Under the UK Government's new Gender Pay Gap regulations, companies need 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.
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 2,500 people across its business in the UK, regardless of employing entity, and are voluntarily publishing consolidated data.
We included all relevant employees under the regulations as at 5 April 2017 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
Proportion receiving a bonus
The median pay gap for the Group is 37.9%, 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.
In February 2017, the Company introduced caps to Executive Director remuneration and this will reduce the bonus gap in future years.
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.
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.
One of the challenges for our industry is its image within schools and in further education establishments and Berkeley is working at a number of levels to address this, including identifying role models to go into these places and explain what a great and multi-faceted career the development and construction industries can provide.
Berkeley is a member of Build UK, the leading representative organisation for the UK construction industry. Recruiting, training and retaining talent is one of the key issues affecting the industry and Berkeley is working with Build UK and its members to attract a diverse and talented workforce.
If we are to recruit and retain a diverse talent pool we have to promote what our industry offers. For the second year running Berkeley is taking part in the Build UK lead event, "Open Doors". This initiative is designed to encourage potential new entrants to choose a career in construction by offering a unique chance to see behind the scenes at major construction projects and our offices, and we have already recruited successfully through this initiative.
Recognising that the industry as a whole has an under-representation of women, cross-industry collaboration is key to raising the profile of the industry and to supporting women already in the sector. One example is the National Association of Women in Construction (NAWIC), an organisation we are pleased to support through participating in their events and organising site visits for their members.
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.
We have two academies focused on recruiting into our Sales and Customer Service departments. There have so far been nine intakes across these two areas and these have included a higher proportion of female applicants and recruits. A number of people from the earlier intakes have already progressed to more senior roles in their departments.
Alongside these specific recruitment initiatives, we are also focused on retaining our best people within the organisation over the long term and this is central to the Our People commitments within our long-term business strategy, Our Vision. These commitments include a focus on training and development through our talent management progress and a health and wellbeing programme.
We confirm that the data reported is accurate.
Rob Perrins Chief Executive, Berkeley Group
Richard Stearn Finance Director, Berkeley Group