The results of our analysis give a snapshot of gender and ethnicity pay and bonuses in our firm over the last year and show that we still have work to do. Read on for a summary of the actions and further investments we're making as a firm.
Gender pay gap for the period from 1 April 2019 to 31 March 2020:
For 2019/2020, we saw a mean gender pay gap of 25%. This figure is 2% higher than the equivalent figures reported for the previous year (2018/2019)
When both employees and partners are included, the mean gender pay gap is 39% - a 3% annual increase
The firm’s 2019/2020 mean gender bonus pay gap is 53%, the same as the previous year
For 2019/2020, 53% of female employees in the firm received a bonus, compared with 93% the previous year
As shared reward bonuses were paid in 2018/2019 a higher percentage of people received a bonus across all levels for this year. Excluding shared reward bonuses, 56% of women received a bonus in 2018/2019.
The data reports a slight widening of gender pay and bonus gaps
In 2020, 48.5% of the firm’s employees were female, the same as the previous year
As of April 5, 2020, women accounted for 17% of the firm’s partner group (the same as the previous year) and 23% of directors (annual increase of 2%)
Dave Dunckley, CEO and Board Sponsor for Gender:
“Our vision is to remove gender disparity in our firm and, though we have been making some strides in the right direction, we still have long way to go.
"We know that we have an equal gender balance up to manager level but after that, the percentage of women in leadership roles decreases. Since identifying this, we have taken positive action to support high-potential women at senior manager and director level with sponsorship and coaching, helping us to better understand their development needs and ambitions.
“This is starting to result in better retention of women , and an improved gender balance at senior manager and director levels. The gains here are small, but they are moving in the right direction and helping to build a more-balanced pipeline of talent for the senior leadership levels of our business.
"This does mean that - as we build our gender-diverse talent pipeline – we will see a short-term increase in our reported pay gap as people who are newly appointed enter their grade at the lower end of the pay banding.”
Actions we’re taking to improve gender balance in our firm
Our 2023 targets are to reduce our gender pay gap to 20%, increase our percentage of female and non-binary partners to 25% and directors to 30%, and we've committed to the Women in Finance charter.
Actions the firm is taking to achieve this include:
- working directly with high-potential female and non-binary directors to better understand their ambition and needs. By doing this, we can ensure that the pathway to and role of a partner is one that is attractive and available to all genders equally.
- sponsoring female and non-binary programmes for directors and senior managers. In doing so, we aim to develop and progress a gender balanced pipeline of talent in our firm.
- sponsoring and supporting a tailored programme to assist those returning from maternity leave, ensuring a smooth, supported transition back to work
- introducing inclusion and diversity toolkits and training for people managers in unconscious bias and in managing difference with empathy, understanding and equity
- ensuring gender balance in interview panels and training our people in equality and unconscious bias
- running an international mentoring programme for women.
Ethnicity pay gap for period from 1 April 2019 to 31 March 2020:
- For 2019/2020, we reported a mean ethnicity pay gap of 11% for employees only; 1% higher than the previous year
- For employees and partners combined, the ethnicity pay for 2019/2020 is 22% - 3% higher than the previous year
- The firm’s 2019/2020 ethnicity bonus gap is 16% mean. compared with 27% mean for 2018/2019
- 45% of the firm’s minority ethnic population received a bonus for 2019/2020, compared with 96% for 2018/2019
- As shared reward bonuses were paid in 2018/2019, a higher percentage of people received a bonus across all levels for this year
- When shared reward bonuses are excluded from the calculation, the mean ethnicity bonus gap widened from 7% in 2019 to 16% in 2020
- Excluding shared reward, 45% of minority ethnic employees received a bonus for 2019/2020, compared to 49% for 2018/2019
- Representation of people from a minority ethnic group has improved at all levels of the firm, with the highest proportion represented at executive and assistant manager level (28%).
- In 2020, 20% of employees (up 3% since 2019), and 8% of partners (an increase of 1% since the previous year) were from a minority ethnic group
Robert Hannah, Partner and Board Sponsor for Ethnicity:
“Our vision is that people of all ethnicities have the same opportunities in our firm, with no barriers to progression.
"This data shows us that we need to do more to make this possible. While our overall ethnicity pay gap has stayed roughly the same, the causes behind the widening bonus gap need to be addressed.
"One of the contributing factors is the higher representation of ethnic minorities at junior levels, where bonuses are less likely to be paid. To tackle this, we need to improve representation at higher levels of the business, which is why we’re targeting coaching and support programmes for minority ethnic colleagues at manager level and above.
“While our new bonus scheme for 2021 and beyond will not close the bonus gap in and of itself, it will increase the percentage of minority ethnic employees who receive a bonus.
“We recently launched our first ethnicity action plan, based on the recommendations of an independent study into the different experiences of minority ethnic colleagues in our firm.
"It's vital that all the work we're doing ensures that our people are developed fairly, that the most talented people consistently choose us first and stay with us, and that the diversity of our teams makes us even more insightful and productive as a result.
“We’ve formed an ethnicity board to oversee and hold accountable our progress against our newly formed ethnicity action plan and appointed an inclusion advisory board (IAB) to bring diverse perspectives to strategic decision making.
Our 2025 targets are:
- Ethnicity pay gap at 6% (from 11% in 2020)
- Improved representation of minority ethnic employees - 12% minority ethnic directors by 2025 and 10% minority ethnic partners by 2025
Actions we’re taking to achieve our goals include:
- examining work allocation for all minority ethnic colleagues
- continuing a sponsorship and leadership programme for senior manager level to help minority ethnic talent to develop cultural and career capital, while also improving education for sponsors and senior allies through racial equality and awareness training
- improving people managers’ understanding and awareness of ethnicity, race and culture, and improved guidance for people managers to gather feedback on inclusivity from their teams
- applying positive action to our trainee process, which means we prioritise minority ethnic applications - we're also exploring an opportunity to coach candidates through the process.