Gender Pay Gap Reporting BENEFIT COSMETICS LTD

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1 Gender Pay Gap Reporting BENEFIT COSMETICS LTD

2 Gender Pay Gap Reporting In accordance with Government legislation, all employers with over 250 employees are required to publish Gender Pay Gap figures. The Government has done this because figures show on average, women are paid 9.1% less than men in the UK (ONS 2017). This has been attributed to a multitude of factors, however by Employers publishing their figures, the Government intends there to be greater transparency which in turn can increase the likelihood of change, which Benefit supports. So that our Customers and interested Parties however can fully understand and see the full picture behind these figures, we have prepared some short background information below. About us Female empowerment is a strong belief vital to our brand DNA; FEMALE GENERAL MANAGER 97% PROMOTIONS GOING TO WOMEN Bold is Beautiful; we work with the Charities Refuge and Look Good Feel Better each year through our global philanthropy project to further support women. ELLESVMH; as part of the LVMH Luxury Goods Group, EllesVMH is a Group wide program supporting the professional development of women in all positions and at every level of the organization through initiatives such as coaching and mentoring. At Benefit we have over 2,000 people representing our brand in the UK, and we are proud that 99% of them are women. The data our figures are based upon are for those employed solely on our contract and payroll however. This reduces the number of employees to around 375.

3 Our workforce 5% male 95% female 88% full time 13% part time 73% full time 27% part time STORE HEAD OFFICE/FIELD (NON-MANAGER) HEAD OFFICE/FIELD (MANAGER) 1% MALE 99% FEMALE 11% MALE 89% FEMALE 6% MALE 94% FEMALE

4 What is a Gender Pay Gap? A Gender Pay Gap is a way to measure the pay differences between men and women. It looks at an employee workforce as a whole, so it is important to note that this is not the same as unequal pay for a woman doing the same role as a male. Our figures MEAN GENDER PAY GAP; 20% This figures shows that on average across our workforce, the hourly rate for women was 20% less than it was for men. With only 16 men to base our figures upon, any unique payments to any such individual could significantly skew the results. One such payment was made - without this, the gap would have reduced to a mean of 16%. MEDIAN GENDER PAY GAP; 31% With a median figure, we essentially put all our employees in a line by gender in order of their hourly rate, and find the person right in the middle. This figure therefore places less emphasis on the highest and the lowest hourly rates. As a Retailer, a large proportion of our roles are shop floor based which tend to be paid at a lower level than across Head Office/Field Based roles. Out of the 207 in store, only three are men. If we were again to line up all our employees by order of their hourly rate, then break the line down into four equal sections, it would look like this;

5 Bonus MEAN BONUS GENDER PAY GAP; 27% MEDIAN BONUS GENDER PAY GAP; 11% As per the guidelines given, we have looked at the total bonus payments given to staff over a 12 month timeline, with each employee given the same weighting. Only 48% of women had a full 12 months worth of bonus payments, compared to 87% of men - largely due to higher turnover in store based roles, which women are more represented in. The difference in the proportion of males and females receiving a bonus payment however is very minimal; FEMALE MALE 11.6% DID NOT RECEIVE BONUS 88.2% RECEIVED BONUS 88.4% RECEIVED BONUS 11.8% DID NOT RECEIVE BONUS

6 Next steps Benefit remains committed to furthering the opportunity and encouragement to allow women to pursue whichever career path they wish. We recognise however that the UK wide gender pay gap is a result of many different factors, including some that are ingrained in societal norms and values. There will therefore not be an overnight change, however we plan to help move forward by following the below steps; FAMILY FRIENDLY POLICIES Flexible working hours are something we offer to our Head Office employees, and we are increasing the number of part time roles available at a senior level. We also offer a flexible benefits package so that those employees who are family focused can choose benefits that can support them. TALENT PIPELINE We currently run a Passport to Success development scheme to enable employees to progress from one level in the Business to the next. We also offer Apprenticeships and Graduate Schemes to further develop progression particularly for Head Office staff REWARD & RECOGNITION We have a stringent annual salary review that ensures all employees salaries are in line with their role and awarded fairly. I confirm the information above is correct and compiled in accordance with regulation. Andrea Lansbury HR Directory

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