Chief Executive Statement

Transcription

1 Gender Pay Gap

2 Chief Executive Statement The provision of efficient and effective sustainable communities and transport infrastructure is vital to the UK s growth and economic prosperity. Our business activities are almost exclusively concentrated on delivering these infrastructure needs. The industry relies on skills that are becoming increasingly scarce, a situation exacerbated by an ageing and disproportionately male dominated workforce. Our business is a significant provider of these skills and expertise. We are committed to playing our part to attract all people from all backgrounds into what is a highly rewarding and creative industry. We want to fully reflect the people and communities in which we work, not just because it feels like the right thing to do but because gender balance and diversity are inextricably linked with highly performing businesses. One of our five core values is Openness and our Mission is Making you successful. Sharing our Gender Pay Gap data is vital to raise awareness, highlight the need for change and identify creative ways to make that change. Making You Successful applies to everyone, our customers, our people, our suppliers and our business partners. To do this consistently we must all strive to provide a safe and inclusive working environment for everyone, where they can succeed and reach their full potential regardless of their gender, religion, ethnicity or beliefs. An example where we are making a difference is our work on the Fairness, Inclusion and Respect (FIR) agenda. We have committed to senior board representation on the FIR Industry Steering Group, invested in Small Medium Enterprise (SME) supplier FIR workshops and have our own trained FIR Ambassadors. Our FIR Ambassadors are fully engaged in our Equality, Diversity and Inclusivity (EDI) Strategy Team with senior business directors to actively shape the future direction of our EDI strategy. We recognise that for a growing number of people, gender doesn t simply refer to male or female. For the purposes of this report gender pay gap is calculated using the approach required by regulations, which compares the pay of males and females. I can confirm that the data in this report is accurate and meets Government regulations. The current nature of the male dominated industry we work in is reflected in our own overall results and I recognise that, as an industry and as a business, we have a lot of work to do. Looking under the headline numbers I am encouraged that, for our people below the age of 40, the mean gender pay gap is 8.7%. This is significantly less than commonly quoted UK averages. In some of our business areas the gender pay gap is less than 4% and we will be looking at these areas of best practice and ascertaining how we can learn from these and make impactful gains elsewhere. Andy Steele 2 Geoffrey Osborne Ltd. Gender Pay Gap

3 Group People Director Statement We recognise the value of a diverse and inclusive workforce and place great importance on the value of teamwork. Diverse teams are more creative, agile and flexible. In our recent Engagement Survey our people told us that they valued working in teams highly and that this was one of the key reasons that they enjoy working at Osborne. We continue to work hard to encourage more women into careers in construction; from engagement in the early school years through trade apprenticeships, university sponsorships and midcareer transfers. We have a good record of flexible working and remain determined to identify innovative approaches to support our employees in caring for their children, the elderly and dependant family members. We have also broadened our recruitment searches outside of our immediate industry sector and use gender neutral job adverts and seek to build a balanced shortlist of candidates. In addition our hiring managers have a programme of training to help eliminate unconscious bias and recognise the importance of a balanced and fair selection process. There is much more to do but I am pleased to say we have increased the number of females across our business by 35% in the last year. It is also very encouraging that in the under 40 years of age category we have no gender mean pay gap across our Supervisory & Technical, Core Management and Senior Management Job Families. The Fairness Inclusion and Respect (FIR) activity is essential; as we attract new diverse talent into the industry these individuals must experience a safe and welcoming environment where they are able to reach their full career potential. In addition this year a Leading People Inclusively Programme is in development providing further valuable learning materials. Our overall results on page 5 are reported in accordance with stated Government requirements in relation to the number of employees, and therefore are for Geoffrey Osborne Limited business activities only. Whilst we collect and analyse the data related to other Osborne businesses, these are not included in the published figures because the number of employees is under the specified threshold. We are committed to a diverse workforce at all levels and I believe we have made good progress, some of which is highlighted in this report. As an industry and as a company there is clearly far more work to be done. I am confident we are heading in the right direction and I look forward to reporting further on our own progress. Sarah Taylor Geoffrey Osborne Ltd. Gender Pay Gap 3

4 What is the Gender Pay Gap? How are the median and mean gaps calculated? A gender pay gap is a measure of the difference in the average pay of men and women regardless of the nature of their work across the same organisation, business sector, industry or the economy as a whole. It can be driven by the different number of men and women across all roles. It is important to note that it is different from an equal pay comparison, which is direct comparison of two people or groups of people carrying out the same, similar or equivalent work. One of the main reasons for the gender pay gap in our society is that men are more likely to be in senior roles. This is a particular issue in the construction and engineering industries which have traditionally been a male dominated environment. We use pay data from all our employees and apply the calculations set out in the gender pay gap reporting regulations. The pay data covers all roles and a wide variety of pay rates. To calculate the median gender pay gap, first we separate male and female employees and look at the salary of each person. If there were 999 male employees the median male salary would be the salary of the 500th highest paid male employee. The median female salary would be calculated in a similar way. So, if there were 499 female employees the median would be the salary of the 250th highest paid female. The median gender pay gap is the difference in pay between the median female employee and the median male employee. Median male avarage pay Median female avarage pay The median gap is the difference between these two figures Pay quartiles: nn Lower nn Lower middle nn Upper middle nn Upper The mean gender pay gap shows the difference in average hourly pay between men and women. These median and mean calculations are also used to compare bonus pay over a twelve month period. We also report the proportion of men and women awarded any bonus pay over that period. Pay Quartiles = ( ) Mean male avarage pay = ( ) Mean female avarage pay The report shows the percentage of men and women in each pay quartile. Quartiles are calculated by listing the rates of pay for each employee from lowest to highest. The list is split into four equalsized groups and the percentage of males and females in each group is reported. Pay That is Included Divided by total number of men Divided by total number of women The mean gap is the difference between these two figures Calculations are based on data from 5th April 2017, which includes normal pay and bonuses. Normal pay can include pay for leave and shift premiums. It excludes overtime, redundancy/termination of employment, pay in lieu of leave or the value of non-monetary benefits. Bonus pay includes profit sharing, productivity or performance related pay. 4 Geoffrey Osborne Ltd. Gender Pay Gap

5 At a Glance Our Figures Results Pay quartiles Proportion of male and female employees to quartile pay bands 100% 90% 80% 92% 90% 82% Males Females Pay Gap Hourly Rate 70% 60% 50% 52% 48% Mean Median 36.0% 34.2% 40% 30% 20% 10% 8% 10% 18% Bonus Pay Gap Hourly Rate 0% Top Upper Middle Lower Middle Lower Proportion who received bonus Mean Median 80.2% 75.8% 8.4% 5% Geoffrey Osborne Ltd. Gender Pay Gap 5

6 Understanding the picture under 40 To improve our understanding of the progress we have made we collated the data for our people under 40 years of age (38% of our workforce). In this segment our gender pay gap progress is particularly encouraging. The overall pay gap is less than half the quoted UK averages at 8.7%. We also categorise our individual business roles into five job families. In our under 40 collation we are delighted that in three job families (Supervisory & Technical, Core Management and Senior Management) there is no Gender Pay Gap whatsoever. Pay Hourly Rate Bonus Hourly Rate Female Positive Gap Mean 8.7% Median 17.0% 0 Mean 17.6% Median 0% Male Positive Gap Whilst recognising our business demographic the analysis of our under 40 years of age data is helping us understand how our early careers, searches, recruitment, selection and development programmes are impacting. It is particularly pleasing that for female colleagues in bonus earning related roles the data is evidencing that there is no gender pay gap. In fact our under 40 mean data illustrates that we have reversed the bonus gender pay gap in favour of females and median data implying no bonus gender pay gap. Female Positive Gap 0 Male Positive Gap This is about a People Strategy that is inspiring for our people and excellent for our Business. John Dowsett, Board Sponsor for EDI This gives us continued confidence that our people strategies are and will continue to impact and progressively improve our gender pay gap results. We recognise we need to continue to work hard and be more creative in identifying ways to grow and develop our female workforce, as we do with people from a much wider and diverse breadth of backgrounds and experiences. 6 Geoffrey Osborne Ltd. Gender Pay Gap

7 Understanding our Gap (The detail behind the data) Our 2017 pay gap at 36% (Mean) is above the generally quoted national averages for all organisations in the UK. The construction industry has historically been significantly male dominated and our own mix at senior levels in our business reflects this industry demographic. The data shows that 21% of our workforce is female and our wider analysis shows that the proportion of females generally decreases through the higher pay quartiles. Higher paid senior roles are typically held by males who typically have longer company service or longer careers and fall into an older demographic. Wider construction Industry figures indicate only 11% of the construction industry s workforce is female. The industry collectively must do much more with government, schools and advisors to promote the rewarding careers construction and engineering can offer. We have made determined efforts to attract a growing number of females into our business. Since April 2017 (the stated reporting point) we have increased the number of our female workforce by 35%. The actions we have implemented have enabled us to double our proportion of female colleagues in comparison to the overall construction industry-wide statistics. This is evidenced in our data for those under 40 years of age, where our mean gender pay gap is five times less than our over 40 group. There are clearly no quick wins to closing the gender pay gap. It remains essential that we continue to attract and grow the proportion of female colleagues and place greater focus on supporting and developing our most talented females so they can compete successfully for our most senior roles. The required actions are not about special treatment for under-represented groups; it is about fundamentally creating a workplace with an inclusive culture that values diversity in every sense. Distribution by Job Family Executive Management Senior Management Core Management Supervisory & Technical Operational Support Females Males Our analysis also tells us that the underrepresentation of females across the higher paid roles and the impact of male dominance in senior roles are the main drivers for our gender pay gap. John Dowsett, Board Sponsor for EDI 40% 20% 0 20% 40% Geoffrey Osborne Ltd. Gender Pay Gap 7

8 Making a Difference We know that our gender pay gap is driven by the structure of our workforce and the concentration of males in more senior positions, rather than our pay structure which is gender neutral by design. This has helped us to focus our efforts on attracting and recruiting more females, providing the best environment to retain them within our workforce and to progress our female talent into the most senior roles within the business. We have to create a wider talent pool from which we can encourage people into the industry. This aligns with our Osborne culture, a culture underpinned by supporting and growing our people to generate a sustainable business with a lasting legacy. John Dowsett, Board Sponsor for EDI 8 Geoffrey Osborne Ltd. Gender Pay Gap

9 Inspiring Change In the majority of job role families in our under 40 age category there is no mean gender pay gap in Osborne. We simply need to encourage more young women to enter this challenging and rewarding industry. I am confident in organisations like Osborne there will always be opportunity to progress into ever more demanding and senior business roles regardless of your gender. In my own experience being female has not limited my opportunities to develop and take on leadership roles and new challenges. I have also been supported and encouraged to take on wider roles and responsibilities. Simone Wyatt Programme Commercial Manager We are working hard to create environments that provide a safe and rewarding workplace for all. That way everyone has equal opportunities to prosper and fulfil their career potential. I volunteered to train as a Fairness Inclusion and Respect (FIR) Ambassador so that, with my FIR colleagues, we can help build a welcoming and inclusive working environment for everyone. Ben Wilcox - Development Manager and FIR Ambassador I was mid-career, and to balance family commitments I was working in very different vocations and industries. What really appealed to me is that Osborne placed great emphasis on the cultural fit of the individual with their business culture. I felt valued, that my life skills were recognised and they were prepared to invest time and energy in coaching and re-training new skills that I and the business needed. I feel creating opportunities to progress a new career for people who may have had to prioritise family care will inspire many more life experienced women to build careers in our industry. Sally Jones Marketing and Communications Co-ordinator Geoffrey Osborne Ltd. Gender Pay Gap 9

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