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TWI UK Gender Pay Gap Report

TWI is committed to treating all employees fairly and to being an inclusive employer. Our aim is to create a working environment where our employees can reach their full potential. We intend to put Diversity and Inclusion (D&I) at the heart of our people practices so that we are able to attract, develop and retain the best talent.

We believe that the work we do at TWI plays a crucial role in shaping the world around us, interacting with our Members to find sustainable solutions to the biggest engineering challenges our world faces. Our employees need to reflect the society we seek to serve, they provide the diversity and inclusion required to find innovative solutions for our Members and customers, and create a workforce that feels engaged and empowered to achieve to the best of their ability.

At TWI we make sure that employees in similar roles are being paid equitably. However, similar to other engineering organisations across the UK, we do have a gender pay gap and the mean figure for this year’s reporting date, April 2019, is 23.7%, (0.2% decrease from last year). Our gender pay gap exists mainly due to the proportion of men and women in specific roles that attract higher pay, bonuses and allowances. We are committed to a long-term plan to address our gender pay gap as part of our wider agenda on diversity and inclusion and have undertaken a number of actions since our last Gender Pay Gap Report, which we outline in this report.

In the UK, just 12% of women work in the engineering field and only 16% of engineering graduates in the UK are women. We recognise that the imbalance of women in engineering requires investment at an early stage and TWI is actively seeking to develop and recruit female engineers. TWI has been investing in outreach programmes that encourage STEM activities in schools for many years, and we are particularly proud of our NSIRC programme – engaging graduate engineers to complete postgraduate studies in industry. 35% of TWI’s current post-graduate students are women. During this reporting period, we recruited a further 26% of female NSIRC students on to our programme, and out of the 26 NSIRC graduates recruited into jobs at TWI, 35% were women.

Data from the Royal Academy of Engineers shows that industry loses 57% of female professional engineers under the age of 45 compared to 17% of male engineers. Hence, TWI recognises that retention and progression of females in the workforce are critical issues to address. At TWI, the annual proportion of women promoted during the period 2018-19 increased from 7.7% to 8.6%.

This year we have focused on promoting an ‘Inspiring Women Leaders’ programme; developed specifically to provide the self-awareness and tools to help women grow and increase their confidence to seek opportunities and progress in their career.

We have also undertaken an investigation into the working culture at TWI, which has provided insight and focus to drive our Diversity and Inclusion programme. We are working with our employees to improve and implement policies that recognise and encourage diversity, to enable career development whilst allowing for flexible working.

We recognise that there is still a great deal to be done to make a significant impact on closing the Gender Pay Gap. We remain committed to achieving positive change in the long term and our diversity and inclusion plan will assist us with driving progress.

Declaration

I can confirm that the data and information reported as of 31 March 2019 is accurate.

Aamir digital signature

Gender Pay Gap (GPG) Reporting

Under legislation brought into force in April 2017, UK employers with more than 250 employees are required to publish their Gender Pay Gap (GPG). We are now in our third year of publishing data. This report is based on our UK employees and is an analysis of a data cut from April 2019.

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 carries out a separate pay review 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 (April 2019) show that when we compare the average pay of women and men, irrespective of the role, men earn on average 23.7% more than women.

The table below shows the mean and median gender differential in hourly pay.

Mean and median gender pay differential in hourly pay
 20182019 +/- percentage differential 
Mean percentage by which men earn more than women 23.9% 23.7% -0.2
Median 26.1% 28.7% +2.6

The reasons for the differences in hourly pay between men and women are:

  • There are fewer women than men in leadership roles, i.e. the executive team, senior management, senior business development and senior specialists (see graph below: Gender by Group)
  • There are more women than men in support roles
  • During this reporting period, women make up 33% and men make up 67% of the working population at TWI and the Technology Group employs fewer women than men as engineering professionals (24.1% and 75.9% respectively). Nationwide, women remain more under-represented in engineering; only 12% of engineering professionals are female compared with an overall UK female workforce of 47%, (Engineering UK)
  • The investment we are making in recruiting women at the entrant’s stage, particularly from NSIRC, 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 more women progress into senior roles

uk-employees-by-gender-role

Gender by role-changing the landscape at TWI (2019 data)

The Difference in Bonuses Between Women and Men at TWI

During the reference pay period for this report (the twelve months preceding 5 April 2019), Share-in-Success bonuses were not paid. (Share-in-Success bonus were paid in the previous reporting period 5 April 2018).  

A number of ad hoc bonuses were 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 for this reporting period.

Mean and median difference in bonus pay between men and women
 Mean Median 
Difference in bonus pay between men and women  27.6% 0%

The charts below show the proportion of employees receiving an ad hoc bonus was 16.9% for men and 9.6% for women.

Gender_Pay_Bonus_Graphs

Reasons for the differences in the bonuses between women and men:

  • A lower proportion of women than men hold leadership roles, or roles that are measured by profit and therefore attract ad hoc bonus payments.

The Proportion of Women in Different Pay Quartiles at TWI

Overall, women currently represent 33% of TWI’s UK employees, an increase of 1% on the previous year’s reporting. The following charts show the percentage split between men and women employees at each pay quartile. The pay quartile is the range of all salaries, including bonus and car allowance, divided into four bands within the reporting period.

The charts below show that there are fewer women than men represented in the upper quartiles.

Gender_Pay_Quartile_Graphs

In graph above: A decrease 

Our Commitment to Increase Gender Diversity in Leadership Roles at TWI

Further analysis of TWI employee data (during the reporting period 2018-19) shows that women represent over a third of our technologists as Project Leaders (PL’s) 42%, Senior Project Leaders (SPL’S) 40% and Principal Project Leaders (PPL’s) 39%. However, the percentage drops dramatically to a representation of just 13% women (87% men) technologists in leadership positions. We recognise a need to focus on not only recruiting female engineers at TWI, but also retaining and progressing those women into leadership positions.

The charts below show how women and men are represented by Job profile within TWI.

roles-by-gender

Our Commitment

To help us achieve our goal to reduce the gender pay gap and increase gender diversity at leadership level, our objective is to have a third of our leadership roles filled by women, by 2024.

Progress with our Action Plan During 2018 - 2019

Addressing the Gender Balance from the Top

TWI have reviewed the gender balance at the governance level of the organisation. Since the start of TWI in 1946 until 2017 there has been zero female representation on Council. In 2017 we made strident moves to recruit 2 women (15 men) into positions on Council and in 2018 we have increased that number to 3 women (25 men) on Council; 11% female representation on Council for the first time in TWI’s history.

We acknowledge that 11% is a small number, however, to increase our female representation on Council we first need to attract a greater female applicant pool.

Mentoring Programme for Women

This year we have introduced a ‘Women as Leaders’ programme, developed specifically to provide the self-awareness and tools to help women:

  • Grow their confidence
  • Identify ‘big picture’ opportunities
  • Seek advancement by taking on more responsibilities and ultimately to gain earned promotion

Encouraging more Women into Science, Technology and Engineering Careers Through Outreach Initiatives

To achieve a higher percentage of women in the business and specifically in senior roles, we recognise that we need to increase the pipeline of female talent, particularly engineers, entering the business and then to ensure development and retention. To address this issue we have the following objectives:

  • Engage in national activities to encourage more women into STEM subjects
  • Attract more women into engineering and management careers at TWI
  • Invest in coaching and developing our staff
  • Implement recruitment, progression and flexible working policies and procedures that ensure diversity and inclusion, that underpin our commitment to reduce the gender pay gap

Research studies suggest that the low participation of females 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 the proportion of engagement in engineering diminishes as females move through the education system and there is a national call to action to try to address this issue.

TWI currently supports outreach initiatives to help encourage more women into science, technology and engineering subjects at school and university. We seek to encourage and attract women into the field of science and into careers at TWI.

  • We are proud of our flagship National Structural Integrity Research Centre (NSIRC) programme (www.nsirc.com), engaging a diverse group of engineers to complete postgraduate studies in industry, and 35% of TWI’s current post-graduate students are women, compared to an average of 30% since the opening of NSIRC in 2013. During this reporting period, we recruited 26 NSIRC graduates into jobs at TWI, 35% of whom were women, compared to an average of 19% since 2013
  • 29% of TWI apprenticeship places are currently held by women
  • We have engaged in a programme to coach women in leadership; focused on development for women who aspire to move into senior management roles
  • We have implemented a scheme to support maternity/paternity returners to work through a group of volunteers who share valuable experience and offer advice and support
  • We offer summer placements and internships at TWI recognising that these individuals may be employees of the future (50% of 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 girls). The work experience programme will be repeated this summer with a focus on attracting more girls onto the programme
  • The TWI outreach team continue to attend various local schools, delivering sessions to raise awareness of careers in engineering

Monitoring our Recruitment, Pay and Progression Processes

staff-promoted-by-gender

Female promotion - Changing the landscape at TWI (Data 2019)

  • The annual percentage of women promoted has increased from 7.7% to 8.6% (whilst the progression for men during the same reporting period was 7.6%)
  • We continue to develop our reporting process in relation to recruitment, pay and progression, so that regular data is available for analysis by the Executive Board

Review of Our Recruitment Practices in 2018 - 19

  • 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

What are our Future Plans?

To narrow our Gender Pay Gap, and achieve our target of a third of women in senior positions by 2024, we 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 women talent into TWI and their development whilst at TWI, to achieve a greater representation, particularly 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.

A Review of the Working Culture at TWI

TWI has undertaken a full review of the working culture within our organisation. The subsequent report has provided insight, which will direct our Diversity and Inclusion strategy and plan. A number of actions arising from the recommendations will consider and seek to influence the inclusivity of women in the workplace:

  • Review of flexible working
  • Review of TWI benefits and rewards
  • Diversity and Inclusion training for managers
  • Fair and consistent recruitment and progression processes

Our Plans for 2020 Include:

A Diversity and Inclusion Working Group will develop TWI’s diversity and inclusion plan, in collaboration with the Staff Consultative Committee and the Tipper Group;

Supporting the development of a talent pipeline to encourage more women into leadership and senior roles, including mentoring programmes to support development;

Developing a ‘Return to Engineering’ programme of refresher training following a career gap;

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;

Supporting the activities of the Tipper Group (www.theweldinginstitute.com/member-benefits/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.

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 and we have a series of initiatives to ensure we continue to improve.

TWI, March 2020

For more information please email:


contactus@twi.co.uk