In April 2017, the UK Government introduced new Gender Pay Gap regulations, requiring companies to report their gender pay gap for all legal entities in Great Britain with more than 250 employees.
The gender pay gap shows the difference in average pay between women and men. It does not measure equal pay, which relates to what women and men are paid for the same or similar jobs or work of equal value. Our approach to pay is gender neutral and our analysis confirms that our pay gap is driven by the structure of our workforce.
The regulations require the pay gap figures to be reported in two ways - (i) as a mean and (ii) as a median. The mean calculates the total amount earned across an organisation, divided by the number of people employed. The median looks at the pay of all the people in the range and identifies the mid-point, removing any distorting impacts at either end of the range.
This is Berkeley's second report, and, as required by the UK legislation, we are publishing data for the one legal entity that employs more than 250 people, St James Group Limited. We also feel it is important to show the total picture for the Berkeley Group which employs approximately 2,600 people across its business in the UK, regardless of employing entity, and are again voluntarily publishing consolidated data.
We included all relevant employees under the regulations as at 5 April 2018 when calculating the figures below. The salary data includes base salary and certain allowances in line with the government guidelines, whilst bonus figures include total variable pay over the previous 12 months (bonus, commissions and other incentives paid, plus vesting of Long Term Incentive Plan awards).
Difference in mean pay
Difference in median pay
Difference in mean bonus pay
Difference in median bonus pay
Male proportion receiving a bonus
Female proportion receiving a bonus
The median pay gap for the Group is 38.9%, and like much of our industry, this is primarily driven by the shape of our workforce, with a lower proportion of women in senior, higher paid roles, and more women occupying junior, lower paid roles.
The shape of our workforce also impacts our bonus gap, with our senior executives participating in the Company's Long Term Incentive Plans.
Berkeley is committed to paying for performance equally and fairly and rewarding and retaining our best people. We are already taking steps that will increase the proportion of women within the organisation as a whole, recognising the desire in the Group to promote from within and therefore providing increased opportunities for career progression within the organisation and to more senior roles over the long-term.
Central to this is to recruit and retain a high calibre workforce and in May 2018 we launched two new commitments within Our Vision, Berkeley's long-term strategy, to help achieve this.
Industry image - one of the greatest barriers for young people, especially women, joining our industry is the perception of the roles within the industry. We are committed to undertaking a range of activities including ensuring that existing material for the industry includes clear pathways for progression and by developing a programme for school and further education engagement. In addition we will encourage our employees, across all roles and levels, to act as role models and mentors for the industry.
Diversity and inclusion - there is a historic under-representation of women in our industry and we believe there are real benefits in ensuring diverse views, skills and perspectives which can lead to creative thinking and more effective problem solving. We have committed to focusing on diversity by developing guiding principles and seeking to attract and retain a diverse workforce.
Our graduate scheme targets a balanced intake each year, aiming to identify the next generation of leaders within the organisation. This will naturally take a period of time but we are investing for the long term. We are also focused on providing apprenticeships, through recruitment and for existing employees, in order to improve skills within both Berkeley and the wider industry.
Alongside these initiatives, we remain focused on retaining our best people within the organisation over the long term, by focusing on training and development through our talent management programme, and a health and wellbeing programme.
We are also conscious that there has historically been a lack of investment in training facilities across the industry which has resulted in a shortage of high quality training facilities that provide the right courses for students and ultimately employers.
To address this, Berkeley is working with training providers and has teamed up with West London College to launch a joint-venture, the West London Construction Academy (WLCA), where students receive training that focuses on employability in modern, aspirational surroundings.
This facility was opened in October 2018 and one of its purposes is to demonstrate the fantastic and diverse career opportunities that exist within the Built Environment and construction sectors to meet the aspirations of today's young people. Berkeley believes there is a role for everyone within the industry.
The WLCA facility also recently held an event as part of Women in Construction week to provide women with the opportunity to find out more about the construction industry and how they can build a successful career in it.
We confirm that the data reported is accurate.
Rob Perrins | Chief Executive, Berkeley Group
Richard Stearn | Finance Director, Berkeley Group