GENDER PAY GAP REPORTS

At Les Ambassadeurs Club, we are committed to supporting diversity and inclusion in our workforce. Diversity is our strength: we are proud to employ more than 43 different nationalities and we work hard to support all colleagues in their careers. 
Gender pay gap reporting regulations have enabled us to challenge our own processes, particularly around how we encourage our existing female talent to take advantage of what we believe to be best-in-peer-group career development opportunities, and with recruitment efforts that do more to encourage women to enter the industry.

Like other businesses in our sector, men are disproportionately represented at the top tier of our business. This is due entirely to industry legacies set in place decades ago, so the pipeline of female talent has been underdeveloped on a historical basis. Whilst we have made great strides over the last few years in promoting and recruiting more senior women, with nearly half of recent senior promotions going to talented women,we want to continually improve our practices and provide progression opportunities for all our employees. We believe that the ratios of qualified females to males will continue to balance out over the next few years, due to our proactive efforts.

We are also pleased at the result of recent employee surveys, that the majority of our workforce responded positively around pay, benefits, development and recognition. We believe that our approach to individual and team recognition, training and supporting pay policies are transparent and applied fairly across the business. 
Les Ambassadeurs will use gender pay gap reporting as an opportunity to reinforce our open and accountable treatment of all employees. We value every individual’s contribution and we are committed to ensuring pay fairness for all.

Gender pay gap reporting is a new legal requirement introduced by the UKgovernment in 2017. All organisations with 250 employees or more in England, Scotland or Wales are required to publish their pay gap between men and women. Gender pay reporting aims to create greater transparency around overall gender pay gaps and encourages a more balanced representation of men and women at all levels within organisations. 

Gender pay gap reporting should not to be confusedwith equal pay. Gender pay summarises the pay gap of a combined workforce, no matter the role, to highlight the average difference in pay between men and women. Equal pay looks to identify pay differentials where employees are carrying out the same or similar role, or work which is different but of equal value to the company.

DECLARATION
We confirmthat our data has been calculated according to the requirements of The Equality Act 2010(Gender Pay Gap Information) Regulations 2017. Kevin McGowen,CEO,Les Ambassadeurs


Our mean gender pay gap 13.4%, is below the national average of 14.1%. This figure is calculated by adding together all salaries and then dividing by the number of salaries (i.e. people) to produce an average. Our median pay gap is lower again at 4.2%-a different way of measuring the average.

In terms of the pay quartiles, the Upper Middle Quartile is most reflective of the overall company gender split. However there are imbalances within the other three quartiles, most obviously within the Upper Quartile. Fewer women at the top level due entirely to lack of industry development decades ago, is the primary contributing factor to the gender pay gap and bonus pay gap results.

We pride ourselves on our diverse work force. Employing people fromacross the globe and having a gender-balanced leadership teamis good for our organisation; it supports success and improves the experience for our employees and customers. But we do recognise the benefits of doing more to
encourage women to enter the industry.

Our bonus gender pay gap is 26.8% based on median values,and by mean values it is 25.5% which is below the national mean of 57%. This is simply a result of a lack of women within the upper levels of our organisation at the time of the data snapshot and reinforces the additional opportunities to support female career progression, through long term development and strategic recruitment efforts. 

We do have a number of part-time female employees who received a bonus payment. However, a quirk of the reporting requirements means that we can’t pro-rate the bonus amount for our part-time employees to reflect proportionately what they earn. These employees are therefore not represented in the above bonus figures and their omission does impact the result in a misleading way.

Wearepleased with where we are and some of the excellent work already taking place, but recognise that we have further to go. We want to champion diversity and inclusion and bead river for change. 

Improving our diversity and in clusion: We actively promote fair treatment,respect and integrity in our work practices through our Handbook, Equal Pay Policy and Code of Ethics and Conduct.

Providing Support: We provide maternity/paternity pay and shared parental leave that exceeds the legal requirement to support employees financially. But we find the biggest challenge for employees is apprehension around returning towork. We provide parents and their managers with guidance around ensuring a smooth transition back into the workplace including advice on using ‘keeping in touch’ days.

Career Development and Succession Planning: In recent years we have made progress in how we recognise and nurture talent of all genders. We are proud of the policies we already have in place to encourage and facilitate ongoing learning, career development and talent management. However, our aim is to take a fresh view of existing practice and put in place an action plan which will ensure Les Ambassadeurs can attract, develop and progress the best talent regardless of gender. In addition, over the next 6-9 months we will supply more awareness training around unconscious bias, particularly for hiring and line managers.

Approach to Pay and Governance: We have a grading structure that was put in place 3 years ago which ensures that all employees have the same opportunities to progress their pay, and that pay is managed in a fair and equitable manner. But we will ensure that we track fairness, by looking at salary decisions by diversity profiles, which will provide the insight we need to manage this in a logical and balancedmanner.

*Quartile – A quartile in the case of gender pay reporting means all employees and salaries in the company in a long list from the highest salary to the lowest, and then split equally into quarters. The upper quartile is the top 25% highest earners, upper middle is the next 25% etc. 

**Mean –the mean and median are both types of average. For the purposes of gender pay reporting, the mean is all the male salaries added up and then divided by the number of men working in the organisation. You then do the same for female employees. An example would be: £22,000 + £28,000 + £35,000 + £40,000 + £59,000 ÷5 = £36,800. The mean value is £36,800.

***Median –the mean and median are both types of average. The median is the middle salary value when you have put them in value order from highest to lowest. For the purposes of gender pay reporting, the median is the middle salary when you line up all the male salaries in value order. You then do the same for female employees. An example would be: £22,000 + £28,000 + £35,000 + £40,000 + £59,000 ÷5 = £36,800. The Median value is £35,000. 

Sources: ONS Annual Survey of Hours and Earnings 2017; gender-pay-gap.service.gov.uk.

Q. Gender pay reporting and Equal pay – why is it different?
A. Equal pay looks to identify pay differentials where employees are carrying out the same or similar role, or work which is different, but of equal value.  Gender pay looks at the pay gap of a combined workforce, no matter the role, to highlight to companies if they need to improve a variety of policies to narrow the gap.  
 
Q: When do the regulations take effect?
A: The regulations took effect from 6 April 2017.
 
Q: What is the gender pay ‘snapshot date’? 
A: It is the date that determines the pay period we need to report on, which is 5 April each year.  Our  results must be published within the 12 months following the snapshot date of 5 April each year, which means that we will need to publish our first gender pay gap report by 4  April 2018 at the latest.
 
Q: Who does it cover?
A: All private and public sector companies within the UK that employ 250 or more employees within a single legal entity on the snapshot date (see above) have to publish their gender pay reporting.
 
Q: What are our legal requirements?
A: Under the regulations, we are required to publish the difference between:
  • The mean ordinary hourly rate of pay for male and female relevant employees;
  • The median ordinary hourly rate of pay for male and female relevant employees; 
  • The mean bonus pay for male and female relevant employees;
  • The median bonus pay for male and female relevant employees;
  • The proportions of male and female relevant employees who were awarded bonus pay; 
  • The proportions of male and female relevant employees in the lower, lower middle, upper middle and upper quartile pay bands.
 
Q: What is the ‘relevant pay period’?
A: The ‘relevant pay period’ is the pay period within which the 5 April ‘snapshot date’ falls. For example if  an employer runs a monthly payroll this period equates to the month of April or for a weekly payroll this is the week in which the 5  April falls.
 
Q: What is the ‘relevant bonus period’?
A: The ‘relevant bonus period’ is the twelve-month period that ends on the ‘snapshot date’, which is  6  April 2016 to 5  April 2017 for this year’s reporting.
 
Q.: What  is meant by Quartile?
A:  In  the case of gender pay reporting, a quartile is worked out by taking all relevant  employees’ ordinary  hourly pay (as previously described), from the lowest to the highest and splitting equally into quarters, i.e.   the upper quartile being the top 25% highest earners, upper middle is the next 25% etc. 
 
Q:  What  is meant by Mean?
A.  For the purposes of gender pay reporting, the mean is all the male hourly pay added up and then divided by the number of men working for us  and all the female hourly pay added up and then divided by the number of females working for us.  The gender pay gap using mean values is the difference between these two figures expressed as a % of the mean male hourly pay.
 
Q:  What  is meant by Median?
A.  For the purposes of gender pay reporting, the median is the middle hourly pay when you line up all the male ordinary hourly pay  in value order. You then do the same for female employees. The gender pay gap using median values is the difference between these two figures expressed as a % of the median male hourly pay.
 
Q. What is hourly pay for the purpose of gender pay gap reporting?
A: The calculations are based on ‘hourly pay’  as defined by the regulations and calculated using employees’ contractual hours and the amount of pay received during the relevant pay period including but not limited to base pay, allowances and bonus / incentives. The figure is taken before deductions for PAYE, national insurance, student loan repayments and voluntary deductions, but after deductions for salary sacrifice benefits such pension contributions, childcare vouchers and cycle to work  schemes.
 
Q: How is the bonus  gender pay gap calculated?  
A: The calculations are based on ‘bonus pay’ as defined by  the regulations and calculated using all bonus received during the ‘relevant bonus period’ including but not limited to annual  bonus, incentive, commission,  service award, retention bonus and LTIP payments, PAYE, national insurance, student loan repayments and voluntary deductions.
 
Q.  An employee is on maternity leave for the period 02/05/2016 to 17/04/2017. In the relevant pay period for the employer, 01/04/2017 to 30/04/2017, the employee has received 17 days of unpaid maternity leave.  Should they be included? 
A:  As they would have reduced basic pay due to leave, they should be excluded from the gender pay gap calculations. However, any bonus payments that have been made in the 12 months to 5 April 2017, even during their maternity leave, must be included when calculating the bonus gender pay gap calculations.
 
Q: During the relevant pay period 03/04/2017 to 09/04/2017 an employee whose contractual hours vary week to week receives basic pay AND a bonus payment.   How is  the hourly rate calculated?
A:  The  hourly rate is calculated using all ordinary pay and bonus received in the relevant pay period and the average weekly hours worked over  a 12 week  period up to and including the relevant pay period.
 
Q: Our annual bonus is paid during the relevant pay period i.e. the pay period that includes the 5  April.  Do I include it all in the gender pay gap calculations? 
A: No. Any bonus paid during the relevant pay period must be pro-rated for the period of performance that is being rewarded in the relevant pay period. For example if the payment is in relation to an annual scheme then 1/12th of  the payment must be included in the gender pay gap calculations.  
 
The aim of getting all organisations to publish their gender pay reporting online, within the government submission site, is to provide transparent insight and shine a spotlight on gender pay results by sector.
 
However, making comparisons within our sector is not that helpful. Comparisons should to be looked at in the context of the individual businesses published. 
 
What is not obvious, is that the reporting legal entity of the business may be entirely different.  What this means is that some companies will only be reporting on a subsection of their overall business or may have many separate business entities.   
 
Another influencing factor is that the ratio of women to men could be significantly different between companies, especially what the ratios look like in the top tier.   Another factor, depending upon the company and employment structure, is some employees particularly within the top tiers will not be included (eg. Partners in a law firm).
 
Since it’s so difficult to draw useful conclusions from comparing to other companies, we feel the best approach is to focus on how we can improve our individual gender pay gap results going forward.
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