has a legacy of a greater number of men in the workforce. This trend is slowly changing through positive recruitment initiatives that broaden the appeal of the sector to more women. We have an even gender balance within our support functions such as our call centre, finance and technology and information teams, however, a significant proportion of our operational delivery roles are characterised by a more mature male workforce. We have aimed to introduce a female workforce into these areas through our modern apprenticeship schemes and we continue to challenge cultural norms to make this a success. Figure 3: Workforce Distribution on Pay Band 25% Workforce Distribution by Pay Band 20% 15% 10% 5% Female Male 0% Figure 3 represents the distribution of female and male employees across the 8 Scottish Water pay bands. 25

26 It can be seen that Band E contains the single largest concentration of male employees, which reflects the high number of front line operational delivery roles in treatment, network maintenance and operations. Our greatest concentration of female employees is in Band C, albeit that the female workforce is more evenly distributed across the pay bands than men. The proportion of female and male managers broadly mirrors the gender demographic of the organisation as a whole. (F=1%, M= 3%; or 25%/75% of all management roles) Age Table 2: Age Distribution Age < March 2013 Total % March 2015 Total % March 2017 Total % Table 2 details the numbers of employees within each age category from 2013 to It can be seen that our greatest concentration of employees is within the age categories; and that we have a greater percentage of our workforce over 50 years old than under 30. Since 2013, the number of new employees recruited under the age of 30 has increased. (2013 n= 418, 2015 n= 425, 2017 n= 605). In 2016 we launched two new Scottish Water Skills Academies on water and waste water operations, focussed on educating new Modern Apprentice intake. Figure 4: Age by Gender Age/Gender Distribution 16% 14% 12% 10% 8% 6% 4% 2% 0% Female Male Figure 4 represents the distribution of employees age in relation to gender. It can be seen that our female workforce has a much smoother age curve, with the greatest concentration being within the age 26