The gender pay gap is an equality measure that shows the difference in average earnings between women and men. The Equality Act 2010, as amended (Gender Pay Gap Information) Regulations 2017, aims to tackle the gender pay gap that exists in organisations and provide transparency around gender pay gap differences. The regulation requires employers with more than 250 employees to report to the government, and make publicly available, their gender pay gap metrics.
This is the second year that we have measured and reported gender pay gap data and therefore we are able to make comparisons compared to the prior year. We are pleased to report a reduction in the pay gap and an improvement in all of our metrics, and we have provided commentary. However, we acknowledge that the gap remains large and we remain committed to create the necessary focus on the gender pay gap and continue promoting a culture of diversity and inclusion.
Premium Credit Limited Human Rights and Diversity
We want Premium Credit to be a company people want to work for, and where they feel welcomed and involved at all levels, regardless of their race, ethnicity, gender, age, disability, religion or belief, sexual orientation, marital status, gender reassignment, and during and after pregnancy and maternity. Our pay strategy is designed to support this and our diversity and inclusion practices are in line with the Universal Declaration of Human Rights.
Premium Credit Limited Gender Pay Gap
“The calculation behind the gender pay gap is not the same as equal pay”
The table below shows our overall mean and median gender pay gap based on hourly rates of pay as at the snapshot date (5 April 2018). It also captures the mean and median difference between bonuses paid to men and women at Premium Credit in the year up to 5 April 2018, i.e. for the 2017 performance year (bonuses are normally paid in February).
The table below shows the movement in the gender pay gap compared to the prior year. It is positive to report that all four metrics have improved.
The calculation behind the gender pay gap is not the same as equal pay. The underlying reason behind our gender pay gap is predominantly due to the lower representation of women in senior leadership positions and IT roles within our business. The bonus gap is also affected by lower representation of women in sales roles. we are confident that we do not have any processes or practices which would see people being paid differently due to their gender.
In line with the way in which we must report according to the regulations, we have organised our gender pay gap distribution by the quartile pie charts below (i.e. if you split the fixed pay data into four equal parts, how many men and women are in each quartile?) To understand the information better, we have also calculated the pay gap for each quartile. By looking at these two facts together, we can understand whether the gap is caused by differences in the distribution of women and men.
Female representation is higher in both quartiles 1 and 2; which was also the case in the prior year; it is in our upper quartiles (3 and 4) where female representation is low. We are pleased to report that distribution of females in the upper middle quartile has increased from 36% to 40%. In the upper quartile, the representation of females has remained at 18% when compared to the prior year, but we are pleased to report that the pay gap has reduced from 29% to 15%. The gap in the upper quartile remains the highest which is in line with the lowest representation of females in this quartile.
In the lower quartile, the representation of women has reduced from 72% to 67% and the female mean hourly rate remains higher for this quartile than the male mean hourly rate.
Commentary of change from 2018 and report against actions
Below is our summary of progress against the actions that we committed to in 2018.
1. We will continue to listen to colleagues, through our Employee Engagement and Pulse surveys, to improve our practices and policies to help inclusion. In 2017, we updated our Family Leave and Dignity at Work policies, and improved many of our benefits, including maternity pay.
2. We will have one member of our senior executive team specifically sponsoring diversity and inclusion.
3. We will ensure that diversity is a priority topic for discussion and gain input from colleagues at our colleague engagement group, Team Premium.
4. We will include diversity in the content of our Premium Credit Management Programme.
5. We will roll out training on Unconscious Bias.
6. We will expect a diversified recruitment shortlist for all management positions, meaning appropriate representation of male and female candidates being put forward for interviews.
7. We will support colleagues, wherever possible, to balance commitments outside of work.
Actions for 2019
Our actions for 2019 will build on 2018. Our aim remains to ensure our workforce is diverse and inclusive, and our culture aligns to our values of being collaborative and considerate towards each one another.
During 2019, the key actions that Premium Credit is taking to improve diversity and inclusion are:
We are pleased to see that our gender pay gap metrics have improved, but we acknowledge that we still have a large gap. We understand our gap and remain committed to improving the representation of women in senior positions and sales and IT roles. We aim to ensure that women are not only better represented in these roles at Premium Credit, but most importantly, supported to develop and progress. We are confident that if we increase female representation in senior positions, then the gender pay gap will reduce. We are also confident that the actions listed above will further develop our culture.
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