Business management consultancy McKinsey and Company has reported a 23.8% mean gender pay gap for fixed hourly pay.
The organisation has reported its gender pay gap data in line with the government’s gender pay gap reporting regulations and ahead of the private sector submission deadline of 4 April 2018.
The gender pay gap reporting regulations require organisations with 250 or more employees to publish the difference between both the mean and median hourly rate of pay for male and female full-time employees; the difference between both the mean bonus pay and median bonus pay for male and female employees; the proportions of male and female employees who were awarded bonus pay; and the proportions of male and female full-time employees in the lower, lower middle, upper middle and upper quartile pay bands.
McKinsey and Company’s median gender pay gap for fixed hourly pay is 14.3%.
Its mean gender pay gap for bonuses is 76%, and the median gender pay gap for bonus payments is 52.5%. Over the reporting period, 86.8% of female employees received a bonus payment compared to 88.6% of male employees.
More than a third (36%) of employees in the highest pay quartile at McKinsey and Company are female, compared to 37% in the second quartile, 39% in the third quartile and 60% in the lowest pay quartile.
McKinsey and Company has attributed its gender pay gap to the disproportionately higher number of men working in senior roles within the business. According to the narrative around its gender pay report, not having enough female employees fulfilling senior positions has impacted its gender pay gap for both hourly rates and bonus pay.
To address its gender pay gap, McKinsey and Company has committed to have 40% of its consultant roles filled by women by 2020. This includes 30% as female partners and 15% as female senior partners. The organisation is also looking to improve parity in its recruiting processes, using initiatives such as its Women as Future Leaders network, providing unconscious bias training for all interviewers and ensuring that female employees are visible at all stages of the recruitment process. In 2017, more than 40% of the new consultants it recruited were female.
McKinsey and Company has also introduced measures to retain its female staff, including the implementation of targeted programmes such as its Women’s Leadership Workshop and Pathway to Partner programme. The organisation is encouraging open discussions around barriers and trade-offs relating to gender and working to connect high-performing men and women both inside and outside of the business. It has also committed to creating an inclusive culture to enable all employees to fulfill their potential.
Its report stated: “We are far from having all the answers, or delivering the full results we aspire to, but our understanding of what’s holding back progress, and of how to accelerate it, is growing. Our gender pay gap numbers are a timely reminder that we still have some way to go, but we are encouraged by the progress we have already made and by the desire we have to get this right.”