Gender Pay Gap Report 2018

In recent years the UK Government introduced regulations for gender pay gap reporting for companies in the UK. The regulations are intended to encourage employers to take informed action to close their gender pay gaps where one exists.

Using the snapshot date of 5^th April 2018 as required by the regulations we have published our gender pay data for our UK workforce. This includes all our UK legal entities and includes all relevant employees.

The Gender Pay Gap is different to Equal Pay

The gender pay gap shows the difference between the average hourly earnings of men and women across the workforce, irrespective of their role. Its purpose is about addressing the representation of women in the workforce.

It is worth highlighting equal pay is different to gender pay gap. Equal pay is about whether a woman and a man performing the same work, at the same level, in the same organisation receive the same pay and is legislative requirement with which we comply and is not further addressed in this report.

There are a number of calculations that we report in our gender pay gap data:

Mean (average) and median (mid-point) gender pay gap in hourly pay and bonus pay of male and female employees. This is expressed as a percentage of male employees’ earnings.
Proportion of men and women who receive a bonus
Distribution of men and women across pay quartiles

The figures below show the difference between the mean (average) and median (mid-point) hourly pay of all male and female employees, irrespective of their role, expressed as a percentage of male employees’ pay.

17.2%

CeramTec UK median pay gap

22.3%

CeramTec UK mean pay gap

This compares to our 2017 Gender Pay Report which reported a 20.6% median pay gap and a 27.6% mean pay gap.

Whilst we welcome a reduction from last year, we continue to report a pay gap which we are committed to addressing over the longer term.

When considering why the gap exists, we identified we employ around 2 times more men than women in our staff and managerial roles. Due to the nature of our business, these roles are typically filled with people who have qualifications and experience in engineering and STEM related fields. It is this background that we believe has led to a smaller pool of female talent being considered when hiring.

We also observe some occupational segregation in our Production environment, with some roles being historically either predominately or entirely male occupied.

Proportion of employees who receive a bonus (in 12 months preceding 5 April 2018)

All employees continue to have an equal opportunity to participate in the programmes which make up the bonus calculation. As a result, the proportion of female employees receiving a bonus is virtually the same as that for male employees (90.6% females received a bonus versus 94.3% males received a bonus).

Gender pay gap in Bonus (at 5^th April 2018)

Bonus gender pay gap (earned in 12 months preceding 5 April 2018). These figures show the mean (average) and median (mid-point) bonus gap.

Similar to the results for our hourly rate gender pay gap, our results this year have improved slightly from those reported in 2017. The median bonus gap reduced from 31.3% to 21% but the average bonus gap is reported as 62.6%.

We believe the reason for the ongoing bonus gender pay gap is because we have fewer women in staff and managerial positions and fewer women in senior roles that attract higher levels of pay and the scale of the bonus potential is greater.

The charts below show the gender distribution across our UK business in four quartiles based on pay bands.

At the snapshot date (5^th April 2018) there was a greater number of male employees in our UK business however within our Production teams we have an even split between gender.

This split changes when we look at staff and managerial roles where we have twice the number of males than females. We believe this is a significant contributing factor to why women are less well represented in the upper quartiles compared to the lower quartiles.

Pay Quartile	Women	Men
Participation in 1^st quartile	80.6%	19.4%
Participation in 2^nd quartile	46.8%	53.2%
Participation in 3^rd quartile	29.0%	71.0%
Participation in 4^th quartile	17.7%	82.3%

Our actions

We recognise the need to continue to increase the number of females we employ in staff and managerial roles to improve our gender balance and become a more diverse organisation. We are also keen to play a more active role in encouraging more females to pursue a career in STEM.

We are continuing to develop our internal reward and compensation practices and will ensure these continue to be fairly applied across males and females. We provide equal access to learning and development and during 2017/2018 we supported a number of our employees through time off to attend college and financial contributions to their chosen course of study. We offer family leave and flexible leave policies designed to balance the demands of caring for dependants as well.

Further information

The method for calculating the gender pay gap figures has been outlined by the UK Government and the results from every qualifying UK organisation will be published here.

We confirm the information and data reported is accurate as of the snapshot date 5 April 2018.

The Gender Pay Gap is different to Equal Pay

Proportion of employees who receive a bonus (in 12 months preceding 5 April 2018)

Gender pay gap in Bonus (at 5th April 2018)

Our actions

Further information

Gender pay gap in Bonus (at 5^th April 2018)