Arcus FM Limited Gender Pay Gap Report 2019

Arcus FM Limited (Arcus FM) is required by law to publish an annual gender pay gap report.

This is the report for the snapshot date of 5 April 2019.

  • The mean gender pay gap for Arcus FM is 14.8%.
  • The median gender pay gap for Arcus FM is 24.5%.
  • The mean gender bonus gap for Arcus FM is 23.7%.
  • The median gender bonus gap for Arcus FM is 29.4%.
  • The proportion of male colleagues in Arcus FM receiving a bonus is 75.6% and the proportion of female colleagues receiving a bonus is 73.2%.

Pay quartiles by gender

Band Males Females Description
A 61.0% 39.0% Includes all colleagues whose standard hourly rate places them in the lower quartile
B 87.7% 12.3% Includes all colleagues whose standard hourly rate places them in the lower middle quartile
C 95.1% 4.9% Includes all colleagues whose standard hourly rate places them in the upper-middle quartile
D 80.9% 19.1% Includes all colleagues whose standard hourly rate places them in the upper quartile

The figures set out above have been calculated using the standard methodologies used in the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017.

What are the underlying causes of Arcus FM’s gender pay gap?

Under the law, men and women must receive equal pay for:

  • the same or broadly similar work;
  • work rated as equivalent under a job evaluation scheme; or
  • work of equal value.

Arcus FM is committed to the principle of equal opportunities and equal treatment for all colleagues, regardless of sex, race, religion or belief, age, marriage or civil partnership, pregnancy/maternity, sexual orientation, gender reassignment or disability. It has a clear policy of paying colleagues equally for the same or equivalent work, regardless of their sex (or any other characteristic set out above). As such, it:

  • carries out pay and benefits reviews at regular intervals;
  • has introduced a robust job evaluation tool to ensure roles are evaluated on job content alone
  • evaluates job roles and pay grades as necessary to ensure a fair structure.

Arcus FM is therefore confident that its gender pay gap does not stem from paying men and women differently for the same or equivalent work.  Rather its gender pay gap is the result of the roles in which men and women work within the organisation and the salaries that these roles attract.  Within the organisation, there are also a number of occupations where women are generally underrepresented in those occupations and this typically results in higher pay gaps.

How does Arcus FM’s gender pay gap compare with that of other organisations?

The majority of organisations currently have a gender pay gap.  The mean gender pay gap for the whole economy (according to the Office for National Statistics (ONS) for 2018 compiled from the Annual Survey of Hours and Earnings (ASHE) figures) is 17.2%.  At 14.8%, Arcus FM’s mean gender pay gap is, therefore, lower than that for the whole economy.

The median gender pay gap for the whole economy (according to the Office for National Statistics (ONS) for 2018 compiled from the Annual Survey of Hours and Earnings (ASHE) figures) is 17.8%.  At 24.5%, Arcus FM’s median gender pay gap is higher due to the make-up of our workforce.

The mean gender bonus gap and the median gender bonus gap for Arcus FM currently stand at 23.7% and 29.4% respectively.  This is to be expected as our bonus scheme is based on a % of basic earnings and our quartile data shows that we have more males than females in the higher-earning quartiles.

The proportion of men at Arcus FM who received a bonus in the 12 months up to 5 April 2019 was 75.6%, while for women this was 73.2%.  Our current bonus schemes are very inclusive and all colleagues within scope of the Arcus FM bonus scheme, regardless of gender or job role, have equal access to the scheme.

What is Arcus FM doing to address its gender pay gap?

While Arcus FM’s mean gender pay gap compares similarly with that of organisations across the whole UK economy, it is recognised that this position requires improvement and we need to continue our efforts to reduce this gap.  However, the organisation also recognises that its scope to act is limited in some areas – it has, for example, no direct control over the subjects that individuals choose to study or the career or lifestyle choices that they make.

To date, the steps that Arcus FM has taken to promote gender diversity in all areas of its workforce include the following:

  • Promotion of Flexible Working Policy
  • Enhanced maternity and paternity pay
  • Talent Programmes to widen and promote opportunity for development
  • Sponsorship Programmes, open to all colleagues wishing to apply for funding for additional qualifications or training to support their career development

The challenge of the gender pay gap is complex and there is no straight forward or rapid solution but Arcus FM have a number of initiatives to work towards eliminating the gender pay gap.   None of these initiatives in isolation will remove the gender pay gap and it may be several years before the full impact is clearly evident.  In the meantime, Arcus FM is committed to reporting on an annual basis on what it is doing to reduce the gender pay gap.

I, Chris Green, Chief Executive Officer confirm that the information in this statement is accurate.

Date: 5th March 2020

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