This is the report for the snapshot date of 5 April 2017.

  • The mean gender pay gap for Arcus FM is 12%.
  • The median gender pay gap for Arcus FM is 19.5%.
  • The mean gender bonus gap for Arcus FM is 25.5%.
  • The median gender bonus gap for Arcus FM is 28.8%.
  • The proportion of male colleagues in Arcus FM receiving a bonus is 88.6% and the proportion of female colleagues receiving a bonus is 91.4%.

Pay quartiles by gender

BandMalesFemalesDescription
A50.6%49.4%Includes all colleagues whose standard hourly rate places them in the lower quartile
B85.1%14.9%Includes all colleagues whose standard hourly rate places them in the lower middle quartile
C91.9%8.1%Includes all colleagues whose standard hourly rate places them in the upper middle quartile
D69.4%30.6%Includes all colleagues whose standard hourly rate places themin 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;
  • 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.

Across the UK economy as a whole, men are more likely than women to be in senior roles while women are more likely than men to be in roles at the lower end of the pay scales. Women are also more likely than men to have had breaks from work that have affected their career progression, for example to bring up children. They are also more likely to work part time, and many of the jobs that are available across the UK on a part-time basis are relatively low paid.

This pattern from the UK economy as a whole is reflected in the make-up of Arcus FM’s workforce.

This can be seen above in the table depicting pay quartiles by gender. This shows Arcus FM’s workforce divided into four equal-sized groups based on hourly pay rates, with Band A including the lowest-paid 25% of colleagues (the lower quartile) and Band D covering the highest-paid 25% (the upper quartile). In order for there to be no gender pay gap, there would need to be an equal ratio of men to women in each Band. Within Arcus FM, there is an almost equal split of the colleagues in Band A with women making up 49.4% and men making up 50.6% of this quartile. However, the percentage of male colleagues is greater in each of the higher earning bands.

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 November 2016 Office for National Statistics (ONS) Annual Survey of Hours and Earnings (ASHE) figures) is 17.5%. At 12%, Arcus FM’s mean gender pay gap is, therefore, significantly lower than that for the whole economy.

The median gender pay gap for the whole economy (according to the November 2016 ONS ASHE figures) is 19.2%. At 19.5%, Arcus FM’s median gender pay gap is at a very similar level to the whole economy.

The mean gender bonus gap and the median gender bonus gap for Arcus FM currently stand at 25.5% and 28.8% 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 2017 was 88.6%, while for women this was 91.4%. 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 which is reflected in these numbers.

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

While Arcus FM’s mean gender pay gap compares favourably with that of organisations across the whole UK economy, the organisation does not intend to be complacent, and it is committed to doing everything it can to reduce the 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:

Creating an evidence base: To identify any barriers to gender equality and inform priorities for action, we are introducing increased data collection and collation to understand:

  • the proportions of men and women being recruited;
  • the proportions of men and women applying for and obtaining promotions;
  • the proportions of men and women leaving the organisation and their reasons for leaving;
  • the numbers of men and women in each role and pay levels
  • take-up of flexible working arrangements by gender and level within the organisation;
  • the proportion of men and women who return to their original job after a period of maternity or other parental leave; and
  • the proportion of men and women still in post a year on from a return to work after
  • a period of maternity or other parental leave.

Flexible working policy: Our Flexible Working Policy has been revised to make it clear that colleagues in all areas and levels of the organisation will be considered for flexible working regardless of their role and level of seniority, and that flexible working need not be limited to part-time working.

Talent Programmes: Arcus FM has a well-established Talent Programme. Involvement in this programme will be monitored for diversity and will be one of the opportunities to address under representation of females at middle and senior levels as appropriate.

Sponsorship Programme: Arcus FM also has a long standing Sponsorship Programme. This programme is open to all colleagues wishing to apply for funding for additional qualifications or training for their career development. Again, applications for the programme will be monitored for diversity and will be a further opportunity to support female colleagues to develop their career,

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 and the progress that it is making.

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

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