OUR GENDER Pay Gap Reporting APRIL 2023
FORWARD a message from OUR MD
To be an Employer of Choice and a highperforming business, it follows that valuing our people and intentionally making changes and improvements to make Princes an increasingly great place to work is a must. We want everyone to feel they belong to something special at Princes and share a commitment to longterm excellence in everything we do. By actively creating an inclusive workplace, we hope to engender a real sense of belonging and connection.
Indeed, we believe that it is by harnessing our differences and encouraging colleagues to be their true selves at work that will best set us up for success; delivering positive outcomes for our customers, consumers and colleagues.
Within that context, it is obviously timely for us to share our 2023 Gender Pay Gap Report – and we do so openly and honestly using the recognised UK average and Food Manufacturing specific pay gaps as our benchmark and barometer.
Please do read our report in full; we detail the obstacles that we understand impact our Gender Pay Gap and share an insight into the positive progress we are making to further drive down our Gender Pay Gap.
As a headline figure, and in comparison to the reported Food Manufacturing pay gap of 8.7% and the UK average pay gap of 14.3%, I can confirm that Princes 2023 gender pay gap was 7%.
It would be remiss of me not to acknowledge that our gender pay gap has increased from 4.3% in 2022; while transparency is key it is also important to review the figures within the broader context of the business and with an awareness of what drives a pay gap.
Inclusion is core to our People Excellence Strategy – we refer to the ‘Our Princes – Our People’ philosophy in-house – and encourage colleague participation and candid feedback across the initiatives designed to drive positive change.
While we know we have more to do, our focus on inclusion remains steadfast and we are proud of the progress we are making – it is a long-term strategy and we will continue to hold ourselves accountable for moving the dial and making a difference.
Cameron Mackintosh Managing Director
What is Gender Pay Gap Reporting?
Gender Pay Gap reporting shows the overall difference in the average pay for all men and women across Princes UK. It doesn’t compare what men and women are paid for doing the same job. Where a business has more men than women in its higher paid jobs, this will create a gender pay gap.
We recognise that there are more than two genders, but for the purpose of this report, we will be using the definitions set by the government of men and women.
All businesses are required to publicly declare the following categories of information, which are calculated using payroll data. This data is based on figures drawn from the specific ‘snapshot date’ each year. The below information relates to the ‘snapshot date’ 5th April 2023.
The gender pay gap is broadly defined as the gap or variance between what men and women are paid on average in the workforce
Gender Pay Equity
Is equal pay for equal workthat is, people undertaking the same work being paid the same, regardless of gender.
Gender Parity
When men and women are equally represented at all levels in a workplace.
Gender Pay Gap
Is the gap between the median wages of women and the median wages of men. Typically you need men and women to be evenly represented at all levels of an organisation to close the gap.
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PAY GAP,
MEAN AND MEDIAN
The difference in the average hourly pay of male and female full-pay relevant colleagues, represented as a percentage of the average hourly pay of male colleagues.
The mean gender pay gap is calculated by adding up all of the pay of Princes UK colleagues and dividing it by the total number of Princes UK colleagues.
The median gender pay gap is calculated by lining up all of Princes UK colleagues pay and finding the mid-point for both men and women. The difference between those two mid-points is the median gender pay.
LOWEST Hourly Pay
MID-POINT Hourly Pay
BONUS PAY GAP, MEAN
AND MEDIAN
The difference in the average bonus pay (see page 7) to male and female relevant colleagues who received a bonus during the 12 months prior to the snapshot date. This is represented as a percentage of the average bonus pay paid to male relevant colleagues, as per the Gender Pay Gap figures.
HIGHEST Hourly Pay
BONUS PAY PROPORTION
Male colleagues receiving a bonus in the last 12 months, represented as a percentage of the male relevant colleagues. Female colleagues receiving a bonus in the last 12 months, represented as a percentage of the female relevant colleagues.
QUARTILES
The proportion of male and female colleagues in each of four equal sized groups of colleagues (‘quartiles’) after ranking of all full-pay colleagues from highest to lowest by hourly rate of pay.
The difference = Median hourly Pay Gap Mean MALE Average Pay
The difference = Mean hourly Pay Gap
How is the pay gap different to equal pay?
The gender pay gap is a calculation across all jobs in Princes UK, not of the difference in pay between men and women doing similar roles. Equal pay is a legal requirement in the UK.
Understanding the pay and bonus gap data
A positive percentage figure reveals that overall women have lower pay or bonuses than men.
A negative percentage figure reveals that overall men have lower pay or bonuses than women.
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of FEMALE EMPLOYEES
Number
Mean FEMALE Average Pay Number of MALE EMPLOYEES
Gender Pay Gap
Princes employs more men than women in the UK, which reflects the gender imbalance prevalent in the industry and is the main driver of our pay gap. This is particularly the case at both operational roles within sites, and in leadership grades where pay is higher.
Whilst we have increased female representation within Q1 (lower), we have seen female representation decrease in Q2 (lower middle), Q3 (upper middle) and Q4 (upper) from 2022.
Our pay gap data shows that Princes is lower than the 2023 UK average at 14.3% , and the 2023 Food Manufacturing average at 8.7%
5 * Based on the Office for National Statistics provisional 2023 Gender Pay Gap figures. MEAN GENDER PAY GAP
6.7% MEDIAN GENDER PAY GAP = 7%
=
% EACH QUARTILE
Q1 +9% MALE 66% FEMALE 34%
(lower)
MALE 73% FEMALE 27% Q2 -8%
(lower middle)
MALE 78% FEMALE 22% Q3 -1%
(upper middle)
MALE 75% FEMALE 25% Q4 -1%
(upper)
Gender Pay Gap Trends
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MEDIAN MEAN 2019 0 2 4 6 8 10 2020 2021 2022 2023 8.3 4.5 6.1 3.1 1.6 2.9 5.3 4.3 6.7 7.0
Bonus Pay Gap
MEAN BONUS PAY GAP = 26.4%
MALE 93.2%
1,446
In our 2022 analysis a higher percentage of women received bonuses, however analysis at the 2023 snapshot date, showcased that within this period 6.1% more men received a bonus.
% receiving a bonus:
MEDIAN BONUS PAY GAP = 1.2%
Number receiving a bonus:
FEMALE 87.1%
498
In 2022/23 Princes operated several forms of bonus payments, which included;
• One off cost of living payment for graded colleagues earning FTE £40,000 or less. Non- graded colleagues were awarded a negotiated pay increase, with back payment, through union agreement.
• Long Service Award. All UK colleagues have the opportunity to receive a Long Service Award based on their tenure.
• Corporate Incentive Scheme, for salaried colleagues based on both company performance and personal performance.
• Pride in Princes Award, a reward and recognition payment scheme, awarded to peer nominated colleagues who have brought our values to life.
• Refer and Earn awarded to colleagues who successfully support Princes to find top talent.
Analysis of tenure at the snapshot date showed that on average male tenure is 3 years longer than female tenure, and 10% more male colleagues fell within our Long Service Award tenure period.
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Representation at a Glance
Within this period, we have seen a significant increase in female representation within our lower quartile. Increasing female representation at entry levels within Princes provides a more representative pipeline of talent that will benefit Princes and our industry in the long term, however, this can drive temporary increases to pay gaps in the short term. In the same period, we have also seen representation decreases in all other quartiles.
Our focus going forward will be on developing our female and under-represented talent at all levels of our organisation, as well as encouraging more women into historically male dominated sectors, such as Manufacturing Operations, Engineering, IT and Sales.
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2021 Q2 30 70 Lower Middle Q1 24 76 Lower Q4 28 72 Lower Middle Q3 20 80 Upper Middle 2019 Q2 25 75 Lower Middle Q1 27 73 Lower Q4 21 79 Lower Middle Q3 18 82 Upper Middle 2020 Q2 22 78 Lower Middle Q1 27 73 Lower Q4 24 76 Lower Middle Q3 19 81 Upper Middle 2022 Q2 35 65 Lower Middle Q1 25 75 Lower Q4 26 74 Lower Middle Q3 23 77 Upper Middle 2023 Q2 27 73 Lower Middle Q1 34 66 Lower Q4 25 75 Lower Middle Q3 22 78 Upper Middle
Addressing the gender Pay Gap: What we have done....
In 2023 Princes:
• Increased investment in Inclusion and Diversity with the recruitment of Princes first Inclusion and Diversity Manager to drive accelerated progress.
• Princes launched our first Group Colleague Engagement and Inclusion Survey to support understanding of colleague experience. Diversity data was collected as part of the survey which allowed responses to be analysed by gender.
• Evolved our approach to Inclusion and Diversity and Health and Wellbeing, launching our Inclusion and Diversity 2.0 Strategy and our Health and Wellbeing 2.0 Strategy.
• Introduced Inclusion and Diversity Index Scores within Princes Group Balanced Scorecard.
• Developed resources and opportunities to support improved education and understanding around; Inclusive Meetings, Inclusive Language, Equality, Diversity and Inclusion Basics, Hidden Disabilities, Social Mobility, Diversity Data and Conscious Inclusion.
• Launched new Group wide Princes Values, intended to define what good looks like, providing a framework for all colleagues to achieve the best for themselves and Princes.
• Partnered with Perkbox, a benefits and rewards platform, across our UK and PFBV operations, to improve Our Feel Good Hub offering to colleagues. The Platform enables wider health and wellbeing resources in addition to a range of discounts for colleagues.
• Expanded our apprenticeship offering with a newly launched Sales Apprenticeship programme.
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Forward Priorities
To address the gender pay gap and foster an inclusive workplace, we are committed to implementing tangible and sustainable measures to enhance our culture and ensuring a welcoming environment for our colleagues. Our forthcoming commitments involve:
• Setting aspirational representation targets, to balance representation, at all levels of our organisation, and ensure that we are representative of the communities in which we operate.
• Developing talent and succession initiatives to support sustainability within Princes and create an equitable process to improve diversity in our future talent needs.
• Launching our behavioural frameworks and guidance to support greater understanding of Princes Values.
• Supporting and incentivising our colleagues to demonstrate our Values and good behaviours through enhanced learning experiences and an increased focus on values and behaviours within performance appraisals and our Corporate Incentive Scheme.
• Introduction of an Inclusion Committee with representation from all Princes Colleague Resource Groups as well as representation from across Countries and Sites. Through collaboration the Inclusion Committee supports Organic Inclusion within Princes and enhances the delivery of our Inclusion & Diversity 2.0 strategy.
• Launching Princes’ Global Wellbeing Hub, a comprehensive resource centre to support colleague Health & Wellbeing.
• Introducing and enhancing policies, procedures and guidance for carers, menopause, transitioning at work and equality, diversity and inclusion.
• Introduction of a new Leadership Objective which requires leaders to create an inclusive culture that inspires engaged and high performing colleagues.
• Working with Leadership and our Colleague Resource Groups, and utilising insight from our Group Colleague Engagement and Inclusion Survey, to develop meaningful action plans which deliver organisational and cultural improvements.
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