Gender Pay Gap Report

Gender Pay Gap Report

April 08, 2019

Ingram Micro helps businesses Realise the Promise of Technology™. We deliver a full spectrum of global technology and supply chain services to businesses around the world. Delivering a deep expertise in technology solutions, mobility, cloud, and supply chain solutions, we enable our business partners to operate efficiently and successfully in the markets they serve. Unrivalled agility, deep market insights and the trust and dependability that come from decades of proven relationships, set Ingram Micro apart and ahead. More at www.ingrammicro.com.

 

In publishing our annual gender pay gap report, information provided herein is intended to provide information on the difference in the average earnings of all men and all women across our organisation as at 5th April 2018 (and using bonus data from 5th April 2017 to 5th April 2018).

 

Data captured during this analysis pertains to associates based at four different Ingram sites; Milton Keynes (where our associates are focussing on commercial outcomes and many are at entry level into the industry); Crick and Daventry sites for Distribution (where our associates are predominantly blue collar) and Staines office where the majority of associates are at global VP level, male and by nature of their tenure, experience and industry knowledge of executive status and by default high earners.

 

 

Defining Equal Pay vs Gender Pay Gap

 

The readers’ attention is drawn to the fact that this report meets the Companies legal requirement to report on its gender pay gap of which the calculations are determined by the Government Equalities Office.  This report does not however endeavour to reflect the pay difference between men and women in the same position at Ingram Micro. Furthermore, this report shows Ingram Micro UK Ltd.’s gender pay gap as the difference in the average earnings of all men and all women across the organisation. This report is not intended to compare earnings for similar roles or roles of the same scope and responsibility.

 

Ingram Micro UK Ltd. is committed to equal opportunities and equal treatment for all employees, regardless of any characteristics such as: sex, race, religion or belief, age, marriage or civil partnership, pregnancy/maternity, sexual orientation, gender reassignment or disability.

 

Alongside the consideration of skills, experience and proficiency of competencies the Company has a clear stance of paying associates within the same range for the same or equivalent work, regardless of their sex or any other characteristic as set out above. As such, we:

  • Evaluate job roles and pay as necessary to ensure a fair structure and applicable salary range on an annual basis;
  • Provide hiring managers with extensive recruitment training to prevent any bias (conscious or otherwise) upon characteristics in choice of candidates and related compensation packages;
  • Ensure that skills, experience and proficiency level of competencies would have been taken into account where compensation may vary within the range; and
  • Ensure where possible, and if given the choice, all decisions are taken to compliment an equal gender balance.

 

It is our belief that Ingram Micro UK Ltd.’s gender pay gap is primarily impacted by wider socio-economic factors which we will explore later in our findings and we are confident that it is not the result of an equal pay matter.

 

2018 Gender Pay Gap Findings

 

  • The mean gender pay gap for Ingram Micro UK Ltd. is 35.5%.
  • The median gender pay gap for Ingram Micro UK Ltd is 27.7%.
  • The mean gender bonus gap for Ingram Micro UK Ltd is 73.4%.
  • The median gender bonus gap for Ingram Micro UK Ltd is 44.5%.
  • The proportion of male employees in Ingram Micro UK Ltd receiving a bonus is 81.5% and the proportion of female employees receiving a bonus is 83.8%.

 

Pay quartiles by gender

Pay Band Quartile

Males

Females

Description

A/Lower

50.5%

49.5%

Includes all employees whose standard hourly rate places them at or below the lower quartile

B/Lower-mid quartile

47.2%

52.8%

Includes all employees whose standard hourly rate places them above the lower quartile but at or below the median

C/Mid-upper quartile

60.2%

39.8%

Includes all employees whose standard hourly rate places them above the median but at or below the upper quartile

D/Upper-quartile

79.6%

20.4%

Includes all employees whose standard hourly rate places them above the upper quartile

 

Table 1.

The figures set out above have been calculated using the standard methodologies used in the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017.

 

CREATING A BETTER GENDER BALANCE

 

In order for there to be a 0% gender pay gap, there would need to be an equal ratio of men to women in each band/quartile. As stated above Ingram is committed to hiring the most suited candidate for each position focusing on inclusion and diversity at every instance through bias-free recruitment practices. 

 

Within Ingram Micro UK Ltd. 50.5% of the employees in Band A (the lowest paid) are men and 49.5% women showing equal representation indicating a fair and just compensation rate for base level. Based upon career progression and individual achievements this gap may widen as it is influenced by demonstrable achievements and career progression.

 

A menial gap exists in Band B where a difference of 5.6% between men and woman can be seen. However, the male population percentage increases through the remaining Bands, from 60.2% in Band C to 79.6% in Band D (the highest paid). This is not uncommon in the technology industry, as highlighted in recent research and reported on in CW jobs: “Gender balance in the UK tech sector will not be reached for another 12.5 years, according to industry professionals. Male tech workers are even less optimistic, believing it will be another 14 years until there is an equal number of men and women working in the industry. Contributor Dominic Harvey, Director – CWJobs. [1]

 

Ingram micro UK Ltd. is however proud to have 3 of the Leadership Team positions filled by female executives with others being developed through the Women in Leadership program, thus cultivating the female leadership pipeline for the future.

 

comparing ingram micro uk ltd.’S gender pay gap

 

2017 data:

·         The mean gender pay gap for Ingram Micro UK Ltd. is 32.0%.

  • The median gender pay gap for Ingram Micro UK Ltd is 22.0%.
  • The mean gender bonus gap for Ingram Micro UK Ltd is 47.0%.
  • The median gender bonus gap for Ingram Micro UK Ltd is 32.0%.
  • The proportion of male employees in Ingram Micro UK Ltd receiving a bonus is 96.6% and the proportion of female employees receiving a bonus is 94.9%.

 

 Pay quartiles by gender

Pay Band Quartile

Males

Females

A/Lower

53.2%

46.8%

B/Lower-mid quartile

48.2%

51.8%

C/Mid-upper quartile

58.6%

41.4%

D/Upper-quartile

81.1%

18.9%

 

From the data above, comparing the year 2017 and 2018 an increase in the gap can be noticed. In 2016 Ingram Micro was acquired by HNA, as is customary in any merger and acquisition situation, to avoid turbulence and maintain internal stability a retention strategy was implemented which came to fruition in 2017-2018.  This retention strategy and related payment directly impacted senior executives thus skewing the gap significantly. With this retention strategy now fully vested we are confident that the data for 2019 will appear more neutral.

 

Due Ingram Micro’s global compensation philosophy and culture of “paying for performance” the majority of our associates have the ability to directly impact their total compensation through performance.  

 

We are pleased to report that all of our quartiles are more gender neutral by a few percentiles.

 

During the period 6th April 2017 – 5th April 2018 Ingram Micro UK Ltd. had 88 new starters; 38 were female and 50 were male demonstrating a focus on endeavours in the space of equal opportunity. During our recruitment initiatives we found an abundance of more qualified male candidates in the more senior roles, however at entry level positions there was a gender-neutral talent pool. As previously stated we are confident that our recruitment process does not have a gender bias 9concious or otherwise) furthermore, these figures mirror the UK economic standard as well as that for the Sales & Technology industries.  

 

Addressing the gender pay gap at ingram micro uk ltd.

 

In considering levels of performance, experience and skills in the first instance, Ingram Micro UK Ltd. is committed to avoid and in the second instance to work towards reducing any unjustified pay gaps. We continue to strive to promote diversity and inclusion in all areas of our workforce. Among other endeavours we will:

  • Promote the return to work incentive for new mothers returning from maternity related leave. This provides mothers the ability to earn three payments in the first 8 months following their return to work after maternity leave.
  • Continue to promote the ‘Woman in Leadership’ program which focuses on diversity and inclusion.
  • Partner with our external vendors to cross pollinate best practice of diversity and inclusion and where applicable implement at Ingram Micro.
  • Encourage associate to enrol in apprenticeships schemes in order to upskill skill base.

 

Whilst we accept that these initiatives will not by themselves address the gender pay gap in its entirety and we also cognisant of the fact that it may take several years before positive impact can be seen as already highlighted through research of the industry. In the meantime, Ingram Micro UK Ltd. will continue to explore new ways in which to promote gender diversity, whilst remaining committed to transparency in reporting on an annual basis our initiatives in reducing the gender pay gap and highlighting any related progress.

 

I, Wanda Francies, HR Director – UK & Ireland, confirm that the information in this statement is accurate.

 

Definitions

  • Gender pay gap -the average difference between the remuneration for men and women who are working. For example, a 4.0% gender pay gap denotes that women earn 4.0% less per hour, on average, than men.
  • Snapshot date – 5th April.
  • Bonus snap shot – bonus paid up in the 12 months up to and including the snapshot date.
  • Relevant employees - all employees employed on the snapshot.
  • Full pay relevant employees - all employees who were paid their usual full pay in their pay period that included the snapshot date.
  • Ordinary pay - gross monetary payments before tax and pension deductions and after any deductions for salary sacrifice.
    • Such as: basic pay, allowances (such as payments for extra responsibilities, location-related payments, car allowances, recruitment or retention incentives), shift premium pay, pay for leave.
    • Not: overtime pay, redundancy pay, pay related to termination of employment, expenses, benefits in kind.
  • Bonus – any rewards related to profit sharing, productivity, performance, incentive, retention, commission paid in cash, vouchers, securities/security options.
    • Not: overtime, redundancy pay, pay related to termination of employment.
  • Mean gender pay gap in hourly pay – the difference in the average gross hourly earnings of men and women:
    • Add together the hourly pay rates of all male full-pay relevant employees
    • Divide this figure by the number of male full-pay employees – this gives you the mean hourly pay rate for men
    • Add together the hourly pay rates of all female full-pay relevant employees
    • Divide this figure by the number of female full-pay employees – this gives you the mean hourly pay rate for women
    • Subtract the mean hourly pay rate for women from the mean hourly pay rate for men
    • Divide the result by the mean hourly pay rate for men
    • Multiply the result by 100 – this gives you the mean gender pay gap in hourly pay as a percentage of men’s pay
  • Median gender pay gap in hourly pay – the difference in the midpoint salary of men and women.
    • Arrange the hourly pay rates of all male full-pay relevant employees from highest to lowest
    • Take the hourly pay rate of the middle-ranked man – this gives you the median hourly rate of pay for men
    • Arrange the hourly pay rates of all female full-pay relevant employees from highest to lowest
    • Take the hourly pay rate of the middle-ranked woman – this gives you the median hourly rate of pay for women
    • Subtract the median hourly pay rate for women from the median hourly pay rate for men
    • Divide the result by the median hourly pay rate for men
    • Multiply the result by 100 – this gives you the median gender pay gap in hourly pay as a percentage of men’s pay
  • Mean gender bonus gap – the difference in the average bonus of men and women.
    • As for the mean hourly pay gap but with bonus figures.
  • Median gender bonus gap – the difference in the midpoint bonus of men and women.
    • As for the median hourly pay gap but with bonus figures.
  • Bonus pay proportion - The male relevant employees who received a bonus in the 12 months, expressed as a percentage of the male relevant employees; female relevant employees who received a bonus in the 12 months, expressed as a percentage of the female relevant employees.
  • Quartiles - Organise workforce into evenly sized quartiles based on ranking of all full-pay individuals from highest to lowest by hourly rate of pay. Report on each quartile the number of full-pay male and females in each quartile as a percentage of the total in the quartile.

 

The calculations are fully explained: https://www.gov.uk/guidance/gender-pay-gap-reporting-make-your-calculations