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Understanding our UK gender pay gap 2020

Building a diverse workforce and creating an inclusive workplace are vitally important to achieving our purpose, vision and values.  We support the UK Government’s initiative on this important topic.

We have conducted our analysis in line with the gender pay gap regulations which require disclosure of data for all UK legal entities employing more than 250 employees. We also include a Company UK-wide analysis. The separate disclosures for our four UK legal entities (each having more than 250 employees) are provided.

2020 UK-Wide Results

Pay Gap based on 5 April 2020 snapshot

The mean hourly gender pay gap in the UK has reduced slightly from 3.7% in 2019 to 1.5%. The median has increased from 2.6% to 3.2%.

Mean*

1.5%

Median**

3.2%

*Mean: a comparison of the average pay for a woman and the average pay for a man. 

**Median: a comparison of the ‘middle’ pay for a woman if all pay amounts were sorted from low to high and the ‘middle’ pay for a man.  The median is less impacted by outlier numbers (very high or very low) than the mean.

The quartile analysis below shows that females, who represent 28% of our total UK population, are under-represented at National Grid and in our industry more generally and both we and our industry need to continue our work to recruit more women. 

Proportion of male and female employees by quartile pay

 

Male

Female

Upper quartile

76.3%

23.7%

Upper middle quartile

72.0%

28.0%

Lower middle quartile

73.0%

27.0%

Lower quartile

69.4%

30.6%

Overall

71.9%

28.1%

Bonus gap based on 12 months preceding 5 April

The UK-wide bonus gap is -25.4% at the mean and -12.9% at the median.  These figures reflect more senior hires receiving full year bonus and long-term incentive awards who are women. The mean has become significantly more negative compared to 2019 (-7.2), the median also shows that on women received higher bonuses than men.

Mean*

-25.4%

Median**

-12.9%

*Mean: a comparison of the average bonus for a woman and the average bonus for a man. 

**Median: a comparison of the ‘middle’ bonus for a woman if all pay amounts were sorted from low to high and the ‘middle’ bonus for a man.  The median is less impacted by outlier numbers (very high or very low) than the mean.

 

Proportion of male and female employees receiving bonus pay

Male

Female

87%

82%

Actions we are undertaking to address the gap

We remain committed to closing our Gender pay gap. In 2019 we shared our vision: “Our workforce will be more representative of the communities we serve in all aspects of diversity”.  We also outlined 4 commitments, which were as follows: 

  1. We seek to increase the overall proportion of our workforce from diverse backgrounds, in order to mirror the communities, we serve.
  2. We will monitor the number of hires from diverse backgrounds and aim to appoint a greater proportion than colleagues we have within the overall National Grid workforce today (28% female and 18% ethnic minority).
  3. We will monitor the number of colleagues promoted who are from a diverse background and aim to promote at a greater proportion than we have today within the National Grid workforce (24% female and 18% ethnic minority).
  4. We are committed to building an inclusive company where everybody can achieve their potential.

At a time when the representation of women in the power industry is decreasing, we are broadly tracking towards achieving our goals. We have seen steady progress across these 4 commitments, as outlined in the detail below, but as a result of the significant societal changes we have seen over the past 12 months, we have also seen a slight shift in our focus. We have now published these in our Responsible Business Charter which outlines our long-term commitments to ensure all colleagues are treated fairly and equally. These are namely:

  • Being as transparent as possible in sharing our data, which will include reporting on recruitment, promotion, progression and leaver rates by diverse groups.
  • Achieving greater diversity amongst our senior leadership and new recruits.
  • Building a culture where it is safe to speak out against exclusion.
  • Maintaining fairness across our organisation in pay.

To focus progress on these commitments and specifically, closing our gender pay gap, National Grid has undertaken a number of initiatives to actively recruit into and promote women within our UK business and we are pleased with the progress being made.  In our new talent pipeline, we have continued to see a good proportion of women attracted to our programmes, in particular, 17% of trainee hires in the UK were women (a noticeable increase from last year) and 33% of graduate hires were women, materially above the 28% of women that comprise our overall workforce. This has been boosted by our ‘Job That Can’t Wait’ campaign which aimed to attract new talent with passion and potential to help us win the race to halt climate change. We were delighted with the response to the campaign, which saw a sevenfold increase in applications to our Advanced Apprenticeship scheme and started a national conversation about the importance of STEM at all stages of education. This campaign has now also been recognised externally, winning the Gartner Communications Awards for Excellence in Reputation and Thought Leadership.

Overall, in the UK, women represented a greater proportion of promotions (30%) than current overall female representation (28%) and, positively, female hires outstripped female leavers (30% and 29% respectively). We have also continued to see a year-on-year increase in women in leadership roles (currently 35%) and our female leadership high potential pool has grown over 5% over the year. We continue to have over 35% of senior roles in the UK occupied by women. We have been putting focussed effort into debiasing our recruitment process – ensuring gender neutral language, piloting blind CVs and implementing diverse panels and shortlists.

In order to provide focus and drive to our Inclusion and Diversity agenda, we’ve recently created a new role for a Chief Diversity Officer, reporting to the CHRO and who will be responsible for driving the I&D agenda across the business for colleagues, customers and communities. The role will be tasked with refining  and driving home our I&D Strategy globally whilst also building a team capable of meeting our vision to develop a truly inclusive culture and a diverse workforce that is fully representative of the communities we serve.

 

Gender Pay Gap Statistics by Employing Company

Results by employing company with at least 250 employees are shown below.  Please note that not all of our Gas Transmission and Electricity Transmission employees are employed by NGG Plc and NGET Plc, respectively.  Both of our transmission businesses also have employees from other subsidiaries, particularly NG UK Ltd which has been the employing entity for most of our managerial grade employees since 2006. 

National Grid Electricity System Operator Ltd gender pay gap statistics

There are 557 employees on a National Grid Elec System Op Ltd contract.  As last year, we note a more significant gap in this employing entity versus the others due to a particularly small sample of senior leaders employed on this contract, and a higher population of men in highly specialised technical roles which attract a premium over less specialised roles.

The ‘bonus pay gap’ shows that on average Women receive higher bonuses than men (-5.9), which is consistent with last year (- 9.1%).

Pay gap mean*

12.6%

Pay gap median**

11.6%

Proportion of male and female employees by quartile pay

 

Male

Female

Upper quartile

78.3%

21.7%

Upper middle quartile

71.9%

28.1%

Lower middle quartile

60.4%

39.6%

Lower quartile

49.2%

50.8%

Overall

68.4%

31.6%

Bonus gap mean*

-5.9%

 Bonus gap median**

3.1%

Proportion of male and female employees receiving bonus pay

Male

Female

98%

97%

*Mean: a comparison of the average pay for a woman and the average pay for a man. 

**Median: a comparison of the ‘middle’ pay for a woman if all pay amounts were sorted from low to high and the ‘middle’ pay for a man.  The median is less impacted by outlier numbers (very high or very low) than the mean.

National Grid Electricity Transmission gender pay gap statistics:

There are 633 employees on a National Grid Electricity Transmission contract.  The bonus gap data is heavily impacted by a small sample size of senior employees employed on this contract, and also a higher proportion of men in collectively bargained roles with a different pay structure from our personal contract roles.

Pay gap mean*

-7.4%

Pay gap median**

3.3%

Proportion of male and female employees by quartile pay

 

Male

Female

Upper quartile

90.7%

9.3%

Upper middle quartile

86.0%

14.0%

Lower middle quartile

83.2%

16.8%

Lower quartile

93.2%

6.8%

Overall

88.1%

11.9% 

Bonus gap mean*

-203.6%

 Bonus gap median**

-7.5%

Proportion of male and female employees receiving bonus pay

Male

Female

100%

93%

*Mean: a comparison of the average pay for a woman and the average pay for a man. 

**Median: a comparison of the ‘middle’ pay for a woman if all pay amounts were sorted from low to high and the ‘middle’ pay for a man.  The median is less impacted by outlier numbers (very high or very low) than the mean.

National Grid Gas plc gender pay gap statistics

There are 455 employees on a National Grid Gas plc contract.  There is a higher proportion of females in the lower quartile due to relatively fewer men at the most junior grade employed by this employing company.

Pay gap mean*

3.6%

Pay gap median**

2.0%

Proportion of male and female employees by quartile pay

 

Male

Female

Upper quartile

75.6%

24.4%

Upper middle quartile

62.6%

37.4%

Lower middle quartile

86.3%

13.7%

Lower quartile

15.4%

84.6%

Overall

68.7%

31.1%

Bonus gap mean*

13.9%

 Bonus gap median**

1.4%

Proportion of male and female employees receiving bonus pay

Male

Female

99%

99%

*Mean: a comparison of the average pay for a woman and the average pay for a man. 

**Median: a comparison of the ‘middle’ pay for a woman if all pay amounts were sorted from low to high and the ‘middle’ pay for a man.  The median is less impacted by outlier numbers (very high or very low) than the mean.

National Grid UK Ltd gender pay gap statistics

There are 4,565 employees on a National Grid UK Ltd contract.

Pay gap mean*

0.0%

Pay gap median**

1.2%

Proportion of male and female employees by quartile pay

 

Males

Female

Upper quartile

73.5%

26.5%

Upper middle quartile

71.9%

28.1%

Lower middle quartile

72.0%

28.0%

Lower quartile

69.9%

30.1%

Overall

71.0%

29.0%

Bonus gap mean*

-10.6%

 Bonus gap median**

-17.7%

Proportion of male and female employees receiving bonus pay

Male

Female

82%

78%

*Mean: a comparison of the average pay for a woman and the average pay for a man. 

**Median: a comparison of the ‘middle’ pay for a woman if all pay amounts were sorted from low to high and the ‘middle’ pay for a man.  The median is less impacted by outlier numbers (very high or very low) than the mean.

 


We confirm that the information and data provided is accurate and in line with mandatory requirements. 

Sir Peter Gershon Chairman, National Grid

Peter Gershon's Signature

 

 

 

 

John Pettigrew Chief Executive, National Grid

John Pettigrew's Signature