GENDER PAY GAP REPORT MARCH 2018

Transcription

1 GENDER PAY GAP REPORT MARCH 2018

2 CEO S MESSAGE Welcome to the first Electrocomponents plc Gender Pay Gap report. We re committed to creating an inclusive and diverse place to work where everyone can deliver their best. This is key to innovation, growth and profitability and will help us to deliver the best customer and supplier experience. There are lots of opportunities for improvement with regard to diversity & inclusion. A number of initiatives have already been introduced and our focus will be ramped up in the years ahead. Although this is a report on the UK, our efforts to improve diversity and inclusion are global. The actions we take will focus beyond the UK. I personally look forward to sharing our progress in this critical area. Lindsley Ruth CEO 2

3 INTRODUCTION All companies with more than 250 employees are now required to publish their gender pay gap. Our report shows: 1. The gap between all men and all women in our organisation in terms of their base pay (hourly rate) and bonuses earned. 2. The percentage of male employees (out of all men employed) and women (out of all women employed) who have received a bonus. 3. We have also taken our whole workforce and split it into four equally sized groups based on base pay from high to low these are known as pay quartiles. We then show the proportion of men and women in each of the pay quartiles. The data in our report is from a snapshot as at 5 April

4 OUR DATA ALL EMPLOYEES IN THE UK (AT 5 APRIL 2017) GENDER SPLIT(%) FEMALE PAY GAP HOURLY RATE MEAN 29% MEDIAN 24% FEMALE BONUS PAY GAP MEDIAN 8% MEAN 52% Mean This is the average of all female salaries vs. the average of all male salaries. Mean numbers can be heavily impacted by salary outliers e.g. a few very highly paid or very low paid people can skew the data. Median This involves lining up all salaries in order from high to low and picking the middle number. This has the benefit of not being influenced by the very high or very low outliers. It s the statistic usually used when looking at external market pay data. *We have two legal entities in the UK, Electrocomponents and RS Components. This report focuses in detail on the combined picture which gives the most comprehensive view of our pay gap. As required by law we provide separate data for each legal entity later in the report. 4

5 OUR DATA ALL EMPLOYEES IN THE UK (AT 5 APRIL 2017) RECEIVING BONUS(%) PAY QUARTILES(%) 31 QUARTILE TOP Q Q2 39 BOTTOM QUARTILE More than two-thirds of our highest paid roles are filled by men (Top Quartile). At the other end of the organisation nearly two-thirds of our lowest paid roles (Bottom Quartile) are filled by women. 5

6 WHAT DOES OUR PAY GAP DATA TELL US? We have a good balance of men and women in our organisation. However, we do have a pay gap. Analysis of our data shows two factors that have a large impact on the pay gap: 1. The majority of employees in senior, higher paid roles are men. 2. Men have greater representation in functions such as IT which command high pay premiums in the external market, whilst women have greater representation in areas such as Customer Services which don t command high pay premiums. This is known as Occupational segregation and is a challenge for us. We have high levels of participation of both men and women in our bonus as all our permanent employees participate in incentive plans. We have systems and processes in place to manage equal pay across our business. We ensure that decisions around our annual performance, pay and incentive processes are managed in a fair way and do not treat individuals differently on the basis of gender. 6

7 WORKING TO REDUCE THE GAP We are going to focus on actions, rather than numbers. We believe these actions will create a more diverse and inclusive place to work and will reduce our gender pay gap over time. In 2017 we created a diversity and inclusion steering committee with representation from across the globe and with executive level sponsorship. The committee has developed an overall strategy and a key priority is gender diversity. Our initial work will focus on analysing data across our employee life cycle to best understand what s driving the overall gender pay gap. We will regularly report to our executive team on findings and action planning. Specific actions we are taking to address the two factors mentioned above are: We have interviewed a wide cohort of current female employees to understand the perceived barriers to the advancement of women We will be introducing initiatives to break down those barriers during 2018 We will be launching a gender network with a focus on development and career planning Our support for the STEM ambassador forum will continue We will continue our strong focus on recruiting and retaining women in senior and critical roles. 7

8 ACROSS OUR LEGAL ENTITIES As required by legislation Electrocomponents (2,224 employees) data is illustrated below. GENDER SPLIT(%) FEMALE PAY GAP HOURLY RATE MEAN 29% MEDIAN 23% FEMALE BONUS PAY GAP MEDIAN 4% MEAN 53% RECEIVING BONUS(%) PAY QUARTILES(%) 31 QUARTILE TOP Q Q2 41 BOTTOM QUARTILE

9 ACROSS OUR LEGAL ENTITIES As required by legislation RS Components (256 employees) data is illustrated below. GENDER SPLIT(%) FEMALE PAY GAP HOURLY RATE MEAN 30% MEDIAN 30% FEMALE BONUS PAY GAP MEDIAN -12% MEAN 37% RECEIVING BONUS(%) PAY QUARTILES(%) 25 QUARTILE TOP Q Q2 30 BOTTOM QUARTILE

10 I confirm the data reported is accurate. Lindsley Ruth CEO