Gender Pay Gap Report 2017
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1 Gender Pay Gap Report 2017 The world leader in serving science 1
2 Foreword This Report contains Thermo Fisher Scientific s statutory disclosure of the gender pay gap for our businesses within the UK. All companies with 250 or more are now required to publish their gender pay gap under new legislation that came into force in April At Thermo Fisher Scien- T hermo Fisher Scientific Inc. (NYSE: TMO) is the world leader in serving science, with revenues of more than $20 billion and approximately 70,000 globally. Our mission is to enable our customers to make the world healthier, cleaner and safer. We help our customers accelerate life sciences research, solve complex analytical challenges, improve patient diagnostics, deliver medicines to market and increase laboratory productivity. Through our premier brands we offer an unmatched combination of innovative technologies, purchasing convenience and com- UK Employees Gender Split 3285 tific, we welcome and support gender prehensive services. pay gap reporting, as we have long been committed to equal opportunities. This Report provides both the statutory disclosures required of Thermo Fisher Scientific, as well as further context around our pay practices. In order for us to fulfil our Mission, it is imperative that our have opportunities to learn, grow and influence our company culture. We appreciate the diversity of our workforce, knowing that varied backgrounds, lifestyles and perspectives will lead to innovative thinking. And we work hard to promote an environment where all feel We confirm that our gender pay gap calculations are accurate and meet the requirements of the methodology set out in The Equality Act 2010 (Gender Pay Gap information) Regulations Signed: Katy Preston Senior Regional HR Director On behalf of Thermo Fisher Scientific valued and included. 59% 41% 2
3 What is the gender pay gap? Under the UK Government s new Gender Pay Gap regulation¹, companies with more than 250 in Great Britain are required to report their gender pay gap for all legal entities in the country. The UK Government regulations have four key requirements: 1 Reporting the differences in mean and median pay between men and women calculated on the basis of equivalent hourly pay rates Mean 12.6 Median Reporting the differences in mean and median bonus pay between men and women Mean 44.9 Median Reporting the distribution of men and women between pay band quartiles, calculated using the range of hourly pay rates Female Male 46% Lower Quartile 54% Lower Middle Quartile 39% 61% Upper Middle Quartile 42% 58% Upper Quartile 38% 62% 4 Reporting the proportion of men and women receiving bonus pay in a year Male 91% Female 91% ¹ Further information on the UK Gender Pay Gap reporting requirements can be accessed from the following link: 3
4 Summary for Thermo Fisher Scientific Thermo Fisher Scientific employs over 3000 people across six different legal entities covered by the regulations within the United Kingdom. Thermo Fisher Scientific is, therefore, required to publish data for six separate business entities. Detailed below are the aggregate results for those six entities, with the full breakdown for each applicable business entity. Thermo Fisher Business Entities with over 250 Employees No. of relevant In each entity of male & female in each business entity Mean Hourly pay difference between male and female (%) Median Hourly pay difference between male and female (%) female male in lower quartile pay band female male in lower middle quartile pay band female male in upper middle quartile pay band female male in upper quartile pay band Mean Difference in bonus payment between female & male (%) Median Difference in bonus payment between female and male (%) of female male receiving bonus pay Life Technologies Ltd Fisher Clinical Services Ltd Fisher Scientific UK Ltd Thermo Electron Manufacturing Ltd % / 55% % / 54% 50% / 50% 45% / 55% 41% / 59% % / 92% % / 62% % / 69% 29% / 71% 43% / 57% 50% / 50% % / 93% % / 52% % / 45% 47% / 53% 54% / 46% 37% / 63% % / 83% % / 69% % / 47% 23% / 77% 26% / 74% 21% / 79% % / 97% Oxoid Ltd % / 54% % / 53% 45% / 55% 50% / 50% 43% / 57% % / 92% Patheon UK Ltd % / 68% % / 51% 31% / 69% 24% / 76% 24% / 76% % / 92% Total Across 6 entities % / 59% % / 54% 39% / 61% 42% / 58% 38% / 62% % / 91% 4
5 Closing the Gap Our ambition is to close the gap. To achieve this, we are committed to delivering a wide range of initiatives to improve how we attract, engage and develop women in our workplace. Thermo Fisher Scientific are also committed to a pay-for-performance culture, ensuring we reward our according to their contribution to our business. At Thermo Fisher Scientific, our mission is to enable our customers to make our world healthier, cleaner and safer, and everything we do is grounded in our company values of Integrity, Intensity, Innovation and Involvement. These values guide our interactions with our customers and with our colleagues, creating a culture where diverse perspectives are not only accepted, but are fully encouraged. Our 70,000 colleagues are empowered to make a difference, so that we can all fulfill our potential and our own career aspirations. Employee involvement, nurturing professional growth and fostering an environment where everyone feels included and valued are key to our success. 9.5% We recognise the need to continually take steps to close this gap. This is embodied in our corporate commitment to Diversity and Inclusion. The primary issues we need to tackle to address our gender pay gap are: 1 2 The median gender pay gap across the UK Thermo Fisher Scientific group companies measured for the purposes of calculating our gender pay gap. We need to increase the proportion of women in leadership roles, and We need to take measures to increase the ratio of women in some higher paying technical roles. Understanding the pay gap Whilst both equal pay and the gender gap deal with any difference in pay women receive in the workplace, they are two different issues. Gender pay gap This is a measure of the difference between men s and women s average earnings across an organisation or the labour market. It is expressed as a percentage of men s earnings. In Britain, in 2017 there was an overall gender pay gap of 18.4%, according to publications from the Office for National Statistics. Equal Pay Means that men and women in the same employment performing equal work must receive equal pay, as set out in the Equality Act Thermo Fisher Scientific is committed to this standard as part of its overall commitment to equality and fairness in employment. 5
6 D iversity and Inclusion (D&I) at Thermo Fisher Scientific is integral to our company s growth strategy and aligns with our company values. For our, D&I means creating a global environment that embraces and leverages the unique qualities and differences of every individual employee. As part of our D&I activities, we run successful Women s Employee Resource Group (ERGs) that are committed to making Thermo Fisher Scientific one of the world's most admired companies by fostering the advancement of women and building a company culture in which female colleagues are recruited, valued, developed, retained and promoted globally. We have 45 Women s ERGs around the world and, within the UK, we have two chapters. The UK Women s ERG activities include organizing a range of events, such as discussion groups with European Site Leaders, roundtables with company leadership, and one off career development events. More recently, the UK ERG arranged an event to celebrate the UN s International Day of Women and Girls in Science. A panel of two female leaders and two female STEM (science, technology, engineering and maths) Ambassadors from our company were invited to share their own careers in science with over 50 schoolgirls studying science. Additionally, as part of our D&I activity in the UK, all leaders and people managers across six sites Horsham, Paisley, Basingstoke, East Grinstead, Altrincham and Hemel Hempstead, undertook Valuing Diversity & Inclusion at Thermo Fisher training, designed to establish a shared understanding, common definition and language regarding diversity and inclusion. Other HR Benefits We are committed to ensuring our female colleagues get the best support possible through a range of competitive HR benefits. We offer a generous enhanced maternity pay scheme to enable female colleagues to take the time they need with their new family before returning to work. In addition to this, we also offer all colleagues the opportunity for flexible work arrangements, which helps balance the needs of working lives with personal lives. 6
7 Professional Development 2017 Over the past 2½ years, 48 high potential women globally at the Director/Senior Director level were taken though a 10 month leadership development programme, "Efficacy: Ignite the Leader in You", designed to increase the number of women at the Vice President level. To date, more than 25 of the participants, including two in the UK, have since been promoted from either Director to Senior Director, or from Senior Director to Vice President. Our Graduate Leadership Development Program provides a unique opportunity for highly talented individuals who possess an MBA. This year, 50% of our European Graduate Leadership Development programme participants were women, and of the 37% hired from the UK, 33% were women. In 2017, women accounted for 45% of all UK participants on our Developing Emerging Leaders programme, aimed at supporting the transition of our high-potential female colleagues into leadership positions. We are committed to the development of all colleagues. To support this, we offer a range of educational and practical courses for all levels of colleagues within our business. Igniting an early passion for STEM Nurturing the next generation Thermo Fisher Scientific operates within the science industry, a sector that relies on the expertise and experience of highly skilled workers from STEM (science, technology, engineering and maths) fields. Just 21% of the Core STEM workforce in the UK are women. Using our colleagues, products and expertise, we have engaged thousands of students through our unique STEM Education Programmes. We offer paid timeoff to colleagues taking part in STEM activities. Around twothirds of the company s STEM Ambassadors in the UK are women, working to inspire the future generation of young women pursuing careers in science. 7
8 In Conclusion Becoming a Most Admired Company As part of our 2030 Vision, we aspire to become One of the World s Most Admired Companies. This requires a constant commitment to ensuring our colleagues feel their voices are heard, that they know they are valued, and they are proud to work at Thermo Fisher. We are always striving to improve, but are very proud of our encouragement, engagement and promotion of women in our workplace. This was recently recognised when Thermo Fisher Scientific was awarded the global accolade by the Women s Choice Award body as of one of the We are committed to empowering colleagues to focus on their professional and personal growth to foster an environment where everyone feels included and valued and there is equal opportunity to develop a successful career. Our publicly stated focus for 2018 is to: Continue shaping our culture, behavior and mind set by promoting diversity of thought and involving colleagues at all levels, disciplines and demographics Strengthen education and awareness by embedding key Diversity and Inclusion concepts and principles into talent development offerings Expand the influence and contribution of our employee resource groups Best Companies to Work For 8
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