Gender Pay Gap Reporting 2018

Gender pay gap legislation was introduced in April 2017. It requires all employers with 250 or more employees to publish their gender pay gap for workers in scope on the snapshot date: 5 April 2018.

Lyons Davidson headline gender pay figures:

The following data is based on comparison of gross hourly rates of pay in the pay period (including the snapshot date) and bonuses paid in the year up to 5 April.

 April 2018 Median (%) Mean (%)
Gender pay gap 0.9 10.8*
Gender bonus pay gap 29.5 20.6

* We’re happy our gender pay gap is well below the legal sector average. As a comparison against last year, we‘re pleased to see that our gender pay gap has decreased significantly and that the mean bonus gap has reduced.

 April 2017 Median (%) Mean (%)
Gender pay gap 18 18.4
Gender bonus pay gap 28.2 29.5

Lyons Davidson has structured job grades throughout the company, with salary bands attached to each job grade. A review of pay by job grade gives us confidence that men and women are paid fairly and equally where they are doing equivalent jobs; average pay gaps are smaller than the overall mean and in some cases there is no gap or the gap is in favour of women.

Bonus allocation under the annual discretionary bonus scheme is linked to performance measures –annual appraisal score being one key indicator.  Within our Claimant Personal Injury department there is a quarterly – opposed to annual – bonus scheme and this scheme has clear criteria for each team and job type. We’re confident that our bonus system is based on fair criteria not linked to gender.  The reason for the gap is because there are fewer men employed and, as their average bonus is larger, this has a disproportionate effect.  However, individually, the gap is not significant and in some job types the gap is in favour of women.

Having analysed the population that received a bonus (either annual discretionary or quarterly), the top 30 highest is made up of 13 men and 17 women. The overall proportion split is shown below:  

Under legislation, we must also sort gross hourly rates of pay for the population on the snapshot date from lowest to highest, split them into four equal quarters and then report the proportion of men and women in each quartile. Our pay quartiles are as follows:

Our gender split on the snapshot date was 65.9% female and 34.1% male (based on full-pay relevant employees included in our data set, i.e. those who did not receive a reduced rate of pay because of unpaid leave or absence). We’re pleased to see that in all quartiles, the proportion of females and males is similar to the overall company split, indicating career progression opportunities that are not based on gender.

The largest job type in Lyons Davidson is Case Handlers. The split of men and women in these roles is 23:77 respectively. We have a number of salary structures that apply to entry level legal roles: this ensures equal pay and progression in these roles for men and women, subject to appropriate performance.

Our continued commitment to ensuring gender equality

We continue to be committed to promoting equal opportunities in employment, as detailed in our Equal Opportunities and Diversity Policy.

We review salary bands on an annual basis and take into account sector-appropriate market data.  We recently consulted on our salary structures and made significant changes to them to reflect market conditions. We will continue to conduct annual salary band reviews and also targeted reviews to ensure that our overall pay gap and any gaps existing by job grade are reduced over time.

In terms of the gender bonus gap, we’ve reviewed our annual bonus terms and are changing the eligibility criteria so it is open earlier to staff in their careers with Lyons Davidson, allowing greater participation.

We are confident that our existing recruitment process is fair and consistent and adheres to our Equal Opportunities Policy.

Michelle Lennaghan

Commercial Director