People Count Third Sector 2017

Transcription

1 People Count Third 2017 HR and Workforce Benchmarks for the Third Volume 2.1 Composition of Workforce and Diversity August

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3 FOREWORD Much has changed since the previous People Count study, both in the political environment and the voluntary sector itself, but in some regards meaningful progress has been lacking. So far the Brexit process has not done much to allow workforce planning to go ahead with any degree of certainty. The right to stay of European nationals working in the UK is still up in the air, as are the future processes for recruitment of skilled individuals from Europe. This will potentially cause considerable challenges for individual charities and, where a significant proportion of the workforce have traditionally come from the EU, even entire sectors in which UK charities operate, such as health and social care. While the country waits for representatives on both sides of the Brexit negotiations to reach a comprehensive agreement, charities must do their best to ensure they have solid strategies in place that help them create a positive and productive working environment for current staff. Now is as good a time as ever to revise your overall HR strategy, create meaningful learning and development opportunities, and establish a fair rewards system. But above all, this strategy must strike a fine balance between encouraging and supporting employees to achieve the best results for the charity s beneficiaries, and living up to the sector s values of respect and fairness by allowing them to do so in a sustainable way. I would encourage anyone working in HR or workforce planning to also look at the new Charity Governance Code, the major new edition of the sector-led publication which sets out the standards of governance charities should aspire to. HR professionals can do much to support their organisations boards to meet the code s recommendations. Boards will look to HR for support in creating the positive workplaces: The code sets out basic principles such as integrity and diversity which must underpin all areas of work, and also provides more concrete guidelines concerning processes for handling internal complaints or setting the remuneration of senior staff. You can find the code at For the first time the code includes a dedicated section on diversity. In light of some of the figures contained in this report, it strikes me that this is an area where there is a clear need for further attention, not just at board level but also within staff teams. The sector does well on some aspects: For example, 68% of management employees in the sector are female, compared to 43% of management employees in the UK population as a whole. But this remains a smaller proportion than that of women in respondents workforces overall, at 73%. Importantly, employees from an ethnic minority background are still less likely to reach management level than their non-ethnic colleagues. There is no one simple solution to this, but I hope that we can all focus on identifying and removing any barriers to equal employment and progression within our organisations and the sector as a whole. Anyone who has worked in the sector for some time knows how challenging it can be to bring about change in the world. Sometimes, bringing about changes internally can be just as difficult. Yet so many organisations have proven time and again their desire to continually improve not just the world around them, but also themselves. This is why I am grateful for tools like this benchmarking study which allow us to identify instances of best practice, learn from each other and grow as a community. Sir Stuart Etherington Chief Executive National Council for Voluntary Organisations 1

4 CONTENTS FOREWORD INTRODUCTION WHY PARTICIPATE IN PEOPLE COUNT? KEY FINDINGS MEASURES LIST OF MEASURES GENERAL INFORMATION COMPOSITION OF WORKFORCE AND DIVERSITY GOOD PRACTICE ANNEX A: DEFINITION OF MEASURES ANNEX B: METHODOLOGY AND SAMPLE

5 1 INTRODUCTION People Count Third 2017 This report People Count Third 2017: Volume 2.1 Composition of Workforce and Diversity is based on findings from the People Count Third 2017 Benchmarking Study. People Count is a Human Resource benchmarking study specifically tailored to the needs of the UK Third. The study involved benchmarking the HR processes of 67 Third organisations in the UK (Annex B sets out the list of participants). The study was undertaken by Agenda Consulting in partnership with the Association of Mental Health Providers, the Charities HR Network, CHS Alliance, Hospice UK, the National Council for Voluntary Organisations, the National Union of Students and Voluntary Organisations Disability Group. The aim is to build a picture of the HR management processes of Third organisations in the UK to enable participants to compare their performance with each other and to pinpoint their strengths and areas for development. Information in the study corresponds to activities and resources in the most recent complete financial year for which organisations have the required information; in most cases, this will be the financial year This report focuses on measures from the People Count Third 2017 study relating to composition of the workforce and diversity. The report is organised into the following chapters: Chapter 2 Why Participate in People Count? describes the benefits of participating in the study as experienced by previous participants Chapter 3 Key Findings: sets out the key findings from the study on the topic of workforce composition and diversity. Chapter 4 Measures: sets out, for each numerical measure, a detailed results table. The good practice section sets out the initiatives that participants have taken in the last year. Annex A Definitions of Measures: sets out the formulae used to calculate each measure in the report. Annex B Methodology and Sample: describes the sample in detail and the way in which we have analysed and presented the data. Publications in the People Count Third 2017 study The following publications are available from our website: Volume 2.1 Composition of Workforce and Diversity Volume 2.2 Recruitment, Selection and Retention Volume 2.3 Learning and Development and Performance Management Volume 2.4 Absence Management Volume 2.5 Employee Relations and Reward Strategy Volume 2.6 The HR Function 3

6 2 WHY PARTICIPATE IN PEOPLE COUNT? W e hope that you find this report valuable and that it provides you with useful benchmarking information against which to compare your own organisation. If so, we encourage your organisation to participate in the People Count Study in the future, which involves completing the Study questionnaire in respect to your own organisation. Participating in the People Count Study itself is by far the best way to gain the most benefit, both in the quality and breadth of the information you receive and cost effectiveness. In short, you pay less and get far, far more. By taking part your organisation enjoys a significant number of benefits which are not available to non-participants: Wide Reports every report containing the sector-wide results from all participants in the study is included. Your Own Organisation Scorecard a detailed comparison of your organisation s performance against your chosen peers on all measures in the study. Access to a suite of online tools to examine your performance in more detail and illustrate your performance graphically. Ability to track your performance over time. One-to-One Telephone Consultation with one of our team to help get the most out of the reports. Access to Contacts from each participating organisation to share information and best practice. Invitation to a Results Conference and Product Training providing the opportunity to learn more about using all the reports effectively and to network with colleagues from other participating organisations. To find out more about the study and how to participate, go to contact caroline.oates@agendaconsulting.co.uk or call Agenda Consulting on

7 3 KEY FINDINGS In this section we set out some of the key findings in relation to the composition of workforce and diversity. These key findings do not cover all of the measures in these topics. Please see sections 4.1 to 4.3 for the full detailed statistics tables for all measures and section 4.4 for the good practice material. Management and spans of control On average, management employees make up 16% of all employees. For a quarter of respondents this was 9.9% or less and for a quarter of organisations it was 25% or more (table 2.2). The average span of control (i.e. the average number of direct reports) for Senior Managers / Directors is 5.0, the lower quartile is 4.0 or less and the upper quartile is 6.0 or more (table 2.2.1). The average span of control for managers is 5.9 and there is a large range as the lower quartile is 3.0 and the upper quartile is 8.8 (table 2.2.2). Flexibility On average 5.7% of employees are on temporary or fixed-term contracts, which is the same as 2016 (5.7%) and very similar to 2015 (5.0%), (table 2.8). At median 31% of employees in participant organisations are part time workers, showing little change since 2016 (32%). Like last year, there is a significant range here: a quarter of organisations have a figure of 19% or less and a quarter have a figure of 52% or more. For the UK workforce as a whole, on average 20% of employees work part time (CIPD, 2014) (table ). On average 13% of management employees are part time workers, whereas for non-management employees the average is 34%. The median for female employees who work part time is 41%, which is considerably higher than the proportion of male employees (16%); in 2016, these figures were similar (35% and 18% respectively) (tables and ). Volunteers The median number of volunteers per 1,000 employees (FTE) is 268 (table 2.24). The range here is significant: for a quarter of organisations, the figure is 40 or lower and for a quarter it is 1,730 or more. Gender Women make up 73% of respondents workforces, showing no change from 2016 or 2015 (table ). On average, 68% of management employees, and 60% of the Senior Management Team, are women. This represents an increase on the figures for People Count 2016, where 59% of management employees and 50% of the Senior Management Team, were female. Returning towards the 2015 figures where 69% of management employees and 56% of the Senior Management Team were women (tables 2.10 and 2.27). The figure for the UK as a whole is significantly lower: in 2013, only 43% of management employees were female (CIPD, 2014). In 45% of respondent organisations, there is a female Chief Executive - this has risen from 40% in 2016 and from 32% in 2015, so continues its upward trend (table 2.29). Ethnicity Employees from an ethnic minority make up on average 11% of respondents workforce, very similar to 2016 and 2015 (table ). The figure for management employees is 7.8%, so a slight rise from 2016 (6%) (table 2.12). For SMT there is considerable variation between participants. Whilst over half the sample have nobody from an ethnic minority on their SMT, a quarter have a figure of 14% or more. Disability Employees with a disability represent 3.0% of respondents workforce, higher than the 2016 (2.2%) and 2015 (2.3%) figures (table 2.21). 5

8 Sexuality The percentage of employees who are LGBTQ is 5.9%, this is a new question and so there are no previous results to compare it to (table 2.30). Age The Third employs fewer people at each end of the age range: on average 4.7% of respondents workforce are aged The figure for those over 65 is 1.4% (tables 2.15 and 2.20). The average age of employees among respondent organisations is 42 years (table ). These figures are very similar to the 2016 results. 6

9 4 MEASURES This section sets out the detailed statistics tables for all measures in the composition of workforce and diversity topic as well as some general information about the sample. Where the measure is numerical, a standard format has been applied. The columns used are: responses: this is the number of organisations that answered the relevant questions, as not all of the 67 participating organisations answered each question. 10%: this is the value below which 10% of the distribution lies. is the value below which 25% of the distribution lies, or, equivalently, above which 75% of the sample lies. is the value below which and above which 50% of the distribution lies. is the value below which 75% of the distribution lies, or, equivalently, above which 25% of the sample lies. 90%: this is the value below which 90% of the distribution lies. Where the measure is multi choice e.g. Yes/No, we have reported the percentage of participants with each answer. The statistics are calculated for the following rows in each table: Whole sample: based on the answers from all participants. Under 100: based on the answers from those participants with less than 100 employees : participants with employees : participants with employees ,000: participants with 501-1,000 employees. Over 1,000: participants with over 1,000 employees. s: based on answers from those participants that work in specific sectors. Participants could choose up to three sectors to describe their work. In some cases, percentages may not add up to 100 due to differences in rounding. Measures with fewer than 5 responses are not shown in this report. Similarly, in each table, rows for which there were fewer than 5 responses have been taken out of this report. 7

10 4.1 LIST OF MEASURES Table 1.1 Total income of organisation ( million) Table 1.2 Total expenditure of organisation ( million) Table 1.3 Organisational paybill ( million) Table 1.4 Organisational paybill as a percentage of expenditure Table Average salary per employee (FTE) ( ) Table Analysis of the number of participants by size Table Analysis of the number of participants and percentage of the total for each sector Table 1.6 Location of head office (percentage of respondents for each size/sector) Table 1.7 Nations/regions from which staff are employed (percentage of respondents) Table 2.1 Total number of employees Table Annual change in employee numbers (headcount) Table 2.2 Managers and Senior Managers / Directors as a percentage of all employees (headcount) Table Average span of control for Senior Managers / Directors Table Average span of control for Managers Table 2.3 volunteers Table 2.4 Vacancy level percentage: all employees Table 2.5 Vacancy level percentage: management employees Table 2.6 Vacancy level percentage: non-management employees Table Vacancy level percentage (FTE): all employees Table Vacancy level percentage (FTE): management employees Table Vacancy level percentage (FTE): non-management employees Table 2.7 Percentage of employees on continuous contracts Table 2.8 Percentage of employees on temporary and fixed-term contracts Table 2.9 Casual/bank/zero hours workers expressed as a percentage of total employees Table Flexibility Index: casual/bank/zero hours workers (FTE) as a percentage of the total workforce (FTE) Table 2.10 Percentage of management employees who are female Table 2.11 Percentage of non-management employees who are female Table Percentage of all employees who are female Table 2.12 Percentage of management employees from an ethnic minority Table 2.13 Percentage of non-management employees from an ethnic minority Table Percentage of all employees who are from an ethnic minority Table 2.14 Percentage of employees aged Table 2.15 Percentage of employees aged Table 2.16 Percentage of employees aged Table 2.17 Percentage of employees aged Table 2.18 Percentage of employees aged

11 Table 2.19 Percentage of employees aged Table 2.20 Percentage of employees aged Table Average age of employees Table 2.21 Percentage of employees who are disabled Table 2.24 volunteers (headcount) per 1,000 employees (FTE) Table 2.25 Average length of service (Months) Table Percentage of all employees who are part time workers Table Percentage of management employees who are part time workers Table Percentage of non-management employees who are part time workers.. 34 Table Percentage of female employees who are part time workers Table Percentage of male employees who are part time workers Table 2.27 Percentage of SMT employees who are female Table 2.28 Percentage of SMT employees from an ethnic minority Table 2.29 Does your organisation have a female Chief Executive? Table 2.30 Percentage of employees who are LGBTQ Table Percentage of employees who are of no religion Table Percentage of employees who are Buddhist Table Percentage of employees who are Christian Table Percentage of employees who are Hindu Table Percentage of employees who are Jewish Table Percentage of employees who are Muslim Table Percentage of employees who are Sikh Table Percentage of employees who are of another religion Table Percentage of employees who prefer not to disclose their ethnicity Table Percentage of employees who prefer not to disclose their disability status Table Percentage of employees who prefer not to disclose their sexuality Table Percentage of employees who prefer not to disclose their religion Table Percentage of employees on whom no ethnicity data is held Table Percentage of employees on whom no disability data is held Table Percentage of employees on whom no sexuality data is held Table Percentage of employees on whom no religious data is held Table 2.34 Percentage of all employees who are apprentices

12 4.2 GENERAL INFORMATION Table 1.1 Total income of organisation ( million) Whole Sample Under Over Children/Young People Education/ Training Elderly/Old people Grant making Health care/medical research Hospice Housing International development Mental Health People with disabilities Social care Other Table 1.2 Total expenditure of organisation ( million) Whole Sample Under Over Children/Young People Education/ Training Elderly/Old people Grant making Health care/medical research Hospice Housing International development Mental Health People with disabilities Social care Other

13 Table 1.3 Organisational paybill ( million) Cost of salary, overtime and bonus for all employees excluding employer's NI and pension Whole Sample Under Over Children/Young People Education/ Training Elderly/Old people Grant making Health care/medical research Hospice Housing International development Mental Health People with disabilities Social care Other Table 1.4 Organisational paybill as a percentage of expenditure Whole Sample Under Over Children/Young People Education/ Training Elderly/Old people Grant making Health care/medical research Hospice Housing International development Mental Health People with disabilities Social care Other

14 Table Average salary per employee (FTE) ( ) Whole Sample 67 22,955 25,894 29,861 37,565 44,889 Under ,818 29,338 35,757 40,135 48, ,314 28,448 31,708 42,378 47, ,035 25,729 37,270 38,208 39, ,857 26,788 29,087 32,483 34,756 Over ,085 23,806 25,650 29,593 35,027 Children/Young People 12 27,751 27,779 29,223 37,443 38,225 Education/ Training 8 21,749 24,508 27,498 33,653 47,957 Elderly/Old people 5 26,738 27,778 32,641 33,029 37,177 Grant making 5 28,716 30,965 35,757 39,617 48,721 Health care/medical research 13 26,432 29,338 30,775 37,879 49,257 Hospice 5 26,112 27,984 29,841 30,023 34,736 Housing 8 25,580 25,740 29,618 33,947 38,247 International development 10 25,920 37,443 38,246 46,724 51,881 Mental Health 8 22,474 24,710 27,506 29,953 32,192 People with disabilities 23 22,114 25,394 27,233 30,638 32,951 Social care 25 21,641 24,381 27,233 30,965 32,931 Other 8 26,366 28,786 34,586 44,064 47,957 Table Analysis of the number of participants by size % of Whole Whole Sample Under Over

15 Table Analysis of the number of participants and percentage of the total for each sector al analysis: please note percentages will not add up to 100 because each organisation can choose up to three sectors % of Whole Whole Sample Animal Welfare 1 1 Arts/Culture 0 Children/Young People Civil rights/citizenship/law and Order 1 1 Economic/Community development/employment 3 4 Education/ Training 8 12 Elderly/Old people 5 7 Environment/Conservation 4 6 Grant making 5 7 Health care/medical research Heritage 0 Hospice 5 7 Housing 8 12 International development Mental Health 8 12 People of a particular ethnic or racial origin 1 1 People with disabilities Religious/Missionary 2 3 Social care Sport/Recreation 1 1 Students' Union 0 Umbrella body/trade association 3 4 Other

16 Table 1.6 Location of head office (percentage of respondents for each size/sector) Whole Sample Scotland Wales N. Ireland London South East East of England Under Over Scotland Wales N. Ireland London South East East of England Children/Young People Education/ Training Elderly/Old people Grant making Health care/medical research Hospice Housing International development Mental Health People with disabilities Social care Other Whole Sample East Midlands West Midlands South West Yorkshire and Humberside North East North West Overseas Under Over

17 East Midlands West Midlands South West Yorkshire and Humberside North East North West Overseas Children/Young People Education/ Training Elderly/Old people Grant making Health care/medical research Hospice Housing International development Mental Health People with disabilities Social care Other Table 1.7 Nations/regions from which staff are employed (percentage of respondents) Scotland Wales N. Ireland London South East East of England Whole Sample Under Over Children/Young People Education/ Training Elderly/Old people Grant making Health care/medical research Hospice Housing International development Mental Health People with disabilities Social care Other

18 East Midlands West Midlands South West Yorkshire and Humberside North East North West Overseas Whole Sample Under Over Children/Young People Education/ Training Elderly/Old people Grant making Health care/medical research Hospice Housing International development Mental Health People with disabilities Social care Other

19 4.3 COMPOSITION OF WORKFORCE AND DIVERSITY Table 2.1 Total number of employees Whole Sample ,742 Under Over ,105 1,408 1,629 2,636 4,334 Children/Young People ,421 Education/ Training ,108 2,552 Elderly/Old people ,096 1,948 Grant making ,253 Health care/medical research ,476 Hospice Housing ,215 3,193 International development Mental Health ,204 1,964 People with disabilities ,842 4,013 Social care ,730 3,759 Other ,072 Table Annual change in employee numbers (headcount) Whole Sample Under Over Children/Young People Education/ Training Elderly/Old people Grant making Health care/medical research Housing International development Mental Health People with disabilities Social care Other

20 Table 2.2 Managers and Senior Managers / Directors as a percentage of all employees (headcount) Whole Sample Under Over Children/Young People Education/ Training Elderly/Old people Grant making Health care/medical research Hospice Housing International development Mental Health People with disabilities Social care Other Table Average span of control for Senior Managers / Directors Whole Sample Under Over Children/Young People Education/ Training Elderly/Old people Health care/medical research Housing International development Mental Health People with disabilities Social care Other

21 Table Average span of control for Managers Whole Sample Under Over Children/Young People Education/ Training Elderly/Old people Grant making Health care/medical research Housing International development Mental Health People with disabilities Social care Other Table 2.3 volunteers Whole Sample ,160 Under ,115 3, Over ,150 13,810 Children/Young People ,315 14,965 Education/ Training ,044 1,120 Elderly/Old people ,200 7,752 21,701 Health care/medical research ,170 5,172 Hospice ,102 Housing International development Mental Health People with disabilities ,000 7,752 Social care ,900 Other ,019 19

22 Table 2.4 Vacancy level percentage: all employees Whole Sample Under Over Children/Young People Education/ Training Health care/medical research Hospice Housing International development Mental Health People with disabilities Social care Other Table 2.5 Vacancy level percentage: management employees Whole Sample Under Over Children/Young People Education/ Training Health care/medical research Hospice Housing International development Mental Health People with disabilities Social care Other

23 Table 2.6 Vacancy level percentage: non-management employees Whole Sample Under Over Children/Young People Education/ Training Health care/medical research Hospice Housing International development Mental Health People with disabilities Social care Other Table Vacancy level percentage (FTE): all employees Whole Sample Under Over Children/Young People Education/ Training Health care/medical research Hospice Housing International development Mental Health People with disabilities Social care Other

24 Table Vacancy level percentage (FTE): management employees Whole Sample Under Over Children/Young People Education/ Training Health care/medical research Hospice Housing International development Mental Health People with disabilities Social care Other Table Vacancy level percentage (FTE): non-management employees Whole Sample Under Over Children/Young People Education/ Training Health care/medical research Hospice Housing International development Mental Health People with disabilities Social care Other

25 Table 2.7 Percentage of employees on continuous contracts Whole Sample Under Over Children/Young People Education/ Training Grant making Health care/medical research Hospice Housing International development Mental Health People with disabilities Social care Other Table 2.8 Percentage of employees on temporary and fixed-term contracts Whole Sample Under Over Children/Young People Education/ Training Grant making Health care/medical research Hospice Housing International development Mental Health People with disabilities Social care Other

26 Table 2.9 Casual/bank/zero hours workers expressed as a percentage of total employees Whole Sample Under Over Children/Young People Education/ Training Grant making Health care/medical research Hospice Housing International development Mental Health People with disabilities Social care Other Table Flexibility Index: casual/bank/zero hours workers (FTE) as a percentage of the total workforce (FTE) Whole Sample Under Over Children/Young People Education/ Training Health care/medical research Housing International development People with disabilities Social care Other

27 Table 2.10 Percentage of management employees who are female Whole Sample Under Over Children/Young People Education/ Training Grant making Health care/medical research Hospice Housing International development Mental Health People with disabilities Social care Other Table 2.11 Percentage of non-management employees who are female Whole Sample Under Over Children/Young People Education/ Training Grant making Health care/medical research Hospice Housing International development Mental Health People with disabilities Social care Other

28 Table Percentage of all employees who are female Whole Sample Under Over Children/Young People Education/ Training Grant making Health care/medical research Hospice Housing International development Mental Health People with disabilities Social care Other Table 2.12 Percentage of management employees from an ethnic minority Whole Sample Under Over Children/Young People Education/ Training Grant making Health care/medical research Housing International development Mental Health People with disabilities Social care Other

29 Table 2.13 Percentage of non-management employees from an ethnic minority Whole Sample Under Over Children/Young People Education/ Training Grant making Health care/medical research Housing International development Mental Health People with disabilities Social care Other Table Percentage of all employees who are from an ethnic minority Whole Sample Under Over Children/Young People Education/ Training Grant making Health care/medical research Housing International development Mental Health People with disabilities Social care Other

30 Table 2.14 Percentage of employees aged Whole Sample Under Over Children/Young People Education/ Training Grant making Health care/medical research Hospice Housing International development Mental Health People with disabilities Social care Other Table 2.15 Percentage of employees aged Whole Sample Under Over Children/Young People Education/ Training Grant making Health care/medical research Hospice Housing International development Mental Health People with disabilities Social care Other

31 Table 2.16 Percentage of employees aged Whole Sample Under Over Children/Young People Education/ Training Grant making Health care/medical research Hospice Housing International development Mental Health People with disabilities Social care Other Table 2.17 Percentage of employees aged Whole Sample Under Over Children/Young People Education/ Training Grant making Health care/medical research Hospice Housing International development Mental Health People with disabilities Social care Other

32 Table 2.18 Percentage of employees aged Whole Sample Under Over Children/Young People Education/ Training Grant making Health care/medical research Hospice Housing International development Mental Health People with disabilities Social care Other Table 2.19 Percentage of employees aged Whole Sample Under Over Children/Young People Education/ Training Grant making Health care/medical research Hospice Housing International development Mental Health People with disabilities Social care Other

33 Table 2.20 Percentage of employees aged 65+ Whole Sample Under Over Children/Young People Education/ Training Grant making Health care/medical research Hospice Housing International development Mental Health People with disabilities Social care Other Table Average age of employees Whole Sample Under Over Children/Young People Education/ Training Grant making Health care/medical research Hospice Housing International development Mental Health People with disabilities Social care Other

34 Table 2.21 Percentage of employees who are disabled Whole Sample Under Over Children/Young People Education/ Training Grant making Health care/medical research Housing International development Mental Health People with disabilities Social care Other Table 2.24 volunteers (headcount) per 1,000 employees (FTE) Whole Sample ,730 6,206 Under , , ,446 3,885 12, ,239 Over ,212 9,441 Children/Young People ,767 11,049 Education/ Training ,978 11,094 Elderly/Old people ,220 2,622 3, ,734 Health care/medical research ,843 4,215 19,340 Hospice 5 2,527 3,245 4,215 4,686 5,826 Housing International development Mental Health ,071 People with disabilities ,220 13,695 Social care ,342 Other ,369 32

35 Table 2.25 Average length of service (Months) Whole Sample Under Over Children/Young People Education/ Training Elderly/Old people Grant making Health care/medical research Housing International development Mental Health People with disabilities Social care Other Table Percentage of all employees who are part time workers Whole Sample Under Over Children/Young People Education/ Training Grant making Health care/medical research Hospice Housing International development Mental Health People with disabilities Social care Other