RPMI Gender Pay Reporting 2018
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 7.3% improvement to the median, and a 1.9% improvement to the mean base pay gap this year.
That said, despite employing a slightly larger proportion of females than males (47% male / 53% 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 at the start of the 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 function. 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 underway at RPMI to drive this strategic focus include:
- Significant investment in People team to transform capability
- Reverse mentoring of females in the succession pipeline where executives are paired with female talent, at the early stages of their career, and mentored on technology, social media & trends that impact business
- Investments function participation in an industry wide survey with their peers
- The establishment of an inclusion working group to set the organisations’ 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 30% club mentoring scheme; cross-company, cross-sector mentoring to women at every stage of their career
Tactical Initiatives in Recruitment
Sourcing female talent in a traditionally male-dominated candidate pool is a challenging prospect for any employer. RPMI is making some progress with an ongoing focus to ensure senior female hires are made. Initiatives to support this include:
- Strategic review of sourcing channels to ensure they attract quality female candidates
- Tactical interventions such as transforming selection processes & training to avoid bias in recruitment & promotions
- Developing and marketing our Employer Value proposition to demonstrate that employment with RPMI is attractive for female talent
- Promoting the initiatives that RPMI are taking to mentor and develop ambitious females
- Two senior females hires have been made
RPMI’s base pay difference between men and women
The difference between the average earnings of men and women has narrowed slightly from last year in all areas except the median bonus pay.
- The mean gender pay gap of 40.9% in favour of males is a 1.9% decrease
- The median gender pay gap of 26.4% in favour of males is a 7.3% decrease
Impact of Bonus Data on Gender Pay Reporting
The reporting of 86% men and 84% women reflects those who were eligible for a bonus payment. RPMI pay bonuses in April. Consequently our hourly pay numbers are calculated including 1/12 of bonus payments. As a result it is difficult to make external comparators on a like for like basis due to potential distortion of hourly pay.
When we run the numbers without the bonus included, we find that the mean drops by 7.8% from 40.9% to 33.1% - more in line with the median, which increases fractionally to 26.5% (from 25.4%), both improvements since last year.
It is worth noting that if we excluded the bonus element that is contained in the hourly pay gap, the above numbers would be applicable and enable us to more accurately represent our normal monthly earnings pay gap to comparator organisations.
The table below shows the breakdown of the pay gap within each pay quartile. It shows that pay gap in favour of males is within the upper quartile.
Proportion of men and women across the four pay quartiles:
Variable Pay – receiving a bonus
The proportion of employees receiving a bonus in 2018 was relatively balanced with 86% male and 84% female.
Overall the mean bonus pay gap has narrowed slightly from last year but the median bonus pay has increased. The increase in the median bonus gap is due to the mix of payments that are included within the definition of bonus.
This includes the annual bonus paid in April and smaller recognition payments made throughout the year. The investment based bonuses are paid predominantly to males whereas many of the females receive the recognition or smaller all employee bonus.
- The mean bonus pay gap of 73.8% in favour of males is a 4.9% decrease
- The median bonus pay gap of 32.9% in favour of males is an 8.6% increase
At RPMI we have different bonus schemes – the investment based scheme which is heavily weighted to a ‘pay for performance’ philosophy, and reflects our strong performance over the last year or two, and a more general organisational bonus in which 100% of support, management and operational employees participate. We have more male participation (82%) in the senior tiers of our investment based 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.