Gender Pay Gap Analysis: A Detailed Management Report on Capco

This management report delves into the gender pay gap at Capco, a UK-based consultancy firm. It examines the differences in mean earnings between male and female employees, focusing on factors like bonus payments and representation in senior roles. The report presents data on median and me...Read More

Prepare management report
on Gender Pay
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Table of content
Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Conclusion.......................................................................................................................................6
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INTRODUCTION
Gender pay gap is the referred to the difference between the average earnings of the men
as well as women across the workforce. It is important for the organisation to report and publish
the gender pay gap information by the end of the financial year. It is important for all the
employers of the various organisations like the private, voluntary as well as public organisations
to use a snapshot of April 5 each year (Alarcón and Cole, 2019) .
Capco is a UK based consultancy firm organisation. It is a business and technology
management consultancy firm that focuses upon the financial services along with a dedicated
energy division as well. The headquarters for Capco has been established at London, and it has
its 32 offices that are operating in various regions across the globe. The organisation was
founded in the year 1998 and presently is operating with over 5500 employees across America,
Europe as well as Asia Pacific. The report revolves around the gender pay gap issue in context of
Capco.
MAIN BODY
The concept of gender pay gap is the referred to the difference between the mean
earnings of the males as well as females across the workforce. It is important for the organisation
to report and publish the gender pay gap information by the end of the financial year. Under the
new legislation of the United Kingdom, The employers of the United Kingdom who have more
than 250 employees are required to publish the gender pay gap by April 4. In contrary to the
various sectors in general, Capco shows that as a below associate Partner level has a minimal
gender pay gap. Also, the organisation claims to have a positive relation to the bonus payments
(Polachek, 2019). The claim states that women in the organisation are quite well represented at
the management level of Capco, below the partner. The robust performance management process
of Capco aims to result in a fair pay strategy between men and women based on the ratings of
the performance. There are various firms in the industry that includes its competitors as well as
clients. Capco states that it has a wider gender pay gap when Capco includes its partners as well.
The reason behind the fact is that the there are fewer women employed than that of the number if
men in the senior roles at the organisation (Anderson and et.al., 2019) . It can be clearly focussed
upon the management team of Capco that the organisation is focussing upon the management
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team and as an organisation, Capco has aimed at increasing the proportion of women in the
senior management roles.
It has been observed that the gender pay gap of the employees at Capco in form of
median has been 0.29% whereas mean has been 2.51%. The median gender bonus pay gap of
employees at Capco has been -7.91% whereas the mean gender bonus pay gap has been -12.24%.
The data has been reported while excluding the partners. When including the partners, The
median gender pay gap has been 0.38% whereas the mean gender pay gap of Capco has been
12.24% whereas the median gender bonus pay gap has been 52.27%. The median is basically
the exact mid point between the lowest as well as the highest hourly average of all the male
colleagues in comparison to the equivalent to the female colleagues (Lee and Lee., 2021). The
mean gap is basically the average of hourly pay of all the male colleagues compared to all the
female colleagues. It has been observed that 89% of male have received the bonus pay whereas
87% of females have received the bonus pay. The proportion of males and and females in each
quartile can be explained as (Ataay, 2018) -
 In the upper management, the share of male gender pay has been 74% and for female in
has been 26%.
 In the upper middle management, the share of male gender pay has been 65% and for
female in has been 35%.
 In the lower middle management, the share of male gender pay has been 63% and for
female in has been 37%.
 In the lower management, the share of male gender pay has been 68% and for female in
has been 32%.
The quartiles have been calculated by assigning ranking the pay for all the employees
from the highest to the lower. Further, the list of the employees is divided into four equal sized
groups of males as well as females while indicating the percentage of men and women in each
case of groups. The organisation has observed a significant improvement in the gender balance
of the senior management team and it has seen an increase in the female promotions from the
31% to 38%. The aim of Capco is to improve the gender diversity and further delivers the
meaningful reductions in the gender pay gap (Bastida, Marimon and Carreras, 2018).
Aims
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The aim of Capco is to work upon building a diversified workforce and further promote
and inclusive culture where all the employees of Capco can act and work naturally in their
comfort zones at the workplace. Also, the aim of Capco is to achieve their full potential in terms
of operations. The organisation aims to celebrate diversity as a source of innovation and further
recognise that diversity is the fundamental to the success of the business of Capco. he aim of
Capco is to improve the gender diversity and further delivers the meaningful reductions in the
gender pay gap. Further, the aim of Capco is to grow and develop the affinity networks of Capco
and further increase the impact and value of their people (Buchan, Seccombe and Smith, 2018).
Costs as well as benefits for the organisation
The data that has been discussed above, shows the median and mean gender pay gaps as well as
bonus gaps that are based upon the hourly rates of the pay. The various benefits of the gender
pay gap regulations have been discussed below.
 It has been observed that the gender pay gaps have witnesses an overall narrowing in the
year 2018.
 For various employees that excludes the partners, the pay gap in terms of median of
Capco has significantly enhanced and has approximately reached 0 which is
approximately 0.29% at the present.
 A minor gap has been observed in the favourable aspect of women with respect to the
median bonuses, But, the mean bonus of Capco is still in the favour of the men due to the
representation of men in the organisation at the leadership level (Giné and Mansuri,
2021) . There has been a narrowing in the mean pay gap and there has been a positive shift in the
first two quartiles and also has an increased female representation in the year.
Legal regulation
The legal regulations in aspect of Capco have been explained below.
 The policies of Capco are reviewed on a periodic basis in order to ensure that the non
gender specific wording and the parental leave policies of Capco have been revised. In
the past few years, it has been observed that three employees of the organisation ave been
taking shared parental leave and the upwards trend is being continued in 2019. Also, the
organisation has witnessed an increase in the part time as well as formal flexible working.
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 Capco has also been a host to the global diversity along with inclusion team that has a
dedicated budget. It is championed by the CEO and further led by the senior partner. The
Data and interpretation team is supported by the regional leads along with the networks
for BAME, gender balance, LGBTQ as well as Neurodiversity. The aim of Capco is to
develop and grow the affinity networks of Capco and further increase the impact and
value of their people (Harakeh, El-Gammal and Matar, 2019) .
Recommendations
The recommendations for Capco have been discussed below.
 Training and mentoring- Capco can focus upon the training and mentoring process at the
organisation. The organisation can focus upon empowering the leaders of the
organisation below the Partner level in order to provide an inclusive support network for
all the employees. Capco needs to focus upon building existing coaching relationships.
The focus of Capco can be shifted towards the new joiner integration along with the
coaching interaction as well as knowledge sharing. The organisation can focus upon
empowering the junior managers in order to take upon various responsibilities in context
of the leadership (Henkin, 2020).
 Recruitment and attraction- The focus of Capco can be upon the recruitment and
selection of the best talent at the organisation for each level. Capco can introduce various
important training programmes for people or the individuals who are involved in the
recruitment. The training procedures will aim at ensuring the widest pool of candidates
are being considered at the organisation. Capco can focus upon attracting its candidates
through the relationship of the organisation with the various universities in the region
(Kalogeraki and Georgakakis, 2021).
Conclusion
It can be concluded from the report that gender pay gap is a major concern in the various
sectors of the united Kingdom. Gender pay gap is the referred to the difference between the
average earnings of the men as well as women across the workforce. The report has discussed
the concept of gender pay gap in context of an organisation operating in UK. The report has
highlighted the aims as well as objectives of the organisation along with the legal regulation in
context of the organisation in accordance with the gender pay gap. The report has highlighted
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costs as well as benefits for the organisation dealing with the issue. The report has also
highlighted various recommendations for the organisation as well.
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REFERENCES
Books and Journals
Alarcón, D.M. and Cole, S., 2019. No sustainability for tourism without gender equality. Journal
of Sustainable Tourism.
Anderson, D. and et.al., 2019. On a firm’s optimal response to pressure for gender pay
equity. Organization Science, 30(1), pp.214-231.
Ataay, A., 2018. Effects of referents' gender and hierarchical level on employees' satisfaction
with pay. Social Behavior and Personality: an international journal, 46(10), pp.1623-
1636.
Bastida, R., Marimon, F. and Carreras, L., 2018. Human resource management practices and
employee job satisfaction in nonprofit organizations. Annals of Public and Cooperative
Economics, 89(2), pp.323-338.
Buchan, J., Seccombe, I. and Smith, G., 2018. Nurses work: an analysis of the UK nursing
labour market. Routledge.
Giné, X. and Mansuri, G., 2021. Money or management? A field experiment on constraints to
entrepreneurship in rural Pakistan. Economic Development and Cultural Change, 70(1),
pp.41-86.
Harakeh, M., El-Gammal, W. and Matar, G., 2019. Female directors, earnings management, and
CEO incentive compensation: UK evidence. Research in International Business and
Finance, 50, pp.153-170.
Henkin, M.M., 2020. Highly Educated Women Reflect on Advanced Education, Work, and
Gender Pay Inequality (Doctoral dissertation, Fielding Graduate University).
Kalogeraki, O. and Georgakakis, D., 2021. Friend or Foe? CEO gender, political ideology, and
gender-pay disparities in executive compensation. Long Range Planning, p.102126.
Lee, Y.J. and Lee, C.K., 2021. The roots of the gender pay gap for nonprofit CEOs. Nonprofit
Management and Leadership.
Polachek, S.W., 2019. Equal pay legislation and the gender wage gap. IZA World of Labor.
PORRITT, V., 2019. E ENDER EQUALITY?: PAY GAP. 10% Braver: Inspiring Women to
Lead Education, p.125.
Saccardo, S., Pietrasz, A. and Gneezy, U., 2018. On the size of the gender difference in
competitiveness. Management Science, 64(4), pp.1541-1554.
Samulowitz, A. and et.al., 2018. “Brave men” and “emotional women”: A theory-guided
literature review on gender bias in health care and gendered norms towards patients
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