Gender pay gap report 2018 - Arnold Clark

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Gender pay gap report 2018 - Arnold Clark
Gender pay
gap report
2018
Gender pay gap report 2018 - Arnold Clark
The automotive industry has been a traditionally
male-dominated environment, but Arnold Clark is working
hard to redress any gender imbalance still present within our
organisation. At Arnold Clark we support government action
requiring large employers to be transparent about their
gender pay gap figures.

Our continuing aim is to ensure all departments and divisions
throughout the business are committed to attracting,
retaining, and developing the careers of female employees.
We want to make sure our workforce is more reflective of our
customer base, which is more equal in gender terms.

What have we been doing
about it in 2018?
During the past 12 months, we have focused             • Launching a full recruitment campaign to increase
on increasing the number of females within               the number of female sales employees, which
our Sales division. The first half of the year, we       integrated online and digital platforms. The
carried out research on how best to change               campaign aimed to combat the traditionally male-
the perception that sales roles are solely for           dominated image of car sales, and position the
men, by holding a series of focus groups                 product consultant role as a fulfilling career path
with our current female sales employees.                 accessible to all. The campaign targeted women
                                                         from retail, hospitality, banking and remote
This gave us a clear insight into what factors might     customer service backgrounds, in a bid to move
dissuade women from applying for Sales roles, and        away from the traditional sales focus and towards
what Arnold Clark could do to support females            a customer experience-minded environment.
within sales more effectively, once on board.
                                                       • Targeted social media campaign showcasing
We also embarked on a tour of the UK to meet             our successful sales females, our five-day
with all of our branch General Managers, to              week and our new, more casual uniform.
understand the barriers they’ve encountered in
                                                       • Sub-conscious bias and recruitment
recruiting females into sales. We also discussed
                                                         practices training for all line managers.
the advantages of a more balanced sales force.
Further to this, we’ve taken the following steps:      • Targeted coaching for all branches
                                                         with no females in the sales team.
• Rebranding the Sales Executive role by removing
  the shirt and tie from the uniform and moving        • Recognising that a change of this kind may
  towards a more casual look, changing the sales         be a challenge for some managers, a support
  role title to Product Consultant to modernise          system has been put in place whereby
  the position and make it more accessible, and          managers can get any help they need in
  using information gathered from the female             dealing with the changing demographic.
  focus groups, there has been a move away from
  sales targets towards annual expectations.           • A dedicated female mentor programme for sales
                                                         new starts who may need some extra guidance
   These changes take away the traditional               and support to settle in to the company.
   image of car sales, removing the competitive
   element of car retailing and making the job less
   threatening to new recruits, particularly women.
Gender pay gap report 2018 - Arnold Clark
The combination of the above efforts has                As such we continue to partner with Dare to be
been a success and we’ve seen a significant             Different, an organisation led by former racing
increase in females joining our sales team.             driver Susie Wolff MBE which seeks to inspire
                                                        young girls to pursue a career in motorsport.
But it’s not just about the sales division, we’re       We have again this year offered our employees’
also challenging ourselves to increase our female       daughters the opportunity to attend a daughters
demographic across the board. We’re continuing          day to experience various STEM activities to open
our efforts to raise the profile of our female role     their minds to the opportunities available:
models in the business to ensure that our female
employees are aware that there is a career path
open to them. One example of this is the video             Dare to be Different daughter’s day
we published on International Women’s Day:

                                                        We have also been working on Girls with Skills,
  International Women’s Day                             our own STEM youth education piece aimed at
                                                        young girls. This will be trialled early 2019 with
                                                        a view to taking it on the road to high schools
We’ve continued to roll out flexible working to         all over the UK via our interactive STEM van.
various areas of the business to make sure employees
have a good work-life balance. We are now also          Finally we are very proud to have been recognised
publishing a ‘Happy to talk Flexible Working’           for all of our efforts to ensure diversity within our
logo on our careers page to encourage females           workplace. Arnold Clark received a Commendation
applying to the company to feel confident about         at the 2018 Herald and GenAnalytics National
discussing working patterns at interview stage.         Diversity Awards. The company was also recognised
                                                        as the Employer of the Year at the Business Women
Youth education is something we see as essential to     in Scotland Awards where special mention was made
ensure that young girls are aware that the automotive   of the fact that we are frontrunners in the automotive
industry is a career option for them.                   industry with regards to our diversity efforts.

What’s next for us?                                     • We have established a new partnership with
                                                          BWS, an organisation whose aim is to support
We intend to build on the good work we’ve already         businesswomen in industry. BWS will be delivering
got underway. We recognise that culture change            pop-up events within Arnold Clark to train our
is not an easy task and to achieve this will require      females on confidence and leadership skills. It is
many years of work. Here’s what we’ll be doing next:      hoped that through these events we will see more
                                                          of our females putting themselves forward for
• Diversity training for all line managers.               promoted roles.

• The collaborative approach to our targeted female
  recruitment drive was extremely successful, the       Our commitment to diversity
  intention is to stay with this approach until the
                                                        We want to provide an open and inclusive
  gender imbalance within sales is addressed.
                                                        environment where people can simply
                                                        come to work, be themselves and do a great job.
• Establish a female network group to
  ensure a long-term support system is in
  place for females in our workplace.

• Further roll out of our female mentor programme.

• Continual promotion of our female role models.

• Introduction of flexible working to areas of the
  business that have not yet been addressed. Our
  commitment is to have every employee on a
  flexible working scheme by the end of 2019.
Gender pay gap report 2018 - Arnold Clark
Gender pay and bonus reporting statistics
for staff employed at 5th April 2018

The gender pay gap explained
A pay gap is the difference in average pay
between two groups within a workforce. It is
not to be confused with equal pay. This is a
different matter and is concerned with being
paid equally for the same or similar work.
Below we will consider the gender pay gap.

Arnold Clark Automobiles Ltd (Incorporating Harry Fairbairn Ltd)

Our workforce
Being part of the historically male dominated            Apprentices: The number of female
automotive industry, it is no surprise that the Arnold   apprentices has increased tenfold.
Clark Group has an uneven gender split between
                                                         Aftersales: The number of women within our
men and women. In the past five years we have made
                                                         aftersales division has increased by 30%.
significant improvements in the following areas:
                                                         We are proud to have more women involved in all
Sales: The number of women in our
                                                         areas of our business and we are looking forward
sales division has trebled.
                                                         to building on the progress we have made.

             76%                                   24%
             male                                  female                           Figures at April 2018
The figures for both mean and median hourly            The gap has widened in 2018 due to a number of
rate and bonus are entirely reflective of the          factors. The introduction of the industry leading 5
demographic of our organisation. Our business          day working week within sales and the associated
has more males at senior level and as such             commission structure is compulsory for all new
our average male salary (mean and median) is           starts, this is a positive move to ensure that the
higher than our average female salary. This pay        role appeals to a wider, more diverse population
gap will continue to exist until we achieve a fair     of people. The previous 6 day structure is now
representation of men and women at all levels,         closed to new entrants, the majority of those
which is something we are working hard to achieve.     remaining on this structure are male and as they
                                                       are continuing to work an extra day per week they
The bonus pay figures confirm that most employees
                                                       are on average earning higher commissions. The
receive a bonus, however the males receive an
                                                       females we have recruited into sales during our
average of 50% more. Our sales division earn
                                                       successful recruitment drive have not yet reached
commissions for cars sold and are some of the
                                                       their full earning potential as they are still within
biggest bonus earners in the company. The bonus
                                                       their training phase. The bonus gap will close as we
gap is a consequence of the company having a
                                                       redress the gender imbalance within sales, it will take
significantly larger proportion of men within sales.
                                                       time to significantly increase our female numbers
                                                       but we are fully committed to seeing this through.

Gender pay

Difference in mean
hourly rate of pay         13.4%                       Difference in median
                                                       hourly rate of pay            10%
Gender bonus

89.1%                              89.6%               Percentage of men and
                                                       women receiving bonus

Difference in
mean bonus pay             50%                         Difference in
                                                       median bonus pay           45.6%
Pay banding

Upper quartile                                           Upper middle quartile

87.2%                              12.8%                 75.1%                               24.9%

Lower middle quartile                                    Lower quartile

64.7%                              35.3%                 81.7%                               18.3%
Arnold Clark Finance
Within our finance division the picture is very          The bonus pay figure confirms that the average
different. Women in this area are paid more (mean        bonus for a female within the finance division is 6.2%
and median) than men. Within this area of the            higher than that of men. Again, this is a reflection
business the majority of senior individuals are          of the number of senior females within Finance.
female, which is testament to the equal opportunities
                                                         Movement in median female bonus figure is
available within Arnold Clark as a whole.
                                                         down to additional employees in this area
                                                         receiving a bonus, as this group is small
                                                         in numbers this has caused a shift.

Our workforce

           61%                            39%
           male                           female                                      Figures at April 2018

Gender pay

Difference in mean
hourly rate of pay         -6%                          Difference in median
                                                        hourly rate of pay          -15.7%
Gender bonus

92.7%                              83.4%                   Percentage of men and
                                                           women receiving bonus

Difference in
mean bonus pay             -6.2%                            Difference in
                                                            median bonus pay              3.6%
Pay banding

Upper quartile                                             Upper middle quartile

50.8%                              49.2%                   49.7%                                50.3%

Lower middle quartile                                      Lower quartile

75.7%                              24.3%                   73.5%                                26.5%
It starts from the top

                                             ‘   I’m proud to say that Arnold Clark has
                                                 a robust equal opportunities policy that
                                                 ensures that women are as successful
                                                 within the organisation as their male
                                                 counterparts. In recent years, we’ve
                                                 made some changes to improve our
                                                 workplace culture and make Arnold
                                                 Clark a more attractive place to work.’

                                                 Eddie Hawthorne
                                                 Group Managing Director and Chief Executive

‘   We want every employee at Arnold
    Clark to feel welcomed, empowered
    and valued, and we’ve made it our
    mission to put our people at the heart
    of what we do. I’m looking forward to
    another exciting year of making this
    vision a reality.’

    Carol Henry
    Human Resources Director

                                                                                               022078
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