Gender Pay Report

In April 2017, new regulations were introduced which require all organisations with over 250 colleagues to report on their gender pay gap. This is intended to be a snapshot of data which measures the difference between the average earnings of all male and female employees within the Society, regardless of their role or seniority.

The regulations require organisations, including Principality, to report on:

  • The difference in the mean hourly pay rate and the mean bonus payments between our male and female colleagues (the “mean” is the average – we calculate this by adding up all of the numbers and then dividing by how many numbers there are);
  • The difference in the median hourly pay rate and the median bonus payments between our male and female colleagues (the “median” is the middle number in the range of data – we do this by ordering the data from highest to lowest; the median is then the middle number between the highest and lowest points);
  • The proportion of men and women who received a bonus payment; and
  • The proportion of men and women in each of the pay quartiles (pay quartiles are calculated by ordering the data from highest to lowest and then separating into four equal parts – the lowest quartile is the bottom 25%, whereas the highest quartile is the top 25%).

The snapshot of data taken on 5th April 2017 shows that there are more women than men working at Principality, in fact 61% of our colleagues are female. The demographics show that women make up the majority of 3 out of the 4 pay quartiles, although men make up the greatest proportion of the highest pay quartile, as shown below:

  1st Quartile
(Lowest)
2nd Quartile 3rd Quartile 4th Quartile
(Highest)
Men 22.05% 26.88% 44.09% 60.63%
Women 77.95% 73.12% 55.91% 39.37%

The structure of Principality’s workforce is made up of more women than men, in both the customer facing and office-based roles. However, because there are more men than women in senior management (and therefore higher paid) positions, when the figures are calculated in line with the gender pay reporting requirements it shows that the average hourly pay rate for men is at a higher level than women. In order to reach a point where there is no gender pay gap within the Society, there would need to be an equal representation of both males and females within each pay quartile and at every level within the organisation. This includes more male representation in the lower pay quartiles and more female representation within the highest pay quartile.

Having reviewed the results of our gender pay audit it is clear that the gender pay gap is a result of the organisation’s demographics rather than an equal pay issue. Equal pay is the comparison of pay for men and women in the same organisation performing equal work and has been a legal requirement since 1970. Policies and processes have been in place for many years, with the purpose of ensuring that all roles are evaluated fairly and consistently with no gender bias. We will continue to undertake regular equal pay audits to monitor the Society’s position on this.

Principality are committed to encouraging a more gender-balanced workforce at every level. As a proud signatory of the Women in Finance Charter, we have set ourselves the target of having 33% of our senior managers as women by 2021. To achieve this we need to address the root causes of the gender pay gap, which is why we are:

  • Reviewing and refreshing our recruitment processes to ensure that we attract more female candidates to apply for senior positions, as well as relaunching our careers page, rewording our job adverts and introducing gender-balanced shortlists.
  • Talent planning – ensuring equal representation of women in our succession plans.
  • Introducing agile working across the business and continuing to support flexible working arrangements for all staff.
  • Supporting female colleagues through the Chwarae Teg career development programme.
  • Rolling out compulsory unconscious bias training to all colleagues.
  • Reviewing roles in the lower quartiles to understand why more women apply for and are appointed to those roles.

“One of our core values is “doing the right thing” and I am proud that Principality’s commitment to ensuring a more diverse and inclusive workforce is a genuine focus of the Executive team and core to our People strategy; to achieve a culture that is inclusive to all, with recruitment practices that are open to everyone and a strong focus on career and talent development to ensure that the best people are placed in the right roles. I confirm that the information contained in Principality’s gender pay report is accurate.”
Rhian Langham, Chief People Officer

Principality’s gender pay gap as at 5th April 2017 is:

  • Mean hourly pay gap – 31.33%
  • Median hourly pay gap – 31.52%
  • Proportion of women that received a bonus payment – 93.7%
  • Proportion of men that received a bonus payment – 93.16%
  • Mean bonus pay gap – 38.03%
  • Median bonus pay gap – 32.24%
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