Gender pay gap reporting
In 2018 the UK Government introduced a new legislation that all employers with over 250 employees are required to publish the gender pay ratio of their total UK business on an annual basis each April, for the previous year. This includes reporting on the gender pay gap and gender bonus gap (mean and median results), as well as the proportion of males and females receiving a bonus and the proportion of males and females in each quartile pay band.
It is important to note that gender pay gap is not the same as assessing equal pay. Gender pay gap reports average pay rates of men and women across an organisation, regardless of role or grade level.
This document has been developed in accordance with The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 and reports employee data for Mölnlycke UK correct as at 5th April 2018.
The data below clarifies the gap between male and female pay and bonus earnings in the reporting period. The mean is the pure average of the data. The median is the midway point of the data when listed from top to bottom.
In summary, our gender pay gap and gender bonus gap (mean) have reduced this year.
UK Commercial and UK Manufacturing gender pay and bonus gap results
- The mean overall gender pay gap for these core UK teams has reduced by 4% to 7% and our median gap has reduced by 12% to 0%. This data is based on hourly rates of pay as at the ‘snapshot date’ of 5th April 2018
- The gender bonus gap has halved to 14% (mean) and the median has reduced by 5% to 19%
- The proportion of males and females receiving a bonus in the pay period is male 49% and female 66%.
Mölnlycke UK overall gender pay and bonus gap results (including employees in international roles and global functions)
- The mean overall gender pay gap for the UK has reduced by 4% to 14% and our median gap no longer exists - it has reduced by 31% to -5%
- The gender bonus gap has reduced by 8% to 40% (mean) however the median has increased by 9% to 69% due to the impact of bonuses received by senior employees in international roles
- The proportion of males and females receiving a bonus in the pay period is male 51% and female 63%.
The percentage of male and female employees by pay quartile:
| Male | Female | |
| Lower (lowest 25%) | 45.1% | 54.9% |
| Lower Middle (25-50%) | 50.7% | 49.3% |
| Upper Middle (50-75%) | 31% | 69% |
| Top (highest 25%) | 58.6% | 41.4% |
| All | 46.3% | 53.7% |
Mölnlycke UK overall gender pay and bonus gap analysis
- Overall in the UK, Mölnlycke employs more women than men (53.7% and 46.3% respectively), however there is a higher proportion of men in the most senior, and consequently higher paid, international roles which impacts the results
- In line with the legislation this report is required to show total UK figures, including all international Mölnlycke employees and those in Global Functions who reside in the UK
- It is important to note that all roles, including those in Global Functions, have fair and robust recruitment and talent development processes, regardless of gender
- Our overall UK bonus median figures are higher than the mean figures due to the fact that half of the total UK workforce is comprised of the manufacturing site workers
- There are different sizes of roles within the UK Commercial and Manufacturing leadership teams. Excluding their data, no gender pay gap exists for this core UK population (0% mean, -2% median)
- When excluding the data of the UK business leaders, the mean bonus gap for the core UK population is significantly reduced to only 1% and the median is only 10%.
- The bonus gap is partly explained by the fact that the bonus data includes all bonuses received regardless of reason (e.g. smaller legacy service bonuses) and performance related bonuses are paid to reflect the period of time actually worked in the performance year
- In Manufacturing the more senior roles are eligible for performance bonuses and a greater number of employees are eligible for smaller legacy service bonuses
- In addition, bonus targets are higher in more senior roles within the business and are awarded based on a percentage of salary
- In UK Commercial, excluding the leadership team, the bonus gap mean has reduced by 11% to 1% and the median has reduced by 8% to 3%.
- There are different sizes of roles in global functions and out of that population the top two grades, which also attract a long-term incentive bonus, are occupied by men
- The more detailed analysis continues to identify a very small number of individual cases that continue to be reviewed.
Our reward and development ethos
Mölnlycke is committed to creating an environment where people feel empowered to develop to their full potential, wherever they work and regardless of their gender.
Salary setting, reviews and bonus pay
At Mölnlycke salaries are defined using the Hay methodology to group together job roles of similar size and impact. Our reward strategy at Mölnlycke is aligned to this to ensure fairness and consistency of approach. Salary decisions are a factor of:
- sustained employee performance
- position in market
- internal relativities
- available budget.
We use Hay market data to inform salary decisions. In addition, we also implement a process of ‘grandparent’ review and approval, alongside HR engagement, in all parts of the performance and reward process, from assigning salaries at the recruitment phase, the salary review process and bonus decisions.
For the majority of Manufacturing employees, pay is based on a local grading structure, dependent on the roles they perform. Pay awards are the same for each employee and are defined by the available budget.
Performance bonus awards for eligible roles are based on a combination of company and individual performance, with individual performance being the overriding factor. Pay and bonus structures are gender neutral.
Flexible working
At Mölnlycke we pride ourselves on having a strong flexible working culture with a proportion of men and women working part time and/or on a flexible working pattern to fit with their lifestyle.
Talent development
Mölnlycke places strong emphasis on internal talent, development and career progression. Women represented 65% of promotions in the reporting period.
Women in leadership
Globally we have identified the need for an improved review process of how we recruit new leaders, both locally and at HQ – with particular focus on gender diversity. Our ambition is for women to make up 40% of our senior leaders (Director level and up) by 2022.
Nevertheless, we are proud to highlight that during the reporting period, the UK Commercial leadership team consisted of a balanced split of gender and the overall gender split of the sales and marketing management teams is 23% men and 77% women. The UK Manufacturing leadership team consisted of a balanced split of gender at a senior level and with the inclusion of the extended leadership team the overall gender split is 40% men and 60% women.
Further information about our commitments to inclusion and diversity can be found in the 2018 Sustainability Report available at https://www.molnlycke.co.uk/about-us/sustainability/.
This report has been approved by:
Nick Rothwell
General Manager
Mölnlycke UK
Phil Hague
Site Director Oldham
Mölnlycke UK
Natalie Meredith
Human Resources Director
Mölnlycke UK
Our Sustainability report 2019
Every year, our sustainability report looks at the impact of our business, products and productions on our people, the environment, our suppliers and the communities where we operate.
Read our Sustainability report
