GENDER PAY GAP REPORT 2017

Transcription

1 GENDER PAY GAP REPORT 2017 APRIL APRIL 2017 RESULTS MARCH

2 The Background Gender Pay and Equal Pay Clarksons Understanding Our Pay Gap Taking Action Clarksons and WISTA Contents 03 The Background 05 Gender Pay and Equal Pay 06 Clarksons 10 Understanding Our Pay Gap 11 Taking Action 13 Clarksons and WISTA John Beckwith Director, Human Resources I confirm that the figures in our disclosure are accurate and have been calculated in ccordance with gender pay gap reporting requirements as outlined in the legislation and accompanying guidance. 2

3 The Background Gender Pay and Equal Pay Clarksons Understanding Our Pay Gap Taking Action Clarksons and WISTA The Background In 2016, the Government finalised a new set of regulations which require companies with more than 250 UK employees to analyse and publish their gender pay gap on an annual basis. With over 450 employees in the UK, H. Clarkson and Company Limited is covered by these new requirements and we are happy to support this important piece of legislation. Under the legislation, we are required to report annually on: Differences in mean and median pay between all male and female employees; Differences in mean and median bonus pay between all male and female employees; Proportion of men and women receiving a bonus; and Distribution of men and women between pay band quartiles. 3

4 The Background Gender Pay and Equal Pay Clarksons Understanding Our Pay Gap Taking Action Clarksons and WISTA A few points to note: All analysis must be based on a snapshot of our employees and pay practice on the 5th April each year and must be published within 12 months of this date. The analysis is based on hourly rates of pay so we have looked at employment contracts and working arrangements to ensure that we are comparing like with like. The bonus analysis is based on payments received in the 12 months leading up to the snapshot date of 5th April. As bonuses are paid with respect to the year to December, there are individuals (e.g. joiners after 1 January 2017) who were not eligible for a bonus. In addition to publishing our report on our website we are also required to submit our pay gap numbers to a government website which anyone can access to look at the data for individual organisations or by particular sectors. You can access this site through the following link service.gov.uk/viewing/ search-results 4

5 Gender Pay and Equal Pay It should be remembered that gender pay gap is not the same as equal pay. Under the UK s equal pay regulations, it has been unlawful for many years to differentiate pay for work of equal value based on a job holder s gender. The gender pay gap regulations are very different and look at average pay comparisons by gender across the entire UK workforce. 5

6 Clarksons Our analysis is based on the employees in H. Clarkson and Company Limited, our qualifying entity under the gender pay gap regulations. Our employees Hourly Pay Gap Bonus Pay Gap The following data provides the Mean and Median gender pay gaps in accordance with the gender pay gap regulations. The information on the right shows our overall mean and median gender pay gap based on hourly rates of pay on the snap-shot date of 5th April It also shows the mean and median bonus pay gaps based on all bonuses received in the 12 months leading up to the 5th April % 27 % Gender Ratio 36 % 64 % Median (Middle) Median (Middle) Mean (Average) = 35% Mean (Average) = 82% 6

7 How is the gender pay gap calculated? Hourly Pay Gap is calculated by taking the pay at the snapshot date, 5th April 2017, for each employee and dividing by the number of hours worked. Median Hourly Pay Gap is calculated by listing the hourly pay for male and female employees in order and taking the middle hourly pay of each gender. Each median is then compared to calculate the percentage as detailed on page 6. Mean Hourly Pay Gap is calculated by taking the sum of all the hourly pay amounts of each gender divided by the number of employees in each category. A positive percentage in the table above indicates the male mean hourly pay being greater than the female mean, a negative percentage when the female hourly pay is greater than the male. Bonus Pay Gap is calculated by taking the total bonus received by each employee in the 12 months leading up to the 5th April The mean and median Bonus Pay Gap percentage is calculated using the same method as for the Hourly Pay Gap. 7

8 Proportion of employees receiving a bonus. The following charts show the proportion of employees receiving a bonus during the 12 months preceding the snapshot date of 5th April 2017 both for eligible employees and all employees employed at this date. Proportion of all employees receiving a bonus Proportion of eligible employees receiving a bonus Male = 90% Female = 86% Male = 96% Female = 96% When looking at those employees who were eligible to receive a bonus (i.e. joined prior to the end of the qualifying period, 31st December 2016, or were not on notice), the same proportion of male and female employees received bonuses. For both groups of eligible employees, the proportion who received a bonus was 96%. 8

9 Clarksons Quartile Gender Split To calculate the gender split within the pay quartiles, all hourly pay rates are listed from low to high and the list is then divided into four groups with an equal number of employees in each. The gender split in the resulting four groups is then analysed % 88.4 % 58.4 % 41.6 % 63.4 % 36.6 % 19.5 % 11.6 % Lower Quartile of hourly pay Lower Middle Quartile of hourly pay Upper Middle Quartile of hourly pay Upper Quartile of hourly pay 9

10 Understanding Our Pay Gap At Clarksons, people are our business and we pride ourselves on the level of diversity and cultural richness of our workforce. It was therefore important for us that we did further analysis of the data presented in this report to ensure we have an in-depth understanding of our own context. Our pay gap is a reflection of the make-up of our workforce. Two things which are apparent in the quartile analysis are the comparatively small number of women in our business and the comparatively small number of women at higher levels in our business. When looking at areas within the business where there is greater female representation in the pool of candidates to choose from, the median hourly pay gap drops to 16%, which is lower than the national median hourly pay gap of 18%. Our mean hourly pay gap drops to 14%. The low numbers of women in the Upper Quartile, where the average length of service is 13 years, has had a large impact on the overall results. When analysing the Lower and Lower Middle quartiles where there are higher numbers of women as a proportion of the workforce, the hourly pay gap drops to 2%. ONS analysis of employment by sector % 27% 80% 20% 58% 42% Men and woman shown as a % of total Clarksons Transport and Storage UK Private Sector These challenges are not unique to our business; they are common within our sector. The talent pool that we recruit from is overwhelmingly made up of men and our workforce reflects this, as women only represent around 27% of our employee base. Whilst this number is well below the national gender mix for the private sector, it is well above the average for our own sector. Our analysis shows that this number has increased over the past 10 years (21% in 2007, 25% in 2012 and 27% in 2017) and continues to increase. 10

11 Taking action Our analysis has highlighted that we are subject to the same challenges as the wider sector in regard to attracting, recruiting and retaining women. Although we have delivered a more positive average gender split in our employee base than the sector as a whole, we recognise that this is not good enough. As a leader in our industry, we intend to take further action to help address the gender imbalance throughout our organisation. We recognise that there is no immediate fix. It will not be possible to deliver a more balanced workforce overnight. We expect that it will take a number of years before we start to see the impact of decisions we make today. The quality of our people has always been a differentiating factor for us in the market and we will not compromise on the intent to continue bringing in and developing the very best people and putting them into a role and an environment where they can thrive and perform. Our focus will instead be on the following activities to help deliver more of a gender balance in our workforce whilst ensuring our ongoing focus on quality and excellence. 11

12 The Background Gender Pay and Equal Pay Clarksons Understanding Our Pay Gap Taking Action Clarksons and WISTA Ensuring that the benefits of working in the shipping sector, and for Clarksons in particular, are clear and are made increasingly accessible by: Targeting a broader range of recruitment events, not just those traditionally associated with the shipping/maritime sectors. By extending our recruiting activities, utilising social media and advertising in places that are reached by both men and women, we will help more people understand our organisation. Using female role models to promote opportunities within Clarksons. We have many women who are influential figures within our business and our sector due to their accomplishments. Their success stories serve as a powerful recruitment message about what can be achieved. We will ensure that our role models are actively involved in hosting seminars, speaking at careers events and offering advice in order to inspire other women to pursue a career in our organisation. More representation of women, in recruitment marketing and on our careers website. Including a diversity statement in advertised vacancies, that emphasises our stance on creating a diverse workplace (i.e. comprising antidiscrimination and equal opportunity employment policy). 12

13 Clarksons and WISTA We are delighted to confirm that we work with WISTA. (Women s International Shipping and Trading Association Our collaborative relationship with WISTA means that we host events and implement recruitment initiatives in order to encourage more women to grow and develop their careers in our sector. Closing the gender pay gap and ensuring that we (and the wider sector) have more of a gender balanced and representative workforce is going to take time but we are committed to the journey and willing participants in the gender reporting regulations. We will continue to invest and spend time and effort in ensuring our organisation continues to thrive moving forward and ensuring that we continue to deliver an outstanding experience to our clients and our employees. 13