What is gender pay gap reporting?
Every year organisations with 250 or more employees must publish data on their gender pay gap. The gender pay gap is a comparison of the average earnings for men and women regardless of the work they do.
Why does it matter?
Gender pay reporting can highlight where there are differences in representation in organisations. For instance, if an organisation has more men than women in well paid senior roles and more women than men in less well paid junior roles, then the average pay for men will be higher than for women and there will be a gender pay gap in favour of men.
Our organisation is complex and so is our data. However our approach is simple. We embrace difference and champion inclusion which is why gender representation across our business is an important area of focus and improving gender balance is an important part of our ongoing commitment to give everyone the chance to be the best they can be.
We have a variety of sites across the UK, including factories, offices, Nespresso boutiques as well as a product technology centre with research and development at its core. In Ireland we have a head office and Nespresso boutiques. Gender representation varies in these different sites. But overall we currently have many more men than women in our organisation.
There are specific areas we need to focus where we would like to drive change. For example, we have more men than women in our factories. Our offices have more of a gender balance but there are more men at the most senior levels. In Ireland the gender balance is better, with more women than men overall, but we face the same challenge in our most senior roles.
When we refer to Nestlé in the UK, this includes our seven main Nestle legal entities in the UK: Nestle UK Ltd (our Nescafé, Nestlé Confectionery, Nestlé Food & Dairy, Nestlé Nutrition, Nestlé Health Science and Nestlé Professional businesses as well as factories and corporate functions such as Group Supply Chain and HR), our 2 Nestle Purina legal entities which cover Nestle Purina manufacturing and commercial operations, Nespresso, Cereal Partners, Nestle Waters and Nestec York Ltd, which houses our R&D centre. All these businesses share a common approach to pay and bonuses. The 2020 report covers approximately 7,381 people across a range of offices, factories, coffee boutiques and our product technology centre in the UK and 154 people in the head office and coffee boutiques in Ireland.
The 2020 report includes data for our head office and Nespresso boutiques in Ireland, which we are voluntarily publishing for the first time.
We have to report on mean and median data. Mean data is calculated by adding up all the numbers in a sample and dividing by the number in that sample.
Median data is calculated by ranging the numbers in order from the lowest paid to the highest paid, and the middle number is the median.
In our report the calculations of mean and median gender pay gap and bonus pay gap are calculated by taking the figure for women away from the figure for men and dividing by the figure for men.
To calculate pay quartiles or quarters we put the pay of all individuals in descending order and then split them into four equally sized groups. We then report on the percentage of men and women in each group.