2018 Gender Pay Report - easyJet

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2018 Gender Pay Report 21st March 2019

Transcript of 2018 Gender Pay Report - easyJet

2018 Gender Pay Report21st March 2019

2018 Gender Pay Report

At easyJet, we believe that our people should reflect the diversity of our customers and the communities in which we operate – we think not only does this make good business sense, it is simply the right thing to do. easyJet continues to lead the way when it comes to the gender balance in the pilot and crew communities as we know this is the biggest single factor influencing our UK gender pay gap statistics. We are clear our gender pay gap does not represent an issue with equal pay - we have collectively agreed pay scales which ensure all pilots and cabin crew are paid the same rate of pay per rank regardless of gender. We also know that a more balanced gender representation in the pilot community is an industry wide challenge that will take many years to reverse.

And we are trying hard to accelerate this change. I’m encouraged with the progress that we have made – particularly in achieving our ambitious 20% by 2020 target (where 1 in 5 of the new entrant pilots attracted by easyJet will be female). Last year we achieved 15% and this year we are on course to achieve 18%. This is a really ambitious target given

that only 5% of the world’s pilots are female and our own demand for pilots and cabin crew continues to grow at pace in line with our long-term growth plans.

We know it will take some years but as female pilots enter the airline in greater numbers the gender imbalance will improve over the long-term. In absolute numbers our focus on encouraging more women to become pilots has driven tangible results - easyJet employed 128 female pilots in 2015 and today we have increased that to 222 - an increase of 94 women and a 73% rise in just over three years. I believe that no other airline is doing more on this issue. We also continue to focus on improving female representation across our senior leadership team. We are already well represented across our PLC Board and airline management board and on track to meet the Hampton-Alexander Review recommendations of 33% females by2020 across our senior leadership team. I am proud of the progress we have made and look forward to working together with everyone at easyJet to create an inclusive and energising environment for everyone at easyJet.

Johan Lundgren,CEO of easyJet plc

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2018 Gender Pay Report

At easyJet the UK population of employees is split relatively evenly between males and females, and spread across three communities. 79% are in the air (pilots and cabin crew) and 21% work in Group Functions.

Pay rates for cabin crew and pilots (79% of the total) are negotiated collectively which ensure all pilots and cabin crew are paid the same rate of pay per rank regardless of gender.

However, like most airlines around the world some 95% of our UK pilots are male and some 71% of cabin crew are female, with the average pay rates for pilots significantly greater than those paid to cabin crew. This means that as of April 2018 the median hourly rate of total pay across all males is 47.9% greater than it is across all females.

This is a long-standing and deep-rooted challenge across the industry and one which we have been pro-actively trying to tackle for several years now. Our 2020 target of ensuring that 20% of our new entrant pilots are female will over time help to address this issue as more female pilots come into and develop in the airline.

Male Female

53% 47%

Understanding our gender pay gap

Pilots

Pilots

Cabin Crew

Cabin Crew

whereas 71% of Cabin Crew are female vs 29% male

95% 5%vs 71% 29%vs

Cabin Crew

Management & Administration

Pilots

53%

21%

26%Whilst pay for all air crew is negotiated collectively (ensuring gender is not a factor) the rate of pay for pilots is higher than the rate paid to cabin crew.

vs

Based on the high proportion of male pilots and female cabin crew, respectively, the median total hourly rate of pay for all UK males is £24.68 vs £12.85 for femalesThis results in a gender pay gap of 47.9% as at April 2018 (up from 45.5% in 2017)

Note: “Median” means the middle ranked person in each community e.g. if easyJet has 3,398 male employees in the UK, it is the pay of the individual ranked 1,699th on that list.

£24.68Male

£12.85Female

95% of Pilots are male vs 5% female

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2018 Gender Pay Report

Diversity and Inclusion at easyJet

Ella BennettChief People Officer of easyJet plc

easyJet cares about its people and believes it is our people that set the airline apart. Providing the warmest welcome in the sky, easyJet’s customer facing employees are the very best in the industry and contribute significantly to the positive experience that customers enjoy. Creating an inclusive and energising environment, therefore, that attracts and retains the right people and inspires everyone to learn and grow sits at the heart of our strategic priorities.

Our Amy Johnson initiative, named after the famous British aviator in the 1930’s, commenced in 2015 when only 6% of easyJet’s new entrant pilots were female. We set an ambitious target that by 2020 20% of the new entrant pilots the airline attracts should be female.

At easyJet we are also committed to removing any barriers and proactively supporting upward female mobility across all levels of our group functions. We are proud that we are already ahead of most FTSE 100 companies in terms of women in senior leadership roles (easyJet ranks 29th in the FTSE 100 with some 34% of senior leadership roles held by females) and we recognise its benefits.

easyJet appointed Julie Southern and Anastassia Lauterbach to the PLC Board in 2018 which now is 33% female. The airline management board currently has a similar split of males and females with women taking the roles of the Chief Operating Officer, Chief Marketing Officer, Chief Communications Officer andChief People Officer.

We know there is more we need to do and our work to support diversity and inclusion at easyJet extends beyond gender. We have put in place a clear strategy and are also focused on:

> Building firm foundations – embedding diversity and inclusion into our policies, processes and procedures to promote an inclusive and energising environment that helps us attract, develop and retain the right people.

> Investing in training and development - equipping our leaders and managers to build inclusive, healthy and high performing teams.

> Creating partnerships - listening to the experts and partnering with Stonewall for our LGBT community and sponsoring the Women in Hospitality, Travel and Leisure (WiH2020) initiative to help guide our activities and actions.

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2018 Gender Pay Report

Percentage of easyJet new entrant pilots attracted who were female 2018 – 15%. This is expected to reach 18% in 2019 and is on track to deliver our target of 20% by 2020.

Amy Johnson progress

FY15 FY16 FY17 FY18 FY19 FY20

5%

12%13%

15%

18%20%Target

More than 100 visits by pilots to schools, youth and aeronautical organisations in FY2018. 100

Girlguiding’s Aviation badge for BrownieseasyJet is the sponsor of Girlguiding’s Aviation badge for Brownies. The badge was announced in March 2018 to get more girls interested in aviation, to challenge gender stereotypes, and to encourage more girls to consider a career as a pilot.

The Aviation badge was launched as part of Girlguiding’s new programme, its biggest ever overhaul of badges and activities. Over 7,000 Brownies have so far achieved the Aviation badge or are working towards it. To earn the badge, girls are challenged to think of 40 things that fly and put their engineering skills to the test, creating their own aircraft experiments with different building materials, structures and launch techniques.

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2018 Gender Pay Report

Hey Hollywood, Catch me if you can Our recruitment campaign in 2018 challenged traditional stereotypes around pilots in society.

Over 1 million views on social media. Traffic to the recruitment landing page increased by 4000% within 24 hours of launch.

2 million Twitter impressions were generated in the first 24 hours alone.

Inside the cockpitThe ITV documentary series “Inside the Cockpit” – first broadcast in 2017 – is an example of how easyJet is promoting positive role models and challenging traditional stereotypes. The second series – due to air in Spring 2019 – will provide further insight into the world of pilots and aims to encourage more diversity in the profession.

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2018 Gender Pay Report

Statutory Tables (as at April 2018)

Gender Pay gap Proportion of employees who received a bonus:

Proportion of male and female UK employees according to quartile pay bands:

1. 2. 3.Hourly rate of pay

Bonus pay

Median

47.9%

Mean

54.1%

91.82%80.9%Median

40.9%

Mean

57.8%

Actual bonus payments for UK employees made in the 12 months prior to the 5th April 2018, as specified by the UK regulations. The bonus calculations are based on the total company bonus, loyalty bonus, commission, or share payments made in the 12 months to 5 April 2018 and are not FTE adjusted.

Male

Upper

Female89.45% 10.55%

Male

Upper Middle

Female63.27% 36.73%

Male

Lower Middle

Female31.63% 68.38%

Male

Lower

Female27.84% 72.16%

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