From April 2017, the government introduced gender pay gap reporting for all companies with more than 250 employees. AvantiGas employed fewer than 250 employees at that time and therefore did not report, however in April 2018 the number of employees had increased above the threshold.
We are pleased to share the findings of our first Gender Pay Gap Report for April 2018.
What is the Gender Pay Gap?
The gender pay gap measures and reports on the difference in the average hourly pay between all men and women employed by the organisation.
It should not be confused with equal pay which deals with the difference in pay between men and women who carry out the same or similar jobs or work of equal value.
What is included in hourly pay?
Hourly pay includes basic pay, allowances and shift premiums. It does not include on-call and standby allowances, overtime or payments relating to termination of employment.
How is the Gender Pay Gap calculated?
The gender pay gap is calculated using two separate methods; median and mean.
A mean average involves adding up all the numbers and dividing the result by the number of numbers in the list.
A median average involves listing all the numbers in numerical order. If there is an odd number of results, the median average is the middle number. If there is an even number of results, the median will be the mean of the two central numbers.
What the analysis tells us
1. The mean gender pay gap for AvantiGas employees is 6.5%
This is significantly below the figure of 17.4% reported by Office of National Statistics 2017 in their Annual Survey of Hours and Earnings
2. The median gender pay gap for AvantiGas employees is 31.9%
This is significantly above the figure of 18.4% reported by Office of National Statistics 2017 in their Annual Survey of Hours and Earnings
Our findings demonstrate that on average men earn more than women, however it is important to understand the context of the findings as there are a number of factors which can affect the gender pay gap including the natural preferences that men and women tend to have in respect of the type of work that they chose to do. In addition, the type of industry, sector and location may also have an influence.
This report is based on a total of 255 employees of which 179 were men and 76 women.
Some job roles are more heavily populated by male employees, such as Drivers and Engineers, whilst office based roles tend to be populated by female employees.
Specific skills, competencies and qualifications are required for some job roles within the logistics and engineering functions, meaning that they attract higher pay levels of pay. At AvantiGas these roles tend to be occupied by male employees, which naturally influences the mean and median pay gap.
In addition to reporting mean and median findings we are also required to demonstrate the proportion of males and females in each quartile pay band. This is done by dividing the workforce into four equal parts, ranked from the lowest hourly rate of pay to the highest. This list is then divided into four sections (quartiles) with an equal number of employees in each section (or as close as possible to this). The quartiles (from the lowest to highest) are called the lower quartile, the lower middle quartile, the upper middle quartile, and the upper quartile.
In 2018 the majority of employees received a bonus payment.
Bonus payments include commission, incentives, discretionary Company bonus and management bonus.
Gender pay gap
In 2018 the proportion of male employees receiving a bonus was 84.9% and the proportion of female employees receiving a bonus was 91.0%.
The mean gender bonus gap for AvantiGas is 16.4%, significantly below the 71% reported by Office of National Statistics 2017 in their Annual Survey of Hours and Earnings
The median gender bonus gap is 0% due to the way that bonuses were paid for 2018.
Looking to the future
Whilst we are pleased to report a mean gender pay gap of 6.5%, much more favourable than the national average of 17.4%, we recognise that there is work to be done at an industry and organisational level to close the gap.
We are committed to treating people fairly and rewarding them appropriately. Continued analysis will enable us to identify opportunities to address the gap that we have.
There is no doubt that we face a challenge to attract more women into the industry, especially into the roles traditionally occupied by male employees and at more senior levels within the organisation.
We will continue to focus our efforts on hiring and retaining great talent and providing opportunities for personal growth and development to all of our employees, regardless of gender.