gender pay gap

Our gender pay gap report for 2022/2023

“A diverse and inclusive LV= allows us to better reflect the members and customers we serve.”

David Hynam, Chief Executive 

Gender Pay Gap report

“At LV=, our core values are centred around inclusivity, equity and diversity. We want LV= to be a place where all our colleagues and teams can thrive.

“Our mean gender pay gap remains steady at 31.4% which is marginally down on last year (31.5%). Following career progression and promotions for a number of our female colleagues, we are seeing encouraging signs across all pay quartiles.

"We’ve been delighted to see progress in female representation in senior roles. We remain committed to fostering an inclusive culture at LV= and are focused on taking continued action over the coming years.   

"I can confirm the data in this report to be accurate."

David Hynam, Chief Executive 

What is the gender pay gap?

All UK companies with at least 250 employees are legally required to report their gender pay gap on an annual basis.

The gender pay gap is not the same as equal pay and has intentionally been a different measure since its inception as a legal requirement. Here is a reminder of the differences:

Gender Pay vs Equal Pay diagram

Fair and equitable

We’re confident that pay at LV= is fair and equitable

We regularly review market pay benchmarks based on our pay bands and the role being performed, against a large source of market data. 

We also monitor our bonus and salary review processes to ensure all employees are treated equally and that gender is not a factor in decision-making.

Gender pay gap data

Understanding our gender pay gap data

  • Mean - the average value of the data being used
  • Median - the middle value of the data being used when the data is ordered consecutively
A positive mean/median value means that the average of all male salaries or bonuses are higher than the average of all female salaries or bonuses.

Our results

Our results are based on colleagues who were employed as at 5 April 2023. For the gender pay gap the data is for our full-pay relevant* colleagues, based on their hourly rates for the month of April 2023. Our bonus pay gap results are based on our relevant* colleagues for bonuses paid in the 12 months prior to 5 April 2023. 

*Employed by Liverpool Victoria Financial Services Ltd. 

Find out more about the definitions set out in the government guidelines

 

  2021/22 2022/23

Median Mean Median Mean
Gender pay gap 27.2%
31.5% 29.1% 31.4%
Gender bonus pay gap 40.5%
44.1%
45.2% 54.3%
  2021/22 2022/23
Quartile Female Male Female Male
Upper 33.4% 66.6% 34.3% 65.7%
Upper Middle 45.8%  54.2% 51.4% 48.6%
Lower Middle             61.5% 38.5% 63.5% 36.5%
Lower 67.6% 32.4% 68.6% 31.4%

 

Our mean gender pay gap remains steady at 31.4% (2023: 31.5%). LV= is committed to closing this gap. This gap is primarily caused by the structure of our workforce, with a greater representation of men in senior and specialist roles along with a higher representation of women in more junior roles.    

Even though our overall gender pay gap is steady, we can see movement between the pay quartiles in favour of women; the upper middle quartile has had the biggest movement moving to a majority of women in that quartile. A key reason for this shift is that over the last reporting period, we have seen women promoted into professional roles. LV= will continue to focus on the development and promotion of our own colleagues to provide internal recruitment solutions wherever possible.

Our gender bonus gap is mainly driven by a greater proportion of men performing senior roles, the most senior of which attract long term incentive schemes. Since the last reporting period our bonus gap has increased to 54.3%. This increase was mostly due to a small number of senior women who left LV= between the two reporting periods. 

We would like to change the structure of our workforce wherever we can but, as many companies are finding, this level of structural change is not easy or quick to achieve. 

Read our previous gender pay statistics

GENDER PAY GAP – WHAT ARE WE DOING?

We believe fostering a diverse and inclusive culture is key to the successful delivery of our future strategy

  • While we recognise that we need to continue our efforts on increasing the female population at senior levels within LV=, this is only one part of the equation.
  • Taking a broader view, we also want to continue supporting all activities we can around diversity, equity and inclusion to further foster an inclusive culture in order to bring about real change.

More on diversity, equity and inclusion

What's next?

We have an understanding of our gender pay gap and below we have identified key areas to show LV=’s commitment to closing the gap

There are broad, complex and varied causes of the UK gender pay gap, and no short-term solutions. We recognise that the measures we're taking to reduce our gender pay gap will need time to take effect before a meaningful impact is made. More details on the targeted areas of activities can be found via the following links:

Board diversity policy

We recognise and embrace the benefits of having a diverse Board. We see it as an essential element in maintaining a competitive advantage. A truly diverse Board will include and make good use of differences in the skills, regional and industry experience, education and professional background, race, ethnicity, gender, and other qualities of directors such as cognitive and personal strengths. These differences will be considered in determining the optimum composition of the Board and when possible, should be balanced appropriately.

All Board appointments will be made on merit and reflect the skills and experience the Board as a whole requires to be effective. The Remuneration and Nomination Committee (Rem&Nomco) reviews and assesses the Board’s composition to ensure that, between them, the directors have sufficient current and relevant knowledge and experience to understand the key activities and risks in the business. In reviewing Board composition, Rem&Nomco will consider the benefits of all aspects of diversity in order to reduce groupthink, whilst maintaining an appropriate range and balance of skills, experience and background on the Board. 

The Board supports the recommendations set out in The FTSE Women Leaders Review (previously Hampton-Alexander Reviews and Davies Reviews) and the Parker Review on ethnic diversity. The Board therefore commits to having at least 40% female representation in its membership and at least one Board member from a Black, Asian and Minority Ethnic (BAME) background. 

At the start of the year, the Board had 43% female representation (four male and three female directors). The balance reduced to 38% in June following the board’s decision to appoint the chief financial officer as a director. The Board is comprised of two executive directors and, of the six non-executive directors appointed to the Board, we are proud that we have a 50:50 ratio, with three male and three female members. The role of Senior Independent Director is held by a female non-executive director and our Board also includes one non-executive director from a BAME background. Each non-executive director has a different area of expertise and professional background which balances the skills and experience of the Board.

The Board is committed to ensuring continued focus on the diversity of their membership, and the business, with the aim of better reflecting the demographics of LV=’s customers and members. The Rem&NomCo will continue to challenge management to improve policies and processes to ensure diversity remains a key focus and targets are progressed and achieved.

Diversity, equity and inclusion (DEI)

Inclusion is one of our four core values. For us, being inclusive is all about embracing all contributions, valuing individuality and allowing everyone to be their authentic self. To bring about real change we believe focus is required on building inclusion and equity, as well as diversity. 

Actions speak louder than words and to be truly successful our values need to be ‘lived and breathed’ through the actions we take and how we operate as a business. Our values form a key part of our performance management process and evaluation. Our people are measured, rewarded and held accountable both on ‘what’ they deliver and ‘how’ they deliver. 

Our Chief Executive, David Hynam has a passion for DEI and since he joined LV= in 2022, we have refocussed and started more initiatives to achieve our target. We have launched our new DEI strategy and members of our Executive team sponsor our four DEI networks. Each network harnesses a diverse range of thoughts, ideas and perspectives. Throughout 2023, more of our colleagues joined a DEI network and started to drive forward activity.

Over the last two years we have run a campaign to improve our DEI data capture so that we have a better understanding of the composition of our workforce. We currently have 85% completion of our diversity data, up from 30% in January 2022. 

Flexible and hybrid working

The Equality and Human Rights Commission has highlighted flexible working as its primary recommendation to improve gender equality in the workplace and tackle the gender pay gap. 

We recognise that there is a huge demand for permanent roles that offer flexible working options, giving employees flexibility on where, when and the hours they work. Many of our people benefit from fixed and non-fixed flexible working patterns and locations. More of our jobs are now advertised as hybrid working. 

Over 85% of our part time colleagues are women. We recognise this can have a negative effect on some of the metrics, but we accept this and we are proud to be a flexible employer, supporting our colleagues and working to develop inclusive flexible working, good practice for all of our people.

We want our colleagues to have the ability to make choices that support both their professional and personal lives. That’s why we’ve continued our hybrid working approach.

We believe our offices are an integral part of our work life; it’s a place where we build new and existing relationships, collaborate, create and have fun together. However, we have seen that flexibility and work life balance are both really important for our people’s wellbeing and their productivity more generally, so we want our colleagues to feel empowered to agree individual working arrangements that enable them to maximise the balance in their lives.  We continue to receive positive feedback from our colleagues about this approach in our regular all-colleague surveys.

Targeted initiatives

As part of our commitment to ensure equal opportunities and support for all colleagues to advance their careers, we have developed a number of initiatives to support and develop women at LV=. 

  • Menopause. We offer many different avenues of support open to any colleague wanting to discuss any menopause-based issues, as we are conscious that this can be challenging time which can have an impact at work. We run a menopause network, which has held both general awareness sessions for all colleagues and sessions for our leaders. On an ongoing basis we run monthly ‘Tea and Talk’ drop-in sessions available to all colleagues. We have also worked with Talking Menopause to further our work in this area, and we have trained a number of champions across all business areas, developed a new menopause policy, colleague and manager ‘How-To’ guides, line manager toolkits and a dedicated intranet page with links to external resources.

  • Mentoring. We have introduced MyMentor, a six-month programme designed to provide support and guidance to our colleagues to help them grow in their career. Mentees are paired with mentors based on their interests and development objectives. Our Learning and Development team have developed detailed toolkits and guides to assist a smooth-running program. Overall, over 60% of our mentoring scheme is made up of women, with many requesting to be mentored by a more senior woman.

  • Talent and Succession. We refreshed our approach in 2023 and succession plans are now in place across all functions for the executive team, and two levels below.  We have been holding talent forums, which highlight our high potential female colleagues to ensure that they are receiving appropriate support and exposure to progress and develop within the organisation. As part of our talent reviews and aligned to the mentoring programme, we have proactively sought role model female senior leaders to become mentors to junior talented female colleagues.

  • Recruitment. This is a key enabler to having more women in senior roles in the organisation. This year we have been using some new recruitment technology which ensures our recruitment adverts go through our gender ’de-coder’ to neutralise terminology used.  Gender coded language is words or phrases associated with a particular gender, specifically male or female, often based on stereotypes. We have already had one great example where this technology was used for one of our roles in the data area and we had more females than males apply. Our aspiration is to be able to pull from a diverse slate of candidates for all roles.

Women in Finance Charter (WIFC)

We signed up to the Women in Finance Charter in 2016 as a commitment to supporting gender diversity. This will continue and our Executive team and Board are committed to increasing the proportion of women in senior positions. 

We set an ambitious target of 43%, or above, for female representation in senior roles by the end of 2023 and achieved a 42% outcome which is an increase of 2% over the course of the year.  This will result in a lower variable pay outcome.  We continue to be committed to making changes to ensure we can move in a positive direction and are currently in the process of reviewing our targets for female representation in senior roles.

WIFC commitments:

  • We will continue to target female representation at senior levels.
  • We will annually publish our progress against set targets.
  • A member of the Executive team will be responsible and accountable for gender diversity, equity and inclusion.
  • Our targets are embedded in the Executive teams’ performance plans and will be directly linked to performance-related pay.
 

Women in finance Charter logo