Gender Pay Gap Reporting 2019

 

EXECUTIVE SUMMARY

As a progressive employer who believes equality is one of the key pillars of a successful business, we are again aiming to be one of the first to comply with the annual reporting requirements of the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017.

In our third year of reporting we are pleased to report a significant year on year closing of the gap in our:

  • mean gender pay gap, which started at 12.8% in year one, fell to 10.7% last year and this year down to 3.7%
  • median gender pay gap, which started at 11.1% in year one, fell to 5.3% last year and this year down to 4.5%
  • mean bonus gender pay gap, which started at 92% in year one, fell to 70.1% last year and this year down to -78.7%, where females faired much better than their male counterparts
  • median bonus gender pay gap, which started at 91.3% in year one, fell to 85.3% last year and this year down to -155.2%, where females faired much better than their male counterparts

A bonus payment was received by 10% of females compared to only 2% of males

The proportion of each gender in quartile pay bands were as follows:

QuartileLowerLower middleUpper middleUpper
Female20.3%2.9%2.9%15.9%
Male79.7%97.1%97.1%84.1%
  • Proportions within quartile are skewed as only 10% of the workforce are female, when looking at dispersion of each gender across the same pay quartiles shows that 40% (28% last year) of females employed are in the upper pay quartile compared with only 23% (25% last year) of males employed being in the upper pay quartile.

DECLARATION

I hereby confirm that the information provided in this report to be accurate.

John Cooper

CEO

2 August 2019

 

 

INTRODUCTION

Interfloor Limited is required by law to carry out Gender Pay Reporting under the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017.  Whilst reporting must be complete by end of March 2020, as a progressive employer who believes fairness in all we do is one of the core foundations to our business approach, we again have decided to report as quickly as possible after the relevant pay period has expired, which for Interfloor was 30 April 2019.

The requirement involves carrying out six calculations that show the difference between the average earnings of men and women in our organisation.  We can use these results to assess:

  • the levels of gender equality in our workplace
  • the balance of male and female employees at different levels
  • how effectively talent is being maximised and rewarded.

The challenge for Interfloor and across the UK is to eliminate any gender pay gap.

GENDER PAY GAP CALCULATIONS

1.  The Mean Gender Pay Gap

April 2017April 2018April 2019
12.8%⬇︎ 10.7%⬇︎ 3.7%

We have shown a significant year on year reduction of our mean gender pay gap.

Mean averages are useful because they place the same value on every number they use, giving a good ov↑erall indication of the gender pay gap, but very large or small pay rates can dominate and distort the answer.

Our analysis of comparable roles shows that we reward men and women fairly for similar work.  There are 2 key drivers behind the mean gender pay gap, the largest of those being shiftwork.  As a traditional manufacturing Company two thirds of our employees work shiftwork, 99% of whom are male, and who receive an additional allowance which is not related to their value to the business but is compensation for anti-social working hours. Any women working these shift work patterns would receive exactly the same remuneration.  Excluding shift working allowances from the calculation brings the mean gender pay gap significantly down to -6.3% meaning we on average pay our female employees better when we exclude anti-social working payments.  Whilst there is no occupational reason for male dominance in this role we have found it extremely difficult to attract females to manufacturing roles.

 

The second key driver reflects the lower representation of women at senior levels within the organisation and especially our difficulty in recruiting women in operations, technical and engineering disciplines. However, whilst just over 3 years ago we had 0% female representation in our Senior Management Team, we have recently increased this to 25%.

2. The Median Gender Pay Gap

April 2017April 2018April 2019
11.1%⬇︎ 5.3%⬇︎ 4.5%

Median averages are useful to indicate what the ‘typical’ situation is i.e. in the middle of an organisation and are not distorted by very large or small pay rates.

Once again shift working allowances were the key driver in the gap and excluding these anti-social working payments the gap was actually -11% (i.e. the middle paid female was paid more than the middle paid male).

3. The Mean Bonus Gender Pay Gap

April 2017April 2018April 2019
92.0%⬇︎ 70.1%⬇︎ -78.7%

Whilst this can be a good measure where bonus payments are common across an organisation, large or small bonus payments can dominate and distort the answer where such payments are not prevalent across the business. This is the case for Interfloor as bonus schemes are limited to Senior Management as well as UK and International Sales functions which make up only 9% of the workforce.

The bonus payments made during 2018/19 were limited to Sales personnel where payments are made against individual targets and during that year our female employees faired better than their male counterparts.

4. The Median Bonus Gender Pay Gap

April 2017April 2018April 2019
91.3%⬇︎ 85.3%⬇︎ -155.2%

The median bonus gender pay gap like the mean favoured our female employees this year, generally for the same reasons as the mean gap above.

5. The Proportion of Males & Females Receiving a Bonus Payment

 April 2017April 2018April 2019
Female2.9%⬆︎ 17.2%⬇︎ 10.3%
Male5.2%⬆︎ 6.4%⬇︎ 2.4%

As achievement of bonus payments is based on various business performance metrics, after a difficult trading year the number of employees receiving a bonus fell, although female employees still faired better than their male counterparts.

6. The Proportion of Males & Females in Each Quartile Pay Band

The proportion of each gender in quartile pay bands for April 2019 shows:

QuartileLowerLower middleUpper middleUpper
Female20.3%2.9%2.9%15.9%
Male79.7%97.1%97.1%84.1%

As female employees only account for 10% of the workforce this can be partially misleading, the dispersion of each gender across the same pay quartiles shows:

QuartileLowerLower middleUpper middleUpper
Female48.3%6.9%6.9%37.9%
Male22.2%27.0%27.4%23.4%

As outlined above, allowances paid entirely for anti-social working patterns and not related to the value of the role or person within the organisation skews our figures significantly, given the high proportion of shift workers and difficulties in recruiting females to these operations roles.  Excluding shift allowances the proportion of each gender in quartile pay bands is quite different:

QuartileLowerLower middleUpper middleUpper
Female15.9%1.4%5.7%18.8%
Male84.1%98.6%94.3%81.2%

And more interestingly the dispersion of each gender across the same pay quartiles excluding shift allowances shows:

QuartileLowerLower middleUpper middleUpper
Female37.9%3.5%13.8%44.8%
Male23.4%27.4%26.6%22.6%

 

 

ACTION PLAN

Recruitment & Retention

Unfortunately fewer women study and work in science, technology, engineering and maths [STEM] disciplines in the UK which form a large part of our organisation.  In the medium to longer terms our aim is to recruit/develop more female employees into our operations focused functions as well as our Senior Management Team, this process began in January 2016 with the appointment of our first female member of the Company Management Team in the role of Marketing Director and has continued in April 2019 with the appointment of our second female member of the Company Management Team in the role of Head of Procurement.

In order to achieve this aim we will continue to:

  • Support national activities from Government and education/training providers to encourage increases in female participation in STEM subjects.
  • Review our recruitment & retention strategies to ensure they focus on attracting female talent in key areas.
  • Continue to attempt to break down the stereotypical barriers and beliefs that traditional manufacturing should be a male dominant environment.

Pay Systems

In determining pay and reward for our employees we balance a number of factors, including the economic climate, company performance as well as external market for the  roles that we offer.  Whilst our reward systems have always ensured full compliance with equal pay, we continue to integrate gender pay gap considerations into future reviews of pay and reward.