Gender Pay Gap

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Under Section 78 of the Equality Act 2010 UK companies that employ more than 250 people are now required to report the gender pay gap within their workforce.

The intention behind gender pay gap reporting is to increase transparency of the differences in earnings between men and women with the aim of closing the gap.

Of the four companies in Mabey Group, two are based in the UK and only one - UK Hire - employs more than 250 people.

Below we set out and explain the UK Hire gender pay gap.

What is a gender pay gap?

Gender pay gap data gives a high-level indicator of women’s and men’s relative earning power by showing the difference between women’s and men’s average hourly earnings.

In 2016, the UK’s gender pay gap for all employees (part-time and full-time combined) was 18.1% (Office of National Statistics) meaning that on average women earned around 18.1% less than men. In the UK construction sector, the figure was 17%

The figure does not explain the underlying causes of gender pay inequality. The gender pay gap is different to equal pay and the two should not be confused.

Why is there a gender pay gap in Mabey’s UK Hire business?

The two main reasons for the gap is that there are many more men in UK Hire than women and the majority of senior roles are filled by men. This is a common issue across the construction and infrastructure industries, and many other sectors.

Mabey needs more, talented, people to help grow our business and help deliver the lasting construction and infrastructure that the country needs and is seeking to employ a more diverse workforce.

What are we doing to close the gender gap?

Our company and sector is growing and we need more talented people to meet demand. We have to make our sector and the UK Hire business a place where more women will want to work, confident that they will be supported in developing their careers.

There is no one solution to resolve this issue so we are addressing it in a number of ways.

At group level, we have set ourselves some stretching diversity targets. By the end of 2022 we want at least 30% of employees to be representative of a minority group and at least 30% of senior managers to be female.

HR teams in UK Hire have been reviewing how we go about attracting talent to the business, how we induct people, and how we train and support them throughout their time with Mabey. We want all those processes to be fair and equitable, which also means that they work for women as well as men.

We also promote the role of women in the sector, having actively supported the CBI in strengthening its Women in Construction network.  Mabey is also an official partner in the new ‘Inspire Me’ campaign, launched by Construction News, which aims to empower women in the construction industry with the knowledge, confidence and skills to advance their careers to senior positions. In turn, this will also help attract more women into the industry.

What is the gender pay gap in UK Hire?

There are six gender pay gap calculations:

Average gender pay gap as a mean average

Average gender pay gap as a median average

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Average bonus gender pay gap as a mean average

Average bonus gender pay gap as a median average

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Proportion of males receiving a bonus payment and proportion of females receiving a bonus payment

Proportion of males and females when divided into four groups ordered from lowest to highest pay

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* ONS data: ASHE 2016

Notes:

1) What do the different statistics mean?

“Mean” means arithmetic average of a population so the “mean gender pay gap” is the average, high-level, overall difference between the remuneration of men and women across UK Hire.

“Median” means the middle point of a population.
Mean and median gender pay gaps can vary, even though they are calculated from the same sets of data. Each one has advantages and disadvantages.

“Gender bonus gaps” to better understand a gender pay gap, employers must calculate gender bonus gaps. External research shows that, in business in general, men are more likely than women to get a bonus across all management levels.

“Quartiles” identifying the proportion of men and women in four quartiles. Quartiles divide a list of numbers into four groups. Each employee’s hourly pay is ordered from lowest to highest, then divided into four equal groups. The first group – the lower quartile – is the lowest 25% of earners and the last group – the upper quartile – is the highest 25% of earners. This gives a sense of where male and female employees are in the pay hierarchy. If women are concentrated in your lower pay quartiles, it could be contributing towards the gender pay gap.

2) What is the difference between the gender pay gap and equal pay?

The intention behind equal pay is to ensure that men and women are not paid differently for doing the same or similar work. This, on its own, does not prevent a gender pay gap.

For example, if the majority of women are employed in lower-paid jobs there would be a gender pay gap.

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