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Under legislation that came into force in April 2017, UK employers with more than 250 employees are required to publish their gender pay gap data annually. Klaviyo’s UK footprint has grown rapidly over the last five years and as a result, 2024 is the first year of reporting our gender pay gap results for the UK region. 

Gender pay gap measures the average difference between hourly pay of men and women in Klaviyo’s UK population, regardless of the roles that they perform. It is not the same as an equal pay comparison, which directly compares the pay of two or more people carrying out the same jobs, similar jobs or work of equal value. This calculation focuses purely on pay differences and doesn’t take into account factors like job function, complexity, level, or other variables.

The calculations make use of two types of averages:

• A mean average involves adding up all of the numbers and dividing the result by how many numbers were on the list. This average places the same value on every number and so can be easily distorted by a small number of very high or low earners.
• A median average involves listing all of the numbers in numerical order and taking the middle number. This indicates what the ‘typical’ situation is, as extremes of low and high pay do not affect the median.

Employers are required to publish the overall mean and median gender pay gaps, the difference in mean and median bonus payments paid to men and women, the proportion of male and female employees that received a bonus, and the gender distribution across the pay quartiles.

Taken on a snapshot date of 5 April 2024, results are split into the following categories:

• Ordinary pay (salary, leave, allowances) paid within the pay period of the snapshot date
• Bonus payments (actual commission, cash bonus, equity vesting payments) made in the 12-month period leading up to the snapshot date
• Percentage of employees who received a Bonus Payment
• The distribution of pay between genders by pay quartile* across the organization.
  • *Pay quartiles are as follows:
  • A. Lowest paid to lower quartile – the point below which 25% of the recorded salaries fall
  • B. Lower quartile to median – The 26th percentile through the mid-point (50th percentile)
  • C. Median to upper quartile – The point above 50th percentiles, and below 75% of the recorded data
  • D. Upper quartile to highest paid – The point above the 75th percentile to the top recorded salary

The Results

The Numbers

Mean Hourly Pay Rates

The mean hourly rates are currently favouring male employees by 1.57%. This is below the national mean favouring males of 13.9% according to the Office for National Statistics, 2022.

Median Hourly Pay Rates

The median hourly rates are currently favouring male employees by 6.45% which is again lower than the national median favouring males of 14.3% according to the Office for National Statistics, 2023.

Bonus Participation

From the chart, we can see a similar proportion of male and female employees are receiving a Bonus. The majority of our UK site is in the Go-to-Market function, and in a commissions-based role, which explains the Bonus participation similarities.

Bonus Payments

The mean Bonus gap at Klaviyo is currently favouring male employees by 25.46%, reversing at the median in favour of female employees by 14.42%. This indicates that the data set is skewed, with a wider range in the Bonus amounts found in the male data set (n = 125) compared to a slightly smaller female data set (n = 117) who are in receipt of Bonuses.  

Pay Quartiles

When we observe the distribution of female and male employees within the quartiles, as shown in the bar chart, we see that female employees are well represented across the pay quartiles, except the highest quartile D(Q4) where females are more underrepresented.