Gender pay gap
Precision Polymer Engineering Limited (“PPE”) is a subsidiary of IDEX Corporation and is part of the wider IDEX family which includes a number of separate legal entities. The information in this report relates solely to PPE and does not include any data from the wider IDEX Group.
PPE is completely committed to inclusion and equality of our workforce. PPE and the wider IDEX Group have already been working hard behind the scenes for a number of years on our inclusion policy to ensure that we are doing all that we can to ensure inclusion is achieved and that women are proportionately represented and employed in all areas and at all levels of our business.
PPE therefore welcomes and supports the government’s legislative step addressing the existing gender pay gap and will continue to develop existing strategies and new plans to address the gender pay gap which exists within our own business and the sector in which we operate. We aim to reduce our own gender pay gap and are fully committed to ensuring equality of opportunity throughout our business. PPE considers that all of our workforce should be awarded fair and equal opportunities, regardless of their gender.
We do however understand and have considered the obstacles and difficulties that our industry faces in relation to female representation. PPE recognises that people are its greatest asset and representation of women within our business is essential. As such, we will continue to strive forward and develop existing and new strategies within our corporate vision to ensure that women are represented across our business, including within our Senior Leadership Team. We aim to accelerate gender parity and provide a diverse and inclusive environment.
This is something which we are proud to boast has been happening already within our business over recent years, and the fruits of this approach has recently resulted in two female apprentices employed by PPE, in addition to the recruitment of two women onto our Senior Leadership Team.
What is the gender pay gap?
The gender pay gap outlines the difference in average earnings between men and women. It is important to note that this is different from and should not be confused with equal pay. Equal pay is the premise that men and women performing work of equal value should receive equal pay for that work. The law prohibits employers from paying their workforce unequally for carrying out work of equal value because of a person’s gender. It is therefore possible, and likely for a large number of businesses throughout the UK, to have genuine equality of pay yet still have a significant gender pay gap.
Why the gender pay gap exists
It is not straight forward to identify the reasons behind and causes of the existing gender pay gap in the UK.
It is widely understood that some of the complex and overlapping reasons behind the existing gender pay gap relate to:
- A higher proportion of women working part-time/reduced hours than their male counterparts and the link with part-time workers receiving on average a lower salary than full-time equivalents;
- Women taking up caring roles within their families including caring for their children and elderly relatives;
- A higher proportion of women opting to work in roles and professions which are less financially rewarding;
- Women taking time out of their careers for maternity and parental leave; and
- Women being less likely to progress to more senior, higher paying roles.
The PPE Gender Pay Gap
PPE’s gender pay gap exists essentially because the business employs one third more men than women and also more males in our most senior roles. Given the industries within which we operate, including Aerospace and Defence, Pharmaceutical and Biomedical, Marine and Power Engines, Oil and Gas, this is not unusual and it is clear that more men than women train and ultimately develop careers in the industries we operate, than other sectors. We employ individuals who have qualifications, skill and experience in, for example, Chemistry and Engineering and it is a fact that more men than women study and work in these fields. Consequently, we have less females available within the recruitment pool for these roles from which to recruit from. The recent employment of two female apprentices has been extremely encouraging and illustrates the direction we are heading.
It is important to highlight that the PPE gender pay gap figures (mean and medium) are distorted by the inclusion of salary figures for members of the Senior Leadership Team, who are employed in platform roles and are consequently paid by PPE in the UK, yet their time (and ultimately a reflective proportion of their salary) is shared across a number of other multiple business units across Europe and the United States of America.
Our pay gap results
1) Hourly rate of pay (mean average)
This calculation shows the difference between the mean (mean average) hourly rate of pay of male and female full-pay relevant employees. In order to calculate this, the Company has calculated the hourly rate for all full-pay relevant employees and has then calculated the mean hourly rate of pay for males and females. The mean average is the sum of all of the values in a list divided by the number of values.
Male mean hourly rate for full-pay relevant employees – Female mean hourly rate for full-pay relevant employees x 100
Male mean hourly rate for full-pay relevant employees
A gender pay gap exists in most organisations. PPE’s Mean Gender Pay Gap of 17.65% is lower than the UK average which is 18.4%*.
*Statistics from ONS Survey 2017
2) Hourly rate of pay (median average)
This calculation shows the difference between the median mid-point (the average using the middle number in a sorted list of numbers) hourly rate of pay of male and female full-pay relevant employees. As with 1 above, the Company has calculated the hourly rate for all full-pay relevant employees but it has then calculated the median hourly rate of pay for males and females. The median is the middle value in a list where the values are listed in numerical order from lowest value to highest value.
Male median hourly rate for full-pay relevant employees – Female median hourly rate for full-pay relevant employees x 100
Male median hourly rate for full-pay relevant employees
3) Bonus pay (mean average)
To calculate the mean bonus pay for relevant employees, the Company has taken the sum of all bonus payments paid to its relevant employees over the course of the 12 month period ending on 5th April 2017 (“relevant bonus period”). The Company has then calculated the mean bonus payments made to its relevant male employees and that of its female employees.
Male mean bonus pay for relevant employees – Female mean bonus pay for relevant employees x 100
Male mean bonus pay for relevant employees
4) Bonus pay (median average)
As with 3 above, only calculating the median bonus payments made to its relevant male employees and that of its female employees.
Male median bonus pay for relevant employees – Female median bonus pay for relevant employees x 100
Male median bonus pay for relevant employees
5) Percentage of employees who received bonus pay
In order to calculate the proportion of male and female relevant employees who have received a bonus in the relevant bonus period, the company has taken a list of all of the male relevant employees and the female relevant employees who have been paid a bonus in the relevant bonus period and expressed those figures as a percentage.
Number of relevant male employees who were paid a bonus in the relevant bonus year x100
Number of relevant male employees
Number of relevant female employees who were paid a bonus in the relevant bonus year x100
Number of relevant female employees
All of our workforce are paid a bonus. The above percentages are therefore illustrative of the larger number of male employees employed by PPE against the number of female employees employed across the business. This is again reflective of significantly higher representation of males employed within the industries which we operate.
6) Pay quartiles
The Company has calculated the quartiles using the 4 step method and has then expressed the percentage of male and female full-pay relevant employees in each of the quartiles.
The above quartile percentages are reflective of the actual number of men and women employed by PPE across our business and illustrate that the ratio of men to women across each quartile is fairly consistent until the upper quartile. These results are not surprising given the industries within which we operate. However, as outlined below, PPE are taking positives steps to address this gender imbalance and to attract/promote more women into senior/leadership roles to address this.
Our progress so far
IDEX continue to uphold a strong diversity and inclusion strategy which has been woven into our business values and ethos and ultimately our workforce.
A number of years ago, we introduced pay banding system for all of our shop floor staff to the extent that we are now satisfied that we have complete parity of gender pay.
PPE has introduced a range of family friendly policies and procedures. We continue to focus on improving mentoring schemes run by senior managers and senior leaders of the business to encourage and support progression.
We continue to develop our recruitment processes to ensure a fair and inclusive approach to recruitment, development and progression, irrespective of gender. Given the identified gender imbalance, we are encouraging females to apply for roles within our business to seek to address the lower number of females across our workforce, particularly in the senior/leadership roles.
PPE have been encouraging our workforce to be involved in ladies events and networks across our industries to reach out to females to encourage more females at all levels of our business.
Action Plan and Gender Pay Pledges
We acknowledge that a gender pay gap exists within our business and that there could be a greater representation of women across our business. We see that the gender pay gap figures outlined in this report are only one side of this journey and are of course reflective of the introduction of obligatory gender pay reporting in line with the legislation.
However, more importantly for PPE, is the continuance of the hard work which has already been done to bring about change. Our gender pay gap is lower than the UK average and we aim to continue with our surviving strategies to reduce the gap by bolstering our recruitment process, entrenching inclusion and diversity into our existing culture, and increasing the representation of women across our business including in the most senior roles including our Senior Leadership Team.
As an organisation, we have committed to a number of gender pay pledges to outline the steps we intend to take over the next 12 months with a view to reducing our gender pay gap.
Our Gender Pay Pledges
- Ensure that the issues central to gender pay and the positive and progressive steps required to reduce it, are at the forefront of our Senior Leadership Teams’ thinking, strategies developed and policies implemented.
- Foster a culture of inclusion and diversity and a genuine passion and desire to change stereotypes and bias.
- Forge a positive and fair visibility of women across our business by supporting and encouraging the progression of all of our workforce, and (given the lower representation of women in our business) women within our workforce through training, mentoring and the provision of career opportunities which reflect our diversity and inclusion values and beliefs.
- To develop positive approaches to flexible working to make our company attractive to our workforce and potential candidates, in particular those with caring responsibilities and/or returning to work from family-related leave.
- Concentrate on retaining our female employees by supporting them and celebrating their achievements across our business and encouraging our workforce to get involved with the European Women’s Network and other festivities such as International Women’s Day.
We expect that the noteworthy work that we have already commenced prior to the introduction of obligatory gender pay reporting and our new strategies to bolster and further entrench our diversity and inclusion ethos, will reduce our gender pay gap.
This Gender Pay Gap Report has been produced in accordance with the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 (the “Regulations”), calculated using raw data captured from the pay period 5th April 2017 (relevant period). The data in this report relates solely to Precision Polymer Engineering Limited.
A copy of this report will be published on the Company’s website where it will remain accessible to the public and all of the Company’s workforce for a minimum of 3 years.
Neil Thompson, President (IDEX Sealing Solutions) of Precision Polymer Limited, Greenbank Road, Blackburn, BB1 3EA confirm that the information contained within this report has been collected from the 5th April 2017 payroll data in accordance with the Regulations and the data contained within this report is accurate.
Signed by Neil Thompson, President (IDEX Sealing Solutions)
For and on behalf of Precision Polymer Engineering Limited
Dated 03 April 2017