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Business directory

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 the difference between the hourly rate* of pay of male employees and female employees expressed as a percentage of the hourly rate of the male employees.

Headlam’s Overall UK Gender Pay Gap Results at 5 April 2020 (the 'snapshot' date)

 

  Headlam UK Mean Pay Gap Headlam UK Median Pay Gap Overall UK Median Pay Gap
2020 7.4% 6.2% 15.5%
2019 9.1% 10.8% 17.9%
2018 11.4% 10.1% 18.4%
2017 15.6% 10.5%  -

At 5 April 2020 (the ‘snapshot’ date for all the data given), the Company 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, and therefore required to report. PLC is the ultimate holding company with less than 250 employees. However, in the interests of transparency, the Company has again reported individually on all three despite PLC falling outside the legislation.

Mean Median
At HFD female pay is 11.9% lower than male At HFD female pay is 6.3% lower than male
At MCD female pay is 10.8% lower than male At MCD female pay is 10% lower than male
At PLC female pay is 66.8% lower than male At PLC female pay is 78.4% 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

Headlam’s overall UK median pay gap has closed to 6.2% (2019: 10.8%). The main drivers are:

  • The male median increased by 1.7% which when taking movement of starters and leavers into account is attributable to the annual cost of living increase of 2%
  • The female median increased by 7.0%, the biggest impact being changes in roles attracting higher salaries, bonuses and the addition of a company car
  • The other factor in the closing of the gap is the statistical population movement i.e. the mix of starters and leavers

Bonus Gap:

The proportion of males and females receiving a bonus payment (during the 12 months up to 5 April 2020):

 

Bonus Pay Gap:

 

Mean

Median

In HFD the bonus payment for a female is

28.9% lower than a male

18.4% lower than a male

In MCD the bonus payment for a female is

27.8% lower than a male

19.5% lower than a male

In PLC the bonus payment for a female is

77.1% lower than a male

99.7% lower than a male

This highlights that there is little disparity between males and females in the organisation in terms of receiving a bonus payment. The distorting effect and key explanation for the bonus 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 colleagues in each pay quartile

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

 

Summary:

It is positive to note that the Headlam’s overall median reportable gender pay gap (HFD and MCD) has closed to 6.2%, and remains below the national average of 15.5%.

Low levels of female representation, particularly at senior levels, is the key reason for the overall pay gap.  There is a general under-representation of women across the UK businesses, which is consistent with the sector.

The mean bonus gaps within PLC, HFD and MCD remain high at 77.1%, 28.9%, and 27.8%

respectively.  The proportion of men and women receiving a bonus is fairly equal within each

employing entities.  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 undertaken by women generally attract lower value bonuses.

Actions:

There are four key areas of focus to support addressing the gap:

Recruitment:

  • Ensuring external recruitment include diverse shortlists
  • A new Talent Acquisition framework will be implemented in 2021

 Parental Leave and Returners:

  • Enhanced Company Maternity Leave was introduced in April 2018
  • Paternity and Shared Paternity Leave policies were launched in 2019

Pay and Reward:

  • Reward frameworks continue to be developed and implemented

Flexible Working:

  • Flexible Working policies were launched in 2020 and will be further embedded in 2021

 

 

This Gender Pay Gap Report 2020 was approved by Headlam Group plc’s Remuneration Committee, and the data for the two legal entities HFD and MCD required to report published on the specified UK government website, www.gender-pay-gap.service.gov.uk

* The regulations prescribe hourly rate includes certain allowances and extra payments in addition to basic salary