Gender Pay Report as at 5 April 2018

Introduction

The gender pay gap shows the difference between the average (mean and median) earnings of men and women. This is expressed as a percentage of men’s earnings. Nationally, the gender pay gap varies by occupation, age group and even working patterns.

New legislation is now effective whereby an employer must comply with the regulations for any year where they have a headcount of 250 or more employees on the snapshot date. The snapshot date for private and voluntary sector organisations is the 5 April. This report is based on data as at 5 April 2018. For the purposes of gender pay reporting, the definition of who counts as an employee is defined in the Equality Act 2010:

  • Employees (those with a contract of employment)
  • Workers and agency workers (those with a contract to do work or provide services)
  • Some self-employed people (where they have to personally perform the work)

Agency workers will form part of the headcount of the agency that provides them, and not the employer they are on assignment to. It is a requirement to calculate and publish separate reports based on each separate legal entity. The headcount for Commercial Services Kent Limited as at the snapshot date is 423 and the total headcount including agency workers on the weekly payroll for Commercial Services Kent Limited is 607. The headcount for Commercial Services Trading Limited is 125 (inclusive of agency workers) and therefore the only statutory report submitted is for Commercial Services Kent Limited.

It is noteworthy to highlight that there is limited control and influence over the pay rates of the 184 agency workers that are on the weekly payroll compared to the extent of control and influence Commercial Services has on its own employees. With this in mind, the proceeding narrative does differentiate between the Commercial Services Kent Limited total headcount (including agency workers) gender pay gap and the pay gap within the staff population excluding agency workers).

The gender pay reporting focuses on the following information:

The mean gender pay gap
(shows the difference between the mean hourly rate of pay that male and female full-pay relevant employees receive)
The median gender pay gap
(shows the difference between the median hourly rate of pay that male and female full-pay relevant employees receive)
The mean bonus gender pay gap
(shows the difference between the mean bonus pay that male and female relevant employees receive)
The median bonus gender pay gap
(shows the difference between the median bonus pay that male and female relevant employees receive)
The proportion of males and females receiving a bonus payment
(shows the proportion of male relevant employees who were paid any amount of bonus pay, and the proportion of female relevant employees who were paid any amount of bonus pay)
The proportion of males and females in each quartile pay band
(shows the proportions of male and female full-pay relevant employees in four quartile pay bands)
A written statement

Results

 

Commercial Services Kent Limited

Commercial Services Kent Limited (excluding agency workers)

mean gender pay gap

16.5%

9%

median gender pay gap

5.8%

3.2%

mean bonus gender pay gap

-25.3%

-25.3%

median bonus gender pay gap

2.5%

2.5%

proportion of males and females receiving a bonus payment

24.6% vs 18.2%

30.4% vs 30.8%

proportion of males and females in lower quartile pay band

48.4% are male and 51.6% are female

61.3% are male and 38.7% are female

proportion of males and females in lower middle quartile pay band

48% are male and 52% are female

47.2% are male and 52.8% are female

proportion of males and females in upper middle quartile pay band

48.3% are male and 51.7% are female

55.2% are male and 44.8% are female

proportion of males and females in upper quartile pay band

48.3% are male and 51.7% are female

61.3% are male and 38.7% are female

Written statement

  1. The mean gender pay gap for the whole of Commercial Services Kent Limited is 16.5% (rounded to one decimal place). Male mean hourly rate is £14.69 (down from £14.80 in the previous year); whereas female mean hourly rate is £12.27 (down from £13.01 in the previous year). This highlights that men have a mean hourly rate 16.5% higher than women. The difference in pay is heavily impacted by a low number of male agency workers appointed in senior roles.
  2. The mean gender pay gap for permanent employees of Commercial Services Kent Limited is 9% (rounded to one decimal place). Male mean hourly rate is £14.22; whereas female mean hourly rate is £12.94. This highlights that men have a mean hourly rate 9% more than women.
  3. The median gender pay gap for the whole of Commercial Services Kent Limited is 5.8% (rounded to one decimal place). Male median hourly rate is £10.88; whereas female median hourly rate is £10.25. This indicates that men have a median hourly rate 5.8% more than women.
  4. The median gender pay gap for permanent employees of Commercial Services Kent Limited is 3.2% (rounded to one decimal place). Male median hourly rate is £10.70; whereas female median hourly rate is £10.36. This indicates that men have a median hourly rate 3.2% more than women.
  5. The mean bonus gender pay gap is -25.3%. The mean bonus pay of men in Commercial Services Kent Limited is £1,147.29 and the mean bonus pay for women in Commercial Services Kent Limited is £1,437.15. Women therefore have received a higher mean bonus payment than men by 25.3%.
  6. The median bonus gender pay gap is 2.5%. The median bonus pay of men in Commercial Services Kent Limited is £471.82 and the median bonus pay for women in Commercial Services Kent Limited is £460.00. Men therefore have received a higher median bonus by 2.5%.
  7. The proportion of males and females receiving a bonus payment indicates how much more likely one gender of employee is to receive a bonus payment. In Commercial Services Kent Limited, men are more likely to receive a bonus payment. Of 293 male relevant employees, 72 received a bonus, and of 314 female relevant employees, 57 received a bonus. This means 24.6% of men received a bonus and 18.2% of women received a bonus.
  8. There are 607 full-pay relevant employees in Commercial Services Kent Limited including staff on both the permanent and agency payrolls. These have been arranged by lowest hourly rate of pay to the highest hourly rate of pay; and then the full list has been divided into four quartiles and ensured employees on the same hourly pay rate have been distributed evenly by gender where they cross the quartile boundaries:
    • Of the 153 employees in the lower quartile, 74 are male and 79 are female. This means 48.4% are male and 51.6% are female.
    • Of the 152 employees in the lower middle quartile, 73 are male and 79 are female. This means 48% are male and 52% are female.
    • Of the 151 employees in the upper middle quartile, 73 are male and 78 are female. This means 48.3% are male and 51.7% are female.
    • Of the 151 employees in the upper quartile 73 are men and 78 are female. This means 48.3% are male and 51.7% are female.
  9. There are 423 full-pay relevant permanent employees in Commercial Services Kent Limited. These have been arranged by lowest hourly rate of pay to the highest hourly rate of pay; and then the full list has been divided into four quartiles and ensured employees on the same hourly pay rate have been distributed evenly by gender where they cross the quartile boundaries:
    • Of the 106 employees in the lower quartile, 65 are male and 41 are female. This means 61.3% are male and 38.7% are female.
    • Of the 106 employees in the lower middle quartile, 50 are male and 56 are female. This means 47.2% are male and 52.8% are female.
    • Of the 105 employees in the upper middle quartile, 58 are male and 47 are female. This means 55.2% are male and 44.8% are female.
    • Of the 106 employees in the upper quartile 65 are men and 41 are female. This means 61.3% are male and 38.7% are female.

This gender pay report highlights that whilst fewer women are employed by Commercial Services Kent Limited on the non-agency payroll, they are not disadvantaged in terms bonus pay. The differential in mean hourly rate is £1.28 per hour in favour of male staff and the median differential is £0.34 in favour of male staff. A significant proportion of the staff on national minimum wage are male. Attendance at the Executive is made up of more females than males (6:4 respectively).

The differential of pay between men and women across the agency payroll indicates that where mean average hourly rates are concerned female staff are paid less than male staff. Considering the gender demographic across the quartiles for the permanent staff of Commercial Services Kent Limited, the lower middle quartile has more women.

The current data trend highlights a reasonably even split with no more than a small differential. Focus will be given on how to diversify the gender demographic across all quartiles to improve the representation further still of male and female staff.

Improving our gender pay balance

Commercial Services continues to enhance the sophistication of recruitment and selection; with the recruitment policy stipulating a robust shortlisting processes and the requirement to have a minimum of two panel members undertake a structured interview. The panel should be gender balanced. Managers have been made aware of unconscious bias in recruitment and selection decisions and only managers attending the training are permitted to interview candidates from 1 February 2018.

All candidates will now apply via an application form (instead of a CV) and part of application form (not passed to the hiring manager) includes equality monitoring which will be tracked and reported to enable more informed insights into any differences in the recruitment of male and female staff (and all protected characteristics as per the Equality Act 2010). Commercial Services will follow the principals of Disability Confident and Athena Swann from 1 February 2018 also.

The HR and Payroll teams have attended the Government Equalities Office series on improving gender balance and key actions have be incorporated into the HR strategic plan including a focus on flexible working and understanding talent management more widely. Practical activities include awareness sessions on managing a diverse workforce; and the inclusion of talent development management matters sessions as part of the management development programme.

Commercial Services Kent Limited is an employer where gender diversity and inclusion is positive. This information is shared with the Executive and Remuneration Committee to ensure continued parity is maintained. Whilst there are no formal recognition of Trade Unions, the information will also be communicated to UNISON and Unite; and directly to all staff.