gender pay gap

Gender Pay Gap Report 2017/18

GENDER PAY GAP REPORT

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

This is a measure of the difference between all males’ and all females’ average pay across the whole organisation.  

  • It is not the same as equal pay which deals with the pay difference between males and females who carry out the same jobs, similar jobs or work of equal value. Read more on gender pay.
  • As an example, in the table below all the males and females undertaking the same role are paid the same hourly rate; however, there is a gender pay gap of 25.3% as there are more men in the senior roles and more females in the junior roles.

Gender Pay vs Equal Pay diagram

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

This is because we review market pay benchmarks based on band, job and location against a large source of market data.  At LV= we have salary bands based on this market data which we use to determine if an individual is paid appropriately for the role.

To be successful we need to create a truly diverse and inclusive working environment and we therefore share the ambition of the Government to see gender balance at all levels across financial services firms.  As a diverse and inclusive employer it’s imperative we take steps to tackle our gender pay gap. We understand why it exists, recognise there is work to be done and have started to take the steps we need to take to close the gap.

If you want to read more about gender pay please refer to the ACAS website.

our results

There have been significant corporate changes since we first reported our gender pay gap in December 2017.

On the 29th December 2017, LV= and Allianz established a strategic partnership between their General Insurance businesses.

  • As a result, we have employees working for two separate companies - Liverpool Victoria Friendly Society Ltd (LVFS) which provides Life and Personal Protection Insurance and Liverpool Victoria General Insurance Group Ltd (LV= GI) which provides General Insurance (for example car, home, travel, pet) and is part owned by Allianz.
  • Both LVFS and LV= GI are required to publish their own gender pay gap information and this is shown in the tables below. 
  • To enable us to assess our progress against last year’s results we are also sharing the combined figures within this document for comparison purposes.  Over the next 18-24 months the two businesses will continue to go through structural change and we therefore expect to see ongoing movement in the reported numbers.
Group 2016/17
Group 2017/18
Median** Mean* Median** Mean*
Gender pay gap 23.5% 27.6% 24.6% 28.5%
Gender bonus pay gap 36.6% 53.5% 36.8% 51.5%
Group 2016/17
Group 2017/18
Median** Mean* Median** Mean*
Gender pay gap 23.5% 27.6% 24.6% 28.5%
Gender bonus pay gap 36.6% 53.5% 36.8% 51.5%
LVFS
LV= GI
Median** Mean* Median** Mean*
Gender pay gap 33.8% 34.3% 17.3% 23.6%
Gender bonus pay gap 42.3% 57.6% 31.7% 43.8%

LVFS
LV= GI
Median** Mean* Median** Mean*
Gender pay gap 33.8% 34.3% 17.3% 23.6%
Gender bonus pay gap 42.3% 57.6% 31.7% 43.8%

overall

The overall LV= group results

Two documents with a question mark

At an overall group level there has been no significant change to the previous year’s results. This was expected as many of the actions we put in place to address our gender pay gap are long term and it will take a number of years before we start to see the changes taking affect.

The table above shows the overall mean and median gender pay gap based on hourly rates of pay as at the snapshot date 5 April 2018. It also captures the mean and median difference between bonuses paid to males and females in the 12 months prior to 5 April 2018.

At 28.5%, our mean gender pay gap is lower than the indicative average for the financial services industry (35%) but it’s still higher than the UK average for all industries (17%) as reported by the Office for National Statistics in 2017.  Our group median pay gap stands at 24.6%.

We have identified that our gender pay gap is driven by the structure of our workforce. At present, we have a lower representation of females in senior leadership roles and higher representation of females in more junior roles.

Structural gender balance between the pay quartiles

The quartiles represent the employees ranked from highest to lowest hourly rate and evenly split into quartiles.

Group 2016/17
Group 2017/18
Quartile Female Male Female Male
Upper 33% 67% 33% 67%
Upper Middle 49% 51% 49% 51%
Lower Middle 62% 38% 64% 36%
Lower 61% 39% 60% 40%

Group 2016/17
Group 2017/18
Quartile Female Male Female Male
Upper 33% 67% 33% 67%
Upper Middle 49% 51% 49% 51%
Lower Middle 62% 38% 64% 36%
Lower 61% 39% 60% 40%

LVFS
LV= GI
Quartile Female Male Female Male
Upper 28% 72% 34% 66%
Upper Middle 45% 55% 54% 46%
Lower Middle 58% 42% 62% 38%
Lower 69% 31% 58% 42%

LVFS
LV= GI
Quartile Female Male Female Male
Upper 28% 72% 34% 66%
Upper Middle 45% 55% 54% 46%
Lower Middle 58% 42% 62% 38%
Lower 69% 31% 58% 42%

Proportion receiving a bonus

There is a 3-4% difference between this year and last year for those who received a bonus payment. This calculation is mainly influenced by the number of new starters (of either gender) who are not bonus eligible or individuals of either gender who have a performance rating as underperforming. It is important to note that there is only a 0.6% difference between the number of males and females who received a bonus

Group 2016/17
Group 2017/18
Female Male Female Male
Proportion receiving a bonus payment*** 91.8% 92.1% 88.1% 88.7%

Group 2016/17
Group 2017/18
Female Male Female Male
Proportion receiving a bonus payment*** 91.8% 92.1% 88.1% 88.7%

LVFS
LV= GI
Female Male Female Male
Proportion receiving a bonus payment*** 87.9% 89.3% 88.3% 88.4%

LVFS
LV= GI
Female Male Female Male
Proportion receiving a bonus payment*** 87.9% 89.3% 88.3% 88.4%

LV= takes supporting our diversity and
inclusion very seriously, by committing to
our individual actions that are outlined in the
LVFS and LV= GI reports.