SKF (U.K.) Limited - Gender Pay Report 2018
SKF (U.K.) Limited (the Company) recognises that the aim of pay gap reporting is to understand and overcome the barriers that may prevent all employees from achieving their full potential. This statement has been published in accordance with the Gender Pay Gap reporting regulations which requires the Company, to publish annual figures detailing the Gender pay gap between male and female employees.
The Gender Pay Gap is not the same as equal pay which ensures that men and women receive the same pay for carrying out the same or equivalent work. The gender pay gap provides an average figure for all UK based employees, irrespective of the roles that they carry out at on a particular date.
In line with the reporting regulations the data reflects payments made on the 5 April 2018. The figures include base salary and other allowances.
Gender Pay Gap Results
Pay differences are expressed as the difference between the mean/median hourly rate / for men and women as a percentage of the men’s rate. The female mean hourly rate is 11.9% lower than the males. Pay quartiles are calculated by splitting all employees in an organisation into four even groups according to their level of pay. Looking at the proportion of women in each quartile gives an indication of their representation at different levels within the organisation.
- Top quartile (highest paid) - 15.3%
- Upper middle quartile - 9.9%
- Lower middle quartile - 12.9%
- Lower quartile (lowest paid) - 31.8%
The percentage of employees receiving bonus payments are simply based on the number of male and female employees identified as receiving some kind of bonus payment at the point that the snapshot of information was taken (05.04.2018).
In respect of bonus payments, 86.3% of female employees received a bonus, whilst 71.3% of male employees received a bonus.
Has the Gender Gap Grown?
In reality whilst it appears on first inspection that the gender gap has grown, this is not the case. In 2018 the bonus calculations used were incorrect due to a misinterpretation of the guidance available at that time. This has been rectified for this years report.
Using the same mechanism for calculating the bonus means that the restated female mean hourly rate for 2018 would have been 13.5% and not 8% as previously reported.
Therefore in order to compare on a like for like basis the mean female hourly rate for the 2018 report should be restated as 13.5%. The current mean of 11.9% shows that the gender pay gap is narrowing.
Why We Have a Gender Pay Gap?
The Company ensures that employees in similar roles are being paid equitably however, we do have a gender pay gap. Regular reviews on equal pay provides confidence that policies and processes are working and that where pay differences exist this is not based on gender. In general, the Company’s overall gender pay gap is largely due to a higher ratio of male employees (83%) compared to female employees (17%).
Gender Pay Gap Actions Completed
1. The Company offers the same enhancements for Shared Parental Pay and enhanced Maternity Pay, which means it is more attractive for men to take up their entitlement of Shared Parental Leave.
2. The Flexible Working Policy has been reviewed to ensure it is free from gender bias and there are males on flexible working arrangements whereas before it was perceived as being for females only.
3. Review of recruitment and selection processes and areas highlighted for improvement.
Gender Pay Gap Action Plan
1. Use more skills based assessments & tasks in recruitment, ensuring that both the assessments / tasks and the scoring mechanisms are standardised to ensure fairness across candidates.
2. To lessen reliance on recruitment agencies and explore methods to widen the talent pools from which to recruit.
3. The Company already uses a structured format for interviews whereby the same questions are asked of all candidates in a predetermined order and format. To improve this the Company are exploring how to grade the responses by using a pre-specified standard criteria which will reduce the impact of any unconscious bias.
4. Working towards greater transparency of Compensation & Benefits to employees.
5. Improvement of the Compensation & Benefits processes so that they will be managed centrally within the HR Shared Service Centre during 2019. This will ensure consistent, independent, objective and a holistic overview of role evaluations and remuneration packages across the UK.
6. To better capture and review exit data taken from leavers to better understand why people leave the business and take any necessary actions.