International law firm Allen and Overy has reported a 19.8% mean gender pay gap for fixed hourly pay as at 5 April 2017.
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.
Allen and Overy’s median gender pay gap for fixed hourly pay as at 5 April 2017 is 27.4%.
Its mean gender pay gap for bonuses paid in the year to 5 April 2017 is 42.1%, and the median gender pay gap for bonus payments is 23%. Over this period, 53.2% of female employees received a bonus payment compared to 55.5% of male employees.
More than half (52%) of employees in the highest pay quartile at Allen and Overy are female, compared to 53% in the second quartile, 63% in the third quartile and 71% in the lowest pay quartile.
Allen and Overy attributes its gender pay gap to the gender composition of its workforce. For example, more than 25% of employees based at Allen and Overy’s London office are women employed in lower-paid administrative business support roles. Men within the organisation, on the other hand, occupy fewer administrative roles.
The law firm believes its gender pay gap for bonus payments is influenced by the fact that more women than men work on a part-time basis, which means they receive a pro-rated bonus. In addition, Allen and Overy notes that the role diversity in its highest pay quartile also impacts on bonus ranges, as female employees hold senior positions. The firm’s analysis further shows that its mean gender pay for bonuses in the lower three quartiles is less than 4%, however this rises to 22.2% for its highest pay quartile.
To address its gender pay gap, Allen and Overy has renewed its gender strategy this year. The firm has also established a Gender Advisory Committee and introduced rigorous reporting across all offices in order to monitor its talent pipeline and track how well the organisation is sponsoring and progressing its female employees. Allen and Overy is additionally building a more flexible working culture so that all employees can be supported to work in ways that suit their lives.
Currently, one third of Allen and Overy’s elected board members are female, compared to 30% of women on its executive committee, 50% of female employees on its risk committee and 42% of the organisation’s people and performance board are female.
Wim Dejonghe, senior partner at Allen and Overy (pictured), and Sasha Hardman, global HR director at Allen and Overy, said in the report: “To reduce our gender pay gap, we recognise that we need to create a better gender balance in the top levels of our organisation.
“This is one of our top strategic business priorities, and we have implemented a number of changes in recent years to ensure we continue to make progress on this issue. The benefits of a diverse workforce, with a genuinely inclusive culture, are very clear. We know that diverse teams drive originality and innovation, mitigate risks from ‘group-think’, lead to greater engagement at work, and build stronger client relationships. This is why diversity remains a top priority for us.”