Howard Kennedy is able to report a reduction in the median gender pay gap for our employees, as at April 2018, compared to our 2017 results, with the bonus pay gap reducing for both mean and median results.
What is the "Gender Pay Gap"?
Gender Pay Gap reporting shows the difference between men's and women's average earnings across the business. The 'gap' is reported as a percentage, with a positive result showing in favour of men, and a negative result showing in favour of women. This encourages discussion around the factors that can limit female progression such as occupational segregation, unconscious bias, family responsibility and how this is viewed and treated.
How does this differ from "equal pay"?
Equal pay is where we look at men and women in comparable roles and ensure their salaries are equal. Gender pay does not look at like-for-like roles. Equal pay is out of scope of these reporting requirements.
What are the "Mean" and "Median"' and why show both?
A "mean" average involves adding up all the numbers and dividing the result by how many numbers are in the list. Mean averages are useful because they give a good overall indication of the gender pay gap; however the result can be distorted by outliers in the data.
A "median" average shows the middle number if all the numbers were shown in numerical order. Median averages are useful to indicate the 'typical' situation as they are not distorted by outliers; however this wouldn't effectively highlight where there are pay gap issues at the highest and lowest levels.
Using these two different types of average gives a more balanced overview of the overall gender pay gap.
Employee Pay Statistics
Below shows the results for both our 2017 and 2018 Gender Pay Gap report:
Gender Pay – what do the results tell us?
The reduction in our median pay gap shows that overall, pay for our female population is better aligned to that of our male population compared to last year.
We acknowledge that our mean pay gap has increased compared to last year. We are confident that this can be attributed to one individual.
As part of the reporting requirements, we are required to break down our employee population into equal quartiles based on their salary, and show the percentage of males and females within each quarter.
Howard Kennedy has a greater proportion of females than males across all quartiles, which indicates that we are able to recruit and retain women at all levels within the firm.
Employee Bonus Statistics
As well as salary, it's also important to ensure other remuneration is equal across the business, which is why we're also required to report on bonuses.
Bonuses - what do the results tell us?
The reduction in both the mean and median bonus gap shows that overall, bonuses awarded to our female population are better aligned to that of our male population compared to last year. We have reviewed the firm’s bonus policy to ensure a consistent, fair and transparent process of incentives for performance.
We have chosen to share information on the gender pay gap for partners within our statement to ensure that there is transparency at all levels of the firm.
Partners - what do the results tell us?
We acknowledge that the gender pay gap for our partners is wider than for our employees. This can be attributed in part to the proportion of females at partner level not being representative of the gender split across the rest of the firm, a factor that we intend to address as part of our talent and development approach
We are committed to being an inclusive firm, with opportunities for all to progress and develop. We are focused on developing our talent pipeline so that more women make it as partners here and we are serious about the development of existing partners.
Our people have access to development centres, mentoring and a curriculum that includes leadership development on many subjects, including unconscious bias. We are investing in a series of wellbeing initiatives to ensure that all of our people are equipped to perform to the best of their ability.
We are investing in practices that will make life easier and therefore provide the space for progression, such as agile working, a parental leave portal and coaching for those taking maternity leave.
Our goal was to improve our statistics from last year, which we have achieved in the case of median pay. However, the firm has a continuing commitment to reduce the pay gap further at both the mean and median level.
To see our statement from 2018 please click here.