Following the launch of our refreshed approach to D&I in Q4 2016, we have:
been establishing regular monitoring and reporting of progress and delivery of targets at each level (Group / Division / Business Unit or Contract), whilst continuing our work towards achieving a minimum of 25% females in leadership roles by 2020, focusing in particular on improving gender balance in senior recruitment and our talent pipeline;
established D&I as a standing agenda item for our Quarterly Talent Reviews (attended by the Group HRD and Divisional Chief Executives and HRDs), ensuring relevant actions are delivered and risks managed;
incorporated D&I demographics into our employee engagement survey, as appropriate by Division, expanding options for gender identity, sexual orientation and disability;
developed and launched an Unconscious Bias e-learning programme; and
continued to introduce, build and promote Divisional councils, committees, working groups and networks in support of strategy delivery.
Reporting our Gender Pay Gap (UK)
In the UK, we have completed preparations for reporting pay gap information annually from April 2018, as required by the Equality Act 2010. We are committed to ensuring that all our employees are treated fairly, with dignity, and with an equality of opportunity throughout their careers with Serco. Measuring, understanding and reporting our Gender Pay Gap is a welcome and important step in this journey.
We have undertaken extensive analysis of what is behind our current median gender pay gap of 12.9% so that we can identify real opportunities to reduce this. This figure reflects the average paid to men and women across our UK businesses. It is not a comparison of pay rates for men and women doing work of equal value. The primary cause of the gender pay gap within Serco is the demography of our UK employee population, in which we currently have an imbalance in the number of men and women at the various levels within the organisational structure. We have fewer women than men in more senior positions and typically people in more senior positions receive the highest pay and bonus pay. This impacts the hourly pay and the bonus pay figures.
Complementing our strategic D&I focus on leadership gender, our analysis shows that an equal gender distribution at our manager level and above would reduce the overall pay gap below UK averages.