Gender Pay Gap Report 2017

Foreword

Equality and diversity are vital to business success. Balanced teams produce better culture and stronger results. Diversity, equality and inclusion are important to the management team, to our staff and to our clients.

Our employee satisfaction survey tells us that our staff believe they can be themselves at work without fear of judgement or discrimination and that people from diverse backgrounds can succeed at AMV BBDO.

We are committed to ensuring that we are an equal pay employer. We have introduced pay benchmarks over the last few years to ensure fairness and clarity.

Whilst recognising that equal pay is not the same as the gender pay gap, we welcome the introduction of gender pay gap reporting as an opportunity to review and improve our workforce structure and to look at innovative ways to balance the proportion of men and women in senior posts.

Our gender pay gap data shows that in spite of the many talented women in the agency we need even more women at senior levels in the agency. We have to take steps to close the gap.

We understand the reasons why we have a gender pay gap. We see this an opportunity to shine a light on our own workforce, so that we can examine what we are able to do to help to close the gap that exists. We are committed to encouraging ambition and choice and addressing inequality of opportunity, recognising there is no quick fix but that the rewards will be huge.

Cilla Snowball Group Chairman, Group CEO AMV BBDO

The gender pay gap explained

What is the gender pay gap?

The gender pay gap is a measure of the difference between the average earnings of men and women in an organisation. It compares the average pay of all men and all women, regardless of seniority.

The gender pay gap is not the same as equal pay.

Equal pay relates to men and women being paid equally for equal work. This is a legal requirement in the UK and AMV BBDO is fully committed to it.

Mean and median gender pay gap

The mean is the difference in average hourly pay rates of men and women.

The median shows the difference in the midpoints of the ranges of hourly pay rates of men and women.

What are the legislative requirements?

Gender pay gap reporting requires companies with 250 or more employees to publish statutory calculations every year showing:

• Mean and median gender pay gap

• Mean and median gender bonus gap

• Proportion of men and women getting a bonus

• Proportion of men and women by quartile pay band

• Data taken on a ‘snapshot’ date of 5th April each year

Our data at a glance

Gender Pay Gap

Mean

32.3% 37.5%

7.8% 18.5%

@ 5 April 2017 @ 5 April 2017

Median

Gender Bonus Gap

In the year since the April 2017 snapshot, we have already seen an improvement in our mean gender pay gap. Having run our figures informally for March 2018 our mean gap has come down to 29.9% and we believe our mean gap can improve still further before we formally report again.

Our 2017 bonus results show that 15.7% of men and 16.3% of women received a bonus in the year ending April 2017. Our bonus schemes are varied and include spot bonuses for cultural contribution, referral bonuses, service rewards, performance bonuses, stock awards and executive awards.

% Proportion of men and womenin the agency overall @ April 2017

32.2%

67.8% 42.9% 57.1% 47.3% 52.7%26.4%

73.6%

49% 51%

% Proportion of men and womenby pay quartile @ April 2017

MenWomen

Our data at a glance

Lower Lower middle Upper middle Upper

Why do we have a gender pay gap?

Headline figures represent averages across the whole organisation and across many different roles.

Some groups within the AMV BBDO workforce are predominantly male, such as creatives (22% women at the snapshot date) and senior management (41% women at the snapshot date) and this means there is an over- representation of women in the lowest paid quartile, and an under-representation of women in the highest paid quartile. Happily our ratios have improved in the year.Since the snapshot date there are 26% women in creative and 46% women in senior management at March 2018, but we need to do much more.

Under-representation of women in creative roles is a pattern that is reflected across the advertising industry and is one that we individually and the industry collectively are working hard to address, by encouraging and mentoring women to apply for and succeed in these roles. Equally we are working hard to get more women in senior management where we have many already,but not enough. We are encouraged by the fact that our ratios in middle management quartiles are much more evenlygender-balanced, meaning we have a great pipeline of future female talent to retain and to develop into senior management. We also have to recognise that staff churn is lowest in the upper quartiles meaning that change will take time.

Meanwhile we have hired and promoted more women than men over the last year. 57% of hires and 55% of promotions were female.

Our commitment to closing the gap

We are already making progress. Whilst our April 2017 start point was disappointing, we have seen an improving picture since then. Our current mean gap at March 2018 is 29.9%. We will continue to drive the gap downwards, focusing on the departments where the gap is biggest.

Diversity task forceWe have set up a diversity task force which meets monthly to ensure that our diversity policy and plans are on track. We also have diversity champions across the business, representing our under-represented groups.

Attracting diverse creative talentWe will be conducting regular open days to attract diverse talent into our business, with a particular focus on attracting female creatives & BAME talent. We already run a placement “Hatch” scheme to attract young creatives into the business. Some of these teams have gone on to be hired permanently, including some female teams.

Schools and studentsWe participate in the Speakers for Schools, Advertising Unlocked, Creative Access, SEO and Saturday Club open days and we run our own annual Summer School for 16-18 year olds encouraging women and men to think about the advertising industry at an early age.

PartnershipsWe are actively partnering with diversity organisations to accelerate and champion diversity in our work and workforce. We also promote diversity in our supplier base with partnerships such as Free the Bid.

Our commitment to closing the gap (cont’d)

Unconscious bias, harassment and best behaviours trainingWe are providing ongoing training to all staff to address unconscious bias, to encourage best behaviour and how to speak up against bad behaviour.

RecruitmentWe are working with external recruitment partners to ensure that we have balanced shortlists, gender-balanced recruitment panels and gender-blind scholar recruitment screening.

Management apprenticeshipsWe have introduced a new management apprenticeship programme which will allow participants to obtain a diploma in Leadership & Management from the CMI. This will ensure all staff have an equal opportunity to gain the skills required to become senior leaders within our business.

Half time contracts in the creative department We are piloting a half time contract initiative aimed at attracting women or carers who have been out of work for several years due to childcare or care responsibilities. This is part of a wider drive to increase the proportion of women in our creative department.

Maternity, paternity and shared parental leaveWe believe that both parents, whatever their gender or sexual orientation, should have the right to take time off and be well – supported financially and professionally. We offer equality of pay for fathers who choose to take over 3 months of shared parental leave.

Childcare subsidyWe have introduced a new childcare subsidy that will provide returners from shared parental leave or maternity leave a monthly allowance payable to their childcare provider, in order to support their return to work.

Flexible workingAny employee at AMV BBDO is entitled to request to work part time or to take advantage of other ways of working flexibly, whether they are male or female and whether or not they have family responsibilities.

Celebrating diversity

Nadja Lossgott Winner of IPA Women of Tomorrow 2018 & WACL Future Leaders 2018, celebrating exceptional female talent.

Candice Juniper speaks at the Creative Access masterclass seminar.

Toby Allen andJim Hilson Men as Change Agents powerlisters, as listed by Management Today 2018, celebrating male business leaders driving equality.

Omniwomen Alaina Crystal joined the leadership team to plan the training day on International Women’s Day, 2018 supporting future female leaders across Omnicom UK. Dan Russell, Bogi Horvarth, Laura Hazell and Anusha Subeather joined the Omniwomen UK programme from AMV BBDO.

Cilla Snowball Chair of the Women’s Business Council 2018. The WBC is a business-led, government-backed group aiming to maximise women’s contribution to economic growth.

Sarah Carter, Group Financial Controller. Just back from shared parental leave that she is sharing with her husband, Mark.

AMV Unconscious Bias and Best Behaviours training. All our staff are undergoing training in removing unconscious bias and speaking up.

Dan Russell Dan’s twins Freddie and Theo. He is taking a period of shared parental leave later this year.

AMV BBDO International Women’s Day Panel. Richard Robinson, Sally Osman, Anne Asslet, Matthew Gwyther, Louise Troen, Sam Renke and Cilla Snowball discuss equality imperatives on International Women’s Day in front of the agency and our clients.

Lucy Adams and Imogen White-Thomas, Happy returning mums post their maternity leave.

Omnicom Group Open Pride OPEN Pride fuels the personal growth, organisational inclusion and business success of Omnicom Group’s Lesbian, Gay, Bisexual and Transgender (LGBT) employees and allies.

Walking the talk in our work

We recognise we have a responsibility to work with our clients to promote diversity and gender equality and to show the commercial benefits of social inclusion.

Bodyform

BT Sport

Guinness Africa

Plan UK

The Economist The Economist MOBO

Guinness Africa

Maltesers

Maltesers