TWI is committed to treating all employees fairly and to being an inclusive employer. Our aim is to create a work environment where our employees can reach their full potential. We put Equality and Diversity at the heart of our people practices so that we are able to attract, develop and retain the best talent.
Promoting respect, diversity and inclusion is central to our ambition to create a workforce that feels engaged and empowered to achieve to the best of their ability and deliver a valued service to our Members and customers.
Since our last Gender Pay Report, we have taken a number of actions, which we outline in this report. We are committed to developing a long-term plan to manage our gender pay gap as part of our wider agenda on diversity and inclusion.
I can confirm that the data and information reported as of 31 March 2019 is accurate.
Gender Pay Gap Reporting
Gender Pay Gap (GPG) is distinct from equal pay. Equal pay deals with the pay differences between men and women who carry out work of similar value, whereas gender pay shows the differences in the average pay between men and women. The following GPG analysis shows the differences in the average pay between men and women across all UK employees at TWI, irrespective of their responsibilities, performance and experience.
TWI reviews pay on an annual basis to ensure men and women within the company, with the same performance and experience in equivalent roles, are paid equally.
The difference between the hourly pay of women and men at TWI
Our figures for the reference pay period (6 April to 5 April 2018) show that when we compare the average pay of women and men, irrespective of the role, men earn on average 24% more than women.
The table below shows the mean and median gender pay differential in hourly pay.
Mean and median gender pay differential in hourly pay
| ||2017 ||2018 ||+/- percentage differential |
|Mean percentage by which men earn more than women
The reasons for the differences in hourly pay between men and women are:
- There are fewer women than men in senior roles, i.e. the executive team, senior management and leadership, senior business development and senior specialists.
- There are more women than men in support (lower paid) roles.
- TWI employs fewer women (19%) than men (81%) as engineering professionals (including managers, technologists, business development and lecturing staff). Nationwide, women remain severely under-represented in engineering; only 12% of engineering professionals are female compared with an overall UK female workforce of 47%.
- An investment in recruiting women at the entrants stage will increase the disparity in the percentage gender pay gap in the short term; however, we expect to see a closure in this gap as we encourage women into senior roles.
The difference in bonuses between women and men at TWI
TWI operates a Share-in-Success scheme which pays a percentage of basic salary based on TWI’s overall performance. During the reference pay period for this report (the twelve months preceding 5 April 2018), Share-in-Success bonuses were paid at the same percentage to all eligible UK employees, subject to a cap. (Share-in-Success was not paid in the previous reporting period).
In addition to the Share-in Success bonus, a number of ad hoc bonuses were also awarded to some staff based on their overall performance (e.g. for completing successful key projects; leading high-performing profit centres; winning new income streams; or growing TWI’s reputation).
The table below shows the mean and median difference in bonus pay between men and women.
Mean and median difference in bonus pay between men and women
| ||Mean ||Median |
|Percentage by which bonuses were higher for men than women
The charts below show that 91.5% of men and 89.9% of women received an ad hoc or Share-in-Success bonus.
Reasons for the differences in the bonuses between women and men:
- There is a lower proportion of women than men in senior roles attracting ad hoc bonus payments.
The proportion of women in different pay quartiles at TWI
Overall, women currently represent 32% of TWI’s UK employees, an increase of 3% on the previous year’s reporting. The following charts show the percentage split between men and women employees in each pay quartile. The pay quartile is the range of all salaries divided into four bands, including bonus and car allowance paid, within the reporting period.
The charts below show that there are fewer women than men represented in the upper quartiles; however, there was an increase in the percentage of women employed in all quartiles.
TWI progress during 2017-2018
Encouraging more women into science, technology and engineering careers through outreach initiatives
The data tells us that an increased pipeline of female talent is required for TWI to achieve a greater female representation in senior roles. To address this issue we recognise that we need to have a long-term plan:
- To attract more women into engineering and management careers.
- To invest in coaching and developing women to be equipped to take on senior positions within our company.
- To implement policies and procedures that underpin our commitment to reduce the gender pay gap.
Existing studies suggest the low participation of women in engineering in part reflects gender differences in the understanding of and interest in the profession, as well as perceptions of self-efficacy and identity. Engineering UK reported that engagement in engineering diminishes as women move through the education system and there is a national call to action to try to address this issue.
TWI currently supports outreach initiatives, as well as identifying new opportunities to help encourage more women into science, technology and engineering subjects at school, university and in the workplace.
- 38% of women NSIRC students were subsequently employed during the reporting period by TWI Ltd following graduation.
- We are proud of our flagship National Structural Integrity Research Centre (NSIRC) programme, engaging the best engineers to complete postgraduate studies in industry; 30% of TWI’s current post-graduate students are women.
- 28% of TWI’s MSc students are women (Structural Integrity; Oil and Gas; Engineering Leadership and Management).
- 29% of TWI apprenticeship places were offered to women.
- We continue to offer summer placements and internships at TWI, recognising that these individuals may be employees of the future (29% places were offered to women during the reporting period).
- Over a 6-week period, the TWI outreach team delivered a comprehensive work experience programme, providing a taster of the diverse work involved in engineering at TWI (17% places were offered to women). The work experience programme will be repeated this summer with a focus on attracting more women onto the programme.
- The TWI outreach team continue to attend various local schools, delivering sessions to raise awareness of careers in engineering.
- We have engaged in a programme to coach women in leadership; focused development for women who aspire to move into senior management roles.
- We have introduced a scheme to support maternity/paternity returners to work through a group of volunteers who share valuable experience and offer advice and support.
Review of TWI recruitment practices in 2017-18
- TWI recruitment panels are now required to have a mix of genders.
- We have trained a pool of women volunteers who are available to participate in interview panels.
- Job adverts are now checked through a gender decoder tool to ensure that they do not have any unconscious bias that would discourage women applicants.
- We have redesigned and implemented training for recruiting managers, incorporating a module on unconscious bias.
Monitoring TWI recruitment, pay and progression arrangements
- We continue to develop our reporting processes in relation to recruitment, pay and progression, so that regular reports are available for analysis by the Executive Board.
What are our future plans?
To narrow our Gender Pay Gap, TWI will continue to focus on ensuring there is no bias in the hiring, promotion, development and retention of women at TWI. We recognise that we need to increase the pipeline of female talent at TWI to achieve a greater representation in senior management and leadership, senior business development and senior specialist roles. We will continue to develop a range of initiatives, programmes and policies to improve diversity and inclusion and enable women to fulfil their career aspirations.
Our plans for 2019 include:
- Developing TWI’s diversity and inclusion strategy and action plan, in collaboration with the Staff Consultative Committee and the Tipper Group.
- Supporting the activities of the Tipper Group. The Tipper Group holds events and organises networking opportunities to help promote diversity and inclusion.
- Supporting our outreach programme to attract more women into science, technology and engineering careers.
- Reviewing our people practices to ensure they are aligned and support us in attracting, developing and retaining talented people, regardless of gender, including our internal promotion process.
- Raising the profile of successful women at TWI to encourage role modelling and mentoring.
- Supporting the development of a talent pipeline to encourage more women to apply for senior management roles.
- Promoting a ‘Women as Leaders’ programme; developed specifically to provide the self-awareness and tools to help women grow their confidence, to identify big picture opportunities, to seek advancement by taking on more responsibilities and, ultimately, to gain earned promotion.
- Developing a ‘Return to Engineering’ programme of refresher training following a career gap.
We recognise the changes we are making will not lead to an immediate significant reduction of our GPG. However, we are committed to achieving positive change in the long term and our diversity and inclusion plan will assist us with driving progress. Our GPG results are a reminder that we have some way to go, but we are encouraged by the progress we are making with recruiting more women and we intend to improve further in the future.
TWI, March 2019