Gender Pay Report as at 5 April 2017

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. The first year of reporting is based on data as at 5 April 2017. 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 448 and the total headcount including agency workers on the weekly payroll for Kent Limited is 667. The headcount for Commercial Services Trading Limited is 90 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 219 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

12.1%

-3.3%

median gender pay gap

-2.3%

-8.5%

mean bonus gender pay gap

-44.4%

-44.4%

median bonus gender pay gap

-5.4%

-5.4%

proportion of males and females receiving a bonus payment

32.8% vs 36.3%

25.7% vs 21.2%

proportion of males and females in lower quartile pay band

49.1% are male and 50.9% are female

69.6% are male and 30.3% are female

proportion of males and females in lower middle quartile pay band

55.7% are male and 44.3% are female

59.8% are male and 40.2% are female

proportion of males and females in upper middle quartile pay band

47.25% are male and 52.75% are female

56.25% are male and 43.75% are female

proportion of males and females in upper quartile pay band

53% are male and 47% are female

52.7% are male and 47.3% are female

Written statement

  1. The mean gender pay gap for the whole of Commercial Services Kent Limited is1% (rounded to one decimal place). Male mean hourly rate is £14.80; whereas female mean hourly rate is £13.01. This highlights that men have a mean hourly rate 12.1% higher than women. The difference in pay is heavily impacted by a low number of agency workers appointed in senior roles. The ratio of this level of appointment is 2 men to 1 woman and this has impacted on the mean hourly rates.
  2. The mean gender pay gap for permanent employees of Commercial Services Kent Limited is -3.3% (rounded to one decimal place). Male mean hourly rate is £13.33; whereas female mean hourly rate is £13.77. This highlights that men have a mean hourly rate 3.3% less than women.
  3. The median gender pay gap for the whole of Commercial Services Kent Limited is -2.3% (rounded to one decimal place). Male median hourly rate is £10.64; whereas female median hourly rate is £10.88. This indicates that men have a median hourly rate 2.3% less than women.
  4. The median gender pay gap for Commercial Services Kent Limited is -8.5% (rounded to one decimal place). Male median hourly rate is £10.37; whereas female median hourly rate is £11.25. This indicates that men have a median hourly rate 8.5% less than women.
  5. The mean bonus gender pay gap is -44.4%. The mean bonus pay of men in Kent Limited is £1291.27 and the mean bonus pay for women in Kent Limited is £1864.99. Women therefore have received a higher mean bonus payment than men by 44.4%.
  6. The median bonus gender pay gap is -5.4%. The median bonus pay of men in Kent Limited is £474.60 and the median bonus pay for women in Kent Limited is £500. Women therefore have received a higher median bonus payment than men by 5.4%.
  7. The proportion of males and females receiving a bonus payment indicates how much more likely one gender of employee is more likely to receive a bonus payment. Of 268 male relevant employees, 88 received a bonus, and of 190 female relevant employees, 69 received a bonus. This means 8% of men received a bonus and 36.3% of women received a bonus.
  8. As the agency workers do not receive bonuses, the proportion of males and females receiving a bonus payment across the whole of Commercial Services Kent Limited indicates that 7% men have received a bonus and 21.2% of women have received a bonus.
  9. There are 667 full-pay relevant employees in 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:
  10. Of the 167 employees in the lower quartile, 82 are male and 85 are female. This means 49.1% are male and 50.9% are female.
  11. Of the 167 employees in the lower middle quartile, 93 are male and 74 are female. This means 55.7% are male and 44.3% are female.
  12. Of the 167 employees in the upper middle quartile, 79 are male and 88 are female. This means 47.25% are male and 52.75% are female.
  13. Of the 166 employees in the upper quartile 88 are men and 78 are female. This means 53% are male and 47% are female.
  14. There are 448 full-pay relevant permanent employees in 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:
  15. Of the 112 employees in the lower quartile, 78 are male and 34 are female. This means 69.6% are male and 30.3% are female.
  16. Of the 112 employees in the lower middle quartile, 67 are male and 45 are female. This means 59.8% are male and 40.2% are female.
  17. Of the 112 employees in the upper middle quartile, 63 are male and 49 are female. This means 56.25% are male and 43.75% are female.
  18. Of the 112 employees in the upper quartile 59 are men and 53 are female. This means 52.7% are male and 47.3% 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 of their hourly or bonus pay. A significant proportion of the staff on national minimum wage are all male. Attendance at the Executive is made up of more females than males. The distribution of male and female members of the Executive has changed over the past two years, from female representation of just one member to six (compared to five men).

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. However, this is not the case for the median average hourly rate: where women are paid a higher median hourly rate than male staff. Considering the gender demographic across the quartiles for the whole of Commercial Services Kent Limited, the lower and upper middle quartiles have more women.

The current data trend highlights a reasonably even split with no more than a differential of 55.7% compared to 44.3% in the lower middle quartile. 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 has recently developed its practices for increasing the sophistication of recruitment and selection including the introduction of more 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.

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.