Gender Pay Gap Reporting
IFS is committed to equality in all aspects of its business and believes in fostering diversity in the workplace. Below is an overview of the gender pay gap at IFS UK Ltd (measured in April 2018) which we are actively working to reduce—please read on for more information.
WHAT DO WE MEAN BY GENDER PAY GAP?
The gender pay gap is a measure designed to show the difference between the gross hourly earnings for all men in an organisation and the gross hourly earnings for all women. This is different to equal pay, which compares pay for men and women for work of equal value.
The regulations require all companies with 250 or more employees on 4 April 2018 to publish details of their gender pay and bonus gap no later than April 2019. The figures quoted below are for all IFS UK pay-rolled employees as at 5 April 2018, and the bonus gap represents the 12-month reference period to 5 April 2018, i.e. for the 2017/2018 tax year.
Why do we have a pay gap?
Bonus Pay Gap: This year the proportion of men and women who received a bonus remains comparable and the bonus gap has decreased. The reduction in employees who receive a bonus can be attributed to graduate cohorts – we currently have 2 successive years of graduates who are not yet on bonus schemes, whereas last year we only had 1. In addition we had a lower number of females in sales commissionable roles vs non commissionable. Traditionally the payments for sales commissions can exceed the normal bonus payments made. This is a similar issue across the industry and an area for improvement.
Pay Gap: Whilst we have seen a slight increase in the mean (average) pay gap overall, the median (middle earner) pay gap has shown a slight decrease. The key contributing factor to our pay gap increase is that whilst we grew our overall population considerably in the period 2017-18, we did not improve the proportion of females in senior leadership roles (quartiles 3 and 4). Since then several females have joined the company in senior roles, so our expectation is that the proportions will improve considerably in the next report. It will remain a focus area to ensure we are bridging the pay gap at the senior levels. In addition the impact of the acquisition of both mplsystems Limited and Field Service Management Limited in 2017/2018 increased our headcount significantly but we were not able to influence the proportion of male to female employees who joined IFS.
Is the gender pay gap really a talent gap?
Whilst we have increased our overall female population from 26% to 33% globally there is still work to be done.
If we look at the proportion of females in mid and senior level roles we still need to make further advancement. Whilst we expect to see a significant difference at the senior levels due to the number of females that have joined in the last 12 months we still have a gap at mid level, most likely around our sales commissionable roles. We know there is an industry-wide gap in the number of women in sales positions but this is an area that we could focus on further.
Concentrating on our talent mix within the organisation will make a difference coupled with a continued effort to ensure IFS flexible working policies and practices are competitive and will attract female employees to our organisation.