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News Commentary2021-03-11

Essence Releases UK 2019-2020 Gender Pay Gap Figures

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Every year, the UK government requires all UK companies with more than 250 employees to report their gender pay gap figures. In 2020, however, the government suspended the deadline for the 2019 gender pay gap reporting due to Covid-19. Today, Essence has released our 2019-2020 gender pay gap analysis.

Gender pay gap reporting is a UK Government initiative that measures the difference (median and mean) in hourly rate of pay between all men and women within an organisation. It looks at earnings irrespective of the roles performed or the seniority of any individual. It is important to note that the gender pay gap is not the same as an equal pay analysis, whereby we measure the difference in salary of male and female employees that do the same or similar jobs, and which is a legal requirement in the UK.

On 5 April 2020 (the snapshot date), Essence Global Ltd’s UK median gender pay gap was 21.42%, an increase of 12.81% from the 5 April 2019 median pay gap, which was 8.61%. 

Essence’s 2020 gender pay gap reflects both the smaller number of women in Essence’s most senior leadership positions in the UK and the fact that people in senior roles are typically paid more.

While the figures were tracking in the right direction between 2018 and 2019, the median pay gap increased between 2019 and 2020, due in part to:

●       Between 2019 and 2020, Essence hired more women in Quartiles 1 and 2 (most junior quartiles) than men, meaning that a greater proportion of women are in the lower paid brackets, affecting the overall median distribution.

  • More men being hired during that time in the senior quartile.

Minor factors include:

  • The exclusion of nine women, mostly from Quartile 4, from the 2020 report while out on maternity leave.  If these employees had been included in the assessment on their standard pay then both the mean and median scores would improve by 2% and 1% respectively.

View the 2019-2020 Essence UK gender pay gap report here.