Gender Pay 2018
At Good Energy, being inclusive and fair are core values that underpin everything we do. So it’s important to us that we have a balance of men and women at all levels of our organisation, where everyone is fairly paid for their contribution.
Led by our Founder and CEO Juliet Davenport, we’re proud that 40% of our Board and Executive team are women, and that our overall workforce is made up of 52% women to 48% men.
Our mean gender pay gap for 2018 was just under 15%. This is likely to be lower than the average gap in the energy sector – but we’re not happy that it exists at all. Our data proves that we pay men and women equally, based on role size and scope. So the gap exists mostly because we have fewer women than men within our middle manager population, particularly in science, technology, maths and engineering (STEM) related roles. You can find more detail below on both the pay and bonus gap, as well as our action plan for closing the gap.
Why do we have a 15% mean and 25% median pay gap?
We’re proud of our approach to fair pay and know that we pay men and women equally based on role size and contribution. The gap is primarily due to having fewer women than men in middle management, particularly in STEM related roles.
Our business strategy has meant that in the last 12 months we have been increasing the number of roles within our technology function. As there are still far fewer women than men within the technology labour market, hiring women for more senior roles continues to be a challenge.
A second key factor is that the pay gap figures include an element of sales commission. Again, in the past 12 months we have increased the number of sales roles within the business, and we have more men than women within these roles. This has an impact of 2% on our mean gender pay gap.
Why do we have a 33% mean and 40% median bonus gap?
Our bonus gap is largely influenced by sales commission. Since this area of the business has more men than women, it has an impact on our bonus pay gap. If sales commission were removed from our gender bonus gap calculation, our mean bonus gap would be 9% rather than 33%. All of our people who aren’t in a sales role are eligible for our annual company bonus scheme. This scheme primarily depends on the company hitting certain performance conditions and the payments are much more evenly distributed between men and women, albeit still with a small gender gap due to the higher proportion of men in our middle management and senior roles.
What are we doing to close the pay gap?
As we already have over 40% women in our most senior roles (Board and Executive teams), we have a 5-Point Action Plan focussed on getting to at least 30% women in our middle management roles, by 2021 (3 years’ time). By doing so, we will reduce our pay gap. The five actions are:
Making every reasonable effort to have gender balanced shortlists for all externally recruited roles
Maximising our attractiveness as an inclusive employer: showcasing diversity, including the women we already have in senior roles
Actively promoting our flexible working practices for both men and women, recognising that in societies with higher female representation in the workplace, men play a more active role in caring duties
Developing our people to middle and senior management roles, with focussed development and career planning for women in areas where they are under-represented in the labour market, e.g. in finance, trading, technology, engineering and technical sales
Highlighting the importance of valuing diversity and creating an inclusive experience for both our customers and employees. We run diversity and inclusion training for all employees as part of our induction process.
Addressing the pay gap in the UK
We also help tackle the broader lack of women in STEM careers, and women in senior level energy industry roles:
We partner with the STEMETTEs charity foundation, working with our local schools to encourage girls into STEM subjects and careers.
Our Founder and CEO, Juliet Davenport, herself a scientist, invests time in the Powerful Women’s Network and the Energy Leaders Coalition, both of which are focussed on increasing gender balance and broader diversity at work, at board and senior levels within the energy industry.
Good Energy - Gender Pay Report A4.pdf pdf 422KB