Gender pay reporting
System C recognises that the success of our business rests on the quality of our people – their commitment, expertise and professionalism. We want to be able to recruit and retain the very best people, regardless of ethnicity, gender, disability and age. Equality in the hiring process and equal treatment in terms of pay and progression are central to this.
Under the new gender pay reporting legislation, we are required to publish six calculations a year which measure any pay gaps 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.
Any figures are snapshots at a point in time and can be subject to significant variation year on year according to the impact of relatively small changes in personnel. By the same token, a 0% figure is highly unlikely. However, over time the figures will build up to provide a useful picture of a company’s approach to gender equality and the impact of any changes in policy.
Gender pay performance
We are pleased to report that our performance on pay is considerably stronger than the national and sector averages.
Our median gender pay gap across the company is -3.2% (-2.0%), which means that women are paid on average 3.2% more than men. This compares with a national median for 2018 of 17.9%* in favour of men and an average for our sector of 23.7%*.
Our mean gender pay gap is 5.3% (5.7%), against a national mean of 17.1%* and an average for our sector of 17.7%*.
The blue box at the bottom of the page provides an explanation of the difference between these two calculations and the underlying significance.
[* Source: Annual Survey of Hours and Earnings (ASHE), Office for National Statistics]
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.
Last year, for example, the median bonus gender pay gap was recorded at 1.7% and was paid to 91% of our employees.
The company again paid an annual bonus to employees on the basis of its performance in the financial year 2017/18, the period covered in this report. However, as the actual bonus payments were transacted after the reporting period, these bonus payments are not included in this year’s gender pay analysis. They will feature next year.
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, but is at its most pronounced in the upper pay band. The four-strong executive team consists of three males (including the two founding directors) and one female. The composition of the operating board is broadly even, with 7 males vs 6 females.
What are we doing to improve our performance?
Our gender pay performance reflects the fact that we treat people equally, irrespective of gender. 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 maintain our progress in this area.
One of our primary aims is to improve the proportion of women at all levels in the organisation, and in particular to increase the numbers of women coming forward as software developers. This is inevitably a long-term strategy which we are trying to address through a variety of different means. These include a focus on career progression and promoting from within as well as on agile working. We are setting up a graduate recruitment programme which we hope will reflect the gradual increase in the numbers of females studying STEM subjects nationally and which, over time, will help us increase the proportion of females at all levels and in all roles within the organisation.
We also continue to work strategically through partner agencies – through our relationships with techUK and One HealthTech, for example – to highlight and address the bigger issue of the structural gender imbalance in our industry.
+ Definitions at a glance
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.
Mean: The difference between the mean (average) hourly rate of pay (or bonus) for all men and all women.
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