04 April 2018

Gender pay gap reporting: "Now we have the numbers, it's time for action"

TSB urges companies to get to the root causes of gender imbalance at work to make the gender pay gap a thing of the past

In response to tomorrow’s deadline for all UK companies with 250 or more employees to report their gender pay gap, Helen Rose, Chief Operating Officer and Executive Sponsor for Gender at TSB, comments:

“The Government’s gender pay gap initiative is an incredibly important step forward and has put gender imbalance in the workforce firmly on the table.

“Now, the question we need to be asking is: ‘What next? How are we going to drive real change?’ so that gender pay gap reporting does not become an annual ‘tick in the box’ exercise and importantly, companies don’t just throw resources at tackling gender imbalance because its trendy to without really understanding the impact they’re having. Instead, the gender pay gap needs to be the catalyst that forces ongoing, active conversations that result in action and change.”

TSB was one of the first companies to report its gender pay gap in July 2017 when the Bank launched its Gender Balance Matters report. TSB is calling on all companies to be more transparent about the root causes of their gender imbalance so they can tackle it head on to address the issues, and build a more balanced workforce for the long term.

Helen Rose continues:

“Of course the numbers are important, but what really matters is the actions taken and transparency when reporting progress. It’s a complex problem and the solution will be different for every organisation which is why companies need to dedicate time and resource towards achieving better gender balance.

“At TSB we remain committed to talking openly about the reasons sitting behind our current gender pay gap, understanding the complexity and embracing difficult conversations. It isn’t easy, and it will take time – but it is the only way we’re going to bring about sustainable change.”

TSB research found that 61% of people think it’s unsatisfactory that companies can publish their gender pay gap data without making clear their plans for improvement.

When TSB reported its gender pay gap in July 2017, the Bank called for three simple changes to help UK companies to build a gender balanced workplace and to continue to drive real change. TSB is still pushing for change:

  1. Businesses must come clean on the reasons behind their gender pay gap – companies shouldn’t just report on the figures, they need to identify the root cause.  

  2. Companies must act to address the causes of their pay gaps – TSB believes that all businesses should share three signature actions to address the key reasons for the pay gap.

  3. Businesses must be held to account on the progress they are making by reporting annually on those signature actions and include within their report, over time, a rolling five year trend which shows the progress they are making.

From day one TSB has been building a different, inclusive banking culture where everyone can thrive whatever their gender, ethnicity or background. The Bank is committed to tackling its gender pay gap through actions (see notes to Editor’s for TSB’s three signature actions).

Helen Rose continues:

“It’s encouraging to see more and more companies running initiatives to support and encourage women at work – we are already seeing progress at TSB. 

“Over the past six months we have recruited seven new Partners at Director level and of these five have been women. Many of these have been in traditionally ‘male dominated’ functions such as Risk, Chief Information Office and Financial Crime.  Our talent championing programme is also proving successful and our Executive team has been ‘blown away’ by the experience of the female talent they have been paired with. We’re also proud to have a number of senior men in TSB who have taken shared parental leave which is another step forward for equality in the workplace. Childcare doesn’t have to sit with the mother – fathers are just as important and should be able to manage their work and home lives just as women have been doing for decades.

“If all businesses take action, gender pay gap reporting presents a huge opportunity to make gender imbalance a thing of the past. We’re calling on other organisations to work with us to tackle this problem head on. If we take the time to share ideas and best practice only then will we see progress.

“Tomorrow’s milestone is the start of the process because in truth, the heavy lifting starts now.”

Notes to editors

Research carried out in February 2018 by OnePoll with over 2,000 UK adults.

TSB has three signature actions to tackle gender balance head-on:

  1. Attract more women into financial services and, more specifically, TSB:

    • Returning women campaign – many talented women left financial services due to cultural challenges. TSB has partnered with a Women Returners pilot programme in Scotland funded by the Scottish Government. The scheme runs returnship placements for experienced financial services professional women who have taken extended career breaks.

    • Gender balanced shortlists – such shortlists have been used for external recruitment at senior levels for over two years, helping TSB increase the number of women in senior management roles. This is being extended to all levels in TSB ensuring an equal share of the best possible men and women for the role.

  2. We will do more to support gender balanced progression at TSB:

    • Partners for partners – women often find the transition back to work difficult. Programmes which support people during key moments in life help prevent people leaving. That’s why TSB has set up a programme which pairs those going on parental leave with a ‘buddy’ who has been through the same or similar experience. So far we have made 19 ‘buddy matches’ for parents about to embark on parental leave.

    • Talent championing – in addition to existing mentoring programmes for Partners, regardless of gender, each Bank Executive Committee member is championing additional female partners from recognised ‘rising stars’. This approach will be used to drive better internal succession planning for women to reach executive roles.

  3. We will talk about gender balance in a transparent way:

    • Data alone does not drive change – this is why TSB has gone beyond the regulatory requirements, providing a full analysis of the core drivers for the Bank’s gender pay gap and the actions being taken to tackle them.

TSB’s gender pay gap

TSB has a mean gender pay gap of 31%. We are confident that TSB’s gender pay gap is not an equal pay issue; we know this because our approach to pay is gender neutral by design and our analysis shows that our pay gap is driven by the structure of our workforce.

Just one percentage point of TSB’s mean pay gap is due to the difference in pay between men and women within each grade. The remaining 30 percentage points are a direct result of the make-up of our workforce.

There are two reasons for this:

  • TSB has a significantly higher proportion of women (69%) than men (31%) at non-senior management roles
  • TSB has a higher number of men (59%) than women (41%) in our senior management roles. 

We’ve calculated that if TSB achieved a 50:50 gender mix in our non-senior management roles, our mean pay gap would reduce by 23 percentage points to 8%. And if we also had a 50:50 gender mix in our senior management grades our mean pay gap would reduce by a further seven percentage points to one percent.

For more information: TSB's gender balance matters report.

About TSB

TSB was built to bring more competition to UK banking and ultimately make banking better for all UK consumers. TSB only serves local customers and local businesses, to help fuel local economies, because communities thriving across Britain is a good thing for all of us.

We have a simple, straightforward and transparent banking model and make clear on our website how we operate and make money. We offer the products and services people tell us they want, with none of the funny stuff people normally associate with traditional banks.

Our five million customers appear to notice: TSB is Britain’s most recommended high street bank and has been recognised as one of the top five best big companies to work for in the UK in 2018.

For further information about TSB Bank plc, please visit our website www.tsb.co.uk.

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