The 5th of April 2018 marks the end of the first year of disclosures under the new UK gender pay gap reporting requirements. Just over 10,000 companies employing more than 250 people in England, Scotland and Wales have disclosed their figures, although reportedly more than 500 are yet to publish and may face possible fines and reputational damage. Below is an analysis of the gender pay disclosures for companies in the real estate sector, including how the disclosures in the real estate sector compare to the wider UK disclosures.
Both the pay and bonus gaps in real estate are, in general, considerably higher than the pay gap across industries. The median mean pay gap for all UK companies is around 14% compared to around 30% in real estate (figure 1).
Figure 1: Pay gap analysis – This chart shows the median and quartile range of mean and median pay gaps in real estate compared to all UK companies.
Figure 2: Bonus gap analysis – This chart shows the median and quartile range of mean and median bonus gaps in real estate compared to all UK companies.
The median mean bonus gap for all UK companies is around 36% compared to around 65% in real estate (figure 2).
This large pay gap is primarily driven by the relatively low number of women in senior roles in real estate companies in the UK. The majority of real estate organisations have a quartile index above zero, showing that there is a higher proportion of men paid above the median than in the overall workforce (figure 5).
As an industry sector there are numerous reasons for the low proportion of women in senior roles - limited turnover in senior management positions; unconscious biases within promotion and key assignments; too few female role models in senior positions and lack of flexible working and worklife balance. These are areas which the industry acknowledges and is looking to address.
Figure 3: Proportion of men - This chart shows how the mean pay gap links to the proportion of men in each real estate company.
Figure 4: Number of employees - This chart shows how mean pay gaps in real estate compare in different size organisations, based on the number of employees.
Pay and bonus gaps are also driven by the significant differences in pay and bonus opportunities between the most senior employees and the wider workforce.
Figure 5: Seniority of men – This chart shows how the mean pay gap links to the relative seniority of men implied by the quartile disclosures (quartile index).
Comparator group based on a bespoke group of real estate companies. This analysis excludes any company with a pay gap above 100%. Bonus gap analysis excludes companies with either no men or no women receiving a bonus, as a gap is not possible to calculate. The quartile index shows the relative distribution of men and women in the quartile ranges. A positive value indicates that there is a higher proportion of men in the upper and upper middle quartiles compared to the overall workforce.
UK Diversity & Inclusion Consulting Leader, PwC United Kingdom
Tel: +44 (0) 7720 555 397
UK Real Estate Leader, PwC United Kingdom
Tel: +44 (0)20 7804 3972