The UK government has introduced a legal requirement under The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 (the Regulations) for UK employers with over 250 employees to annually disclose their gender pay gap from 2018 onwards. This report sets out the gender pay gap data for the two DST employers that are in scope of the Regulations - DST Financial Services International Limited and DST Financial Services Europe Limited.
How does gender pay differ from equal pay?
The gender pay gap differs from equal pay. Equal pay deals with pay differences between men and women who carry out the same jobs, similar jobs or work of equal value. Gender pay analyses the difference in the average pay between men and women across an organisation, regardless of the jobs they do. A gender pay gap is therefore a result of many factors and a company can have a gender pay gap without breaching equal pay provisions.
By understanding our gender pay gap, DST can identify what needs to be done to improve inclusivity across the whole company and make further strides to close differences that exist. Whilst there are not always quick fixes, DST will focus on making progress across our business.
The Regulations state that gender pay gap figures must be reported as both a Mean and a Median value. The mean refers to the statistical average salary for all employees. The median refers to the 'mid salary' of all salaries.
What is our gender pay gap?
Our pay gap is calculated on the total number of people employed by DST at the 'snap shot' date (5th April 2017) and the mean and median pay differences between men and women are 24.4% and 12.8% respectively.
In line with the Regulations, we have also set out the gender distribution across four equally sized quartiles based on pay range.
When considering our pay gap in comparison to both the industries in which we operate and the national published statistics, DST is below the average. This is a positive benchmark for DST but does not leave us without room for improvement.
Why do we have a gender pay gap?
DST operates a business within both the technological and financial administration sectors, where a large portion of employees are from the Science, Technology, Engineering and Mathematics ("STEM") and financial education backgrounds.
Whilst there are more female staff than male currently employed at DST, traditionally more men are likely to enter the industries in which we operate and this is also reflected in DST having more males in higher paid roles, as evident in the quartile data.
Similarly, a large proportion of the DST female population work in administrative or junior roles and opt for part time work over full time.
What is our bonus gap?
Disclosure of the DST bonus gap is also required and our mean and median bonus gap differences are 54.6% and 27.8% respectively. To calculate this we reviewed the proportion of men and women who get paid a bonus and the average / midpoint bonuses paid to each gender in the 12 months before the 'snap shot' date (5th April 2017).
When considering our employees, out of the total male population 46.3% receive a bonus, whereas only 34.8% of women receive a bonus. The average bonus received by men is higher than those received by women.
Why do we have a bonus gap?
This bonus gap is in line with our quartile analysis, which demonstrates more men are in senior and higher paid roles. These are more likely to be bonus eligible and with a greater percentage bonus earning ability.
How are we addressing the gender pay and bonus gaps?
DST are committed to taking a series of measures now and in the longer term to promote a diverse and inclusive workforce, including the following:
- Focus on more ways to raise awareness of unconscious bias impact and remove it from our processes
- Continue to ensure our recruitment and promotions processes have the best candidates from all backgrounds
- Continue to ensure there is equal access for our leadership and development programmes
- Ensure our employees understand our work life balance policies and that they are applied consistently
We confirm that DST's gender pay gap calculations are accurate and meet the requirements of the Regulations.
Group Human Resource Director