TSB was one of the first companies in the UK to publish its gender pay gap in July 2017 with the launch of our Gender Balance Matters report. Back then we made a firm commitment to not only publish the data, but also to examine the root causes of our gender imbalance, and to set out the signature actions to tackle them and to report on progress made.
This is why we are publishing our 2018 figures alongside an update on our gender balance action plan. We believe that if more businesses are more transparent about the root causes of gender imbalance in their organisation and share the steps they’re taking to change things, then the UK will build a sustainable gender balanced workplace at a faster rate.
For TSB, as of April 20181, TSB’s median gender pay gap – the number used most often to compare companies – has modestly improved to 23% down from 24%. The Bank’s mean gender pay gap remained unchanged at 31%.
We know this number doesn’t sound a lot, it’s a step in the right direction. Reducing your gender pay gap takes time and there’s no quick fix. That’s why we’ve set out below the root causes of our pay gap and tracked the steps we are taking to tackle it in this piece. We believe that if businesses are more transparent about the root causes of their gender pay gaps, and share the steps they’re taking to change things, then the UK will build a gender balanced workplace more quickly.
What causes the remaining 23% gender pay gap at TSB?
For many companies, it’s a lack of female representation in senior roles that has the biggest impact on their gender pay gap. But for us, it’s actually the number of women we employ in non-senior management, more junior roles.
In fact, TSB employs a lot of women – 67% of our workforce is female which is a high number in comparison to other businesses. We rank third for the percentage of women in our overall workforce amongst all banks and building societies with more than 500 employees – this is behind M&S Bank and Nottingham Building Society.
And we employ significantly more women (68%) than men (32%) in our non-senior management roles. It’s this imbalance that has the biggest impact on our gender pay gap. We’ve calculated that if we achieved a 50:50 gender mix at this level, our median pay gap would reduce by 22 percentage points to 9. And if we had a 50:50 gender mix in our senior management grades our mean pay gap would reduce by a further 8 percentage points to 1 percent.
The good news is that we’ve improved the mix of gender across our more junior grades. But this has been offset by some changes at senior levels which mean we have fewer women represented in those roles.
When you compare us against all the 10,000 companies that have reported their gender pay gap, we’re in the bottom 36th percentile for the number of women in the top quartile of staff. And this is something we’re committed to changing.
There are no quick fixes, but we are making progress. A great example of this is our new SME banking leadership team which we announced in September 2018. We set out to build the team to reflect the businesses and communities we serve and we’re proud that of the 11-strong leadership team, eight roles are held by women. And our first 16 SME field relationship managers, based in the local community, are made up of 6 women to 10 men. But it’s not just gender we’re balancing, 20 percent of the team are from BAME backgrounds making us one of the most diverse SME banking teams in the UK.
Our focus is on embedding the values of inclusion and diversity throughout our organisation to bring about change.
Understanding TSB's bonus gap
The structure of our workforce is also influencing our mean bonus gap, which sits at 46%. This figure is lower than the financial services industry average.
We know the TSB Award, (our annual award), is gender neutral by design. But the shape our workforce drives our bonus gap, in the same way it does our gender pay gap.
Five percentage points of our mean bonus gap are due to the difference in bonus pay between men and women within each grade. The remaining 41 percentage points are a direct result of the make-up of our workforce.
Our gap is affected by two main factors:
- We pay an additional incentive award to our most senior Partners
- And we can only include the pro-rated bonus for Partners who work reduced hours.
An update on our signature actions
When we published our 2017 report we signed up to three signature actions. Here’s how we’re progressing against them.
- Attracting more women to TSB and financial services
- We joined up with ‘Women Returners’, an organisation that connects employers with a network of professional women following a career break and ran our own pilot Women Returners programme. We plan to continue to support this programme by taking part in the Returners Financial Services Scotland Programme 2019, a returnship programme in Edinburgh starting this September.
- We’ve done some work to improve the gender balance of shortlisted candidates when we advertise roles. This has had mixed results. They work well in areas where there is already a decent pipeline of female candidates. But there’s been less of an impact where there isn’t. We need to challenge and continue to work with external recruitment agencies to push for better balanced shortlists. And in the longer term we must also help the push for more girls to take up STEM subjects in school – science, technology, engineering, and mathematics to ensure there is a bigger pool of candidates to draw from in the future.
- Growing our own talent
- In 2017 our Bank Executive Committee team began championing talented female Partners from our rising stars talent programme. And we recently appointed a new Treasurer, Alison Straszewski, from this programme. Feedback from this has been positive with those who took part saying it has helped them gain exposure to broader networks and new experiences. To build on this success we will be creating a talent championing network group.
- We set up a ‘Partners for Partners’ buddying scheme to encourage people to come back to TSB when they’ve had a career break. Research shows that women often report that the transition back to work is difficult and many feel disconnected and disengaged upon their return. Programmes which support people during key moments in life help prevent talented people leaving the business. The scheme pairs up people with a ‘buddy’ who has been through the same or similar experience. Initially we’ve focused on men and women returning from parental leave and have matched 19 people to a buddy. We plan to extend this further in 2019.
- We give Partners choice and flexibility in how they work and have flexible work policies which mean Partners can find a work/life balance that suits them and us. To help, we’ve introduced our new digital workplace where Partners can access the systems they need to do their jobs either at home or in the office. We’re looking forward to seeing the impacts of this investment as we move into 2019.
- We will talk about gender balance in a transparent way
- It’s not enough to just report our figures we also need to explain the core drivers of it, so we can explain the reasons for the gap and what we’re doing about it.
- We regularly engage with policy-makers and other businesses to understand what they are doing to tackle gender imbalance, and to share the lessons we are learning.
Rachel Lock, HR Director: I confirm the data in this report to be accurate