GENDER PAY GAP REPORT

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1 2017 GENDER PAY GAP REPORT

2 About this report In April 2017 new regulations came into force in the UK which require all companies who employ over 250 people to disclose their gender pay and bonus gap as at 5 April Mace acknowledges that there is a discrepancy between men and women s average remuneration in the UK and hopes that by collecting and reporting this data, Mace will accelerate its progress in creating a truly diverse workforce. In the construction sector in particular, there is a long-standing lack of women in the industry. For those women who are employed in construction they are, more often than not, in non-delivery or non-client facing roles and often in more junior positions. This means that across construction a significant pay and bonus gap exists between men and women. Mace acknowledges that whatever the historic reasons for the gender pay gap, our current position is not good enough and needs to improve. Therefore, in addition to the data we are legally required to provide, this report sets out in detail what Mace is doing to address the imbalance between the genders and to recruit more women into an industry that is varied, challenging and rewarding. Definitions Gender pay gap shows the difference in average earnings for men and average earnings for women across the whole of an organisation. It is expressed in terms of a comparison between men s and women s average hourly rates of pay. Unequal pay means that individual men and women must get the same pay for doing equal work. The right to equal pay has been an individual contractual right under UK law since the 1970s. 2

3 What s it like to work at Mace? At Mace we empower our people to be collaborative, curious and embrace their entrepreneurial spirits. We aim to attract the best and brightest people, whatever their background, to bring new perspectives to some of the most challenging and inspiring projects around the world. You might be part of our healthcare team delivering critical hospital care units, or our education team creating schools to inspire future leaders. You could be a graduate working on the world s tallest building, or be managing the construction of world-leading cultural landmarks. Whatever your passion, we have an opportunity that will bring out the best in you. Watch a day in the life with Abigail Hills, one of our Associate Directors in Construction, to find out more... 3

4 Chief Executive s overview Mace is absolutely committed to equal pay and providing fulfilling and enriching careers for our people regardless of gender, religion, sexual orientation, disability or any other protected characteristic. We recognise that our people bring a better perspective to the most complex challenges with passion, dedication and a commitment to go the extra mile. We continue to work on some of the world s most iconic projects and programmes which help communities to thrive and prosper. We understand that it is the diversity of our people and their experiences that allow us to solve our clients challenges and better understand the issues facing the communities where we work. Although nearly a third of Mace are women, the majority of these roles are more junior in nature, which has resulted in a 2017 mean gender pay gap of 37% and mean bonus gap of 53%. Despite historical issues in our industry, we fully accept that this is simply not good enough. In 2013 we undertook a review to look into gender diversity at Mace. This included a review of recruitment, salaries, promotions, exit trends and a review of our engagement survey feedback. In response we launched our Gender Diversity Programme with input from in Science and Engineering (WISE) and Everywoman Network. The programme helps women fulfil their maximum potential by providing networking and development opportunities, mentoring, training and support to make them well placed for career progression. Since 2016 we have also been running a schools outreach programme called Foundations for your Future, which reaches out to school children before they have formed their perceptions of the construction industry, with the aim of improving the diversity of our applicants. We also introduced Mace Manager training to ensure that all recruitment, promotions and reward decisions are fair and reviewed. Efforts have just started to have some positive impact. We have seen the number of women at senior grade (associate director and above) rise, the number of female industrial placements rose from 15% to 45% in 2017 and the number of women on our Graduate Development Programme now stands at 38%. Despite some positive signs we continue to not have enough women at senior grades within our organisation, which is why we will redouble our efforts to promote diversity in its widest sense. I will also be contacting all of our UK to ask for their views on what more we can do to recruit and promote a more diverse range of people. We need to continue our efforts to address the impacts of historical attitudes and approaches. To that end, our newly launched 2022 business strategy, which sets out our approach over the next five years, is underpinned by a strong focus on creating an inclusive environment that recognises everyone s abilities. I hope that as gender pay results are released across our industry, they will act as a catalyst for rapid change. I am proud to have colleagues who are committed to working with me to improve Mace and change our industry for the better. Mark Reynolds Chief Executive 4

5 At a glance GENDER PROFILE BY GRADE As at 5 April 2017 Director Operations Director Associate Director ,984 UK 30 % of our UK are women Senior Manager Manager Assistant Manager 37 % 53 % Assistant mean gender pay gap mean bonus gap Administrator = % Female = % Male 38 % of Graduate Development Programme are women 48 % of women received a bonus 5

6 Closing the gap Carol Hosey, Group People Director At Mace we know that our people are our best asset and need to reflect the diversity of our clients and communities where we work. Diversity is also fundamental to our values and a central part of acting with integrity, doing the right thing and creating opportunities for our people to excel. Having a diverse workforce also gives us a better perspective on our clients challenges. There is a vast amount of research that shows that employing people with a wide range of backgrounds, experiences and characteristics makes businesses more successful. We are working to make it the norm to talk about diversity at senior levels within our industry and are starting to see the difference our approach is making. now account for almost a third of Mace s total workforce as at April 2017, significantly above the industry average of 13%. This is a year-on-year increase in the number of female graduates, rising to 38% in 2017 with women accounting for 27% of all promotions that year. Since 2013 we have started to grow the pipeline of future senior women within Mace. But it is clear from the data that we still have some way to go. After joining the company at the end of 2017, I will be bringing my experience from outside of construction to look at what more can be done. Our findings Before we look at our gender pay statistics, I think it is worth remembering the difference between unequal pay and the gender pay gap. Unequal pay means that men and women in the same roles are not paid the same, whereas gender pay gap looks at the average earnings between men and women. Based on the Government s standard methodology, our mean gender pay gap for 2017 is 37% which is significantly above the national average of 9%, and our mean bonus gap for 2017 was 53%, with 48% of women receiving bonuses. This data reflects the need to recruit more women into senior roles within our business to diversify our thinking. In a large part, the reason behind this is that construction is historically a male dominated industry. However this cannot account for all of the gap. I joined the Mace Graduate Development Programme in 2013 and got to work on some really exciting projects. After four years learning and developing in the UK, I moved over to work for Mace in North America where I ve been working on projects for the Foreign and Commonwealth Office at the British Embassy in Washington DC. Whoever you are, whatever you do, if you have the ambition, the opportunities are here for the taking. Unjulee Karadia, Project Manager Consultancy North America 6

7 At school I was told that construction wasn t for women which was like a red rag to a bull and set me on course for the career I ve had with Mace. I joined the graduate scheme in 1997 with a degree in civil engineering and spent the first seven years delivering projects across the UK. In 2004 I moved to Asia and then Russia. Over the last 20 years I ve had such a varied career. I ve run MSecure, Mace s specialist global secure fit-out business, and held responsibility for the company s business in Western Europe. Right now I m seconded to the Royal Household, at Buckingham Palace, as the Programme Director to lead the PMO running the 10- year reservicing programme. It looks like I might just have proved my careers adviser wrong! Barbara Welch, Programme Director Other factors including the time it can take for people to develop and subsequently be promoted, unconscious bias and appointing in one s own image are other likely influencers. Gender pay reporting across our industry and British business will encourage further efforts to address this imbalance and will remind everyone within our sector of the need to do more. Closing the gap As part of our Gender Diversity Programme and other outreach initiatives we are making a concerted effort across Mace to increase the diversity of our workforce, and in particular the number of women we employ and the number of women in more senior roles. Recruitment, promotion and performance Our approach Our first priority has been to increase the number of women working at Mace. After the 2013 review we introduced a more rigorous recruitment, promotion and performance measurement process. Foundations for your Future Part of the problem our industry faces is the perception people have and a lack of awareness of the wide variety of roles available. This is why in 2016 we launched Foundations for your Future which promotes our industry in schools, colleges and universities, with a particular focus on engaging girls schools. Returners In 2016 we launched a returner programme in conjunction with the Institute of Civil Engineers to encourage women back into work who have taken career breaks. Support, training and development of the Future programme We signed up to the WISE 10 steps for sustaining the pipeline of female talent in science, technology, engineering and manufacturing and joined the Everywoman Network to develop a bespoke internal programme, Mace of the Future. This programme targets our top female talent and aims to enable participants to fulfil their potential. So far over 100 have taken part in the programme and over a third of those participating have since been promoted. Executive Development Framework Our Executive Development Framework aims to build our pipeline of future leaders. Our two development programmes, with the worldrenowned Imperial College, for middle management and senior leaders, and our Programme Management of the Future course with Cranfield University have led to more women being promoted to more senior grades and developing the wider skills to progress through the organisation. 7

8 Manager development In partnership with Mind Gym we run Mace Manager, a targeted range of courses for all with line management responsibilities. This programme is run globally and supports line managers to lead, inspire and develop their teams by creating a high performing and inclusive environment. What next? To really make a step change in our approach to inclusion and diversity at Mace we will be asking all of our UK for what more we can do, which will then feed into a new inclusion strategy. We recognise that to provide a better perspective to our clients, we need to have a diverse workforce who can solve the most complex challenges in our industry. We will also be working with each of our business unit directors to help them better understand diversity in their part of the business and support them as they recruit a workforce with a wider range of backgrounds and experiences. Unconscious bias training In 2017 we trialled unconscious bias training in areas across the business. This training has helped leaders reflect on their own perceptions and how these perceptions can influence behaviours. By 2022 Mace has pledged to roll this training out to all. Recruitment We understand that we need to go further to increase the number of senior women within our business. This is why we will ensure bias and gender free language is used in all of our job adverts and recruitment documents. We will also be including a statement of support for diverse applications in all recruitment adverts. The recruitment agencies we use to fill senior roles will be required to put forward a diverse range of candidates, who will then be interviewed by a diverse interview panel. Support at work Our of the Future programme has been a positive step forward for the business, with over 100 women taking part so far. We will continue to review this programme to make improvements in how it operates and its effectiveness. People with a senior sponsor within a business can often progress higher and faster within an organisation and is part of succession planning. To support this we will set up a sponsorship programme for those identified as being potential future leaders of our business. Parents can face challenges with having to balance the demands of work and their home lives. We will introduce a parents network to support each other and work to improve Mace s provisions for working parents. I joined Mace in 2001 and I ve always been encouraged to take every opportunity that s come my way. From graduate to director, project management at Heathrow Terminal 5 to programme management for major energy companies, Mace has supported me to take time out to help raise my family. In 2015 I was the first male to take three months of paternity leave at Mace which allowed my wife to return to work, and I was able to spend invaluable time with my daughter. It didn t raise any eyebrows and, in fact, I was promoted less than a year after I returned. I m lucky that at Mace, everyone can have a family/work balance regardless of your gender and it doesn t impact your career aspirations. James Merrett Director of Advisory Services 8

9 Mace Group (which includes subsidiaries) statutory disclosure As at 5 April 2017 PROPORTION OF EMPLOYEES IN EACH OVERALL PAY GAP % Mean 36.8 % Median 44.6 BONUS GAP % Mean 52.7 % Median 42.1 % Males receiving bonus 51.2 % Females receiving bonus 48.0 UPPER LOWER MIDDLE 6 % UPPER MIDDLE LOWER 15 % PROPORTION OF MALES AND FEMALES RECEIVING A BONUS PAYMENT 36 % 52 % 48% 51% of female received a bonus of male received a bonus (Pay Band) Female Male Total Lower Lower Middle Upper Middle Upper Total 804 2,180 2,984 9

10 Mace Ltd statutory disclosure As at 5 April 2017 PROPORTION OF EMPLOYEES IN EACH OVERALL PAY GAP % Mean 34.5 % Median 39.9 BONUS GAP % Mean 49.1 % Median 33.3 % Males receiving bonus 51.2 % Females receiving bonus 50.2 UPPER LOWER MIDDLE 7 % UPPER MIDDLE LOWER 11 % PROPORTION OF MALES AND FEMALES RECEIVING A BONUS PAYMENT 31 % 48 % 50% 51% of female received a bonus of male received a bonus (Pay Band) Female Male Total Lower Lower Middle Upper Middle Upper Total ,669 10

11 Mace Macro statutory disclosure As at 5 April 2017 Mace Macro is a separate legal entity which employs more than 250 people, hence we are legally required to disclose their data separately. OVERALL PAY GAP % Mean 23.6 % Median 10.3 PROPORTION OF EMPLOYEES IN EACH UPPER 32 % UPPER MIDDLE 53 % BONUS GAP % Mean 57.3 % Median 37.5 % Males receiving bonus 51.2 % Females receiving bonus 39.5 PROPORTION OF MALES AND FEMALES RECEIVING A BONUS PAYMENT LOWER MIDDLE 57 % LOWER 58 % 40% 51% of female received a bonus of male received a bonus (Pay Band) Female Male Total Lower Lower Middle Upper Middle Upper Total

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