ERIKS UK 2017 GENDER PAY GAP REPORT NEXT

Transcription

1 ERIKS UK 2017 GENDER PAY GAP REPORT NEXT

2 ERIKS 2017 GENDER PAY GAP REPORT ERIKS UK & Ireland is required by law to publish an aual gender pay gap report. This is our report for the snapshot date of 5th April Regulations state the calculations required should compare the pay of males and females in the UK part of our business only. However it is important to understand what is the Gender Pay gap. The gender pay gap is a measure of the difference in the average pay for men and women across an organisation regardless of their roles. If we compare specific job roles, the gender pay gap is significantly reduced (see page 5) and it is something we will work towards minimising further by ensuring we recruit and retain the best talent for the role. We are also encouraged to see that our gender pay gap compares favourably with our peers in this industry and expect to see it narrow over the coming years. Dey Wood ERIKS UK & Ireland HR Director. It is important to recognise that this is not the same as an equal pay review as this would require direct comparison between males and females carrying out the same or similar role. Although ERIKS UK & Ireland are confident that we have equal pay for work of equal value, we do have a gender pay gap when you compare overall average pay and bonuses for men and women. This gap is created in part by the distribution of men and women across the organisation which is reflective of the industry in which we operate. This is further compounded by the make up of applicants available to employ. When you take in to account that only 15% of engineering graduates are women, achieving gender neutrality across an organisation of our size is challenging. Within ERIKS UK & Ireland, the gender split is: 18 % Female 82 % Male 2

3 UNDERSTANDING GENDER PAY GAP CALCULATIONS To comply with regulations we are required to use the pay data for our calculations of all 1708 UK employees only, covering all roles and the associated varying rates of pay. This data is then split under the requirements to show and highlight any gaps between gender. For clarification, the following definitions may be useful to support our data when referring to mean and median gaps and pay quartiles. Median - this is the middle value in the list of hourly pay values for each gender, when listed lowest to highest. Pay s this is the percentage of men and women in each pay quartile. Average hourly rates of pay are listed for each employee from lowest to highest, then split into four-equal sized groups and then calculating the percentage of males and females. Mean - In order to calculate mean pay, we have added up all the average hourly rates of base pay for males and then divided the total by the number of males employed. The same calculation is then done for the female population to provide us with gap details between the 2 figures. GENDER PAY GAP ACROSS ALL ERIKS EMPLOYEES IN THE UK MEAN MEDIAN % **UK % ERIKS UK % **UK % ERIKS UK PAY QUARTILES ACROSS UK EMPLOYEES AT 5 APRIL 2017 When colleagues are placed into four equal sized quartiles based on hourly pay, the gender distribution is shown to the right. Lower Lower Middle Upper Middle Upper % % % % % % % 8.90 % ** Based on estimates from ASHE survey

4 ERIKS UK & IRELAND RESULT 2017 STATUTORY DISCLOSURE DIFFERENCE BETWEEN INCENTIVES PAID TO MEN AND WOMEN PROPORTION OF MALE EMPLOYEES RECEIVING AN INCENTIVE PROPORTION OF FEMALE EMPLOYEES RECEIVING AN INCENTIVE All ERIKS employees in the UK at 5 April % % % % **No incentive received **61.05 % **65.11 % COMPARISON OF MALES/FEMALES RECEIVING AN INCENTIVE MEDIAN MEAN There are more male employees holding operational and sales functions. These roles traditionally carried an incentive plan % Female There are more women than men on our lower paid roles, but fewer in higher paid ones. This has a significant impact on our gender pay gap. During 2017, the One ERIKS scheme was introduced that ensures that all roles are eligible to receive a bonus payment. All ERIKS employees in the UK at 5 April % Male 4

5 WHAT ARE THE UNDERLYING CAUSES OF ERIKS UK & IRELAND PAY GAP? Under the law, men and women must receive equal pay for: the same or broadly similar work; work rated as equivalent under a job evaluation scheme; or work of equal value ERIKS UK & Ireland is committed to the principle of equal opportunities and equal treatment for all employees, regardless of sex, race, religion or belief, age, marriage or civil partnership, pregnancy/maternity, sexual orientation, gender reassignment or disability. We have a clear policy of paying employees equally for the same or equivalent work, regardless of their sex (or any other characteristic set out above). As such, the Company: Audits pay and benefits at regular intervals; Coaches management regarding equal pay for all managers and other staff members who are involved in pay reviews; and Evaluates job roles and pay grades as necessary to ensure a fair structure using Hay Grading 1 Womens Engineering Society (WES); 2017 survey indicates 11% of the engineering workforce is female 2 WES statistics; 15.1% of engineering undergraduates in the UK are women compared to 30% in India 3 Office for National Statistics; The Aual Survey of Hours and Earnings: 2017 provisional and 2016 revised results ERIKS UK & Ireland is therefore confident that our gender pay gap does not stem from paying men and women differently for the same or equivalent work. Rather its gender pay gap is the result of the ratio of men to women in roles across the organisation and the salaries that these roles attract. This is further exacerbated in our organisation given it is based on engineering products and services that naturally attracts more males than females. In fact our statistics outperform the engineering sector as a whole where, for example 11% of the workforce are women; at ERIKS over 18% of our workforce are women 1. Across the UK economy as a whole, men are more likely than women to be in senior roles (especially very senior roles at the top of organisations), while women are more likely than men to be in front-line or administrative support roles at the lower end of the pay scales. In addition, men are more likely to be in technical and engineering related roles, which attract higher rates of pay than other roles at similar levels ROLE SPECIFIC MEAN GENDER PAY GAP 3.40 % INSIDE SALES UK NATIONAL GENDER PAY GAP % 1.89 % EXTERNAL SALES FUNCTIONS SERVICE CENTRE MANAGERS 0% 5% 10% 15% 20% 3 Based on estimates from ASHE survey % of seniority. And although we strive to employ in a gender neutral way, with only 15% 2 of undergraduates in the UK being female, it will take a while to reduce this imbalance. Women are also more likely than men to have had breaks from work that have affected their career progression, for example to bring up children. Legislative changes and best practice may remedy this area in the future. They are also more likely to work part time, and many of the jobs that are available across the UK on a part-time basis are relatively low paid. It is noted however, that the hourly rate for part time workers should be the same rate for full time employees if carrying out the same duties. The structure of the UK economy as a whole is reflected in the make-up of the ERIKS UK & Ireland workforce, where the majority of administrative support roles are women, while the majority of line manager and senior manager roles are held by men 3. When looking at average pay rates by specific job functions within ERIKS UK and Ireland, the differential is significantly reduced. You can see a sample of generic roles from across divisions shown by the mean gender pay gap between males and females in the table which indicates our performance in a more realistic light. So although on first appearance ERIKS UK and Ireland has a gender pay gap, it is not out of alignment with the engineering industry in general and is favourable when reviewing many of our roles. We will, of course, continue to work to minimise this situation as much as we can and rest assured we strive to pay equal rates to men and woman for equal work. 5

6 ERIKS Industrial Services, all rights reserved. ERIKS UK & Ireland Amber Way, Halesowen, West Midlands, B62 8WG EB241/