Gender Pay Gap Report 2017 - Barclays | Gender Pay Gap Report 2017 Understanding the gender pay gap Gender pay gap legislation was introduced in the UK to encourage employers to make

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  • Gender Pay Gap Report 2017

  • 2 | Gender Pay Gap Report 2017

    Barclays commitment to building a diverse and inclusive culture

    It has been my experience, not just as a business leader but also in my life beyond work, that equality and diversity sit at the heart of success. Organisations which reflect the diversity of all their stakeholders will forge the strongest bonds and earn the greatest respect.

    At Barclays, we celebrate and value difference and are committed to building an inclusive culture where everyone can be themselves and do their best work.

    I confirm that the information contained in this report is accurate.

    Jes StaleyCEO Barclays PLC

    Fostering the right culture at Barclays is critical to our success. Promoting respect, diversity and performance in the workplace is central to our ambition to become the most accessible, inclusive and sought after employer, where colleagues feel engaged and empowered to achieve their best in order to deliver the best results for our customers and clients.

    We are confident that at Barclays, men and women across our organisation are paid equally for doing the same job. However, as our UK gender pay gap data shows, we still have more work to do to create further career opportunities so that women can continue to progress in financial services.

    Although female representation is growing at Barclays, we still have high proportions of women in more junior, lower paid roles and high proportions of men in senior, highly paid roles. There has been improvement across financial services but progress has been slow within the industry, so we support the objectives and intent of the UK government in introducing gender pay gap reporting to drive equality in both the workplace and in society more widely.

    Gender pay gap reporting brings further focus to Barclays long-standing commitment to improving gender diversity a commitment that is, and will remain, at the core of our talent management and leadership succession processes.

    Through a range of extensive internal and external initiatives and programmes that drive the necessary cultural change, we continue to build a workplace environment that supports and empowers women to succeed. These initiatives include senior leadership gender diversity targets, creating new career opportunities, ensuring there is no bias in our talent management and leadership development processes, progressive policies, and strategic external partnerships to support societal change.

    We are making good progress towards cultural change. Our 2017 employee opinion survey, Your View, tells us that 91% of colleagues believe that leaders support diversity in the workplace. However, we recognise that addressing the gender pay gap will take time and we acknowledge that there is still a lot of work to do to improve the gender balance across Barclays, particularly amongst the senior leadership population.

    Our determination and commitment to building a diverse and inclusive workforce through attracting, retaining and developing world-class professionals is paramount. We are working hard to foster an environment in which all employees have the opportunity to succeed, regardless of race, religion or belief, age, gender, disability, sexual orientation, gender identity/expression or nationality.

  • 3 | Gender Pay Gap Report 2017

    Understanding the gender pay gap

    Gender pay gap legislation was introduced in the UK to encourage employers to make greater progress in addressing the imbalance of earnings between men and women over the span of their careers.

    What is the gender pay gap?The gender pay gap measures the difference between the average male pay and the average female pay as a proportion of the average male pay. For example, average male pay of 100 per hour and average female pay of 85 per hour would indicate a gender pay gap of 15%.

    Equal Pay legislation in the UK relates to an employees role, making it unlawful for an employer to pay individuals differently for performing the same or similar work, or work of equal value. Paying our employees fairly and equitably relative to their role, skills, experience and performance is central to our global reward philosophy. We review our global reward structures on an ongoing basis to ensure that there is no unfair gender or other bias in how colleagues are paid.

    The gender pay gap therefore reflects the distribution and relative proportions of men and women across an organisation. It does not take into consideration the role that the employee performs or the seniority of the employee. The examples below illustrate how gender pay gaps can occur, despite men and women being paid equally for the same or similar roles.

    In Example 1, there are more men than women in role A earning 100 per hour, and there are more women than men in role B, which is lower paid. As a result, there is a gender pay gap of 48.8%.

    In Example 2, although there is an equal number of men and women in role A earning 100 per hour, there are more women than men in role B earning 30 per hour. As a result, there is a gender pay gap of 32.3%.

    Example 1. Greater proportion of men in highly paid roles, more women than men in lower paid roles

    Example 2. Equal number of men and women in highly paid roles, more women than men in lower paid roles

    Equal pay

    All roles paid equally

    Gender pay gap

    48.8%

    Role A100

    Role B30

    Average 86 44

    Role A100

    Role B30

    Average 65 44

    Equal pay

    Gender pay gap

    32.3%

    All roles paid equally

    Average hourly male pay: (4 x 100) + (1 x 30) = 430 5 = 86

    Average hourly male pay: (1 x 100) + (1 x 30) = 130 2 = 65

    Average hourly female pay: (1 x 100) + (4 x 30) = 220 5 = 44

    Average hourly female pay: (1 x 100) + (4 x 30) = 220 5 = 44

    Gender pay gap (expressed as a percentage of male pay):

    ((86 44) 86) x 100 = 48.8%

    Gender pay gap (expressed as a percentage of male pay):

    ((65 44) 65) x 100 = 32.3%

    The gender pay gap reporting requirements came into effect on 6 April 2017 as an amendment to the Equality Act 2010, requiring employers of over 250 employees to publish prescribed statistics relating to UK employee pay, for publication before 5 April 2018 (and annually thereafter). Gender pay gap reporting is part of the UK Governments strategy to reduce the gender pay gap in a generation.

  • 4 | Gender Pay Gap Report 2017

    Barclays UK Barclays International Group Service Company

    Ordinary pay gap

    5 April 2017)

    Median Mean Median Mean Median Mean

    14.2% 26.0% 43.5% 48.0% 29.9% 25.8%The mean pay gap shown is the difference between the average hourly pay of men and women. The median pay gap is the difference between the midpoints in the ranges of hourly pay of men and women.

    In alignment with reporting requirements, Barclays gender pay gap statistics, at 5 April 2017, are shown for each of our employing entities in the UK that have at least 250 employees: Barclays Bank UK PLC (Barclays UK), Barclays Bank PLC (Barclays International) and Barclays Services Limited (Group Service Company).

    Barclays UK Barclays International Group Service Company

    Bonus pay gap(for year to 5 April 2017)

    Median Mean Median Mean Median Mean

    46.9% 60.1% 73.3% 78.7% 24.0% 48.8%The mean bonus gap shown is the difference between the average bonus paid to men and women. The median bonus gap is the difference between the midpoints in the ranges of bonuses paid to men and women.

    Proportion of colleagues who received bonus pay during the year to 5 April 2017

    Female Male Female Male Female Male

    95.2% 93.1% 93.4% 93.7% 92.5% 91.2%

    Our three main UK employing entities, for which gender pay gaps are being reported, do not employ equal numbers of colleagues. The chart below shows the proportion of our reportable UK colleagues working in each employing entity.

    Barclays UK

    (51%)

    Barclays International (15%)

    Group Service Company (34%)

    Reportable UK headcount

    (as at 5 April 2017)

    Barclays gender pay gap results

    We have broken down our reportable UK

    pay), from lowest to highest, and then divided this into four equal sub-populations (upper quartile, upper middle quartile, lower middle quartile and lower quartile) to show how the distribution of men and women varies according to each quartile, and by our main UK employing entities.

    Gender Proportions in Ordinary Pay Quartiles (Fixed Pay)Barclays UK Barclays International Group Service Company

    Q4

    Q3

    Q2

    Q1

    55%

    34%

    33%

    27%

    45%

    66%

    67%

    73%

    81%

    69%

    49%

    37%

    19%

    31%

    51%

    63%

    71%

    64%

    50%

    42%

    29%

    36%

    50%

    58%

    Female Male Female Male Female Male

  • 5 | Gender Pay Gap Report 2017

    Reportable UK headcount

    Women Men

    Why does Barclays have a gender pay gap?

    As gender pay gaps are based on averages taken across the whole of an organisation, they do not take in to account factors such as job type or different levels of seniority. We have reviewed our gender pay gap numbers carefully and the pay gaps that are visible in each of our UK entities result from the distribution of men and women between corporate grades across

    Barclays are paid equally for doing the same job.

    We know that our gender pay gaps are driven by two main factors:

    i. the higher proportion of men in more senior (higher paid) roles; and

    ii. the higher proportion of women in more junior (lower paid) roles.

    These demographics of our population are illustrated in

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