Gender Pay Gap Reporting

In April 2018 UK companies with more than 250 employees were required to report on their gender pay gap. This involves carrying out six calculations that show the difference between the average earnings of men and women in our organisation. The data is taken from a snapshot date of 5 April 2017.

At Build-A-Bear Workshop, our Mission is to ‘add a little more Heart Illustration to life.’ As such, our Core Values put people at the heart of what we do. This is one of the reasons Build-A-Bear Workshop had been recognised as The Sunday Times 100 Best Companies to Work for the last three consecutive years. We are committed to treating everyone fairly, irrespective of their background, and give opportunities for development based on performance.

The Gender pay analysis results:

23.11% Mean (Average) gender pay gap
16.2% Median (Mid-range) gender pay gap

One key reason for the gender pay gap is a higher proportion of male representation in our small senior leadership team at head office, which was 20% female and 80% male. Since the April 2017, snapshot date range for the analysis, we have increased our representation of females in senior leadership positions, which now stands at 40% female and 60% male.

Our parent company’s Board of Directors based in North America has 50% female representation and 50% male representation, and it’s President and CEO is female.

Our largest proportion of employees are Bear Builders (Sales Assistants) that had a 2.4% mean gender pay gap. This group of employees accounted for 75% of total headcount. The gender split of Bear Builders stood at 86% female and 14% male.

All Bear Builders are paid consistently based upon pay ranges, irrespective of gender. The reason for the 2.4% differential is due to following national minimum wage guidance and market location rate differentials.

Pay quartiles:

Band Females Males
Upper Quartile 82% 18%
Upper Middle Quartile 83% 17%
Lower Middle Quartile 89% 11%
Lower Quartile 86% 14%

To put the pay quartiles into context, the total headcount across the organisation stood at 85% female and 15% male. Therefore females represented a large proportion of all the pay quartiles.

The Gender Bonus pay analysis results:

The gender split of employees who received a bonus is:

17% of females received a bonus
19% of males received a bonus

The difference in bonus pay:

47.52% Mean (Average) gender pay gap
6.38% Median (Mid-range) gender pay gap

The bonus calculation has a large variance in the average, because only certain job roles were eligible for a bonus. However, the calculation needs to be carried out across all employees – irrespective if they received a bonus.

To provide further context, 25% of employees received a bonus, and the 75% of employees that do not receive a bonus are Bear Builders. Bear Builders are the larger proportion of the workforce and they are eligible for alternative incentives, which are; a team recognition fund and an additional day’s pay.

We are aware our core customer facing employees, Bear Builders, are predominantly female, but this analysis has highlighted the significant variance. We know this pattern is mirrored across the retail industry at large, but specifically is more notable at Build-A-Bear Workshop, as our brand is generally a more attractive place of work for females due to their familiarity with our brand.

Our challenge is to increase the number of male Bear Builders and to encourage increased representation of females in leadership roles. The way in which we aim to increase the number of female leaders is by working closely with our female employees on their development plans in order to identify our future leaders. This whole process is imbedded within our annual performance review programme. Additionally, we plan to increase the number of male employees in our Bear Builder positions by having more targeted recruitment initiatives in order to balance our representation of males and females across all levels.