Gender Pay Gap Report 2017 This report details our results for April 2016 to April 2017
Introduction Distribution is the Distribution Network Operator responsible for the delivery of electricity to 7.8 million homes and businesses across the Midlands, South Wales and the South West of England. delivery of electricity to 7.8 million homes and businesses Distribution is committed to an inclusive working environment and understands that our people are at the heart of our business success. We are committed to addressing gender representation in the workplace and continually review our recruitment and retention policies to ensure we have a diverse workforce which reflects the customers and communities where we operate. Distribution commissioned Aon Hewitt to calculate and provide further insight and explanation of the 2017 Gender Pay Gap statistics.
What is a gender pay gap and how is it calculated? The gender pay gap is a measure that shows the difference in the median earnings between men and women. Highest paid To calculate the median gender pay gap, the hourly pay rate of all male were arranged highest to lowest and the one in the middle was selected. This was repeated for female. The hourly pay of these two were then compared. This is different from equal pay, which is the difference in pay between men and women who carry out the same or similar jobs. The median Lowest paid The mean gender pay gap shows the difference in the average hourly pay rate between men and women in the company.
WPD Results The vast majority of WPD s workforce (95%) is aligned to the distribution business area. This particular segment largely comprises male (87%) and is similar to overall UK labour market demographics for this industry. WPD Demographics 85% 15% WPD s gender pay gap statistics Hourly Pay Gap Bonus Pay Gap Mean 9.0% 59.7% Median 10.5% 6.5% % of Bonus Receivers 1.6% Male 0.9% Female Male : 5,601, Female : 970 Total : 6,571 (as at 5th April 2017) The Office for National Statistics (ONS) reports women as a minority within the Skilled Trades and the Process, Plant and Machine Operatives occupational groups, accounting for just 10-12% of workers. Independent analysis to determine the primary factors that contribute to WPD s hourly pay gap observed the following: Currently, more men than women occupy more senior roles within the business There are more men in roles that attract specific job related pay premiums such as shift and standby allowances Female typically have slightly shorter length of service relative to men. The first five years of service is a key feature in the mechanics of the Electricity Business Agreement pay structure; reflecting experience in post.
WPD Pay Structure The analysis of WPD s allowances were specifically linked to additional responsibilities and/or working patterns required to deliver a service 24/7, 365 days a year. Shift and standby allowances were the most significant allowances and will to some extent impact the overall hourly pay gap within the business. WPD apply this allowance policy and opportunity fairly across the business irrespective of gender. Electricity Business Agreement WPD has policies in place to ensure all its are paid fairly. One such policy is the Electricity Business Agreement. This agreement covers more than 98% of all. Salaries are allocated one of nine different pay grades, depending upon the roles. Within each grade there are five incremental steps that can progress through annually, dependent upon satisfactory performance. The proportions of WPD male and female full-pay relevant in the lower, lower middle, upper middle and upper quartile pay bands. Upper Lower Middle 88.2% 11.8% 82.6% 17.4% Upper Middle lower 90.4% 9.6% 79.7% 20.3%
industry segment WPD s median gender pay gap of is 7.6 percentage points below the national gender pay gap and 17.6 percentage points below its industry gender pay gap. Therefore, in relative terms, WPD s gender pay gap is positioned positively compared to its UK wide industry segment. WPD s gender pay gap relative to its industry segment 18.1% the median UK gender pay gap for all in 2016. * 28.1% the median gender pay gap for WPD s industry segment, Electricity, gas, steam and air conditioning supply. * * Source: ONS
Company Breakdown Business Entity Number of relevant in entity male and female in business entity Mean hourly pay difference between male and female Median hourly pay difference between male and female men/ women in lower quartile pay band men/ women in lower middle quartile pay band men/ women in upper middle quartile pay band men/ women in upper quartile pay band Mean difference in bonus payment between male and female Median difference in bonus payment between male and female men / women receiving bonus pay M% F% % % M% F% M% F% M% F% M% F% % % M% F% Distribution Plc 6,571 85% 15% 9% 10.5% 79.7% 20.3% 82.6% 17.4% 90.4% 9.6% 88.2% 11.8% 59.7% 6.5% 1.6% 0.9% East Midlands 1,941 82.23% 17.77% 8.65% 4.44% 76.49% 23.51% 81.03% 18.97% 84.95% 15.05% 86.42% 13.58% 12.05% 2.60% 0.94% 0.55% West Midlands 1,876 87.42% 12.58% 4.51% 3.94% 82.73% 17.27% 86.99% 13.01% 92.32% 7.68% 87.63% 12.37% 48.26% 33.30% 0.73% 0.40% South West 1,684 84.68% 15.32% 12.91% 10.84% 77.43% 22.57% 80.29% 19.71% 91.21% 8.79% 89.79% 10.21% 69.10% 5.43% 3.57% 2.27% South Wales 1,070 87.76% 12.24% 12.60% 10.50% 79.10% 20.90% 86.52% 13.48% 92.54% 7.46% 92.88% 7.12% - - 1.27% 0.00% Overall 6,571 85.0% 15.0% 9.0% 10.5% 79.7% 20.3% 82.6% 17.4% 90.4% 9.6% 88.2% 11.8% 59.7% 6.5% 1.6% 0.9%
Conclusion WPD acknowledge there is a challenge across our industry to attract more women to our profession. At WPD we place great emphasis on our diversity and inclusion programmes to attract, retain and progress female within the business. It is important for us to continually review our gender pay gap and diversity information and be aware of factors that may impact people related decisions. We have an established Equality and Diversity policy demonstrating the equal treatment of all existing and future. We will continue to support high profile campaigns like Women in Engineering and promote engineering vacancies in a wide and diverse range of publications with first-hand accounts from existing female engineering. We confirm that the WPD gender pay gap calculations are accurate and meet the requirements of the regulations. Ian Williams, Resources and External Affairs Director, Distribution