UK Companies with 250+ employees must produce a gender pay gap report
Organisations with over 250 employees must report their gender pay gap data. Data must be submitted before 4th April 2019 for the previous year. The data below relates to a snapshot of the organisation taken on 5th April 2018. This is the statutory date on which the data must be captured and the analysis carried out.
In 2018 women at Atom were paid almost 22% less than men. This compares to a difference of almost 30% in 2017.
In 2018 the pay gap median was 34.9% which is an increase from 2017.
Figure one shows the pay gap mean and median in 2018 at Atom.
In analysing the report data further and deeper, there are a number of things we have identified which help us explain the generally positive shift in our figures.
We have analysed the average salary increase across the female and male populations during the reporting period, noting that these increases included promotions and secondments from across the organisation as well as a cost of living (COL) increase, which is usually applied in line with the Consumer Price Index (CPI), which was a maximum of 2.8% in April 2018. Taking all of this into account, the average salary increase for females was 7.97% and the average salary increase for males was 6.25%.
We took this a little further and analysed how and when both females and males were moving through our organisation. We know that this often has an impact on salary and therefore has the potential to have an impact on our gender pay gap. Our further analysis showed that in the reporting period, 78 employees (out of a population of 313 employees) had furthered their career at Atom with either a sideways job move, secondment or promotion. Of these, 51% were female demonstrating that slightly more females than males were making internal moves and progressing through our organisation. The average time for females to progress into another role from their continuous start date with Atom was 487 days (69 weeks) and for males this was 581 days (83 weeks).
When we specifically looked at promotions, which often attract the largest pay increases, we found that there were 20 promotions in the reporting period, of which 10 were female.
In 2017 our working population was 38% female. As an organization operating in both the Finance and Technology sectors which are typically male dominated gender balance is something we are ever conscious of. We are pleased to say in 2018 our overall gender balance increased in our organisation and our population in 2018 was 40% female. This is a small increase overall but something that is moving in the right direction.
Technology Gender split
In 2017 our female population in Technology was 14%, a figure which was lower than the UK sector average last year. In 2018 we saw our female population in Technology rise to 18%.
Data provided by the Tech Talent Charter in 2018 showed that the gender split in Technology functions in organisations that had signed the charter was 26% female.
Figure two shows the Gender split across our Pay Quartiles.
Figure three shows the Bonus Pay Gap and % of males and females who received a bonus in 2018.
Our reward structure is aligned to salary, therefore the more senior the role, the higher the wage and bonus. As we currently have more males in senior roles, this explains the continuation in our Bonus Gap figures.
When comparing the proportion of bonus that was paid, there was no significant difference between males and females in performance for the reporting period. Men and women are equally likely to be paid the same size bonus for the work that they do at Atom.
The most notable difference between the 2017 and 2018 bonus gap data is firstly the % of both males and females who received a bonus, both have increased significantly since 2017. This is almost solely due to the infancy of the business, twinned with the rapid growth in headcount numbers, along with our bonus payment dates. The number of employees who qualified for a bonus payment due to their time with Atom increased.
The mean bonus gap remains largely unchanged meaning we will have some work to do in this area but as this is a theme in other parts of the data, this gap will be influenced by the fact that the majority of our senior role holders will be male. Majority of our senior roles carry the larger salaries which directly impacts our bonus data as all bonuses are awarded as a % of salary.
What did we do?
The growth of our business in terms of employee numbers, whilst still high, has been slower paced than in previous years. A number of factors within this have influenced our Gender Pay Gap figures.
In 2018 we had turnover in a number of senior roles which were held by men. This resulted in the average salary of males who left the organisation in 2018 as greater than the average salary of those joining us. We also saw the inverse happen in terms of the female population over the last 12 months. The gender split of our senior manager population changed over the year. In 2018 we had 32% females in our senior roles compared to 30% in 2017.
In 2018 we carried out some strong external recruitment as well as giving a focus to investment in development for all employees to ensure we can more easily promote from within.
This had a positive impact in 2018 in terms of number of employees we have promoted from within including females, meaning we had an increase in the number of women in mid-senior roles in 2018.
Achieving greater balance
We’re working to improve overall gender balance across the different types of roles in our business to ensure we have a strong representation of women in senior positions.
- Shifted our gender balance by 11% (from December 2014 to December 2018)
- Actively promoted flexible working to make sure we’re an attractive family-friendly employer
- Increased our presence at a range of local and regional job fairs as well as career fairs at universities, colleges and schools to ensure a wide range of young people are aware of the opportunities available in the Technology and Finance sectors.
- As we have reported above, over the last year we have enhanced our internal reporting practices to ensure we now track in real time the gender balance in promotions, the length of time it takes for both females and males to progress through the organisation as well as the rate of salary progression to ensure our practices remain objective and fair. This will mean not only that our reporting and analysis in 2019 will continue to be much more detailed but also that our actions will be more specifically targeted.