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 2020.

• The mean gender pay gap for Arcus FM is 14.54%
• The median gender pay gap for Arcus FM is 9.45%
• The mean gender bonus gap for Arcus FM is 10.42%
• The median gender bonus gap for Arcus FM is 23.33%
• The proportion of male colleagues in Arcus FM receiving a bonus is 31.18% and the proportion of female colleagues receiving a bonus is 14.72%.

PAY QUARTILES BY GENDER

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. We have 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 Arcus FM and the salaries that these roles attract. Within Arcus FM, 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 OTHER ORGANISATIONS?

Most 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 2020 compiled from the Annual Survey of Hours and Earnings (ASHE) figures) is 14.6%.  At 14.54%, Arcus FM’s mean gender pay gap is almost equal to that of the UK.

The median gender pay gap for the whole economy (according to the Office for National Statistics (ONS) for 2020 compiled from the Annual Survey of Hours and Earnings (ASHE) figures) is 15.5%.  At 9.45%, Arcus FM’s median gender pay gap is significantly lower but remains representative of the make-up of our workforce.

The mean gender bonus gap and the median gender bonus gap for Arcus FM currently stand at 10.42% and 23.33% 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 2020 was 31.18%, while for women this was 14.72%.  Within the pay and reward structures of Arcus FM, there is only a limited number of colleagues in roles that have a bonus scheme as part of the reward package.  However, for those colleagues the scheme is inclusive and all colleagues within scope, regardless of gender, have equal access and terms of the scheme.

WHAT IS ARCUS FM DOING TO ADDRESS ITS GENDER PAY GAP?

In the last 12 months, we have seen the most significant disparities balanced within both the lower and upper middle pay quartiles. In the previous reporting year, male colleagues represented 87.7% and 95.1% respectively. Male colleagues in the same quartiles now represent 60.26% and 66.09% of our workforce. 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 continual improvement, particularly within the upper pay quartile, and we need to sustain our efforts to reduce this gap. However, we also recognise that our scope to act is limited in some areas – Arcus FM, for example, has no direct control over the subjects that individuals choose to study or the career or lifestyle choices that they make.

Arcus FM’s vision is to create an environment where regardless of identity, background or circumstance, all colleagues have the opportunity to develop to their full potential, working in a safe, supportive and inclusive environment.

Diversity and inclusion is of great significance at Arcus FM and gender inclusivity is one of the key pillars within our approach. As such, we have encouraged a working group of colleagues from around the business who will focus on the promotion of diversity and inclusion, using gender pay gap analysis as one tool to define opportunities for continuous improvement.

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

• Promotion of Family friendly policies, i.e. Flexible Working Policy, Maternity Policy, Paternity Policy, Shared Parental Leave Policy, Adoption Policy, Family Friendly Fertility Treatment Policy
• Enhanced maternity and paternity pay
• Internal Talent Programmes to widen and promote opportunities for development at all levels
• Sponsorship Programmes which are open to all colleagues wishing to apply for funding for additional external qualifications, Apprenticeships, or training to support career development

Upon review of the data, it will be through continued efforts across the business that we address our position. Some initiatives for the coming year will include:

• Review of enhanced reporting on leavers and promotions linked to gender to identify any trends
• A commitment to review and assess all nominations for internal talent programmes, to ensure that there is an adequate female and diverse representation, in order to address the gender pay gap in the upper pay quartile
• The annual celebration and external promotion of the outstanding achievements made by our female colleagues linked to International Women’s Day
• Encouraging female applicants through their visual representation in under-represented roles on the company’s Career website and other marketing materials, and focused talent attraction.

The challenge of the gender pay gap is complex and there is no straightforward or rapid solution, but Arcus FM has 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: 1 September 2021