gender & ethnicity pay gap report 2019 · ethnicity pay gap, which compares black, asian and...

GENDER & ETHNICITY PAY GAP REPORT2019

This is Slaughter and May’s third UK pay gap report.

Diversity and Inclusion (D&l) is an integral part of how we do things as a firm. We work hard to create an environment where everyone can feel valued, included and be themselves. Read more about D&I at Slaughter and May here.

Our people come from a range of different backgrounds and offer different viewpoints and this goes to the heart of our ethos of independent thinking and innovation. We strive to attract, recruit, develop and retain a diverse pipeline of talent.

Our gender pay gap figures for 2019 are broadly similar to our figures for 2018. The main reason for the similar statistics is that neither the way in which we remunerate our employees nor the size and shape of our workforce has changed. The most significant factor behind the figures is the composition of our workforce.

Our pay philosophy is founded on the principle of equality and supports our strong ‘one-firm’ culture. Amongst our lawyers, we adopt an approach to remuneration where individuals with the same number of years' experience are generally paid the same.

We continue to look at ways in which we can address our gender pay gap, but equally understand that this will take time. In order to gain further insight into what lies behind the gap and to implement actions to close it, we have broken down the data beyond the statutory requirements.

As our approach to D&I goes wider than a focus on gender, we have again voluntarily published information on our ethnicity pay gap, which compares Black, Asian and Minority Ethnic (BAME) people with non-BAME/white people.

We confirm the data in this report is accurate.

INTRODUCTION

Paul Stacey Executive Partner

Louise Meikle Director of HR

1 2019 Gender & Ethnicity Pay Gap Report

https://www.slaughterandmay.com/who-we-are/responsibility/inclusion/

Under the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017, certain employers are required to publish their gender pay gap data annually. As a firm with over 250 employees we must publish and report our gender pay gap data within a year of a data ‘snapshot date’. Our snapshot date is 5 April 2019 and this date has been used to calculate all numbers in this report. The gender pay gap in this context is the difference between the average earnings of men and women, expressed relative to men’s earnings.

In our report:

A positive gap for the gender figures means that men are paid more than women, whilst a negative gap means women are paid more than men.

A positive gap for the ethnicity figures means that non- BAME/white people are paid more than BAME people, whilst a negative gap means BAME people are paid more than non-BAME/white people.

WHAT IS GENDER PAY GAP REPORTING?


Understanding the numbers

Hourly Pay – hourly pay for all eligible individuals in receipt of full pay in April 2019.

Mean – individuals’ hourly pay totalled then divided by number of individuals.

Median – individuals’ hourly pay ranked then middle value identified.

Proportion of men and women in each quartile band – data divided into quartiles.

Bonus Gap – actual bonuses paid to individuals in the 12 months to April 2019.

Proportion receiving a bonus – in the 12 months to April 2019, of those employed in April 2019.

Percentage of women and men who received a bonus

LowerWomen 75.6%

Men 24.4%

Mean pay gap -5.9%

Median pay gap -9.1%

Lower middleWomen 53.8%

Men 46.2%

Mean pay gap 3.4%

Median pay gap 9.0%

Upper middleWomen 49.6%

Men 50.4%

Mean pay gap 2.0%

Median pay gap 0.2%

UpperWomen 48.5%

Men 51.5%

Mean pay gap 2.1%

Median pay gap 1.0%

2018

2019

Percentage of women and men in each quartile band

All Employees Mean Median

Gender Pay Gap 16.2% (14.4%) 38.6% (38.7%)

Gender Bonus Gap 35.4% (36.8%) 54.0% (50.9%)

2018 gap figures shown in brackets

Women 86.3%

Employee Pay and Bonus Gap

Men 91.9%

Men 88.6%

Women 91.9%

STATUTORY DISCLOSURES


Our associates with the same number of years’ experience are generally paid the same salary and receive the same bonus percentage, regardless of gender or ethnicity.

Percentage of female and male associates who received a bonus

Women 90.8% Men 94.6%

LowerWomen 49.0%

Men 51.0%

Mean pay gap 0.8%

Median pay gap 0.0%


Men 51.5%

Mean pay gap 1.6%

Median pay gap 2.6%


Men 57.1%

Mean pay gap -0.8%


UpperWomen 41.4%

Men 58.6%

Mean pay gap 3.9%


2018

2019

Women 96.1% Men 97.8%


Associate Mean Median

Gender Pay Gap 4.7% (0.6%) 4.0% (0.0%)

Gender Bonus Gap 6.4% (7%) 5.8% (0.0%)


Associate Gender Pay and Bonus Gap

ADDITIONAL DATAThe data featured in the next two pages cover our two largest employee populations at the firm – associates and business services. We have chosen to provide this additional data; they are not required as part of the statutory disclosures.


For the purpose of these calculations, the pay gap for Business Services as a whole has been calculated using data from all our employees, except trainees, associates and secretaries.

Percentage of Business Services females and males who received a bonus

Women 89.6% Men 91.6%

LowerWomen 66.7%

Men 33.3%

Mean pay gap -1.9%



Men 35.3%

Mean pay gap 0.2%

Median pay gap 1.7%


Men 54.4%

Mean pay gap -3.2%


UpperWomen 59.8%

Men 40.2%

Mean pay gap -4.0%


2018

2019 Women 71.2% Men 73.8%


Business Services Mean Median

Gender Pay Gap 2.0% (-1.7%) 16.2% (12.3%)

Gender Bonus Gap 14.4% (10.9%) 17.6% (20.6%)


Business Services Gender Pay and Bonus Gap


Slaughter and May is a general partnership. All of our partners have equal voting rights and partners promoted to the partnership at the same time are remunerated equally. The mean and median pay gaps in our partner population in London are explained by the fact that the gender split of the partnership is 21% women and 79% men and there is a higher representation of men at the more senior levels of our partnership. This has the effect of widening the gender pay gap. Between May 2016 and May 2019, 25% of those promoted to the partnership have been women.

For clarity, our partners are not "paid a salary"; instead they take a share of the profits. They also do not receive any additional payments, such as bonuses. As a result, our partner pay gap figures have been calculated using an hourly rate based on the annual profits for the 12 months to 30 April 2019.

LowerWomen 32.0%

Men 68.0%

Mean pay gap 1.5%

Median pay gap 2.7%


Men 72.0%

Mean pay gap 4.4%

Median pay gap 3.9%


Men 87.5%

Mean pay gap 0.0%

Median pay gap 0.0%

UpperWomen 12.0%

Men 88.0%

Mean pay gap 0.0%

Median pay gap 0.0%


Partners Mean Median

Gender Pay Gap 10.5% (8.9%) 25.0% (8.9%)

Gender Bonus Gap Not applicable Not applicable


Partner Gender Pay and Bonus Gap


In order to combine our employees and partners, we have used the hourly rate for both partners and employees based on total earnings. Total earnings for partners are the annual profits for the 12 months to 30 April 2019. For employees, total earnings are their annual salary as at April 2019 plus any

bonus paid during the relevant period, adjusted for statutory inclusions/exclusions (such as allowances and salary sacrifices).No similar adjustments are required for our partners.

LowerWomen 73.9%

Men 26.1%

Mean pay gap -3.9%



Men 46.7%

Mean pay gap 2.6%

Median pay gap 2.2%


Men 49.0%

Mean pay gap -0.2%


UpperWomen 37.1%

Men 62.9%

Mean pay gap 50.8%

Median pay gap 28.4%

Proportion of women and men in each quartile band

Partners Mean Median

Gender Pay Gap 66.4% (63.6%) 42.3% (45.0%)

Gender Bonus Gap* 35.4% (36.8%) 54.0% (50.9%)

2018 gap figures shown in brackets*The gender bonus gap reflects the bonus gap for employees only. Partners do not receive bonuses. Bonuses are only paid to our employees.

Employees and Partners Gender Pay and Bonus Gap


Our ethnicity pay gap reporting has been produced on the same basis as our regulatory gender pay gap reporting. It shows the difference in pay between BAME employees and non-BAME/white employees. We have also calculated the pay gap for employees and partners.

Reporting on the ethnicity pay gap relies on individuals disclosing their ethnicity. This voluntary disclosure means that there are individuals who have not provided this information.

As a result, the population used to calculate the ethnicity pay gap will not be the same as the population used to calculate the gender pay gap.

83% of our employees and partners included in the gender pay gap reporting have provided their ethnicity details. We continue to encourage our employees and partners to complete this information in a drive to increase the overall disclosure rate, which will increase the reliability of the data being reported.

LowerBAME 16.6% White 83.4%

Mean pay gap -1.0%Median pay gap -2.3%

Lower middleBAME 19.5% White 80.5%

Mean pay gap 6.1%Median pay gap 2.5%

Upper middleBAME 17.1% White 82.9%


UpperBAME 12.4% White 87.6%


Employees and Partners Mean Median

Ethnicity Pay Gap 54.1% (51.1%) 23.5% (19.4%)


Ethnicity Pay and Bonus Gap

LowerBAME 15.7% White 84.3%

Mean pay gap -0.3%Median pay gap -0.3%

Lower middleBAME 22.2% White 77.8%

Mean pay gap -1.4%Median pay gap 1.8%

Upper middleBAME 15.2% White 84.8%


UpperBAME 17.5% White 82.5%


Proportion of BAME and white employees in each quartile band

Proportion of BAME and white employees and partners in each quartile band

Employees Mean Median

Ethnicity Pay Gap 9.4% (9.7%) 19.9% (20.4%)

Ethnicity Bonus Gap 8.9% (0.6%) 6.8% (10.1%)



GENDER ACTION PLANWe continue to work hard on our long term objective of reducing the gender pay gap. Over one fifth of our partnership is now comprised of women, who make up 25% of newly made-up partners over the past four years. We are optimistic that our action plan and underlying commitments will deliver positive results in the years to come.

• We have put in place a mechanism to identify talent early in the pipeline, in order to effectively monitor and track the progress of individuals at every level of the firm. Coupled with data analytics, this information helps to drive key decision making across the firm.

• Many of our employees already work flexibly or agilely. We plan to launch a flexible working pilot in the next 12 months, the aim of which is to identify new and sustainable ways of working so lawyers are supported to do their work and deliver value to clients, to develop their careers, and to manage work-life balance. This will be gender neutral and not strictly limited to women, but we envisage this as having a positive impact for women and working parents.

• We trialled a reverse mentoring scheme last year, pairing diverse employees with business leaders to create a dialogue to explore intergenerational differences and to develop inclusive leadership styles by consulting and inviting different views. After a successful pilot, we will be rolling this out more widely in the next 12 months.

• We are recruiting lateral hire lawyers through the Reignite Academy, an organisation that sources women lawyers who have been out of the workplace for an extended period of time and who are ambitious to restart their City careers.

• We continue to offer external and internal mentoring opportunities at junior, middle and senior levels to access confidential career advice from a senior business leader. We also provide leadership development programmes, bringing experienced women lawyers together across Europe.

• We offer enhanced family leave packages, including Shared Parental Leave and one to one coaching for parents, to support working families.


Broadening out from our focus on gender we have outlined our wider approach to diversity and inclusion.

We believe that it is important to the performance of our business to create an environment where everyone can feel valued, included and able to be themselves. Traditional approaches to D&I are often skewed towards initiatives designed to help diverse individuals better ‘fit in’ and succeed. We focus on examining and adjusting the system for greater acceptance of different leadership styles and ways of working so that we can benefit from increased diversity.

Our Action Plan highlights some of the strategic and operational activities that we are undertaking to enable all employees to thrive and realise their potential.

“Core Programme” activities relate to our ongoing efforts whilst “In Progress” outlines our flagship initiatives for 2020.

Core Programme In Progress

Rec

ruit

men

t

As part of our broader recruitment strategy we take a targeted approach and work with a variety of BAME, disability, LGBT+, social mobility and recruitment specialists and groups to attract outstanding talent into the firm. We promote recruitment opportunities through a wide range of channels to increase access to a wider pool of talent to directly target a diverse range of candidates we might not ordinarily reach through our usual marketing activities.

We are part of the Reignite Academy which places experienced women lawyers into fee earning roles after a career break.

We launched a partnership with social mobility charity upReach in 2019. Our bespoke “Law Springboard” programme provides mentoring, skills and career support, insight days and work experience for 90 high potential undergraduates from less-advantaged backgrounds annually.

We are engaging with a specialist agency to source BAME professionals in our lateral hire recruitment of lawyers, for more balanced shortlists of candidates.

Ret

enti

on a

nd P

rom

otio

n We take a gender neutral approach to our family leave policies and other support for working families.

We continue to run targeted leadership development programmes and mentoring opportunities for BAME, female and LGBT+ talent through the 30% Club, INvolve and our European network of firms.

We provide coaching to high potential individuals.

We plan to pilot three new working patterns for associates over the next 12 months as part of our efforts to build greater flexibility into lawyer roles.

We have recently invested in extensive data analysis to provide deeper insights into demographic patterns, which will inform our D&I strategy going forward.

We ran a “Diversity in the City” series of events in 2019, to create an ethnic diversity network across the City and start a positive dialogue around BAME inclusion in the City. Aimed at City professionals and our own employees, who are potential future leaders, we will continue to connect this network in 2020.

Cul

ture

We invest in an ongoing and visible dialogue on diversity and inclusion to create a shared understanding and language.

We engage all of our employees in a programme of learning and development to highlight individual responsibilities.

Our content is tailored at each level and at the same time, is mainstreamed across all our programmes.

We have eight active diversity networks, which together form a “Network of Networks”, run by our people and supported by partners. This approach is designed to strengthen the spirit of inclusion and ensure we celebrate the intersectional diversity of our firm.

We launched an “Inclusion Allies” initiative which aims to encourage everyone at the firm to consider how they can actively promote an inclusive environment through simple, everyday language and behaviours.

We have rolled out Inclusive Leadership training for all senior leaders which has provided practical tools and techniques for managing diverse teams to success.

We are rolling out a wider reverse mentoring programme, to match business leaders with more junior diverse employees as their mentors to develop inclusive leadership styles.

DIVERSITY AND INCLUSION ACTION PLAN


Engaging with the wider community

We collaborate within and beyond our sector to promote an open and dynamic society.

• We are members of the 30% Club, which brings together leaders from a variety of organisations to accelerate progress toward greater gender equality.

• We take part annually in the DiversCity in Law graduate recruitment event, which welcomes LGBT+ aspiring lawyers for a day of career insights and networking.

• We are founding members of the Social Mobility Business Partnership, which brings together organisations across sectors to create opportunities for less advantaged students.

• Our year-long sponsorship with the Old Vic was based on the shared values of inclusion and supporting diverse talent. That sponsorship facilitated, amongst other things, a cross-company mentoring programme for women, a theatre workshop for senior leaders on inclusive leadership and the theatrical production SYLVIA.

• Trans in the City – we were signatories to the launch of this new, City-wide initiative to support trans people in the workplace.

Awards and recognition • Ranked 15th in the Stonewall 2020 Top 100

Employers’ Index for LGBT+ inclusion.

• Ranked 40th in the Social Mobility Foundation Top 75 Employers’ Index.

• We are signatories to the BITC Race at Work Charter.


© Slaughter and May

This material is for general information only and is not intended to provide legal advice. For further information, please speak to your usual Slaughter and May contact.

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gender & ethnicity pay gap report 2019 · ethnicity pay gap, which compares black, asian and...

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