Premier Oil Plc Gender Pay Gap Report 2018
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1 Contents Premier Oil Plc Gender Pay Gap Report Introduction 2.0 The requirements and calculation methodology 3.0 Results 4.0 What do the results mean? 5.0 What are we doing now?
2 1.0 Introduction The Company Premier Oil is a global organisation with offices in Europe, Asia and South America with 783 employees worldwide (as at 31 Dec 2017). Our business success is dependent on our ability to recruit, retain and motivate high quality, skilled employees and contractors throughout the Organisation and in all our locations. To this end, the Company has long been committed to the principle of equal opportunity and the maintenance of a fair and non-discriminatory work environment, with gender parity being but one element of a broader global culture of diversity and inclusivity. The Gender Pay Gap Reporting legislation only covers employees in the UK (258 staff), who represent 33% of the Company s global workforce. The UK Business Unit based in Aberdeen represents 55% of these employees, the Falkland Islands Business Unit in London 9% and the Corporate Head Office in London 36%. Premier supports this UK government initiative and in providing this report also welcomes the opportunity to provide further narrative around the context of our disclosures and importantly to commit to actions, both current and future, that should promote ongoing sustainable improvement, both within Premier and our contribution to the Oil and Gas industry at large. What is Gender Pay Gap? The Gender Pay Gap is the difference in pay between male and female employees within the company s UK workforce. The legislation requires the Company to publish a set of data based on certain statistical criteria (explained later in the report). The Gender Pay Gap is not Equal Pay, which is about a man and woman receiving equal pay for the same or similar job.
3 2.0 The requirements and calculation methodology Who are the calculations based on? The Regulations require all companies with 250 or more employees on the snapshot date of 05 April 2017 to publish details of their gender pay and bonus gap. The Company had 255 relevant employees on this date. However, employees on reduced pay such as sick pay or maternity leave do not count towards the statistical analysis. Therefore, only 248 employees were included in the calculations. What is included in the calculations? The pay calculations are based on all Pay received in the pay period of April This includes all forms of payment, excluding pay relating to redundancy / termination of employment, pay in lieu of leave or the value of benefits which are not in the form of cash. Salary Sacrifice Schemes are also excluded from Pay. The bonus pay calculations are based on all bonus pay received during the bonus pay period which is the 12 months prior to and ending with the snapshot date. This includes the Company s annual discretionary bonus scheme and long term incentive plans. Qualifying pay for share schemes, which all Premier employees participate in, is any vested award during the snapshot date. What are the calculations? There are two pay calculations which show the difference between a man and woman s hourly rate. The 'median' calculation looks at the mid-point difference and is therefore not affected by extreme values, whereas the 'mean' is an average calculation and includes all values. The mean percentage is based on the difference between the average hourly pay for men and women within the workforce. The median percentage represents the middle point of the workforce. If you organised all of the men and all of the women in order of pay, it would be the difference between the hourly pay rate for the middle woman compared to that of the middle man. The pay quartiles show the percentage of men and women in each group, which is an equal quarter of all employees. Each quartile contains 62 employees.
4 3.0 Results Women s Hourly Rate Bonus Pay 50% (mean) Women s bonus pay is:- 53% (median) 63% (mean) 74% (median) Pay Quartiles How many men and women are in each quarter of the employer s payroll The percentage of employees who received a bonus:- Men Women Upper Quartile 95% Men 5% Women Upper Middle Quartile 92% Men 8% Women Middle Quartile 66% Men 34% Women Quartile 32% Men 68% Women 94% 96%
5 4.0 What do the results mean? 71% of our UK employees are male 29% of our UK employees are female 11% of UK employees in technical roles are female It can be seen by the Pay Quartiles that whilst Premier has a significant Gender Pay Gap, this is largely skewed by the demographics, where the majority of individuals in the top two pay quartiles are men in the more senior professional level grades. The Oil and Gas Industry has traditionally been male dominated and this is reflected in our UK workforce where 71% of our employees are male and 29% are female. Overall, females are underrepresented at senior and professional levels within the UK organisation, specifically in technical disciplines. Where we have females at manager or professional levels this tends to be in non-technical / support areas such as Finance, Legal, HR and Supply Chain. It should be noted however that this experience is not common to all Premier Oil entities. For example, 56% of the Premier Oil Vietnam organisation are female and within that women represent 53% of the management grades. Our offshore workforce which represents 7% of our employees, is all male. These roles traditionally attract additional premiums due to the working environment and will have a higher hourly pay rate. Of our onshore technical roles which represent 36% of our workforce, only 11% of these roles are female. These disciplines include Subsurface, Drilling and Engineering. This is generally representative of the Oil and Gas Industry as a whole. The UK has the lowest proportion of female engineers in the European Union, less than one in ten engineering professionals is a woman (Perkins Review of Engineering Skills Nov 2013) To conclude, the challenge we face is gender parity, within our organisational structure, where we need to ensure stronger representation at the more senior professional levels going forward. This challenge has not been helped in recent years due to the difficulty in promoting such change in a retrenched market, with very little organisational turnover and few growth and development opportunities, as we have focused on cost reduction and balance sheet recovery. However, actions listed on the following page, both current and going forward are designed to enable positive change and sustainable improvement.
6 5.0 What are we doing now? What do we already have in place: A benefits package that is available to all employees of the Company. An Enhanced Maternity Policy designed to retain women in the workforce following Maternity Leave. A Flexible Working Policy available to all employees to allow them to manage work life balance and retain employees within the Company. Professional Development and Educational Assistance Support and reimbursement of the cost of a Professional Membership which is available to all employees. Supporting all employees and actively encouraging attendance at seminars, network and industry groups, examples include Society of Petroleum Engineers and Oil and Gas UK. Support for employees who are STEM ambassadors within the Aberdeen community In the UK Business Unit, access for all employees to our CORE Learning and Development programme, a set of soft skills training courses open to all employees. Subjects included in the programme for 2018 include Mentoring and Coaching, Effective Communication, Business Awareness and Negotiating Skills. Talent Management and Succession Planning have been completed for Managers and Senior Managers. This will continue in 2018 with the development of Individual Development Plans for employees. Supporting and working with Fircroft (our recruitment Managed Service Provider) as primary partner for their campaign Towards Gender Parity in Oil and Gas due to be initiated later in 2018.
7 5.0 What are we doing now? continued What are we currently working on:- 1 Reviewing Company Policies and Procedures to ensure that they are inclusive and promote equality and diversity within our workforce. 2 Training and support for our workforce on Equality and Diversity. This includes Equality Training provided by ACAS for HR and Senior Managers, workshops for all Managers and Team Leads and CBT based training for all employees and contingent workers. 3 Continuing to roll out our Talent Management Programme in These changes are sponsored by the Board and Executive Committee and as part of an active organisational engagement plan, we are confident will deliver positive incremental sustainable improvements, contributing to the future success of the Company. 4 Reviewing our Succession Planning to ensure that it is fully inclusive and supports the promotion of gender equality throughout the workforce. 5 Work with our Managed Service Provider to encourage greater diversity of applications as part of our recruitment processes. 6 As a result of our most recent Employee Engagement Survey (conducted in late 2017), development of an action plan, specifically in regard to the feedback on Equality, Diversity and Gender Bias within the organisation.
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