Direct Group’s Gender Pay Gap Report 2017

13 Mar 2018


Direct Group provide market-leading insurance and claims solutions to some of the UK’s best known insurance and retail brands and are committed to transparency, equality and the fair treatment of all our employees

UNDERSTANDING THE GENDER PAY GAP

From April 2017 all organisations with over 250 employees are required to report on their gender pay gap annually.  Gender pay compares the average (mean and median) hourly earnings of male employees and of female employees in a company, regardless of their job role.  The difference between those averages is known as the gender pay gap, which is expressed as a percentage of men’s earnings

ANALYSING DIRECT GROUP’S GENDER PAY GAP

The data published below is a snapshot as at 5 April 2017 for the 2016 performance year and has been reached using the mechanisms that are set out in the gender pay gap reporting legislation

DIRECT GROUP GENDER PAY GAP

Difference between men and women

(Fig. 1)

Fig. 1

PROPORTION OF MALES AND FEMALES IN EACH QUARTILE

(Fig. 2)

Fig 2

PERCENTAGE OF EMPLOYEES WHO RECEIVED A BONUS IN 2016

(Fig. 3)

Fig 3

The average gender pay gap across Direct Group is 28.5% – this is below the insurance industry sector survey’s average gender pay gap of 47% and the finance industry’s average gender pay gap of 39.5%

(Fig. 4)

Fig 4

We are confident at Direct Group that we have equal pay for work of equal value.  The gap is because of the unequal distribution of men and women across the company not because of our pay policies and practices.  Any pay gap difference shown will be a result of differing roles & bandings.  All employees working in the same bandings will be earning the same rewards.

Figure 2 shows the distribution of relevant male and female employees in four quartile pay bands by dividing the Group’s workforce into four equal segments. The higher proportion of men within the top pay quartile (%) indicates that our gender pay gap exists because there are more men in senior roles which attract a higher rate of pay.

In 2016, the percentage difference of bonus paid to female and male employees was marginal with 19.46% of females and 17.75% of males receiving a bonus. Direct Group bonus schemes are tailored to different roles to compliantly incentivise and reward employees. Business Development roles (a greater proportion of which are undertaken by men) typically attract higher bonus due to the impact and responsibility of the roles.

TACKLING OUR GENDER PAY GAP

Fig 5

We are proud that 52% of our workforce is made up of women and a growing number of women carry out senior roles within our business. Currently 20% of our senior executive team and our senior managers are female.

PWC, the professional services firm, reports that in the insurance industry women represent only 12% of executive committees.

OUR ACTION PLAN

Following detailed analysis of our gender pay gap and research into national and international trends, we are being proactive in taking action to address our gender pay gap by seeking to minimise the impact of limiting factors and promoting positive factors including:

  • Ensuring our recruitment processes eliminate bias and take into account all perspectives in order to recruit the best person for the role
  • Investing in developing female senior leaders of the We have already had 18 high potential females complete our senior talent programme representing 56.25% of participants.
  • Offering flexible working at all levels. Subject to business requirements all employees can request flexible working arrangements.
  • Calibrating annual performance ratings to ensure fairness and equity across all employees.

We confirm that the data in this report is accurate.

Derek Coles

Derek Coles, CEO

Pam Wiggins

Pam Wiggins, Head of HR and Talent

19th March 2018


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