The UK Government is requiring all UK companies employing 250 people or more to disclose the following gender pay gap figures:
Gender pay gap (average and median figures)
Gender bonus gap (mean and median figures)
Proportion of men and women in each quartile of the organisation’s pay structure
Proportion of men and women receiving bonuses
As an employer with over 1,000 employees in the UK and a global provider of innovative supply chain solutions, we welcome this opportunity. The analysis helps us to understand the root causes behind our gender pay gap and we can now make some important commitments and find solutions that work for our employees and reflect the customers and communities we serve.
The report can be downloaded above.
Who We Are
CHEP is a global provider of innovative supply chain solutions, tailored to the unique business requirements of our customers. Our solutions and associated services are based on returnable and reusable pooled equipment that are designed to increase performance and lower risk, while improving environmental sustainability. In the UK, our 1,000+ employees and more than 24 million pallets, deliver comprehensive nationwide coverage, serving more than 3,500 customers in the consumer goods, fresh food, beverage, manufacturing and retail sectors. Globally, CHEP has operations in more than 60 countries and is part of the Brambles Group. The CHEP UK business is the focus of this report.
The call from government for UK-based companies with more than 250 employees to report on their gender pay gap is something we welcome. We work with a mix of customers across the country, so having a workforce that reflects our customer base enables us to provide better and more relevant services. Reporting on our gender pay gap has provided us with the opportunity to look at our workforce in a different way. Addressing the gender pay gap and why it may exist within our UK organisation isn’t just good business sense it is fundamentally the right thing to do. Businesses with a diverse workforce will instil a long-term culture that truly delivers for customers, whilst enabling employees to express themselves and fulfil their careers to their full potential.
Following an extensive review of our employee data, we understand the reasons behind our gender pay gap and we can now make some important commitments to help close it.
Helen LaneVice President, CHEP UK and Ireland
"We are committed to creating, sustaining and harnessing the power of a truly diverse and inclusive culture, starting with a more balanced and gender diverse workforce."
In the last year, our business has taken some clear decisions and actions to bring us closer to the vision we have for being a fair, inclusive and inspirational employer. Our people are already proud of what we do as a business and how we operate through our circular business model. The steps we have taken reflect our commitment to expand on their passion and further empower them to progress within their careers and grow with us. This report highlights the steps that we have taken across CHEP UK and shares what we will be focusing on for the year ahead. My leadership team and I have been championing open and honest discussion, and will continue to do so, to ensure we continue to work together to advance our organisation.
Our Current Workforce
The data results of the analysis on our overall workforce show a gender pay gap in favour of women. To help explain these results it is important to understand our business here at CHEP UK. The results are primarily driven by the fact that about 60% of our jobs are plant operative roles, occupied predominantly by men. Female employees mainly work in office, sales or field-based roles. This means the male average pay calculation is spread across the whole organisation and at all levels. The average pay calculation for women on the other hand covers a narrower group of roles within the organisation.
The supply chain and logistics industry has a lower representation of females, so as a company and as an industry we need to work together to change this dynamic for the future. Gender diversity has been a key focus area for us and we are proud of the progress we’ve made to date, which is visible in our country leadership team where we have more females than males. We’re committed to making CHEP a great place to work for everyone, and this has been acknowledged by CHEP UK being awarded the Top Employer Certificate by the Top Employers Institute for the fouth year running.
Reporting on our Gender Pay Gap
Equal Pay Statement
We always aim to be an equal opportunities employer, and have implemented robust mechanisms into our recruitment, pay and grading structures to ensure pay transparency and consistency. We undertook and implemented job evaluation some years ago across our professional and management roles.This is underpinned by the Hay Methodology and reviewed on a regular basis. We have also undertaken an equal pay audit with the assistance of external experts with regard to our whole workforce in order to ensure that these systems are robust. As a consequence, we are confident that our pay practices are rigorous, fair and transparent.
Calculating the Mean (average) Gender Pay Gap
The mean gender pay gap is the difference in the average hourly pay for women compared to men, within a company.
Calculating the Median (middle) Gender Pay Gap
The median gender pay gap represents the middle point of a population. If you separately lined up all the women in a company and all the men, the median pay gap is the difference between the hourly pay rate for the middle woman compared to that of the middle man.
Gender split by pay quartile
The figures reflect an under-representation of females in our service centres, which is not likely to change rapidly due to the physicality of the work, but we are creating long-term strategies to engage differently with talented people from all walks of life.
Over the last 12 months we have increased the number of people in our service centres to provide additional services to our customers. This has resulted in an increase in our plant-based employees, which further explains the change in the gender pay split by quartile for this year.
Gender pay gap
The statutory figures report a gender pay gap in favour of females for our full employee population. Compared to last year the pay gap has reduced and we are working hard to attract more females into our business, specifically in our supply chain teams. We have completely revamped our recruitment approach and have seen success through this.
Bonus Pay Gap
Last year, our mean and median bonus pay gap figures were in favour of females. This year, the gap in favour of females has further increased. This means that on average our females received a higher bonus pay out than our males. This is primarily due to changes in our Supply Chain network and increased employment opportunities following the introduction of new on-site services at some of our retail customers. Our bonus scheme eligibility rules apply equally across the organisation and this meant some of our new employees had not received a bonus pay-out at the time of this report. Access to our bonus schemes and amounts paid is gender neutral.
Proportion of males and females receiving a bonus payment
We have a small bonus gap of 5.8% between males and females, indicating females are more likely to receive a bonus. Access to our bonus scheme is gender neutral however eligibility is conditional to an employee’s start date. The employment opportunities we’ve created in this past year for our new on-site services has contributed to the number of employees eligible for a bonus.
*We can confirm that our figures as of 4 April 2019 have been independently verified by an external advisor.
We are taking a holistic approach to inclusion and diversity as promoting and supporting diversity in the workplace is critical to creating an engaging and rewarding working environment. We have defined a strategy to ensure we value everyone in the organisation as an individual, respecting our differences and ensuring each of us is enabled to give our best and get the best from CHEP in return. Since our last report we have launched the following initiatives:
Appointment of a full-time Inclusion and Diversity Director, Tom Allmark
Expanded our partnership with LEAD Europe
Joined OUTstanding to support our LGBTIQ+ employees
We have reviewed and standardised our recruitment practices
Whilst we have already made a great start to the inclusion and diversity agenda, there is much work still to do. We remain committed to making this a great place to work for everyone, so we commit to further embedding the following over the next year: