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Gender Pay Gap Report

Introduction

In 2016, the UK government announced a requirement for all private and voluntary sector companies with 250 or more employees to publish their Gender Pay Gap on an annual basis.

What is the Gender Pay Gap?

The Gender Pay Gap is calculated as the difference between average hourly earnings (excluding overtime) of men and women as a proportion of average hourly earnings (excluding overtime) of men’s earnings.

Headlam’s Gender Pay Gap

Overview:

  Mean Pay Gap Median Pay Gap
2019    
Headlam Overall 9.1% 10.8%
National Average   17.3%
2018    
Headlam Overall 11.4% 10.1%
National Average   18.4%
2017    
Headlam Overall 15.6% 10.5%

 

At 5 April 2019 (the ‘snapshot’ date for all the data given), we had three UK reporting companies: HFD Limited (‘HFD’), MCD Group Limited (‘MCD’) and Headlam Group plc (‘PLC’). Of the three, only HFD and MCD are trading companies (legal entities) with 250 or more employees. PLC is the ultimate holding company with less than 250 employees. However, in the interests of transparency, we have again reported on all three despite PLC falling outside the legislation.

Mean Median
At HFD female pay is 12.4% Lower than male At HFD female pay is 11.2% Lower than male
At MCD female pay is 14.3% Lower than male At MCD female pay is 14.1% Lower than male
At PLC female pay is 14.3% Lower than male At PLC female pay is 83.1% Lower than male

 The mean is the difference between average hourly earnings and the median is the difference in the midpoints in the ranges of hourly earnings.

Gender Bonus Gap:

The proportion of males and females receiving a bonus payment (during the 12 months up to 5 April 2019):

** Only one individual received a bonus, an operations leader for Continental Europe 

 

Bonus Pay Gap:

 

Mean

Median

In HFD the bonus payment for a female is

24.9% lower than a male

10.2% lower than a male

In MCD the bonus payment for a female is

31.3% lower than a male

26.8% lower than a male

In PLC the bonus payment for a female is

100% lower than a male

100% lower than a male

 

The above highlights that there is little disparity between males and females in the Company in terms of receiving a bonus payment. The distorting effect and key explanation for the Bonus Pay Gap is the significantly larger bonus amounts for the more senior roles where there is a lack of female representation.

Proportion of male and female in each pay quartile:

The charts below show the gender split when we order hourly rate of pay from highest to lowest and group into four equal quartiles. This also highlights that there are fewer women in senior roles than men.

 

Summary:

It is positive to note that in HFD and MCD the gender pay gap remains below the national average.

Low levels of female representation, particularly at senior levels, appear to be the key reasons for the overall pay gap.  There is a general under-representation of women across the Company’s businesses, which is consistent with the trends in the sector in which we operate.

The mean bonus pay gaps within PLC, HFD and MCD are particularly high but the proportion of men and women receiving a bonus is fairly equal within each employing entity. The key reason for the disparity in bonus pay is not connected with female employees not participating in a bonus scheme; rather the type of roles currently being performed by women generally attract low value bonuses. The Company has a largely male dominated workforce with a lack of female representation in senior positions. 

Actions:

The Company is continuing to work to improve both the male:female ratio (which stood at 4:1 as at 31 December 2019) and gender pay gap across the Company. This includes both supporting the women who currently work for the Company moving into more senior positions, and attracting more women to join the Company.

 

Actions and initiatives launched to deliver improvement include:

  • Enhance Maternity Policy;
  • Paternity and Shared Paternity Leave policies (as detailed on page 47 of the 2019 Annual Report and Accounts);
  • Flexible Working Policy and practices (as detailed on page 47 of the 2019 Annual Report and Accounts);
  • Recruitment and Talent Acquisition frameworks; and
  • Reward frameworks and policies (to be launched in 2020).

 

This Gender Pay Gap Report 2019 was approved by Headlam Group plc’s Remuneration Committee, and the data for the two legal entities HFD and MCD published on the specified UK government website, www.gender-pay-gap.service.gov.uk