Gender Pay Gap Report 2024

At Malvern Panalytical, we have a gender-diverse workforce in the UK, as demonstrated by the following points:

Pay

We are pleased to report continued progress in reducing our gender pay gap, which has decreased from 12% last year to 9%. This improvement reflects both our commitment to fairness and the continued stability of our workforce, with gender balance remaining consistent. There have been no significant changes in our recruitment practices.

In 2023/2024, we observed that four male higher earners left the business, while three female higher earners joined through business transfers or new onboarding. This shift positively impacted our gender pay ratio, further strengthening our leadership team and supporting the advancement of women in senior roles.

The departure of a senior male executive also provided an opportunity to review and reassess our leadership structure, ensuring we remain focused on promoting diversity and inclusion at all levels.

Given the nature of our industry, which is predominantly high-tech and scientific, there remains a higher prevalence of male-dominated roles in areas such as R&D, Engineering, and Manufacturing. This is reflected in the fact that 71% of our workforce are male. Nonetheless, we remain committed to addressing this gender disparity and promoting greater equality in all sectors of our business.

Bonus

Bonus earnings are typically calculated as a percentage of salary and can vary based on factors such as role, incentive plan, and individual performance.

For the reporting period, we observed that a higher number of male employees (314) received a taxable bonus compared to female employees (134). This disparity is primarily driven by the higher proportion of male employees in the overall workforce.

Our mean bonus pay gap for 2024 stands at -14.94%, while our median bonus pay gap is 22.74%. This represents a significant change from 2023, driven by the following factors:

• The continuation of onboarding bonuses tied to female leadership appointments may have an impact on the average bonus payments in 2024.
• In 2024 the percentage of the male population exercising their bonuses increased from 2.2% to 3.1% compared to the previous year. In contrast, the female population had decreased from 5.2% to 2.2%, reflecting a significant decline in the share of bonuses received by women and reducing the bonus gap.
• The gender bonus gap appears to be narrowing, as the bonus pension sacrifice data reveals a higher level of participation among males, along with larger bonus amounts. This indicates a positive trend, with the gap between males and females closing as more males engage in the bonus pension scheme and receive higher bonuses.
• The majority of our bonus was paid in March 2024; however, a small number of employees received an additional bonus (corrected) which later influenced the median. 

Our Thoughts & Next Steps

We are committed to equal opportunities and equal treatment for all employees, regardless of sex, race, religion or belief, age, marriage or civil partnership, pregnancy/maternity, sexual orientation, gender reassignment, or disability.

We are confident that our gender pay gap is not because we pay men and women differently for the same or equivalent work. The pay results show a small bias towards men due to the number of males placed within certain role types.

The bonus pay gap is reflective of the population and the scale of payments made in the specified year and will vary from year to year due to changing circumstances. Bonus provisions are offered to the majority of UK employees and are defined by the level of position, which means a male and female undertaking the same role within a designated function will be assigned similar bonus provisions.

Pay Framework

We operate with a clearly structured pay framework, managed by our Centre of Excellence Reward Team. This framework, supported by dedicated grading and pay ranges, ensures fairness and equity across various role types.

Regular pay and benefits audits are conducted, and individual salary positioning is reviewed annually through job evaluation exercises to ensure ongoing equity and alignment.

Education and Guidance

To ensure fairness in pay decisions, we provide annual merit pay training for all managers involved in the pay review process. This training is designed to promote consistency, fairness, and equity in decision-making.

Bonus Alignment

Most of our UK-based employees are eligible for bonuses based on business, functional, and performance targets. In recent years, we have made strides in aligning historical bonus targets, linking them to a percentage of salary relative to functional role types. This alignment process is being carried out in phases, with the aim of achieving full parity.

Recruitment

To achieve a better gender balance within our industry, we recognize the importance of proactive recruitment efforts. Our Talent Acquisition team will work closely with us to ensure job vacancies are advertised in forums dedicated to attracting diverse gender candidates, particularly for roles where there is a gender imbalance.

In addition, the business has set a target to increase the proportion of females within the workforce to 30% by the end of 2027. This target has been successfully achieved, with females currently making up 31% of the workforce in 2024. 

Diversity and Inclusion

We are committed to driving Diversity & Inclusion initiatives across the business. Working closely with the Vice President of HR and our Business Committee (senior management team), we will continue to integrate diversity and inclusion into our core strategies.

To support employees with caregiving responsibilities, we will further promote flexible working options that foster a healthy work-life balance. We believe that a balance of work and personal life enhances overall productivity and job satisfaction.

Development

We are focused on advancing the careers of our female employees and providing them with the necessary support to transition into people management roles. As part of our promotion efforts, we have reviewed the promotion data at Malvern Panalytical with a total of 29 promotions, 9 awarded to female employees and 21 to male employees. While this demonstrates positive movement, we remain dedicated to further increasing the representation of women in leadership and management roles and will continue to monitor and develop targeted initiatives aimed at achieving this goal.

Furthermore, we are committed to offering secondment and development opportunities across the business. A total of four secondments were offered, with three being awarded to male employees and one to a female employee. These opportunities are designed to provide employees with exposure to different functions and experiences that support their professional growth.