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RPMI Gender Pay Gap Reporting

Railway

At RPMI, we are committed to being open, transparent and accountable in our treatment of our employees. We welcome the government’s introduction of Gender pay gap reporting as an opportunity to share our record in this area and to reinforce our commitment to treating people fairly and to fully reflect our stakeholders and members in our workforce make up.

As good practice, we have undertaken a substantive review of pay and conducted an Equal Pay Audit, which provided further analysis of our pay governance and pay decision-making. As a result of this we are confident that we pay fairly, and where work is ‘of equal value’ according to our Job Evaluation system, any differences can be explained by a material factor such as job market rate or location driving pay differences. 

Operating in an industry that has historically been male dominated our biggest challenge, in common with the Financial Services industry generally, is to increase the participation of women at more senior levels of the business. Whilst we have lots of activity underway to improve our position and create an inclusive working environment that appeals to all, we are being realistic that it will take time and a lot of consistent effort to see results.

Despite employing more women (53%) than men (47%), our reporting confirms that a pay gap exists. The gap is not widespread across the whole organisation but is mainly focused on the highest paid population in the upper quartile. Just over two-thirds of our employees in the higher earning roles are male, while just over two-thirds of employees in the lowest earning quartile are female.

Our recent participation in a sector specific diversity survey, led by ‘The Diversity Project’, confirms that we are not alone and offers great insights and suggested actions that can be taken both across the industry as a whole, and within organisations in particular, to help us shift the needle on diversity.

We already have lots of activity underway to improve our position, below is a summary of some of the initiatives we have put in place:

  • Succession and Talent planning –This is giving us better insight into how to develop a wider range of talent within the organisation and for taking gender, as well as other factors, into consideration when succession planning for key roles.
  • Recruitment processes – By assessing for a broader range of capabilities including leadership behaviours, motivations and cognitive skills in our hiring processes; and equipping our managers with better skills and awareness of how unconscious biases impact our decision making. We are challenging values and tradition in recruitment and starting to see some real successes in this area particularly in the investment job family.
  • Inclusion & Engagement – Our culture and behaviours are a critical element. Recent focus has been on the creation of our ‘core story’ which has demonstrated that involving all of our employees in initiatives develops a more inclusive organisation, one in which each individual can flourish and which we can all be proud to be a part of.
  • Management information – Putting in place a suite of MI tools to track recruitment and salary decisions by gender profile will provide the insight we need to manage gender balance in recruitment and pay decisions across the business.
  • Diversity – We are committed to taking action to accelerate progress toward an inclusive culture within our business and have teamed up with industry peers through initiatives such as ‘The Diversity Project’.
 

RPMI's overall pay difference between men and women

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How RPMI pay gap compares to Financial Services

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RPMI's base pay difference between men and women


The regulations require us to report on the pay gap, including any bonus or payments under the Deferred Bonus Plan which were paid in April 2017, pro-rated for the period they covered. As bonus makes up a large proportion of pay in the Financial Services sector, this has distorted the picture. When we re-run the numbers without bonus, just using base pay, we find the following:

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The mean drops by 6.6% from 42.8% to 36.2% - more in line with the median. Next year we will be using this as the base for our calculation as we believe it is more representative of our true picture.

 

Variable Pay

Our variable pay scheme covers all permanent employees but participation varies according to role and business area. All permanent employees with qualifying service are eligible for an annual award based on corporate performance, and some employees have additional elements based on personal contribution and business unit performance. By far the largest business element occurs in the Investment Business, where for some employees over half their overall pay depends on the long-term investment performance of the team. We have more male employees in this area than female ones, and although this is changing, it drives the very substantial mean bonus gap. Our median gap, which compares the middle man and middle woman in our organisation, is much lower.


Proportion of men and women across the four pay quartiles

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