IHG 2019 UK Gender Pay Gap Report - IHG Hotels & Resorts

IHG 2019 UK GenderPay Gap ReportApril 2020

ForewordAs a global company, IHG knows the importanceand benefit of having a gender balancedworkforce. A culture that celebrates differenceand diverse thinking is crucial to the futuresuccess of our business, and how we worktogether to deliver our purpose of providingTrue Hospitality for everyone.We are proud to have an inclusive culture thatbrings to life the values we hold as an employer,and of the external recognition we consistentlyreceive for being a great place to work.We work hard to ensure that our cultureis representative of the diversity of ourguests, owners and colleaguesWe are confident in our approach to equalpay, which is a different measure to genderpay, but our gender pay gap in the UK remainsbigger than we would like. We understand thereasons for this and have made good progressin this area over the past two years. We are alsoaware that making meaningful improvementswill take time, particularly in a large globalorganisation such as ours – but we arecommitted to bringing about effective, longterm, positive change as illustrated by theinitiatives outlined in this report.The following pages outline the gender paygap for our UK corporate employees anddetails around the initiatives that we believewill continue to make a real impact withinour organisation.Keith BarrChief Executive OfficerIHG 2019 UK Gender Pay Gap Report36%of the IHG Board is femaleas at 31 December 201948%of IHG's Executive Committee (EC) andtheir direct reports in the UK are femaleas at 31 December 2019 (36% globally)62%of corporate promotions and new hires in theUK between 1 January - 31 December 2019were femaleThe 2019 Hampton-Alexander Review listed IHGin the top 10 FTSE 100 companies for femalerepresentation across our Board, EC and theirdirect reports for the third consecutive year.1

About our UK Gender Pay GapHow our UK Gender Pay Gap is calculatedIHG has a presence in more than 100 countries. More than 400,000 people work across our brandedhotels and corporate offices globally, but our predominantly franchised and managed business modelmeans that we do not employ the vast majority of people working in IHG branded hotels.IHG’s corporate population in the UK represents a small proportion of our global employee population,which totals more than 14,000 colleagues. As at 5 April 2019, IHG employed 770 people in our UKcorporate offices. This population is split across two separate entities, IHG Hotels Limited (“IHL”) (formerlyInterContinental Hotels Group Services Company) and Six Continents Limited (“SCL”), both of whichemploy at least 250 people. In this report, we have provided analysis for these two entities combined,as we believe that this gives the most representative illustration for the total population of our UKcorporate employees.The data on the following pages does not include the 2,355 IHG employees working across our ownedand leased hotel estate in the UK. This estate includes three hotels that employ more than 250 colleagues– the Kimpton Fitzroy London, Principal Hotel Manchester and The Principal Grand Central Hotel. Each ofthese hotels has reported their respective gender pay gap data separately. The remaining hotels do notreport their gender pay gap, as their employee population is fewer than 250 people.If data for this group of 2,355 IHG employees were included in addition to IHG's corporate population of770 people, our mean and median gender pay gaps would have been 21.2% and -4.0% respectively.About IHG400,000 100 770people work across IHG brandedhotels and corporate officescountriesUK corporate employees as at5 April 2019IHG 2019 UK Gender Pay Gap ReportThe Gender Pay Gap is different to Equal PayThe gender pay gap is not the same as equalpay. The gender pay gap measures thedifference in average hourly pay betweenwomen and men. Equal pay measures whatwomen and men are paid for doing the samework or similar work of equal value.2

Our UK Gender Pay GapGender pay gap(mean and median)Percentage difference betweenthe mean and median hourlypay of men and womenMean36.0%(2018:39.2%)Gender bonus gap(mean and median)Percentage difference betweenthe mean and median bonuspay of men and womenMeanProportion of men and womenreceiving bonuses90.7% (2018:44.6%)Explaining our UK gender pay and bonus gapsWe have seen an improvement in our meangender pay and bonus gaps, which now standat 36% and 64% respectively. These figures areexplained by:The higher proportion of men than women in thetop quartile of our business:The top quartile of our corporate UK populationcomprises more men than women. It is also madeup primarily of UK-based EC, their direct reports,and their senior teams, where there is a widerrange in mean hourly pay compared to the otherquartiles. The analysis on page 4 provides moredetail on this.Length of service in role impacting pay:Newly promoted employees typically earn lowersalaries than those who have been in role for alonger period.(2018:96.3%)MenWomenIHG 2019 UK Gender Pay Gap ReportMedian(2018:94.6%)Proportion of men and womenreceiving bonuses:As outlined in our previous two UK Gender PayGap Reports, there is no discernible differencebetween the proportion of men and womenreceiving bonuses.3

Our UK Gender Pay GapOur data split by quartileProportion of men andwomen in each quartileof our pay structureTopUpper middleLower .9%)56.8%30.7%31.6%69.3% 68.4%To help illustrate how a higher proportion ofmen in the top quartile of our corporate UKemployee population influences our gender paygap, we have gone beyond legislativerequirements to conduct a further analysis on thegap for each quartile.This analysis shows that our mean gender pay gapof 36% overall is driven primarily by 67.9% malerepresentation in the top quartile of our corporateUK employee population. In this particular quartilethe mean gap is 11.5%.In the remaining three quartiles where there iseither a balanced number of females and males ora higher representation of females, the respectivemean gender pay gaps are 3.3% or less.Gender pay gap(mean and median)Percentage difference betweenthe mean and median hourly payof men and :-0.9%)(2018:4.1%)(2018:18.1%)1.1%(2018:8.0%)IHG 2019 UK Gender Pay Gap ReportMean3.0%1.0%0.6%-3.7%-7.5%4

How we are addressing our UK Gender Pay GapOur priority is to continue to grow a diverse and inclusiveculture at IHG. We are making good progress with our journeyto help us understand where we can make further changesto attract, develop and retain more diverse talent, includingdriving and recruiting a higher proportion of women into seniorroles. We have a series of long-term initiatives that form animportant part of our plans to do this, and to close ourUK gender pay gap.Building an inclusive cultureWe want to live up to the expectations of allstakeholders, creating consistent policies and practices,and ensuring we make the right inputs to achieve theright outcomes, rather than setting output-based targetsthat drive the wrong behaviours. We openly report onthe progress we are making to create and encourage adiverse and inclusive environment that’s central to thesuccess of our company.In 2018, we formed our Diversity and Inclusion (D&I)Board. It is chaired by our CEO, Keith Barr, with membersthat reflect the diversity of our business. The Boardmeets regularly and its commitments in 2019 includededucating colleagues on conscious inclusion;introducing new global standards for recruitment andintroducing global guidelines for flexible working.We have also put D&I Councils in place that work locallyto roll out key initiatives. The councils represent thevoice of different regions and markets, making sure thatwe engage with colleagues on local priorities and actionareas. In addition, we constantly reinforce theimportance of D&I at IHG, through a series of internalevents and EC-led communications to colleagues.IHG 2019 UK Gender Pay Gap Report5

Growing IHG’s next generation of talentIHG has a number of initiatives in place, that will help us on our journey to attract, develop and retainmore diverse talent, including driving a higher proportion of women into senior roles.AttractingDevelopingRetainingApplication process: To ensure we have access tothe widest and most diverse pool of talent, we makeit easy for people to access and apply for jobs, byrecruiting through a variety of channels, includingnon-traditional sources and social media. We workclosely with our global executive search partners, toensure that talent shortlists are as diverse as possible,including with regards to gender.IHG’s RISE programme: RISE is a 12-month mentoringprogramme designed to encourage aspiring femaletalent to fulfil their ambition to become a hotel GeneralManager. As part of the programme, colleagues aregiven a Mentor and Career Sponsor, who they meet forregular guidance and advice. The programme ensuresthat IHG is able to grow its pool of female role models inhotels across the world. RISE is currently rolling outacross all operating markets.Flexible working: We offer colleagues an environment inwhich they have the room to be themselves, and we knowthat means achieving a balance between work and athome. We encourage all colleagues to discuss flexibleworking arrangements with their teams.Future Leaders: We recruit a balanced number ofwomen and men into our Future Leaders programme,which provides graduate-level talent with theopportunity to work across a range of departmentsat IHG.Third-party collaboration: We recognise theimportance and power of collaboration, and partnerwith organisations who encourage the developmentof female senior leaders, to underline the importanceof D&I as part of our company culture.IHG 2019 UK Gender Pay Gap ReportTalent planning: We maintain a healthy gender balanceas part of our succession planning. Each of IHG’sregions and corporate functions conducts an in-depthtalent review with our CEO, Keith Barr and CHRO, RanjayRadhakrishnan. The purpose of this is to understandhow we can develop future leaders. In 2018, weredesigned our talent process to ensure that we canidentify our most talented people and support them toreach their full potential.Conscious Inclusion: Our EC and their leadershipteams have all undertaken training on consciousinclusion, to help identify ways in which we can helpeveryone to feel a true sense of belonging at IHG. In thecoming year, we will be rolling this training out to allother corporate colleagues and General Managers.Supporting women returning to work after acareer break: We work with industry group Women inHospitality 2020 to recruit females returning to the industry,as well as taking part in mentor-mentee coaching sessionsto give them the best tools to succeed when they returnto work after a career break.Employee Networks: Employee Networks are a seriesof voluntary, colleague-led groups which inspire careerprogression through the sharing of ideas and mentoringopportunities. Globally, there are approximately 1,700members of an Employee Network. One of the mostpopular is Lean In, with 64 women involved in the UK circle,from a network of nearly 400 members around the world.6