The new gender pay reporting legislation requires us to publish six calculations every year which measure the pay gap between our male and female employees.
This is not the same as equal pay, which deals with differences in pay between men and women who carry out the same or similar job roles, or do work of equal value. The gender pay gap shows the difference in the average pay between all men and women in a workforce. The current figures relate to the financial year ending April 2017.
Our median gender pay gap across the company is -2.0%. This compares with a national median of 18.1% and average for our sector of 24%. Our mean gender pay gap is 5.7%, against a national mean of 17.4% and an average for our sector of 25.4%. *
[* Source: Annual Survey of Hours and Earnings (ASHE), Office for National Statistics for 2015/16]
As a company, we take reward and remuneration very seriously. We use external consultants to benchmark salaries, we continually review all salaries for internal consistency and we use a well-established appraisal system to ensure fairness.
Gender bonus pay gap
We are also committed to recognising the contribution made by everyone to our business, irrespective of role and seniority. For that reason, a percentage of our profits are distributed as a bonus to everyone in the company.
The median bonus gender pay gap is at 1.7%, and the mean figure is 11.7%.
Our mean bonus gender pay gap is not a clear reflection of the underlying bonus position. We are required by the new regulations to report our bonus gender pay gap using the actual bonus sums paid out to employees. The calculation does not take into account the fact that the bonus payments we make to part-time staff have already been pro-rated in accordance with their contracted hours. This calculation therefore has the effect of distorting our mean bonus pay gap - it does not take into account the higher proportion of female than male workers who take advantage of flexible and part-time working.
Gender pay bands
One of the biggest challenges we face as a technology company is the national shortage of women who have qualifications in STEM subjects (science, technology, engineering and mathematics), and the imbalance in the numbers of women working in tech. This national problem contributes to the under representation of females at all levels in our organisation, from the lower quartile through to the upper quartile, and is at its most pronounced in the upper pay band. It is worth noting that the composition of the operating board - that is, the directors at the level beneath the two founder directors – is broadly even, with 7 males vs 6 females.
What are we doing to improve our performance?
We are pleased that our performance on pay is stronger than the national and sector averages. That said, these are complex calculations and we recognise that our figures are snapshots at a point in time and may be subject to variation year on year according to the impact of relatively small changes in personnel.
We are fully committed to building a diverse and inclusive company which recruits from the widest possible range of talent and which people are proud to work for. We recognise that our strength is founded upon the commitment, expertise and professionalism of our people and that our diversity makes us stronger.
We will continue to focus on gender equality across all our policies, looking at the recruitment, development, progression and retention of employees, to ensure that we keep progressing in this area.
We will also continue to work strategically through partner agencies – through our relationships with techUK and One HealthTech, for example – to address the bigger issue of the structural gender imbalance in our industry.
+ Definitions at a glance
Mean: The difference between the mean (average) hourly rate of pay (or bonus) for all men and all women.
Median: The difference between the ‘middle’ rate of pay (or bonus) for all men and the ‘middle’ rate of pay (or bonus) for all women, when hourly pay is ranked in numerical order.
Pay quartiles: Calculated by ranking all employees’ hourly pay in numerical order and dividing them into four equal size groups.
Median averages are useful to indicate what the ‘typical’ situation is i.e. in the middle of an organisation and are not distorted by very large or small pay rates or bonuses.
Mean averages are useful because they place the same value on every number they use, giving a good overall indication of the gender pay gap, but very large or small pay rates or bonuses can ‘dominate’ and distort the answer.
Source: Acas/Government Equalities Office guidance – Managing Gender Pay Reporting.
I confirm that the information in this report is accurate and prepared in accordance with the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017
Markus Bolton, Dr Ian Denley - joint CEOs.
Jane Conner, HR director