Under legislation that came into force in April 2017, UK employers with more than 250 employees are required to report their gender pay gap, something that T-Systems has embraced. We have put plans in place to review this on an ongoing basis and to be open with our data.
The gender pay gap is the pay discrepancy between men and women irrespective of their job or position. It gives a snapshot of the gender balance within an organisation and measures the difference between the average earnings of all male and female employees, irrespective of their role or seniority.
This is different from equal pay - when companies are required to ensure that men and women carrying out the same or similar roles are paid the same work they do.
One year on, our gender pay gap remains largely unchanged. The April 2019 shows a Gender Pay Gap of 26.09 % which is marginally lower than the 27.5%, which we reported in April 2018.
The biggest factor behind our gender pay gap is the balance of men and women across job levels. If we break our internal grades down approximately 80% of our employees in leadership roles are male. As with most companies, there are fewer senior roles and vacancies for such roles arise less frequently.
In analysing the gender pay gap we need to factor in the IIS population (employees on UK contract who work for in international roles linked into Germany where we have no influence on pay), which does impact our gender pay gap. Excluding IIS the gender pay gap would be 18.85% (considerably down from 23.51% in 2018). This gap is slightly below the IT industry average of 21%. Under gender pay legislation we have to report both the IIS and UK employees in our submission, but it is important to highlight how this section of employees impact the UK numbers.
The mean bonus gap increased from 40.7% to 48.03% between April 2018 and 2019 and this gap widened our gender pay gap number. However, again we need to highlight that there is a wide variance in the mean bonus gap between the UK population, where the mean bonus gap is 31.29%, compared to 68.97% for the IIS population.
Our aim is for everyone at T-Systems to be able to build and sustain a successful career. We believe this requires a combination of deliberate actions and ensuring that we provide an inclusive and diverse culture in a flexible environment for our people to operate in. Our second gender pay gap report shows that our pay gap remains largely unchanged, so we have more work to do.
We have developed a clear action plan with specific initiatives that will help close the Gender Pay Gap further and create a diverse and inclusive culture. These include:
We shouldn’t expect the reported figures to change quickly, but minor movements are not unexpected. Fundamentally we are not happy with a gap, but our long-term goal is to reduce our gap and achieve gender parity across all levels.
If you have any further questions or would like to know more about our initiatives please contact us.