Gender Pay Gap Reporting
Interact CC Ltd employs over 250 people and is therefore required by law to publish an annual gender pay gap
report.
This is its report for the snapshot date of 5 April 2018.
- The mean gender pay gap for Interact CC Ltd is 2%.
- The median gender pay gap for Interact CC Ltd is -1%.
- The mean gender bonus gap for Interact CC Ltd is -22%.
- The median gender bonus gap for Interact CC Ltd is -55%.
- The proportion of male employees in Interact CC Ltd receiving a bonus is 90% and the proportion of female employees receiving a bonus is 93%.
| Pay quartiles by gender | |||
| Band | Males | Females | Description |
| A | 69% | 31% | Includes all employees whose standard hourly rate places them at or below the lower quartile |
| B | 63% | 37% | Includes all employees whose standard hourly rate places them above the lower quartile but at or below the median |
| C | 52% | 48% | Includes all employees whose standard hourly rate places them above the median but at or below the upper quartile |
| D | 63% | 37% | Includes all employees whose standard hourly rate places them above the upper quartile |
The figures set out above have been calculated using the standard methodologies used in the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017.
Definitions
The gender pay gap shows the difference between the average earnings of men and women (excluding overtime). This is expressed as a percentage of men’s earnings. For example, a 4.0% gender pay gap denotes that women earn 4.0% less per hour, on average, than men. Conversely, a negative 4.0% gender pay gap denotes that women earn 4.0% more, on average, than men.
The above calculations make use of two types of averages:
- A mean average involves adding up all of the numbers and dividing the result by how many numbers were in the list.
- A median average involves listing all of 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.
Using these two different types of average is helpful to give a more balanced overview of an employer’s overall gender pay gap.
Mean averages are useful because they place the same value on every number they use, giving a good overall indication of the gender pay gap, but very large or small pay rates or bonuses can ‘dominate’ and distort the answer.
Median averages are useful to indicate what the ‘typical’ situation is i.e. in the middle of an organisation and are not distorted by very large or small pay rates or bonuses. However, this means that not all gender pay gap issues will be picked up.
The gender pay gap calculations use specific pay data from a single payroll period, which includes the snapshot date of 5 April 2018.
The gender bonus gap calculations uses pay data for the 12-month period up to the snapshot date of 5 April 2018.
Does Interact CC Ltd have a gender pay gap?
Mean gender pay gap – This measure shows that for the relevant pay period, which includes 5 April 2018, male employees earned 2% more than female employees. However, the mean gender pay gap for the whole economy (according to the October 2018 Office for National Statistics (ONS) Annual Survey of Hours and Earnings (ASHE) figures) is 17% so we are pleased to be able to say that Interact CC Ltd’s figures compare very favourably with that of other organisations.
Median gender pay gap – This measure shows that for the relevant pay period, which includes 5 April 2018, male employees earned 1% less than female employees. The median gender pay gap for the whole economy (according to the October 2018 ONS ASHE figures) is 17.9% in favour of men.
Gender bonus gap – Calculation of both the mean and the median method for this measure demonstrates that female employees earned more bonus on average than male employees did. Furthermore, 3% more of female employees earned a bonus in the year than did male employees. The vast majority of bonuses are paid against objective and verifiable success criteria, so despite the apparently significant bias in favour of female employees, we do not believe that gender plays a part in their payment.
Pay quartiles by gender – The percentages in the table overleaf shows that the company currently employs more men than women. However, it does not show that female employees are disproportionately represented in the lower quartile pay bands. In fact, 56% of female employees are in the two upper quartiles and the lowest quartile has the least number of female employees in it. Specifically, the percentage of women in each pay quartile is as follows:
Lower Quartile 20%, Lower Middle Quartile 24%, Upper Middle Quartile 32%, Upper Quartile 24%
In summary, we do not believe that the above calculations carried out in accordance with the methodologies set out in the 2010 Equality Act demonstrate a marked pay bias in favour of male employees in our company. However, we will continue to monitor the situation and if subsequent publications show a different picture, we will take the necessary action to correct the situation.
Interact CC Ltd is committed to the principle of equal opportunities and equal treatment for all employees, regardless of sex, race, religion or belief, age, marriage or civil partnership, pregnancy/maternity, sexual orientation, gender reassignment or disability. It has a clear policy of paying employees equally for the same or equivalent work, regardless of their sex (or any other characteristic set out above).
I confirm that the information in this statement is accurate.
Tim Pardoe
Finance Director
28 March 2019