Johnsons Cars Ltd employed 1195 “relevant employees” at the snapshot date (5th April 2020) of which 38 were “full-pay relevant employees”.
The effect of the Coronavirus pandemic severely affected the attendance of employees at work with the closure of all businesses from 24th March 2020. With only 38 employees retained for the purposes of site security and essential business needs, 1157 were furloughed from 24th March. As Covid restrictions began to lift, some dealerships re-opened during the middle of May with a small fraction of the workforce returning to work.
JOHNSONS CARS WORKFORCE
Historically, the automotive industry has been heavily male orientated and it is therefore with no surprise that there is an uneven split between men and women. At the snapshot date, 73% of employees were men, 27% were women. This has not changed over the last year, even with the acquisition of four new dealerships that had the net effect of increasing the total workforce by 190.
The number of female employees has increased by 52 over the 2019 figure, whilst the number of male employees has increased by 138. The automotive industry is also heavily dependent on bonuses forming part of employees remuneration with 71.4% of the total workforce receiving bonus payments, up 0.2% from last year.
GENDER PAY GAP EXPLAINED
A Pay Gap is the difference in average pay between two groups within a workforce. It is not to be confused with equal pay which is concerned with individuals being paid equally for the same or similar types of work. Johnsons Cars is an equal opportunities employer and fully understands that equal pay between males and females is a moral obligation as well as complying with the Equality Act 2010. We undertake annual pay reviews and take any appropriate action to address any inequality should it be highlighted. The information given below concerns the Pay Gap between males and females within the workforce of Johnsons Cars Ltd based on the Full Pay Relevant Employees – of which there were only 38 at the snapshot of 5th April 2020.
GENDER PAY GAP REPORT
JOHNSONS CARS LTD
Data at 05.04.2020
Mean Gender Pay Gap
7.5% (14.3% in 2019)
Median Gender Pay Gap
30.2% (9.9% in 2019)
The mean gender pay gap (based on the average hourly rate of pay) indicates that men, on average, are paid 7.5% more than women. The median gender pay gap (based on the middle number of a group based on the hourly rate of pay) indicates that males are paid 30.2% more than females. The inference on these statistics shows that the average gender pay gap (mean) has reduced significantly over last year, but the difference between the middle numbers (the median) has increased. This is due to the selection of certain people required to keep the business afloat during the first lockdown and not based upon their pay. For this reason, the Gender Pay Gap results, because of the number of employees who were furloughed, are somewhat misleading as they do not represent a normal distribution of the whole workforce.
The results below are all based on the whole workforce of 1195 relevant employees as of the date of the snapshot – 5th April 2020.
JOHNSONS CARS LTD
Data at 05.04.2020
Mean Bonus Gender Pay Gap
10.4% (19.6% in 2019)
Median Bonus Gender Pay Gap
15.3% (33.4% in 2019)
Proportion of Females receiving Bonus Payments
54.4% (55.4% in 2019)
Proportion of Males receiving Bonus Payments
79.2% (77.1% in 2019)
Johnsons Cars operates performance related bonus schemes and consequently the bonus pay figures confirm that most employees (71.4% of all relevant employees) received a bonus during 2019/2020. Male employees who earn bonuses receive an average of 10.4% more than their female colleagues, a decrease of roughly 9 percentage points over last year, whilst the median pay gap is 15.3% higher for male employees, an actual decrease of more than 18 percentage points.
GENDER PAY QUARTILES
This information is based on the full pay relevant employees
of which there were 38 in this category (out of a total workforce of 1195) as
of the snapshot on 5
th April 2020.
The graphics for this category are shown in
Appendix 1 to
With the exception of the Median Gender Pay Gap due to the reduced workforce during the first lockdown of the Covid-19 pandemic, Johnsons Cars Ltd have reduced the Mean Gender Pay Gap to 7.5% and the Mean Bonus Gender Pay Gap to 10.4% showing significant improvements in the differences in pay between males and females in the total workforce. Further improvements will be made as the efforts in recruiting and or promoting more females into more senior roles within the Group takes place. The main issue with this strategy is that staff turnover within senior positions in the Group occur less frequently than other more common roles such as sales executives and technicians who account for more than 50% of employees.