International Distributions Services : RMG GPG 2023 final

ROYAL MAIL GROUP LTD 2023 GENDER PAY REPORT

INTRODUCTION

Royal Mail Group Ltd is a leading employer in the UK, with around 130,000 employees. We are proud to champion gender equity and inclusion and are focused on attracting, retaining, and developing talent at all levels of the organisation. Our Diversity, Equity and Inclusion vision is to be the employer of choice for

a diverse workforce, building an equitable, inclusive, and accessible culture where our colleagues, customers and communities are enabled to thrive and belong.

This allows us to align more closely, demographically, to the communities and societies the employees of Royal Mail serve on a daily basis.

Our annual Gender Pay Gap (GPG) report continues to compare favourably to the UK average and shows that the mean salaries paid to men and women are broadly similar with small year on year movements to narrow this small gap.

ACTIONS TO ADDRESS THE GAP

Women have historically been underrepresented in our industry, particularly in operational roles. Despite this, we have made a commitment which aims to increase our representation of women in all roles to 25% by 2025, and to 33% for senior leaders. Female representation1 in our UK operational workforce is currently at 19% and 26% of our senior managers are women, with continued focus on increasing representation across the business.

As part of our objective to attract more female candidates, we continued to drive our "For the People" media campaign, featuring increased representation specifically with a focus on our frontline roles.

We have an internal leadership programme called Diamonds, aimed at developing a community of high performing leaders to lead the transformation of Royal Mail and shine in their own leadership careers. The programme is the first of its kind and includes a significant number of female leaders from across the business.

Our partnership with Everywoman has been instrumental in our ambition to attract, retain, and develop our female talent pipeline. It gives colleagues access to the crucial

training and development required to enable them to own and drive their careers, giving them confidence to pursue opportunities within the business.

We are proud to have been listed as one of The Times Top 50 Employers for Gender Equality 2023 for our commitment to addressing gender inequalities in the workplace. Run by Business in the Community (BITC), it is the UK's most highly profiled and well-established listing of employers making gender equality a key part of their business strategy at all levels.

Our Women and Allies Employee Resource Group continues to provide safe spaces to women at Royal Mail and engages allies on how to support the attraction and progression of women. We launched new regional and divisional chapters in areas such as Parcelforce and have launched a mentoring programme to support female leaders within the business unit. We will continue to define and amplify new opportunities for internal and external pipelines. We will develop our leaders and colleagues across the business, enabling them with skills and knowledge on how to build an inclusive culture for colleagues.

OUR GENDER PAY GAP CALCULATIONS (SCOPE)

Our GPG shows the differences in pay between men and women, and the distribution of men and women in each pay quartile. It has been prepared in line with Government guidelines and is based on rates of pay as at 5 April 2023. The bonus gap is based on bonuses paid in the 12 months to 5 April 2023.

These calculations cover Royal Mail and Parcelforce. Separate reports for Royal Mail Property & Facilities

Solutions Ltd and Angard Staffing Solutions are available on their respective websites.

We recognise that not all colleagues identify as male or female and take our responsibility towards our non-binary and gender-fluid colleagues seriously. Whilst our data only currently allows us to calculate GPG for the two categories 'male' and 'female', we actively support our colleagues of all gender identities.

1 Female representation as at April 2023.

OUR TOTAL PAY GAP

The total average pay for male and female employees continues to be broadly similar, with minimal change in the gap compared to last year (0.1%). This is expected due to the considerable volume of operational roles where pay is collectively negotiated. On a mean basis, men are paid 1.5% more than women and 2.6% on a median basis. This compares to a national gender pay gap of 14.3% (Office for National Statistics November 2023).

Median statistics are influenced by the high number of frontline operational roles which vary year on year due to factors which include the number of part time employees andovertime levels.

	Total Pay Gap
	April 2023	April 2022
Mean	1.5%		1.4%
Median	2.6%		3.1%

Pay quartile analysis

As operational roles form around 94% of our workforce, our upper quartile is primarily made up of such roles, however we have seen a reduction of 2% in female representation which is impacted by a number of female leavers. We continue to focus on increasing the proportion of women in our operational roles and 26% of hires during 2023 into these roles were women.

Pay quartiles

Upper		85%			15%
Upper Middle
	80%			20%
Lower Middle
	81%			19%
Lower
	76%			24%
			Male			Female

OUR BONUS GAP

Our mean Bonus Gap increased in 2023 and remains in favour of women which is influenced by a higher ratio of women in bonus eligible managerial roles where bonuses make up a larger proportion of pay.

We continue to pay a bonus to the majority of our employees (98.7% of men and 97.7% of women).

Bonus gap

Proportion receiving a bonus

	April 2023	April 20222
Mean	-16.9%	-9%
Median	1.6%	0%

	April 2023	April 2022
Male	98.7%	97.4%
Female	97.7%	95.6%

Declaration

I confirm that the data and information contained in this report is accurate.

Martin Seidenberg

Chief Executive Officer of International Distributions Services plc

2 Bonus gap data for 2022 has been restated due to an error in published numbers.