Riverford Wicked Leeks

Riverford’s gender pay gap report - 2018

Riverford aims to be an outstanding place to work, and this must include equal pay. Our data is well below the national average, but we have seen a slight increase in the pay gap this year compared to last. We are confident that our male and female co-owners are paid equally for doing the same job. The gender pay gap arises from us having more men in senior roles. The measures that we are taking to improve this situation are detailed later in this report.

Our results

The gender pay gap is calculated as the difference between the average hourly earnings of men and women. This is shown as a mean and median and the data is from a snapshot taken on 5th April 2018.

Mean and Median explained:

Mean - the average

Median – the middle number in a set of data

  • Women’s hourly rate is 8.25% lower than the mean for all staff
  • Women’s hourly rate is 9.1% lower than the median for all staff

 

 

Why is there a gender pay gap?

The data shows a pay gap because we have disproportionately more men in senior management positions (as well as having more men in the workplace as a whole - in April 2018, at the time of this data was collected, we had 229 female co-owners and 412 male co-owners).

This trend continues from last year. We have worked to attract more females to our more senior positions, both by attracting female applicants and by encouraging internal promotion of women, but there is still more that we need to do.

 

Why have we seen a widening of the gap?

This is disappointing but not a surprise as we know we have more work to do. Some of the initiatives we have put in place have increased the number of female applicants but this has tended to be to the lower paying quartiles which has widened the gap overall. We also recruited a male into a board position, where there was a lack of female applications.

 

How many men and women are in each pay quartile?

 

 

The effect of bonus payments

The pay gap data shows also reflects how bonus payments are distributed:

  • 35.5% of female co-owners received a bonus payment compared to 64.5% of male co-owners
  • Female co-owners bonus pay is 12.75% to the median
  • Female co-owners bonus pay is -5.48% higher than the mean

 

 

Why do we have a bonus gap?

The bonus figure in this calculation considers two sorts of payment: our profit share to all co-owners and our sales commission:

  • All co-owners are entitled to a 10% share of our profits, the amount paid is an equal share regardless of position within Riverford. For those working part time the bonus is paid pro rata.
  • The only co-owners receiving commission are those in our sales teams.
  • We do not operate performance related pay or bonuses for any other roles.

The increase in the median from the 2017 report is due to the fact we have more women in the business working part time and whose profit share payments are paid pro-rata.

 

What actions are we taking?

It is important that we attract the widest talent pool possible to our roles and we would still like to see more female applications generally.

We are taking a number of actions to help reduce our gender pay gap, many of which are already underway from the previous year:

  • Cultural transformation programme – We have invested significantly to further develop our managers and leaders to help ensure we are a great place to work across all areas. This work will help create an environment which should be more attractive generally but should also help attract female applications and encourage and support women to take internal promotions within Riverford.
  • Introduced New Working Time Arrangements – We have started rolling shift working in operations. This addresses undefined finish times which we know restrict the number of female applicants and cause us to lose more new female co-owners in these areas.
  • Resourcing – We have introduced a business partnering model and part of this is to work closely with managers to support in the recruitment and selection process. Also to work with them to ensure we are shortlisting a diverse pool of talent and there is no unconscious bias in the recruitment process.
  • We have also linked our resourcing processes to the ‘Good Recruitment Charter’, which helps organisations acquire the talent they need in order to perform and grow, as well as registering with ‘disability confident’ which ensures that disabled people and those with long term health conditions have the opportunities to fulfil their potential and realise their aspirations.

    We have also this year started working with a recruitment agency which supports the recruitment of under represented groups in senior leadership roles.

  • Family friendly benefits and policies – We have introduced improved family benefits and polices. This includes improvements to maternity and paternity pay. We will be introducing flexi time later this year. We have also made improvements to our shared parental leave policy to ensure men receive the same incentive in relation to leave and pay as women in this area. This goes beyond the legal requirements that are stated.
  • Established a Remuneration Committee – As part of our new governance structure going into Employee Ownership we have set up a remuneration committee. As well as board members the group also includes an independent non exec and 3 members of our Co-owner Council. As well as ensuring Riverford’s reward packages are set at the right levels to attract the best talent they have also have a remit to ensure we have no equal pay issues in any roles across the business, so will act as an independent body offering advice and guidance in this area.

 

“Ensuring that Riverford is a diverse place to work is very much part of our values. We recognise that there is still more we can do to increase the number of female applications to all parts and levels of the business. In addition to reviewing our working arrangements we will continue to work on building an inclusive and diverse culture.”

Charlotte Tickle,
People Director