Policies and Additional Information

Gender Pay Gap Report

The UK Government has introduced regulations for gender pay gap reporting for companies in the UK. The regulations are intended to encourage employers to take informed action to close their gender pay gaps where one exists.

Using the snapshot date of 5th April 2017 as required by the regulations we have published our gender pay data for our UK workforce. This includes all our UK legal entities and includes all relevant employees.

The Gender Pay Gap is different to Equal Pay

The gender pay gap shows the different between the average hourly earnings of men and women across the workforce, irrespective of their role. Its purpose is about addressing the representation of women in the workforce.

Equal pay is different to gender pay gap. Equal pay is about whether a woman and a man performing the same work, at the same level, in the same organisation receive the same pay and is legislative requirement with which we comply and is not further addressed in this report.

There are a number of calculations that we report in our gender pay gap data:

  • Mean (average) and median (mid-point) gender pay gap in hourly pay and bonus pay of male and female employees. This is expressed as a percentage of male employees’ earnings.
  • Proportion of men and women who receive a bonus
  • Distribution of men and women across pay quartiles

Gender pay gap in hourly pay (at 5th April 2017)

The figures shown below show the difference between the mean (average) and median (mid-point) hourly pay of all male and female employees, irrespective of their role, expressed as a percentage of male employees’ pay.

CeramTec UK Median Pay Gap
 

CeramTec UK Mean Pay Gap
 

We have a gender pay gap because at the snapshot data (5th April) we employed around 3.5 times more men than women in our staff roles & senior leadership team.

This trend is not unusual for companies like ours because many of our staff roles and leadership positions focus on employing people with qualifications in engineering and STEM related fields.

The number of women who study and work in these fields in the UK has traditionally been less than the number of men with 2017 reported figures* showing women make up 20% of applicants to engineering degree courses and only 9% of professional engineers in the workforce. As a result, we recruit from a much smaller pool of female engineering talent when we look to source new members of the team.

* source: Institute of Mechanical Engineering 2017

Proportion of employees who receive a bonus (in 12 months preceding 5 April 2017)

All employees have an equal opportunity to participate in the programmes which make up the bonus calculation. As a result, the proportion of female employees receiving a bonus is virtually the same as that for male employees (95.7% females received a bonus versus 90.8% males received a bonus).

Gender pay gap in Bonus (at 5th April 2017)

Bonus gender pay gap (earned in 12 months preceding 5 April 2017) These figures show the mean (average) and median (mid-point) bonus gap.

The reason we have an average bonus gap of 59% and a median bonus gap of 31.3% is because we have fewer women in staff and senior leadership positions and fewer women in roles that attract higher levels of pay where the scale of the bonus potential is greater. As previously described, this is due to the challenges we face recruiting females from Engineering related fields.

Distribution of all UK employees across pay quartiles (at 5 April 2017)

The charts below show the gender distribution across our UK business in four quartiles based on pay bands.

At the snapshot date (5th April 2017) there was a greater number of male employees in our UK business but within our production area we have a higher number of females than males.

Women are less well represented in the upper quartiles compared to the other two quartiles and this is a result of us having fewer women in staff and senior management roles which sit in the top pay quartiles.

Pay Quartile Women Men
Participation in 1st quartile 76.9% 23.1%
Participation in 2nd quartile 58.5% 41.5%
Participation in 3rd quartile 27.7% 72.3%
Participation in 4th quartile 17.2% 82.8%

Our actions

We continue to recognise the need to increase the number of females we employ in staff and leadership roles to improve our gender balance and become a more diverse organisation.

Since the snapshot date of 5th April 2017 our representation of females in these employee groups has already increased and we will continue to address this moving forward.

We are keen to bridge the gender gap in our industry by encouraging more women to join CeramTec UK. In 2018 we are investing in new apprenticeships and graduate opportunities and whilst it is too early to report its outcome we aim to ensure this search for our next generation of talent will continue to improve our gender balance.

We are continuing to develop our internal reward and compensation practices and will ensure these continue to be fairly applied across males and females. We provide equal access to learning and development and during 2017/2018 we support a number of our employees through time off to attend college and financial contributions to their chosen course of study. We offer family leave and flexible leave policies designed to balance the demands of caring for dependants as well.

Further information

The method for calculating the gender pay gap figures has been outlined by the UK Government and the results from every qualifying UK organisation will be published here:

https://gender-pay-gap.service.gov.uk/viewing/search-results

We confirm the information and data reported is accurate as of the snapshot date 5 April 2017.