What is the gender pay gap?

Transcription

1 March

2 is the UK s leading cancer support charity giving personal care and support to thousands of people with cancer every day. We are here to help people make sense of their diagnosis, guide them through treatment and provide support on every aspect of life, including; health, money, work and family. We believe all employees should be able to make a difference to people with cancer by succeeding in their roles and accessing opportunities equally. To be there for everyone with cancer who needs us, we must attract, develop and reward a diverse workforce, and create an inclusive environment. Gender pay reporting helps us to achieve this goal. Ultimately, it provides us with the insight we need to make Macmillan a great place to work. What is the gender pay gap? Beth, Personal Assistant The gender pay gap shows the difference in average earnings between women and men across the organisation. Gender pay is not the same as equal pay. Equal Pay deals with the pay differences between men and women who carry out the same jobs or work of equal value. 2

3 What is our gender pay gap? The Government now requires all organisations with more than 250 employees to publish their gender pay gap. We are legally required to publish the figures below on both our own website and a government website. 1. Our mean gender pay gap is 10.3%. This is the average if we add up all salaries and divide that figure by the number of employees. It shows us that, on average, the hourly rate men receive is 10.3% higher than the rate women receive. This is lower than the national mean of 17.4%. 2. Our median gender pay gap is 9.9%. This is the difference if we line up all the salaries and take the middle point. This is nearly half the national median of 18.4%.1 3. Our mean bonus gender gap is 0% 4. Our median bonus gender pay is 0% 5. Our proportion of men receiving a bonus payment is 3.19% and women is 2.25% Bonus payments are not a significant aspect of our overall approach to pay. However, we do recognise exceptional work through our Recognition Award Scheme. Our Recognition Award is a one-off, fixed-amount payment which is open to all employees at all levels. 1.Mean gender pay gap 2.Median gender pay gap 3. Mean bonus gender pay gap 0% 4. Median bonus gender pay gap 0% 5. Proportion of men and women receiving a bonus 3.19% 0% 0% 2.25% National average % 17.4% 9.9% 18.4% 1 ONS Annual Survey for Hours and Earnings, April 2017 Men Women 3

4 6. Our proportion of males and females in each pay quartile, as explained opposite. As part of the reporting process, we are required to divide all of our employees into four equal quarters referred to as quartiles based on salary amounts. When we analyse our pay gap by quartile, we can see that the percentage of women paid in the upper quartile (ie, those with the higher salary roles) steadily decreases from 79.5% to 67.4%. The percentage for men in that quartile increases from 20.5% to 32.6%. In total, 75% of employees at Macmillan are women. 6. Our proportion of males and females in each pay quartile 20.5% 79.5% Lower Quartile 22.6% 77.4% Lower Middle Quartile 23.5% 76.5% Upper Middle Quartile 32.6% 67.4% Upper Quartiles Anna, IT Trainer 4

5 What does our gender pay gap tell us? Macmillan has good representation of women in leadership roles. More than half our senior leaders, including our CEO Lynda Thomas, are women. However, with a higher percentage of women in the lower quartile than the higher quartile of pay, we recognise that there is still work to be done at senior levels across the organisation. Our analysis has shown that the most significant factor in our gender pay gap is that, having benchmarked all our roles externally, some skill sets are paid at a higher salary due to external market pressures. In line with other organisations, we have a disproportionate number of men in technical roles that demand a higher market rate, for example in IT. Many of these higher salary roles are also based in London where we have to pay higher rates to remain competitive within the market. If we exclude salaries in London, our gender pay gap drops to less than 1%. I m proud of the many great examples showing how women have progressed their careers at Macmillan. I moved forward in my career thanks to Macmillan s commitment to flexible working while I balanced work and family life. But we do have a gender pay gap of 9.9% and, whilst it is lower than the national average, I want us to do better. Our action plan sets out a clear path of change; we will be working hard to close our gender pay gap and create a positive and supportive work place with equal opportunity for all. Lynda Thomas, CEO Joanna, HR Adviser What does this mean? These factors mean that although more of our employees are women, men are more likely to work in higher paid roles. This helps to explain why the average hourly rate is higher for men than it is for women at Macmillan. 5

6 How will we reduce our gender pay gap? While our average gender pay gap is lower than the national average, we believe that any gender pay gap is unacceptable and there is more that we can do. We are committed to reducing the gender pay gap and, as such, we pledge to take the following three actions: We will attract and recruit We will maintain and develop robust and fair policies, including those around pay more women into technical and senior roles We will provide equal development opportunities for all Macmillan is proud to offer a comprehensive set of family-friendly policies which support all our employees to balance their work and life commitments in a way that they choose. We will continue to promote and improve these policies. They currently cover: enhanced shared parental leave, enhanced maternity and adoption pay, flexible working, home and mobile working, and leave, including parental and carers leave. To ensure salaries are fair and consistent we benchmark and evaluate the pay attached to roles both externally and internally using independent data. By focusing on the role and not the person in this way, it supports us to avoid gender bias when agreeing pay with new or promoted employees. We will review and monitor pay by gender within each pay level to promote consistency, and all our employees who are eligible will receive the same percentage level of annual salary increase from We are also proud to be a recognised Living Wage Employer. We will continue to review how we attract applications from a wider group of people. We will look for ways to attract more women to apply for roles in areas where they are underrepresented. For example, we recently ran a recruitment campaign for senior roles to attract underrepresented candidates to our IT department. Our managers with responsibility for recruitment complete training to support them to select fairly, and to understand the benefit of recruiting people with a diverse mix of experience and backgrounds. We will continue to improve and review our recruitment practices so that we can attract a broad range of people across all our roles. We will also expand our graduate programme and launch an apprenticeship scheme to specifically target groups of people who are underrepresented at Macmillan. By attracting talent into Macmillan early, we can nurture and grow our people through effective career planning, while continuously improving our diversity as an organisation. We will design and launch a new approach to developing and promoting our most talented staff, and continue to broaden our learning and development offer to support all our employees to reach their potential. This will include tailored development programmes to support women to progress into the technical and senior roles where they are currently underrepresented. With the appointment of our new Equality, Diversity and Inclusion (EDI) Officer, we will continue to deliver against our EDI strategy. This work will include creating a new EDI policy, offering specialist training for our people, and supporting our recruitment teams to focus specifically on Macmillan s areas of underrepresentation, including women. 6

7 How did we compile this gender pay gap report? Our gender pay gap report was created in accordance with government guidelines and with support from a third-party provider. Please be aware of the following points: The report uses a data snapshot taken on 5 April The total population as at the snapshot date was 1,840. The current analysis is based on 1,771 relevant employees. 69 individuals were excluded, as they were either casual workers where it was not possible to calculate an hourly rate of pay, or employees who were not in receipt of their normal pay, due to reasons such as being on maternity leave. The data does not include volunteers or Macmillan professionals such as nurses, who are not employed by Macmillan, but partners such as the NHS. Macmillan operates throughout the United Kingdom and has pay schemes that reflect national requirements, as well as additional market pressures in London and in specific areas of the organisation. People Leadership team 7

8 You may have cancer, but you are still you. Macmillan is here to help you live life no matter what. We ll give you the support you need to hold on to who you are and what s important to you. From the moment you re diagnosed, for as long as you need us, you can lean on Macmillan. Call us free on or visit macmillan.org.uk Life with cancer is still life we ll help you live it., registered charity in England and Wales (261017), Scotland (SC039907) and the Isle of Man (604).