PUBLICATION DA 03 APRIL 2018

Transcription

1 TE PUBLICATION DA 03 APRIL 2018 G N I T R REPO R E D N E G R U O P A G Y PA

2 Introduction from Karen Boswell, Managing Director (Hitachi Rail Europe) and Chief Administration Officer (Hitachi Rail) Having joined Hitachi Rail as Managing Director in the UK in 2015, I have had the opportunity to take positive action on diversity and inclusion for our business. It s a topic dear to my own heart and, I am delighted to say, is at the centre of ideas and strategy for the wider Hitachi organisation. I m a true believer in the power that comes from bringing together team members with different backgrounds and outlooks. It spurs creativity, innovation and high performance, and women are a critical ingredient in this diversity mix. Moreover, there is now sufficient evidence to demonstrate the link between companies with more female executives and higher returns on equity, higher valuations, better stock performance and higher payouts of dividends. The publication of Hitachi Rail s gender pay report for the UK reflects the importance of diversity and inclusion to our own plans for business growth. Our sector is characterised by a predominance of male employees and, if we are to meet the demands of a modern railway, we must introduce people new to the industry from a multitude of backgrounds and possessing different skills. Equally importantly, greater diversity enables us to create the best, most innovative products and services for our customers and the wide cross-section of passengers they serve. Having calculated our gender pay report using the reporting regulations, Hitachi Rail in the UK is providing fair and equal pay for our people. We will continue to strive for our goals for a more diverse workforce and to ensure that our business and all our stakeholders share in the many benefits this will deliver. Karen Boswell OBE Managing Director (Hitachi Rail Europe) and Chief Administration Officer (Hitachi Rail) P1

3 Hitachi Rail in the UK What is the Gender Pay Gap? T he UK Government introduced The Equality Act 2010 (Gender Pay Gap Information) Regulations in April 2017 for companies with 250 or more employees. A gender pay gap is the difference between the average pay of a male employee and that of a female, averaged across the whole organisation. A gender pay gap may result from a variety of factors, for example having more men in senior positions who tend to be paid more because of their position. A gender pay gap does not necessarily indicate that an organisation is paying employees unfairly, as roles compared are not always like for like. Therefore, the gender pay gap calculation cannot be used to determine whether organisations do not pay men and women equally for the same type of work. Gender pay gap reporting is designed to reflect the underlying workforce demographics within an organisation. Six calculations are required to be reported; three based on pay and three based on bonus, calculated using the snapshot date of 5 April P2

4 Gender Pay Gap Reporting How Hitachi Rail in the UK fares Top Quartile Upper Middle Quartile 15.9% 16.0% 84.1% 84.0% Our workforce on 5 April 2017 comprised 236 women and 1,333 men, which equates to 15% of our workforce are female and 85% are male. This broadly reflects the average gender composition for our wider business sector. We are required to report the difference in mean and median pay between male and female employees. The mean is calculated by adding up the total amount of pay and dividing it by the number of individuals in the data set. The median represents the middle amount in the data set. Our calculations show that Hitachi Rail in the UK has a mean gender pay gap in hourly pay of 0.87% higher for women, and a median gender pay gap in hourly pay of 0.59% higher for women. Further analysis confirmed that a significant number of our executive or leadership roles are filled by women, with a predominance of males in more technical roles, which directly impacts the gender pay results. Lower Middle Quartile Lower Quartile Hitachi Rail s workforce overall in the UK is not evenly split between males and females. However, women are significantly represented in both the top and upper middle pay quartiles. The percentage male female split is maintained in these two quartiles, demonstrating the strong representation of females in senior positions as shown in the accompanying chart for our quartile percentages. Women s Bonus Pay Lower Mean 15.9% 12.5% 25% 9% Lower Median Of the total employee population, 27% of females and 18% of males recieved a bonus in the period in review. This figure is greatly impacted by the snapshot date required in reporting. The bonus figure in the previous 12 months to April 2017, is actually the bonus that was paid in June Due to the rapid growth in company employees during this period, many of the new employees who joined between April 2016 and 31 March 2017 would not have not been entitled to a bonus, and so are not included in the snapshot 5 April 2017 data. Females Receiving a Bonus 27% 84.1% 87.5% Women s Hourly Rate 1% Higher Mean 50% 1% Higher Median The predominance of males within the company impacts our comparison figures for bonus payments. The calculations indicate a difference in mean bonus payments of 25.44% lower for females, but at median the difference in bonus payments is 9.12% in favour of males. This is a direct result of the significantly higher overall number of males within the company. Males Receiving a Bonus 18% Additional analysis compared employees pay in comparable roles. The results confirmed that pay for males and females in similar positions is equal. P3

5 Diversity and Inclusion Our Continuing Commitment We recognise that diversity is a crucial component in successful organisations. Hitachi corporately acknowledges the value that women bring to the workforce and has implemented key initiatives to enhance gender diversity, which includes seeking to boost female representation in executive positions to 10% by 2020 (H. Nakahata, Hitachi Ltd., 28 November 2017; month/2017/11/171128a.html). In the past few years, Hitachi Europe (the corporate entity for the region) has also implemented two key grass roots programmes, Women of Hitachi (WoH) and Mentoring Circles, to help develop and grow the careers of women within the Company. WoH This scheme helps women across all functions and levels within Hitachi to develop their skills, find opportunities to advance, improve their personal impact at work, and informs those inside and outside of the organisation about the talent which exists within Hitachi. The programme hosts learning events, webinars and online discussions enabling employees to exchange experiences and ideas. The programme is open to all employees within Hitachi in Europe, with women and men encouraged to become involved. Hitachi s case for Workplace Diversity Diversity at Hitachi in Europe means we appreciate and value differences, seeking to achieve a mix of people that reflects society today. The benefits include: Increased Creativity Having employees from different backgrounds opens up a variety of perspectives and ideas. 15% gender-diverse companies are 15% more likely to outperform their peers. Staying Ahead of the Game Companies are working to promote diversity and inclusion. 55% of companies have policies which promote diversity strongly or very strongly. Wider Talent Pool When a company is viewed as diverse and inclusive, a wider pool of talent is attracted. 2/3 of people consider workplace diversity to be a major factor in choosing where to work. Stakeholder Support Stakeholder support is vital for a licence to operate, particulary where a company s workforce mirrors its local community and can therefore respond to local stakeholder concerns. 76% of EMEA companies focus on ethnicity and nationality as part of their diversity and inclusion programmes. Workplace Happiness Employees in a generationally diverse team are 10% happier then those who aren t. 10% of employees who worked within a generationally diverse team were 10% happier than those who worked with others of similiar age. Better Outcomes Research shows that diversity & inclusion lead to better business performance. x 2.3 higher cash flow. P4

6 Intent, Vision and Aim Framework We have set defined goals to achieve in the area of diversity and inclusion over the medium and long term. Our Intent, Vision and Aim framework is helping to shape and drive our objectives. A dedicated Steering Committee drives activities from a senior level, with a key focus on delivering diversity and inclusion Intent, Vision and Aim. The Committee has agreed the following strategic interventions to fulfil Hitachi s diversity and inclusion goals: Improving recruitment practices Workshops will be held to ensure that best practice is shared across Hitachi group companies. Addressing Unconscious Bias Employees and managers will be encouraged to participate in e-learning courses focusing on building an inclusive workplace. Ensuring policies are best practice D&I-related policies, including parental and caring leave, work-life balance and flexible working will be reviewed to ensure best practice. Employee survey Launched in 2010, the Hitachi employee survey enables our employees to share their honest opinions about working for our company. Employees are encouraged to share views on a wide range of categories including, empowerment, recognition and reward, opportunities for advancement and engagement. The responses steer the business to focus on areas for improvement. Intent Vision Aim Hitachi in Europe is recognised as a diverse and inclusive group of companies at all employee levels The increasingly diverse and complex global environment in which Hitachi operates requires inclusive leadership. Our leaders respect people s differences, effectively using their talents and skills, and enabling work-life balance and ensuring equal opportunities for all. Using Company relevant reporting, our goal is to demonstrate an increase in workforce diversity, including the number of women holding senior positions in Group companies. We aim to showcase the positive impact on our business. We will show continuous improvement in all business areas in attracting the best talent and delivering career development opportunities to Hitachi employees in Europe. For more information on Hitachi in Europe s commitment to diversity and inclusion please visit: P5

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