HOW IS OUR WORKFORCE MADE UP? As a restaurant business, we have more employees in our restaurants than our restaurant support centre (RSC). HOW DO WE CALCULATE GENDER PAY? The gender pay gap is calculated by taking the hourly rate of all women and the hourly rate of all men in our business and then calculating the mean (this is the average – you add up all numbers and divide by the number of people) and median (this is the middle number from the list of numbers in order) hourly rates. We then calculate the gap by determining the difference between these numbers across men and women. GENDER PAY GAP REPORT 2018 INTRODUCTION FROM NEIL PIPER, CHIEF PEOPLE OFFICER You often hear that KFC is a people business that happens to sell chicken and I couldn’t agree more. Whether it is our amazing culture, our incredible partnerships, our passion for leadership development, training, education, coaching and mentoring, there is no doubt that it really is a great place to work. At the core of all of these aspects of working here is our fundamental belief in doing things the right way and treating everyone fairly. The publication of our gender pay gap information provides us with an opportunity to remind ourselves of how diversity and inclusion are at the core of how we work. We are fully supportive of the need for transparency in organizations but more importantly, that this reporting requirement by the government is a great catalyst for organizations across the UK to continue the much needed focus on diversity, inclusion and equality. You’ll see below that our mean gender pay gap is 6.6% and median 0%. To be clear, any gap is not good enough and we’ve already taken steps to improve further, however I am proud of the fact that this is significantly below the UK national average of 18.4% (ASHE, October 2017). The 6.6% mean gap shows we still have work to do, mainly with our bonus pay, which is driven by having more men in senior roles than women; and our actions on inclusion, recruitment and trust at the end of this report will give you an insight into the roadmap we are following to close this gap, something that we are fully committed to achieving. The fact that the median gap is 0% shows that we are truly focused on paying and rewarding people regardless of their gender, based on their performance, skills, experience and potential; and reflects the hard work and importance given to this by you all on a daily basis. I am so proud of our people, teams and culture and remain fully committed to closing this gap through our action plan. WHAT IS THE GENDER PAY GAP? From April 2018, all employers with over 250 employees must report their gender pay gap. The gender pay gap measures the difference in the average pay of women and men from across the whole business. It does not measure equal pay which is the right for men and women to be paid the same when doing the same or equivalent work. We are committed to being an equal pay employer. There can be a number of reasons for a gender pay gap for example, a gender imbalance in the different levels of roles or of particular types of role. A gender pay gap can also be due to socio-economic reasons such as women employees taking up lower paid or part time roles due to childcare responsibilities. WHAT IS OUR APPROACH TO GENDER PAY? We are fully committed to being a diverse and inclusive employer and we pay people based on their skills, experience and qualifications rather than their gender. Our people approach is centred on building a diverse and inclusive workplace as we firmly believe that this is the right thing to do and also drives the success of our employees and our business. VS 3.02% RSC 96.98% RESTAURANT VS 51.8% MALE 48.2% FEMALE MID RANGE HOURLY RATE MID RANGE HOURLY RATE MEDIAN DIFFERENCE BETWEEN = TOTAL MALE HOURLY RATE TOTAL FEMALE HOURLY RATE TOTAL PEOPLE MEAN + = KFC221_2365_Gender_Pay_Gap_Report_2018_A4.indd 1 29/03/2018 11:08
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HOW IS OUR WORKFORCE MADE UP? As a restaurant business, we have more employees in our restaurants than our restaurant support centre (RSC).
HOW DO WE CALCULATE GENDER PAY?The gender pay gap is calculated by taking the hourly rate of all women and the hourly rate of all men in our business and then calculating the mean (this is the average – you add up all numbers and divide by the number of people) and median (this is the middle number from the list of numbers in order) hourly rates. We then calculate the gap by determining the difference between these numbers across men and women.
GENDER PAY GAP REPORT 2018INTRODUCTION FROM NEIL PIPER, CHIEF PEOPLE OFFICERYou often hear that KFC is a people business that happens to sell chicken and I couldn’t agree more. Whether it is our amazing culture, our incredible partnerships, our passion for leadership development, training, education, coaching and mentoring, there is no doubt that it really is a great place to work. At the core of all of these aspects of working here is our fundamental belief in doing things the right way and treating everyone fairly.The publication of our gender pay gap information provides us with an opportunity to remind ourselves of how diversity and inclusion are at the core of how we work. We are fully supportive of the need for transparency in organizations but more importantly, that this reporting requirement by the government is a great catalyst for organizations across the UK to continue the much needed focus on diversity, inclusion and equality.You’ll see below that our mean gender pay gap is 6.6% and median 0%. To be clear, any gap is not good enough and we’ve already taken steps to improve further, however I am proud of the fact that this is significantly below the UK national average of 18.4% (ASHE, October 2017). The 6.6% mean gap shows we still have work to do, mainly with our bonus pay, which is driven by having more men in senior roles than women; and our actions on inclusion, recruitment and trust at the end of this report will give you an insight into the roadmap we are following to close this gap, something that we are fully committed to achieving.The fact that the median gap is 0% shows that we are truly focused on paying and rewarding people regardless of their gender, based on their performance, skills, experience and potential; and reflects the hard work and importance given to this by you all on a daily basis.I am so proud of our people, teams and culture and remain fully committed to closing this gap through our action plan.
WHAT IS THE GENDER PAY GAP?From April 2018, all employers with over 250 employees must report their gender pay gap.The gender pay gap measures the difference in the average pay of women and men from across the whole business. It does not measure equal pay which is the right for men and women to be paid the same when doing the same or equivalent work. We are committed to being an equal pay employer. There can be a number of reasons for a gender pay gap for example, a gender imbalance in the different levels of roles or of particular types of role. A gender pay gap can also be due to socio-economic reasons such as women employees taking up lower paid or part time roles due to childcare responsibilities.
WHAT IS OUR APPROACH TO GENDER PAY?We are fully committed to being a diverse and inclusive employer and we pay people based on their skills, experience and qualifications rather than their gender. Our people approach is centred on building a diverse and inclusive workplace as we firmly believe that this is the right thing to do and also drives the success of our employees and our business.
VS3.02%
RSC96.98%
RESTAURANT
VS51.8%
MALE48.2%
FEMALE
MID RANGE HOURLY RATE
MID RANGE HOURLY RATE
MEDIANDIF
FERE
NCE B
ETWE
EN
=
TOTAL MALE HOURLY RATE
TOTAL FEMALE HOURLY RATE
TOTAL PEOPLE MEAN+ =
KFC221_2365_Gender_Pay_Gap_Report_2018_A4.indd 1 29/03/2018 11:08
WHAT WE ARE DOING ABOUT THIS?We want to improve the working lives of our Teams and so whether that’s through our ‘Love Army’ project impacting the working lives of Teams in our restaurants or through our focus on elevating the way we work together above restaurant through a current review of our policies and practices, we believe a focus on not just gender but on diversity and inclusion in the broadest sense is what will enable us to achieve this.
We are proud that we’re on this journey as it touches on every aspect of our business, but we know that our actions will speak louder than our words. As a starting point we are fully focused on our gender balance across the business particularly at our senior leadership and board levels. We want to address this by focusing on three key areas:
UNCONSCIOUS BIAS TRAININGAs a starting point, we want to help build our coaches know how on leading with empathy for difference and championing inclusivity and to do this we are training all of our leaders in ‘Unconscious Bias’.
Our view is that if you’re human, you have bias, and that the question is not “do we have bias?” but rather “which are ours?” By knowing our biases and how they impact our decisions, we can be better leaders of our culture and all people, regardless of our differences in thought, style, gender, ethnicity, background or generation.
WAYS OF WORKINGWe are reviewing all of our formal and informal ways of working and policies to ensure that we promote flexibility on working hours, location and ways of working as well as having a huge focus on trust. By this we mean allowing our employees to have more ownership and accountability to work with their coach to build the work life flexibility which meets their needs.
RECRUITMENT AND SUCCESSION As part of our wider focus on diversity and inclusion across our business we want to challenge and review all of our recruitment and selection materials, tools and processes. To ensure that all tools are gender neutral, we have a diverse candidate short list and that all coaches are fully trained and coached.
Within our people planning and talent reviews we track and review all talent pipelines and the associated gender mix to ensure we have gender balance across our business.
The data shows our mean and median hourly gender pay gap, at the snapshot date of 5th April 2017. Although there is clearly a gap, we’re below the UK average and can confirm
that men and women are paid equally for doing equivalent jobs with equivalent experience.
GENDER BONUS GAP
Our gender bonus gap is primarily driven by having more men than women on our leadership team, and these employees attract a higher level of bonus. This is something that we are keen to address by encouraging more women into senior leadership roles.
GENDER PAY GAP
[MEAN]
[MALE]
[MEDIAN]
[FEMALE]
[MEAN]6.67%
37.59%
53.11%
[MEDIAN]0%
11.76%
52.14%
PAY QUARTILE BANDS
PROPORTION OF MALES AND FEMALES RECEIVING A BONUS AS A %
UPPER QUARTILE AS A %
UPPER MIDDLE QUARTILE AS A %
LOWER MIDDLE QUARTILE AS A %
LOWER QUARTILE AS A %
54.18%[MALE]
45.82%[FEMALE]
50.88%[MALE]
49.12%[FEMALE]
54.12%[MALE]
45.88%[FEMALE]
47.84%[MALE]
52.16%[FEMALE]
OUR GENDER PAY RESULTS
DIFFERENCE IN BONUS PAY OUT / BONUS AWARDED
KFC221_2365_Gender_Pay_Gap_Report_2018_A4.indd 2 29/03/2018 11:08
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