Gender Pay Gap Report 2018

Under new legislation that came into force in April 2017 UK employers with 250 or more employees must now publicly report certain calculations which help to show whether they have a gender pay gap in their company. 

View our 2017 report

2018 Report

Gender Pay Gap Report 2018 (data correct as at 5th April 2018)

The Bright Horizons Profile, April 2018

As at 5th April 2018 Bright Horizons had two legal entities in the UK – Bright Horizons Family Solutions and Yellow Dot Nurseries - and we are required to produce and report separate data for each legal entity.

This is the second year we have produced this data and therefore we are able to compare our results with 2017.  Due to the nature of having two reports, we shall look at each legal entity separately.

Bright Horizons Family Solutions

What does the data tell us?

Some elements remain consistent with last year’s results.  We remain a predominantly female organisation, with the vast majority of our workforce employed as Early Years practitioners and paid sector market rates, reflecting their experience and qualifications. In addition, our support offices continue to have a more mixed gender profile, with male and female colleagues working in a variety of different functions such as Finance, HR, Marketing and Facilities.  Both of these elements are the largest contributors to the gender pay gap identified.

Our options for flexible working have grown significantly with the introduction of our own internal agency, Bright Start, which provides practitioners with a wealth of family-friendly employment options to help individuals balance home and work life.  Of those who work part-time, 89% are female.  This in turn contributes to the gender bonus gap in our results, as base salaries for these roles will be lower than male counterparts who work predominantly in full–time roles.  In addition, our employee benefit of utilising salary sacrifice for childcare costs contributes to a reduced basic pay once it is applied.  As the salaries considered for the purposes of this report are the net salaries after the “sacrificed” elements are taken out it contributes to a gap in pay rates, as this benefit is utilised by more women in our business.

Our bonus profile is influenced by two key factors.  We offer a generous recruitment referral bonus scheme with approximate values of around £500, which remains popular with our nursery based colleagues who are predominantly female.  Our management bonus scheme tends to be of a higher financial value and has a more mixed gender profile.  As we are required to report on these two very different schemes as one combined bonus offering, it influences our overall gender bonus pay gap.

What has improved?

We are delighted to share that since our first Gender Pay report our action plans have delivered improvements in key areas:

  • Our median gender pay gap is not only significantly lower than organisations in a similar sector, but has also decreased by 9.2 percentage points since 2017.
  • Our mean gender pay gap figure has reduced by 6.1 percentage points since 2017. This is a positive improvement, demonstrating our commitment to actions listed last year and taking a proactive approach to implementing consistency in pay rates across our nurseries, including those nurseries recently acquired.  We are committed to further closing the gap to meet government targets.
  • Our median gender bonus gap has significantly reduced by 45.6 percentage points since 2017 and is a figure we are proud to share.
  • The gap between the proportion of men receiving a bonus versus the proportion of women has also reduced.

Yellow Dot Nurseries

This is the first year of reporting for Yellow Dot nurseries within Bright Horizons, as they previously reported prior to acquisition.  Given that the date of acquisition was extremely close to the data snapshot point for Gender Pay reporting, it is difficult to provide detailed comment regarding the data as Yellow Dot was not part of Bright Horizons for the relevant data period. We will however provide a summary and compare the results to the previous year.

Yellow Dot nurseries are also a predominantly female organisation, with male employees within the company tending to take on less qualified positions than the female population, which warrant lower pay rates.  From the data results this year, this demographic remains consistent, with the Yellow Dot data demonstrating a negative gender pay gap. Yellow Dot has historically encouraged men to join the childcare sector by providing apprenticeship opportunities and whilst this has attracted male employees, the apprenticeship reward structure is lower than other positions fulfilled by (mainly female) qualified practitioners. However the career development opportunities provided aim to support retaining male employees within the sector, a commitment supported by Bright Horizons.

What has improved?

  • The mean gender bonus gap has narrowed by 48.3 percentage points.
  • The proportion of males and females receiving a bonus is high compared to the sector, and in addition the gap between the number of males and females receiving a bonus has narrowed to a gap of 2 percentage points.
  • The pay quartiles demonstrate a consistent distribution of females within the quartiles, with more working in the highest quartile. The distribution of male colleagues still show significantly more within the lower quartile, however there has been a shift within the upper middle quartile which previously did not contain any male employees.

In summary

Bright Horizons is committed to fair pay for everyone, irrespective of gender.  We are delighted to be able to share some significant positive improvements in some of the key metrics around Gender Pay in our results this year.  We remain committed to our action plans which, alongside new initiatives will enable us to continue to improve on these results in the coming years.

Statutory Disclosures

Bright Horizons Family Solutions has two legal entities with at least 250 employees (as at date of snapshot data 5 April 2018): Bright Horizons Family Solutions and Yellow Dot nurseries. Under the regulations we are required to report our gender pay gap for each of these entities:

Bright Horizons Family Solutions

Yellow Dot Nurseries

 

Median

Mean

 

Median

Mean

Gender pay gap

5.90%

23.40%

Gender pay gap

-80.70%

-39.70%

Gender bonus pay gap

16.30%

56.70%

Gender bonus pay gap

-636.40%

-66.00%

The proportion of males and females receiving a bonus payment

The proportion of males and females receiving a bonus payment

Males

9.70%

Males

66.70%

Females

10.50%

Females

64.70%

Proportion of males and females in each quartile band:

 

Proportion of males and females in each quartile band:

Quartile

Female

Male

Quartile

Female

Male

Upper

88.50%

11.50%

Upper

97.60%

2.40%

Upper middle

94.20%

5.80%

Upper middle

98.80%

1.20%

Lower middle

92.60%

7.40%

Lower middle

93.90%

6.10%

Lower

94.90%

5.10%

Lower

80.20%

19.80%

Declaration

We confirm that Bright Horizons Family Solutions and Yellow Dot Nurseries gender pay gap calculations are accurate and meet the requirements of the Regulations.

James Tugendhat                         Lydia Hopper                                                 

Managing Director                        General Manager               




2017 Report

The Bright Horizons Profile, April 2017

As at 5th April 2017 Bright Horizons had two legal entities in the UK – Bright Horizons Family Solutions and Asquith Nurseries - and we are required to produce and report separate data for each legal entity.  

As an employer within care and education our workforce reflects the sector, being predominantly female.  Indeed nearly 95% of our total workforce are female Early Years practitioners, educating and caring for children in our 300 plus nurseries across the UK.

What does the data tell us?

The data indicates that we do have a gender pay gap at Bright Horizons.  The largest contributor to the gap is the gender profile of the different types of roles within our organisation.  The vast majority of our colleagues are Early Years practitioners working in our nurseries, predominantly female, paid sector market rates reflecting their experience and qualifications.  Within our support office, there is a higher percentage of male colleagues and salaries reflect market expectations for the sector appropriate to the team function, such as for example those in the legal, accounting or HR professions.

There are also additional factors.  At Bright Horizons the benefits we offer include measures to help colleagues balance their family commitments, such as salary sacrifice for childcare vouchers or nursery fees, as well as options for flexible working.  .  Salary sacrifice effectively leads to a reduced basic pay once it has been applied and the salaries considered for the purposes of this report are the net salaries after the “sacrificed” elements are taken out.  The gender split in those utilising salary sacrifice is over 93% female. Similarly, 40% of our female workforce select part-time working as their preferred option (compared with 3% of men) and since bonuses are calculated on base salary this also has a noticeable impact on the difference between average male and female bonus payments.

At Bright Horizons we have a range of bonus schemes and our bonus gap is reflective of the breadth of these.  They include lower financial value, non-performance related schemes, including a candidate ‘referral’ bonus which has a value of approximately £500.  This scheme rewards individuals who recommend a candidate who is successfully recruited into the company and it is available to all colleagues. It is most often claimed by nursery-based colleagues, who are predominantly female.  Our performance-related bonuses that are available to over 300 nursery managers and some support office roles tend to be of a relatively higher financial value and are more reflective of a mixed gender profile in these roles, which influences the overall gender gap. 

What have we learned from the data?

Bright Horizons is committed to fair pay for everyone, irrespective of gender.  Although there are some very practical reasons why we currently have a gender pay gap, we are focused on ensuring that we take all appropriate actions to reduce it.  We are developing plans to close the gap, taking into account the nature of our business and the make-up of our workforce, with a view to seeing improvements in future years.

  • Throughout 2017 we continued to align Asquith and Bright Horizons policies and procedures.  One positive impact of this alignment will be that we will have consistency in pay and bonus schemes across all colleagues.
  • We are committed to gender equality and are delighted to share stories from two of our senior female leaders who epitomise what is possible at Bright Horizons to encourage and develop other female leaders of the future. 
  • A key goal for us is to increase the number of men working as practitioners in our nurseries to provide children with role models of caring adults of both genders.  This factor is not specific to Bright Horizons but is true for most organisation in our sector.  Success in this goal will have the additional benefit of positively impacting our gender pay gap. We would also like to encourage the men who work for us to take advantage of arrangements which could support them with their caring responsibilities (such as salary sacrifice for childcare, flexible working etc), and which are currently taken up far more widely by female colleagues.  This is very important to us as a champion of family-friendly workplaces, and will also positively impact our gender gap reporting.

We consider ourselves to be a learning organisation; we value our colleagues and treat them with respect.  Getting gender pay right for an organisation in the early years sector is a challenge, but one that will remain high on our agenda.  We are committed to closing the gender pay gap as much as possible and believe this will be achieved by providing positive choices for everyone and encouraging more men into the profession.

Statutory Disclosures

Bright Horizons Family Solutions has two legal entities with at least 250 employees (as at date of snapshot data 5 April 2017): Bright Horizons Family Solutions and Asquith Day nurseries. Under the regulations we are required to report our gender pay gap for each of these entities:

Bright Horizons Gender Pay Gap 2017

Declaration

We confirm that Bright Horizons Family Solutions and Asquith Day Nurseries gender pay gap calculations are accurate and meet the requirements of the Regulations. 

James Tugendhat Lydia Hopper

Managing Director General Manager