HGF Gender Pay Gap Reporting 2018

HGF aims to have a diverse and inclusive workforce, with policies and initiatives, such as membership of IP Inclusive (http://www.ipinclusive.org.uk), in place to support this goal.  We also have a range of procedures and policies to underpin this commitment by ensuring our reward structures are fair and equitable.

We are pleased to have the opportunity for the first time to report on our gender pay gap under the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017.  This report concerns all our HGF UK based employees.  151 women and 102 men are included in this report, which is lower than the number of our UK employees as the Regulations exclude those on long term sickness, or maternity/paternity leave, and consultants.

Definitions

Hourly Pay:

The rate of pay each individual received for one hour on the snapshot date of 5 April 2017.  This includes any additional allowances such as Fire Warden Allowance.

Mean Average Pay Gap:

The difference between the mean hourly rate of pay for all men and women. Mean is calculated by adding all the individual hourly pay rates and dividing by the number of individual hourly pay rates.

Median Average Pay Gap:

The difference between the median hourly rate of pay for all men and women. Median is calculated by ranking all the individual hourly pay rates in numerical order, then finding the number that is in the middle.

Pay Quartiles:

These are calculated by ranking all employees hourly pay in numerical order then dividing these into four equal quarters. 

Pay Gap

 

Gender Pay Gap – hourly pay

 

 

Mean Average Pay Gap

 

 

11.4%

 

Median Average Pay Gap

 

 

6.5%

The figures shown above, are our mean and median hourly pay gap, as at the snapshot date of 5 April 2017.  The hourly pay gap is narrower at HGF than is found in many professional services firms. The gap indicates a difference that our analysis shows is largely due to the fact that the majority of jobs in our lower pay quartiles are support and administration jobs – more of which are held by women than by men. This can be seen more clearly in the Pay Quartiles chart, below. 

It is important to recognise that the gender pay gap is not about equal pay for men and women in the same jobs. HGF has an equitable and fair process for annually reviewing and setting pay levels to ensure women and men in the same jobs are paid equally.

Pay Quartiles

 

Proportion of Women and Men in Each Pay Quartile

 

 

Quartile

 

 

Women

 

Men

 

Lower Quartile

 

 

52.4%

 

47.6%

 

Lower Middle Quartile

 

 

77.8%

 

22.2%

 

Upper Middle Quartile

 

 

61.9%

 

 

38.1%

 

Upper Quartile

 

 

46.9%

 

53.1%

 

The higher proportions of women in the two lower quartiles is typical of many professional services firms, in that we have more women in support and administrative jobs, whilst the market rate salaries paid for qualified fee earner and experienced management roles are typically at higher levels.

Bonus Pay Gap

 

Gender Bonus Pay Gap

 

 

Mean Bonus Pay Gap

 

 

49.0%

 

Median Bonus Pay Gap

 

 

37.1 %

The table, above, shows our mean and median bonus pay gap for the twelve-month period to 5 April 2017.  HGF includes all staff in our bonus scheme; this benefit is not just open to fee earners. Whilst HGF’s shareholders receive a salary and are included in this report, they are not eligible for the bonus scheme. The bonus pay gap results from a combination of two factors. Working patterns influence this because the actual bonus payments awarded are used in the analysis. As bonus payments at HGF are based on a percentage of salary, whilst women and men have the same bonus percentage rate, there are more women who take the opportunity to work part time, which reduces the amount of their bonus payment.  Secondly, more women than men have jobs in the lower pay quartile (support and administrative jobs), and as bonuses are based on a percentage of salary, these roles receive proportionately lower bonus levels.

Proportion of Employees Who Received a Bonus

 

Proportion of Men and Women Receiving a Bonus Payment

 

 

Men

 

57.8%

 

 

Women

 

 

70.9%

The above chart shows the proportion of women and men who received a bonus payment in the 12-month period up to 5 April 2017.  Our analysis shows that the difference in proportions here results mainly from HGF shareholders being included in this report and shareholders do not receive bonuses.  As there are currently more male shareholders than female, this increases the proportion of men not receiving a bonus.

Monitoring Pay Gaps

HGF will continue to monitor and review our pay gap information to ensure we understand how well our equality and diversity policies and initiatives are working.  In time, we anticipate seeing the gaps between the genders narrowing.

 

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Psanderson                                          

Paul Sanderson                                         

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Carol Watkiss

Carol Watkiss