Gender Pay Gap Report 2018

Introduction to our Gender Pay Gap

We as an employer 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 our organisation; it does not involve publishing individual employee data.

The gender pay gap and equal pay are two different things. The gender pay gap is a measure of the difference between men’s and women’s average earnings across the organisation. Equal pay, or paying men and woman the same amount to do a job of equal value, is a legal requirement as set out in the Equality Act 2010. You can have a gender pay gap without having an equal pay problem.

The Gender Pay Gap involves measuring both the mean and median pay gaps:

The median: this is the mid-point or the middle number when looking at the entire workforce of all employees, regardless of gender.  The median pay gap is the difference in salary between the woman in the middle of her line and the man in the middle of his.

The mean: this is the average, adding up all of the pay and dividing by the number of employees.

The pay is calculated on an hourly basis and includes both full-time and part-time employees.

Our Gender Pay Report

Report                         2018 Result                    2017 Result
The difference between the MEAN hourly rate of pay of  male and female employees                              4.41%                               7%
The difference between the MEDIAN hourly rate of pay of male and female                              5.25%                              8.37%

 

Using the most recent set of data from the companies required to report on their Gender Pay Gap (employers with in excess of 250 employees) the 2017 average mean pay gap was 14.29% and the average median pay gap was 18.4%

Proportion of males and females in each quartile pay band
  Male Female
Upper 25% 66% 34%
Upper middle 25% 74% 26%
Lower Middle 25% 47% 53%
Lower 25% 71% 29%

Bonus

               2018 Result            2017 Result
The difference between the MEAN bonus pay paid to male and female employees                  53%                   48%
The difference between the MEDIAN bonus pay paid to male and female employees                  62%                   55%
Proportion of males receiving a bonus payment                   25%                   37%
Proportion of females receiving a bonus payment                  36%                   37%

 

Why is there a Gender Pay Gap?

We simply don’t have enough women working for our business and moving into the ranks of management, both first line, middle, senior and Board as well as specialist or technical roles.

Our workforce comprises 33% women and in our core areas of Customer Service, Logistics and Technical Operations, 35% of our first line, middle and senior managers are women.  However, being a male-dominated industry there is much more we need to do to attract more women to either bring or develop their skills with our business.

In technical areas of the business (vehicle workshops and bodyshops), the overwhelming majority of our employees, and indeed recruitment applicants, are male.  Owing to a skill shortage in the sector, the market rate for these positions is very competitive and women are simply under-represented in this part of our business.  The problem originates far earlier in the process, as women are not being attracted to exploring vehicle workshop and bodywork repair jobs as a career option.

The majority of our female employees are in customer service and administration roles which offer lower salaries.

In respect of the senior management team, including main board Directors, 36% are women.

In respect of our Bonus Pay Gap, at an operational level a number of our employees work to a productivity bonus, these individuals work primarily in vehicle workshops, inspection services and as car transporter drivers.  Whilst we have women in these job roles, they are a very small minority compared to the overall workforce.  Bonus payments to mid-management, senior management and Board level again sees more men receive bonus sums than women.

Our gender pay gap exists because we need more women to join our business.  To achieve this we need to be even more proactive to ensure that more women are attracted to join us, and for women we currently employ, we need to support their advancement to better paid specialist or managerial roles in order to close our gender pay gap further.

What is SMH doing to address their Gender Pay Gap?

From 2017 to 2018 we have achieved an improvement in our gender pay gap but recognise the need to keep pushing for further improvement year-on-year.

Our aim is to continue with our previous commitments, whilst further strengthening them and to also introduce new strategies to close our gender pay gap.

We will continue with our previous commitment to make our recruitment advertising attractive to women by removing industry ‘jargon’.  However, we will enhance this further on our recruitment website by profiling our female employees who drive car transporters, manage workshops and logistics operations or sit at Board level.

As well as continuing with our apprenticeship programme, we will further enhance this by providing alternative training programmes in order to offer a way into our vehicle refurbishment centres for applicants who do not have relevant experience.

We have already created opportunities for advancement within our administrative and customer service departments, recognising and rewarding those with more experience and ability in new senior or lead roles which provide extra opportunities for advancement both in terms of career development and remuneration.

We will continue to look at ways to increase part-time, flexible working and job shares.  We have also revised our Flexible Working Policy in order to improve the process.

Managing talent and succession planning within our organisation will continue to be monitored for gender balance to ensure that both men and women are represented.

In respect of our bonus gap, we recognise that improvements will take time to filter through and many factors feed into why more men receive bonus than women.  However, by continuing to champion women in our business and ensure that their representation continues to increase in our male dominated areas, this will begin to slowly redress the balance.

Statement of Accuracy

I confirm that the figures have been reached using the mechanisms that are set out in the gender pay gap reporting legislation and are accurate.

Martin McAuley
Managing Director