Organisations with 250 or more employees are required to publish information which shows the difference in pay between male and female employees. These calculations are prescribed by the Government and use various measures to show the difference in the average pay between men and women.
Gender Pay Gap reporting compares the average hourly pay of male and female employees across an organisation. It does not compare what men and women are paid to do the same, or a similar, job and does not measure equal pay. For example, where an organisation has a greater proportion of men in senior management positions, this will create a gap between the average rates of pay for male and female staff. This is the case at the Cumberland.
As required by the regulations, this report relates solely to Cumberland Building Society and excludes staff employed by its subsidiary companies.
Pay Quartiles show the balance between male and female staff at different levels of pay. Employees are split into four equally sized groups based on their hourly rate of pay and the following charts show the percentage of men and women in each group. For example,47% of employees in the highest paid group (the Upper Quartile) are women and 53% are men.
For comparison, 69% of all Society staff are female and 31% are male.
|Median Pay Gap||This is the difference between the mid-point of pay for male and female employees taking into account all roles within the Society||27%|
|Mean Pay Gap||This is the difference between the average pay for male and female employees taking into account all roles within the Society||41%|
|Percentage of male employees who received bonus pay||76%|
|Percentage of female employees who received bonus pay||75%|
|Median bonus gap - This is the difference between the mid-point of bonus pay for male and female employees taking into account all roles within the Society||54%|
|Mean bonus gap - This is the difference between the average bonus pay for male and female employees taking into account all roles within the Society||79%|
What causes the Gender Pay Gap at the Society?
The financial services sector has a higher Gender Pay Gap than other industries due to the balance between male and female employees in senior management positions. This is reflected in the Society’s figures. Unlike most financial services companies who have reported their Gender Pay Gaps, we have an almost even split between male and female staff in the highest paying group (the Upper Quartile). However, there is a greater proportion of men in the most senior positions, which creates the gap on mean, median and bonus pay.
There is no difference in the rate of pay between male and female staff undertaking the same, or a similar, role.
What action is the Society taking to reduce the Gender Pay Gap?
The Nomination Committee is particularly mindful of the diversity of the Society’s senior staff. We recognise the benefits that a diverse workforce can bring and have sought to create a culture that attracts, retains and encourages talented people to deliver outstanding performance. However, whilst giving active consideration to the balance between male and female staff in senior roles, we believe it is important that appointments are made on merit and against objective criteria.
The progression of women to senior positions within the financial services industry is a long standing issue which affects the number of female applicants for these roles. We have undertaken a number of national searches for Executive and Board roles over the last year, working in conjunction with a specialist recruitment agency, but the number of women applying for these positions has been very limited. It is therefore particularly important to ensure that we are encouraging the development of all staff and do not inadvertently put any barriers in place which could discourage female staff from applying for and progressing to the most senior positions.
We are undertaking a review of our current approach and policies to ensure this is the case and are encouraged by the fact that the Society has broadly equal split between male and female staff in the highest paid group.
I can confirm that the information shown above is accurate and in accordance with The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 in relation to the pay period including 5 April 2017.
Chris McDonald Operations and HR Director