Context and definitions

As defined by UK government, the UK gender pay gap regulations require reporting on key metrics relating to the difference between pay and bonus pay for men and women.

Our diversity data is unfortunately not yet complete enough to enable us to include, or account for, non-binary gender identities in our analysis. In accordance with these requirements, NNL take a data snapshot at the beginning of each financial year to explore pay and bonus information on payments made within that financial year.

In this report we compare the difference between pay and bonus pay for men and women. We use this annual opportunity to delve further into the data than is mandated by government, providing additional figures to give more insight into our employee demographic and pay structures. This helps us to understand if there are areas of the business, pay grades, or groups of employees (such as those working part time) which we should target to have the most impact and determine whether the high-level observations are true throughout the business. This report also includes a comparison to previous years’ data to identify trends in recent years.

UK government defined gender pay gap metrics are explained in this section. The data is based on absolute hourly rates for pay gap calculations and total monetary value for bonus pay gap calculations.

Gender pay and equal pay

The Gender Pay Gap looks at the difference in average pay between men and women across the company in all roles, whereas an equal pay analysis considers whether men and women are paid equally for performing similar roles. Therefore, equal pay does not automatically lead to a zero gender pay gap.

Full-pay relevant employees

As defined by the gender pay gap guidance, all employees who were paid their usual full salary in the pay period considered are referred to as “full-pay relevant employees”. This means those employees that are in receipt of full normal pay. Therefore, this excludes those on long-term unpaid (or reduced pay) leave, such as career breaks or those on parental leave beyond the period where they are in receipt of full pay.

Mean and Median

Mean: the pay or bonus pay for all men is summed and divided by the total number of men in the organisation. The same is done for women. The difference between the two values is then calculated and divided by the mean pay for men to give the percentage gap.

Median: the pay or bonus pay for men is ordered high to low, and the midpoint is selected. The same is done for women. The difference between the two midpoints is then calculated and divided by the median pay for men to give the percentage gap.

Note that mean and median values alone do not give the full picture of the gender pay gap. We therefore investigate the data further to help us better understand the pay gap and where we might focus our efforts to improve.

Quartile pay bands