UK GENDER PAY REPORT 2018

61.0%

76%

2017

85%

61%

72.0%

201772%

Gender Pay Gap Legislation introduced in April 2017 requires all employers of 250 or more employees to publish detailsof their gender pay and bonus gap and at Sandvik we welcome the UK Government’s initiative for companies to be moretransparent on Gender Pay. Sandvik has one legal entity over the 250 threshold; Sandvik Limited, which is reported below.
We also show the total picture for all Sandvik UK regardless of employing entities.
EQUAL PAY

Sandvik is committed to providing equal pay for equal work and providing a diverse and inclusive place to work which
Gender Pay Gap
is central to our business to ensure our continued success. We are confident that we have equal pay for equal work
Gender Bonus Gap
however we do have a gender pay gap, as explained in our detailed findings below.

MEAN

MEDIAN

34.2%

28.2%

6.8%

1.8%

ALL SANDVIK UK EMPLOYING ENTITIESMEAN AND MEDIAN PAY AND BONUS GAP
at 5 April 2018

Gender Pay68%
Gap
Gender Bonus Gap

PAY QUARTILES ACROSS ALL UK EMPLOYEESMEAN (2017)

MEDIAN (2017)35.5% (34.2%)

28.2% (13.1%)

201747%4.6% (6.8%)

at 5 April 2018

61.0%

PROPORTION OF ALL UK EMPLOYEES RECEIVING A BONUS
in 12 months preceding 5 April 2018

Lowerquartile

Lower middlequartile

2017

85%

61%

Lower upperquartile

Upperquartile

Lower quartile TOTAL Lower middle quartile TOTAL
Upper middle quartile TOTAL Upper quartile TOTAL

13%

14%

19%

23%
77%

76%

81%

87%

86%

2017

72%

2017: 16% Women

Gender Pay Gap

2017: 20% Women 2017: 22% Women

2017: same

Gender Bonus Gap

SANDVIK LTD
MEAN AND MEDIAN PAY AND BONUS GAP
at 5 April 2018

Gender Pay Gap

MEAN (2017)-0.3% (4.6%)

Gender BonusMEAN
Gap (2017)40.0%(42.7%)
MEDIAN(2017)

Gender Pay Gap

4.6% (6.8%)

5.3% (1.8%)

PAY QUARTILES ACROSS SANDVIK LTD EMPLOYEESMEDIAN (2017)0.6%

at 5 April 2018(-6.0%)

22.0% (33.0%)

GenderBonus Gap OF
35.5%(34.2%) LTD
28.2%(13.1%)
PROPORTIONSANVDIKEMPLOYEESRECEIVING A BONUS
in 12 months preceding 5 April 2018

Lowerquartile

Lower quartile Ltd
7%

93%

68%

2017

47%

90%

MEAN (2017)-0.3% (4.6%)

Lower upper
quartile
14%

18%

82%

86%

Upper
quartile

Upper quartile Ltd
12%88%

2017

MEDIAN (2017)
0.6%

Lower middle
quartile

Lower middle quartile Ltd Upper middle quartile Ltd53%

2017: 8% Women

Gender Pay Gap

72.0%

2017

90%
5.3% (1.8%)
53%(-6.0%)

2017: same

2017: 20% Women

2017: 11% WomenMEAN

MEDIAN

34.2%

28.2%

6.8%

1.8%

OUR FINDINGSThe ‘UK all’ data shows our ‘gender pay gap’. This is a snapshot of the difference between the average hourly pay levels ofall women compared to all men, irrespective of their role or level in the organization, expressed as a percentage of men’s
average pay (mean and median). Our figures show that the median average pay of all our women in the UK is 5.3% lower
than that for all our men and the mean average if 4.6% lower. For comparison, the UK’s national gender pay gap is 17.9%
lower for females compared to males. In addition, we compare the overall averages in bonus payments (performancerelated bonus) which shows Women are more likely to receive a bonus, but the gender bonus gap remains an area
where Sandvik UK need to take further action. This gap is caused by an unequal distribution of men and women acrossthe company, not because of our pay policies and practices, which are currently reviewed via a new Job Framework
mechanism.
Overall, Women currently represent 17% of employees. Women are less well represented than this figure in higher pay
quartiles due to proportionally more men being in senior level roles. Therefore, increasing the number of women in ourbusiness and moving towards an equal distribution of men and women across all levels is very important.
KEY COMPARISON FINDINGS

When we compare the results from 2017 to 2018 we determine that although there was an overall headcount reductionof 52 employees across the whole of the UK the proportion of females within the organization has remained at 17%
representation. When reviewing the increase of women in the Lower Quartile, we observe that a higher percentage ofmale employees left the organisation in these roles, increasing the percentage of women in this lower quartile.

We note that there was a decrease in women in the Lower Upper Quartile in Sandvik Limited, from 20% to 14%. This is due
to a number of restructuring projects within our Customer Services environment and the European HR Hub, in roles thatwere predominately performed by women.
SANDVIK UK APPROACH

To address the gender balance, we must maintain a culture of inclusion in which people from all backgrounds can fully
contribute to the growth and success of our business. To achieve this, we will focus on three areas:
1.

Director & Leadership Encouragement and Engagement
The UK Senior Management Team commits to engage with and support the Sandvik Women in Engineering Network.
Where appropriate, Senior Managers will invite members of the Sandvik Women in Engineering Network to attend andparticipate in events and meetings that will provide exposure to new learnings and experiences. Senior Managers toexplain and deliver the Gender Pay Gap Report and subsequent actions.
A Mentoring Programme will be introduced where Senior Business Mangers will be encouraged to become a Mentor
to a female colleague in another business. The programme will outline guidelines to successful mentoring.

2.

Sandvik Women in Engineering NetworkIn 2018 we gave a commitment to launch two new network groups, but after much consideration felt that one
combined group with a wider scope would achieve the same objective to provide a supportive forum for all womenthat wish to fulfil their career aspirations in Sandvik.

Following our recent 2019 International Women’s Day event, the focus for 2019 will be for the Network and SteeringGroup to identify and shape the approach, content and format of events/meetings that will result in engagement andmomentum.
Within the Sandvik Women in Engineering Network, we will launch a Special Interest Group (SIG) for Engineers. Thisgroup will support the female engineer community at Sandvik UK. The Engineering SIG will present and educate thewider Sandvik Women in Engineering Network at events and meetings. Sandvik will investigate the opportunity toappoint a STEM Ambassador for Sandvik UK.
3.

Inclusive Culture
The Engineering SIG will help identify initiatives to attract more female candidates to Engineering roles within Sandvik.
Establish relationships with potential Recruitment partners that specialize in providing opportunities for female
candidates in engineering.
Partner with other Groups and Networks to attract female candidates to key roles in Sandvik.

We will incorporate an explanation of the Gender Pay Gap and Sandvik Women in Engineering Network into theInduction Programme, to raise awareness for all new employees.
We confirm the data reported is accurate.

Carolina Granat
Vice President Human Resources
Sandvik Machining Solutions
March 2019

Richard Harris
Managing Director
Sandvik Holdings Ltd