RPMI Gender Pay Reporting 2019

 

As an employer, RPMI operates with strong values at the core of everything we do, and we are steadfast in our approach to being open, transparent and accountable in our treatment of employees.

 

Equality, diversity and inclusion in all aspects of our business are fundamental to delivering our mission. Building and maintaining a reputation as a great place to work is critical for attracting and retaining talent from a broad demographic. Gender pay reporting regulations give us the opportunity to share our record in these areas and to reinforce our commitment to treating individuals fairly.

 

Our biggest challenge remains unchanged - to increase the number of women at more senior levels in RPMI in an industry that has historically been male-dominated.  We are determined to reverse the industry trend and our efforts in the last twelve months have resulted in a year on year improvement. Although gradual, our commitment is clearly evidenced by a 3.8% improvement to the median.  It should be noted, however, that there is 0.3% worsening compared with the mean hourly pay gap this year. (Under the Government rules for calculating hourly pay, we must include 1/12 of the bonus payments paid, since these are paid in the April payroll at RPMI.)  The table below details these changes, comparing 2019 to 2018:

comparison table - 2019 to 2018

 

Despite employing a slightly larger proportion of females than males (46.8% male / 53.2% female), a gender imbalance in favour of males continues to exist in the upper quartile of the organisation, and this is driving the gender pay gap. 

 

We are resolute in working through a range of actions to improve gender balance, with continued focus on areas identified last year.   We are continuing our journey and recognise that these activities need time to drive change.


A Strategic Focus on Inclusion

Establishing ourselves as an inclusive employer allows us to embrace the diversity of backgrounds and perspectives of employees. To that end, in 2017 we collaborated with industry peers through ‘The Diversity Project’ to accelerate progress toward an inclusive culture across the Investment business. These survey results gave us new insights and employee perspectives that form the basis of our efforts in improving diversity and set new goals for the industry.


Key activities continuing at RPMI to drive this strategic focus include:

  • Significant investment and restructuring of the HR team to transform capability
  • Reverse mentoring of females in the succession pipeline
  • Investments business participation in an industry wide survey with their peers
  • The establishment of an inclusion working group to set the organisation’s agenda
  • A strategy working group that engaged and empowered individuals of both genders across the business and hierarchy
  • CEO participation as a mentor in the “Women in Rail” programme for 2020


Tactical Initiatives in Recruitment

Sourcing female talent in a traditionally male-dominated candidate pool is a challenging prospect for any employer. RPMI is continuing with an ongoing focus to ensure female candidates are considered for all senior roles. Initiatives to support this include:

  • Strategic review of sourcing channels to ensure they attract quality female candidates
  • Tactical interventions such as reviewing and improving our selection processes and training to avoid bias in recruitment and promotions
  • Developing and marketing our Employer Value proposition to demonstrate that employment with RPMI is attractive for female talent
  • Promoting the initiatives that RPMI is taking to mentor and develop ambitious females

 

Headline Numbers:

RPMI’s base pay difference between men and women

If we consider base pay only (excluding any bonus), the difference between the average base pay of men and women has narrowed from last year:

  • The mean gender pay gap of 29.2% in favour of males is a 3.9% decrease on last year
  • The median gender pay gap of 22.9% in favour of males is a 3.6% decrease on last year


Impact of Bonus Data on Gender Pay Reporting

89.5% of males and 86.9% females received a bonus at RPMI in April 2019 in respect of the 2018 year.   RPMI pay bonuses in April and, consequently, our hourly pay rate numbers including bonus are required to be calculated including 1/12 of bonus payments under the regulations. As a result, it is difficult to make external comparisons on a like for like basis because other companies may pay bonuses at other times of the year, leading to distortions in the calculation of hourly pay.         

 

We are also required to report the gender pay gaps including the entire bonus payments for the year, which shows a mean pay gap which is 72.6% lower, and a median which is 50.0% lower, for females. However, if we run the numbers without the bonus included and just consider base pay, as noted above, we find that the mean pay gap drops to 29.2% and the median drops to 22.9%, both improvements since last year.

 

That is why the figures with bonuses excluded provide a more accurate comparison of our figures with other organisations.

 

The table below shows the breakdown between men and women within each pay quartile. It shows that there is a much higher proportion of men in the highest quartile and a much higher proportion of females in the lowest pay quartile which is what leads to the overall pay gap in favour of males at RPMI.


Proportion of men and women across the four pay quartiles

four quartile charts

Variable Pay – receiving a bonus

The proportion of employees receiving a bonus in 2019 was relatively balanced with 89.5% male and 86.9% female.

bonus received chart

At RPMI we have two separate bonus schemes, one primarily for our Senior Management and Investments Business employees which is heavily weighted to a ‘pay for performance’ philosophy, and a more general organisational bonus in which 100% of eligible employees participate.  We have more male participation in the senior tiers of the former incentive scheme which drives the mean bonus gap. Our median gap, which compares the middle man and middle woman in our organisation, shows a much lower gap.