Gender Pay Gap Reporting – April 2022
Employers with more than 250 employees are required by law to carry out Gender Pay Reporting under the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017.
This involves carrying out six calculations that show the difference between the average earnings of men and women in the organisation. The results must be published on the company website and a government website within one calendar year of the snapshot date.
Only one of the legal employing entities in the Duncan and Todd Group employed more than 250 employees on the snapshot date of 5th April 2022. Therefore calculations and the following report refer to Duncan and Todd Limited only.
Calculations have been completed in line with the government guidelines. See attached sheet summarising the results of these calculations for your review.
• Where the number has a positive value, male employees earn more than female employees; where the value is negative, females earn more than males.
• When looking at the pay quartiles, the ideal situation – which would demonstrate that all employees have equal opportunity to progress to higher paid roles in the business, regardless of gender – would show an equal proportion of males to females in each pay quartile. As 86% of our population on the snapshot date was female, we would aim to see 86% of employees in each quartile to be female.
These results can be used to assess:
• the levels of gender equality in our workplace
• the balance of male and female employees at different levels
• how effectively talent is being maximised and rewarded.
The challenge in our organisation and across Great Britain is to eliminate any gender pay gap.
In April 2020 and April 2021, the company had a large number of employees who were furloughed or on a flexible furlough arrangement. For this reason, the calculations used do not give a true reflection of the gender pay gap in those years. For this reason, we will use the information gathered at the 2019 snapshot date to assess the progress of the business towards the goal to eliminate any gender pay gap for our workforce.
• The mean gender pay gap for the Duncan and Todd Limited entity is 19.47%. This is significantly improved since 2019, when the gap was 30.36%.
• Similarly, the median pay gap has reduced from 46.3% in 2019 to 32.89% in 2022. There is still some substantial work required to reduce the gap further.
• The proportion of females to males in the organisation is 86% female and 14% male on the snapshot date.
• When analysing the pay quartiles, we can see that the two mid quartiles are evenly spread and are close to the gender proportions in the business. However, the upper quartile contains more males relative to the population of the business and the lower quartile contains significantly more females relative to the population of the workforce. This is likely to be partly due to the fact that lower paid roles offer more part-time options and flexibility in working hours than higher paid roles in the organisation, which makes them more attractive to women, who are more likely to have caring responsibilities outside the workplace.
• The mean gender bonus gap is relatively high, and has slightly increased to 54.79% from 52.17% in 2019. The proportion of both genders receiving bonuses has also reduced, with a smaller proportion of females now earning bonus than males. This is most likely due to a higher proportion of males in roles that include commission/bonuses as part of their standard reward structure (eg Audiology). This is also due to the fact that retail bonuses were paused during the pandemic until later in 2022, which has resulted in a smaller proportion of females earning performance-related bonuses during this period.
• Some steps have been taken to review and amend the bonus scheme since the snapshot date, although minimal bonuses have been paid in the period since the start of the pandemic in 2020. Calculations for April 2023 and 2024 will identify whether this change has reduced the bonus gap for that group.
The following recommendations are identified following analysis of the calculations. Further analysis is required to identify contributing factors and potential areas of concern.
• The results of the gender pay gap calculations to be taken into account by the Remuneration Committee when considering pay and reward matters for the Group.
• Commitment to ensure flexibility of working hours and hybrid working options are available for roles at every level in the business.
• Values and criteria of bonus schemes to be reviewed to ensure fairness and consistency across all areas of the business.
• Regular internal Gender Pay Gap audits to be carried out to identify any areas of concern and ensure actions are taken in a timely manner.
Ciara McGrath, Group HR Manager
Julie Mosgrove, Retail Director