2022 Gender Pay Gap - LloydsPharmacy

Part of the

Gender Pay Report 2022

McKesson Ireland, a Phoenix Company, was acquired by Phoenix Group, Europe’s leading Pharmaceutical wholesaler, pharmacy retailer and service provider, in November 2022.

Irish Legislation requires all Irish employers with more than 250 or more employees in 2022 to publish specific gender pay gap information including mean and median pay gap and proportion of males and females by quartile pay band.

We have viewed this exercise within McKesson Ireland, a Phoenix company, as an opportunity to review what is working, what obstacles and challenges exist and where we need to focus our efforts to reduce any gender pay gap.

McKesson Ireland, a Phoenix Company, is made up of four businesses:

United Drug has been a force in supply chain innovation in Ireland’s pharmaceutical and healthcare industry and employs more than 560 employees across operations in Dublin, Limerick and Mayo.

LloydsPharmacy is the leading pharmacy chain in Ireland with 87 pharmacies located in the heart of local communities throughout the country. LloydsPharmacy employ over 800 colleagues and they all share one passion – to help people and improve care in every setting one product, one partner, one patient at a time.

This is a key strategic imperative that is driven by the Country Board and is led by our Senior Leaders across the Organisation.

I confirm the gender pay gap data contained in this report is accurate.

Hillary Collins Human Resources Director

TCP Homecare is the leading specialised direct to patient service provider which includes the dispensing and distribution of pharmaceutical products, homecare nursing services and sharps waste management; facilitating a unique turnkey solution for the delivery of hospital care in the patient’s home. they work with over 30 Pharmaceutical and HSE clients and each year support and care for patients with over 50,000 visits in the home.

Median Healthcare Services looks after the pharmaceutical needs and requirements of our Customers in Nursing Homes and Residential Care Centres in Ireland, employing under 100 employees.

Gender Pay Report 2022

WHY ARE WE REPORTING ON GENDER PAY?

Why are we reporting on gender pay?

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The Gender Pay Gap Information Act 2021 requires organizations, with over 250 employees, to report on their Gender Pay Gap across a range of metrics.

WHICH COMPANIES ARE COVERED?

Which companies are covered?

Lloyds Pharmacy, Median Healthcare Services, TCP Homecare, McKesson Ireland and United Drug are covered in the opening McKesson Ireland figures and a separate report for United Drug and Lloyds follows, TCP and Median are under the 250-employee threshold and therefore there is no requirement for a separate report on these two entities.

WHO IS INCLUDED?

All persons employed by McKesson Ireland, a Phoenix company, on the snapshot date, including employees not rostered to work on that date.

WHEN WAS THE DATA COLLECTED?

Organisations were asked to select a snapshot date in the month of June; reporting on the 12 month period immediately preceding and including the snapshot date. This report represents data at snapshot date 30th June 2022.

Lloyds Pharmacy, Median Healthcare Services, TCP Homecare, McKesson Ireland and United Drug are covered in the opening McKesson Ireland figures and a separate report for United Drug and Lloyds follows, TCP and Median are under the 250-employee threshold. When did we collect the data? This report represents data at snapshot 30th June 2022 for McKesson Ireland, a Phoenix company. What is covered in this report?

WHAT DO WE MEAN BY GENDER PAY?

The Gender Pay Gap calculates the percentage difference between the average hourly earnings of males and females irrespective of their role. The Gender Pay Gap is not the same as equal pay. Employment Equality legislation provides for equal pay for like work.

We have collated data on McKesson Ireland in terms of employee numbers, full time and part time and male and female. We have collated our mean and median Gender Pay Gap and the Gender split by quartiles. We have provided details around the steps we are taking to address the Gender Pay Gap.

Gender Pay Report 2022

WHAT IS COVERED IN THE REPORT?

Mean Gender Pay Gap

The difference between average hourly earnings of men and woman as at 30 June 2022.

Median Gender Pay Gap

The difference between midpoints in the ranges of hourly earnings of men and woman as at 30 June 2022.

Mean Bonus Pay Gap

The difference between average bonus pay paid of men and woman in the 12 months up to 30 June 2022.

Median Bonus Pay Gap

The difference between midpoints in the ranges of bonus pay paid to men and woman in the 12 months up to 30 June 2022.

Proportion of male and female employees who received bonus payments or BIK payments.

Pay Quartiles gender split showing the pay rates from the lowest to the highest, in four equal size groups, with the percentage of males and females in each quartile.

Gender Pay Report 2022

FACTORS THAT CAN IMPACT GENDER PAY

This report does not look at equal pay. Every employee, regardless of gender is paid equally for work that is the same or similar or for work of equal value. However, differences between what employees are paid can be impacted by a number of complex factors including:

1

Occupational segregation – Some jobs traditionally may have attracted more females than males or vice versa, impacting the gender distribution.

2

Full time Vs Part time working - In many cases more females work in part time roles comparted to males. Whilst this does not impact on the hourly rate of pay it may impact on choice around career progression and also impacts on bonus payments where pro rata.

3 Gender breakdown of senior roles at higher salaries – a small number of higher paid employees can affect the average figures. Likewise a large number of lower paid roles can affect the average figures.

Gender Pay Report 2022

Understanding the Results

MEAN VS MEDIAN

The median is the figure that falls in the middle of a range where all the salaries are listed from lowest to highest, This can provide a more accurate representation of the differences in pay. This is because a small number of higher paid employees can skew the mean figure.

If an organization reports a positive gender pay gap it does not mean that females are paid less than males for doing the same job, but it does show that, on average, males occupy more higher paid roles than females.

If an organization reports a negative gender pay gap it does not mean that males are paid less than females for doing the same job, but it does show that, on average, females occupy more higher paid roles than males.

McKesson Ireland is comprised of supply chain, commercial and retail pharmacy teams and has a varied mix of roles and skills. Our workforce is 73% female across all of our business units; 26.4% of our employees work part time and the majority of these are females. Over 33% of our workforce are employed in operational warehouse and OTC Retail roles.

When we look at our organisation by pay quartiles females are indeed the majority in each quartile. This is not surprising given our strong female: male ratio of employees in favour of females. The proportion of females is lowest in the upper quartile, While still strong with 63%, the proportion of females is lowest in the upper quartile. This reflects the board of management and senior leaders who are in the upper quartile and predominantly male

Part of the

United Drug’s business interests cover a range of activities including wholesale, distribution and an array of services across retail channels. With a total workforce of 561 the gender distribution in relatively even with slightly more female employees (51.15%) than male (48.84%)

In terms of quartiles, the lowest quartile only shows a larger percentage of females than males whilst the other quartiles evidence a higher percentage of males than females being represented. The upper quartile reflects a close to even number of males and females in management positions within United Drug; within a few percentage points of 50%. There is a greater representation of females in the lower quartile which reflects the growth of females working within our wholesale business, willing to avail of the flexibility we offer with various shift patterns that allow our employees to work outside of the home while managing family care responsibilities

Part of the

Lloyds Pharmacy employs 804 people across its Retail Pharmacy network and head office employees. The gender distribution overall is heavily weighted towards female employees who comprise 89% of the total workforce. We have a high % of females availing of work patterns that afford flexibility and of our total female workforce 48% of those are working in a part time capacity.

In terms of quartiles, the lower and both middle quartiles have high percentages of females reflecting their predominance in OTC and Sales Assistant roles. The upper quartile has a higher representation of males than in the other quartiles and also when compared with the overall gender distribution while females dominate these quartiles also. Two thirds of our pharmacist population are females; which would sit in the upper quartiles but we do note that a higher % of this female cohort avail of part time working versus their male counterparts which leads to a positive mean pay gap in upper quartile.

Next Steps

How McKesson Ireland, is addressing the Gender Pay Gap

McKesson Ireland is committed to equal opportunities for all our colleagues regardless of gender. Maintaining an environment where all our colleagues have access to the same opportunities is very important to us. We will drive improvements in the following strategic areas of focus to close the gap over time:

Recruitment:

• Attracting a diverse pool of candidates and selecting the right applicant through fair and balanced processes.

• Driving female representation within our upper quartiles.

• Hiring managers will undergo diversity and inclusion training with the aim to eradicate any unconscious bias.

• Ensure female representation visible on all our recruitment campaigns.

• Ensure role profiles are free of gender bias

Flexible Working:

• Continuing to support employees to balance work and personal commitments wherever possible and ensuring our people policies are inclusive in tone and language, ensuring gender neutrality and followed throughout the business.

Talent Mapping & Career Development:

• Focused and targeted promotion of leadership roles to encourage females to apply.

• Create a female centric coaching programs affording young females the confidence and safe space to understand how they can grow in their career and apply for further promotional opportunities.

• Ensure career progression is always based on merit.

• With a high % of our female population availing of our work life balance flexible working arrangements the organization will host targeted career aspiration conversations with this cohort and drive improvements promoting gender inclusivity in our Learning and Development initiatives.

Reward and Recognition:

• Establish a remuneration committee chaired by the Managing Director and representatives of the most senior People Leader (HR Director) and Finance Director to identify and drive initiatives that will bridge the gap that exists between our male and female colleagues.

• Reporting in a transparent manner to the wider business on a quarterly basis improvements made in this space.