Brief Explanation of the Gender Pay Gap
Unlike equal pay, which refers to paying a man and a woman the same amount for the same, or similar work, a pay gap is the difference in average pay between men and women in an organisation in a specific time period. It is the result of gender imbalance – having more women in junior roles or fewer women in senior roles, relative to men. This means having a pay gap is likely to persist until organisations have a balanced representation of men and women at every level – something we are passionate about addressing. We are confident, however, that men and women are paid equally for doing the same job at Adare.
To determine the gender pay gap, the difference between the mean and median hourly rates of pay that men and female colleagues receive has to be calculated. The mean pay gap is the difference between average hourly earnings of men and women. The median pay gap is the difference between the mid points in the ranges of hourly earnings of men and women. It takes all salaries in the sample, lines them up in order from lowest to highest, and picks the middle salary.
Adare SEC’s Mean and Median Gender Pay Gap
Adare’s mean gender pay gap has reduced from 19.75% to 17.67% whereas the median gender pay gap is increase slightly to 20.71%. The reduction in mean pay between males and females is a positive step from April 2019 reporting figures. We still have a significantly larger proportion of women in our more semi-skilled operational roles who also are more likely to work on a part time basis in some areas, we have seen a rise in the number of females in more middle management level roles with the female middle quartile increasing from 26% to 28.85% in April 2019 reporting (Upper Middle Quartile).
The charts below show the gender distribution across Adare SEC.
Women are beginning to be better represented in the higher pay quartiles, however, there is still more men in senior level roles.
The majority of our bonus payments are due to an operations attendance and colleague bonus scheme which is equally open to men and women. This explains the median of 0%. However, there are also bonus payments for sales staff (heads have increased in this area over the last 12 months) where there is still a higher proportion of senior men than women which affects the gender pay gap, giving a mean bonus pay result of 6.85% slight increase on last year. As a result of the successful launch and achievement of a new colleague bonus in 2019, this saw the percentage for both males and females who received a bonus increase dramatically from 22.70% (males) / 20.26% (females) in our last submission to 78.85% (males) / 73.33% (females) in our 2019 reporting figures.
Here at Adare we are continually working towards addressing any gender pay gap imbalances through our diverse methods of recruitment. Recruitment and Selection training has been given to managers to remove any potential unconscious bias to ensure recruitment is based on the appropriate competencies for the required role. This is further supported through our annual review of all policies including our Recruitment and Vetting policy.
With effect from 1st November 2019, a simplified appraisal system that focused more on development was launched across the business to support those with personal development ambitions., the new appraisal system gives managers a more structured and controlled process to identify high performers/high potential in their teams with a view to offer further opportunities equally to both genders to those wishing to take them. In addition to this we are beginning to look at developing a detailed succession planning strategy across the business over the next 12 months to identify top talent within the business and helping develop those who wish to be developed.
The business has recently implemented a new flexible working scheme that allows greater flexibility in how people manage their work life balance with the additional benefit of buying up to 5 days annual leave a year and a reduction in the working week. We are looking at further improvements to increase the flexibility of our staff and will be looking at the role of IT technologies to support better home working as and when appropriate. It is hoped that this initiative will be seen as a positive benefit for both existing and prospective employees going forward, and that it will have a positive impact on the gender pay gap.
Addressing the disparity in gender representation at all levels will take time but it is hoped that with the role out of new initiatives as above this will help to close the gender pay gap at Adare.