Gender Pay Gap Report 2017

Transcription

1 Gender Pay Gap Report 2017 Introduction Regulations in force from April 2017 under the Equality Act 2010 require employers of 250 or more employees to report their gender pay gap on an annual basis. For public bodies the duty is to provide an annual gender pay gap submission on the snapshot date of 31 st March with a deadline of submission to the government s viewing website by the 30 th March the following year. The gender pay gap submission is comprised of the following datasets along with an accompanying narrative on the findings of the gender pay gap: Difference in mean hourly rate of pay (%) Difference in median hourly rate of pay (%) Difference in mean bonus pay (%) Difference in median bonus pay (%) Percentage of employees who received bonus pay (male/female %) Employees pay by upper, upper-middle, lower-middle and lower quartiles (%) More information regarding Gender Pay Gap reporting can be found on the NHS Employers website; where there further links to guidance from Capsticks and ACAS. Trust gender background From the Trust s Equality and Diversity Annual Report ( using data as at 31 st March 2017, the gender split of the 4,125-strong workforce was 78% female and 22% male, a split that remained consistent with 2016 whereby 77% of the workforce were female and 23% male. This was also broadly similar with the gender profile of the NHS as a whole where female employees comprise three quarters of the workforce. At the Trust the majority, at 86.6%, of employee s pay is determined by the national Agenda for Change (AfC) pay and conditions with 12.8% of staff on medical & dental pay contracts and 0.6% of staff on local pay scales including Very Senior Managers (VSM). The national Agenda for Change pay system uses the Job Evaluation Scheme to allocate posts to set pay bands and are determined on the criteria and merits of the job making no reference to postholders or their gender.

2 The Trust s gender profile across the Agenda for Change pay bands shows parity across the genders at the lower and higher pay bands only, e.g. 30.5% of females colleagues employed at Band 2 compared with 28% of male colleagues and 3.2% of female staff compared to 2.9% of male staff employed at Band 8a. Table 1 Gender proportioning across AfC pay bands (Equality and Diversity Annual Report ) Female Male Female Male Band % 28.0% Band % 13.8% Band % 10.8% Band % 9.1% Band % 10.8% Band % 15.2% Band % 3.7% Band 8a % 2.9% Band 8b % 3.5% Band 8c % 1.2% Band 8d % 0.6% Band % 0.5% The Trust s largest staff group, Nursing & Midwifery, comprising of over a quarter of the total workforce at 27% and carrying a 91% to 9% female gender split is typically paid on Agenda for Change pay at bands 5 and above. The Medical & Dental staff group makes up less than half of the total workforce than that of Nursing & Midwifery at 13%, yet holds almost an even gender split with 53% of medical staff being female. Gender Pay Gap calculations The following Gender Pay Gap analyses have been produced from the national HR/Payroll system, Electronic Staff Record (ESR), using a centrally written Business Intelligence (BI) dashboard for each of the required metrics. The data this produced was then manipulated locally to account for any reporting inconsistencies and niche payments. Work was also completed between the Workforce Information Manager and the Payroll Manager to identify the correct local and national pay elements used at the Trust and ensure these are in line with the Gender Pay Gap reporting guidance. Ordinary pay analyses (i.e. non-bonus pay) comprise of Full Pay Relevant Employees who are identified as being employed on the snapshot date (31 st March 2017) and are paid their usual full basic pay or piecework pay for the pay period in question. Those employees on

3 reduced pay during the relevant pay period as a result of being on leave are not classed as Full Pay Relevant Employees and are omitted from the report. The analyses include both monthly (substantive) and weekly (bank) paid employees with weekly paid employee pay calculated using an average of the hours worked over twelve weeks omitting any unworked weeks going back up to twelve months from the snapshot date. Employees with multiple assignments have their pay and hours combined together to produce a single hourly rate. Bonus pay calculates all bonus pay over a 12-month period ending at the snapshot date and includes all staff regardless of whether they are a Full Pay Relevant Employee or not. Gender Pay Gap Reporting 1. Difference in hourly rate of pay mean and median Gender Avg. Hourly Rate Median Hourly Rate Male Female Difference Pay Gap % 22.62% 15.75% The table above shows there is just over a 5 average hourly rate difference between male and female staff which represents a 22.62% pay gap in favour of male staff at the Trust. The gender pay gap is reduced when using the median hourly rate of rate of pay by ordering hourly pay rates from highest to lowest and selecting the middle or average of the middle two pay rates. This results in a 2.89 hourly pay difference and a pay gap of 15.75% in favour of male staff. To fully understand the reason for the pay gap an analysis must be performed on each of the pay structures used within the Trust. Mean Hourly Rates Female Male Difference Pay Gap % Agenda for Change % Medical & Dental % Local/VSM % Grand Total % a. Agenda for Change - The pay structure for the majority of Trust employees has a mean pay gap of 3.92% from a mean hourly rate difference of Due to the standardised nature of the pay framework any differences in pay can be attributed to the following; further progression through the pay bands

4 due to length of service, enhanced rates of pay due to work performed during unsocial hours, on-call premiums including call-outs and starting salary which follows AfC pay on promotion conditions. It should be noted that the Gender Pay Gap makes no reference to equal pay which considers the difference between genders for the same/similar jobs or work of equal value as this has largely been addressed through the Job Evaluation Scheme. b. Medical & Dental The Medical & Dental pay structure has an average hourly gender pay difference of 5.38 resulting in a pay gap of 14.58% which is broadly comparable with the overall pay gap. However with Medical & Dental staff having more evenly split gender headcount the pay gap is unexpected suggesting that the genders are not so evenly distributed across levels of seniority. This is particularly the case with Consultants who draw the highest pay of the medical staff with salaries based on length of service and having similar numbers yet there are almost 5% more male Consultants on pre-2004 contract suggesting not only greater levels of seniority and as a result pay but more opportunity to apply for Clinical Excellence Awards. The comparatively lower headcount numbers coupled with some of the highest pay rates in the Trust mean that any slight differences in medical average pay have a greater effect on the overall pay gap. c. Local/VSM This pay structure contains a mixture of grades with rates in all four pay quartiles. However the majority of staff in this category fall under the VSM pay grade with salaries determined by the Remuneration Committee. With VSM having some of the highest non-medical pay rates and very low numbers of staff means this pay structure has the highest gender pay gap at over 43% with male staff comprising just over 70% of this group. An area that would be expected to influence the gender pay gap are salary scarify deduction. These are non-taxable deductions for schemes such as hospital car parking, cycle to work scheme and by far the most popular, childcare scheme. Salary sacrifices are included in the gender pay gap calculations, yet despite childcare being the most popular and expensive at up to 243 per month the uptake is split is broadly in line with the Trust s overall gender split at 82%:18%. 2. Difference in bonus pay mean and median Gender Avg. Pay Median Pay Male 12, , Female 8, , Difference 4, Pay Gap % 34.43% 5.91% The bonus pay calculation is comprised of almost exclusively Clinical Excellence Awards (CEA) payments for medical consultants. Despite 53% of Medical & Dental workforce being female the split for the Medical Consultants evens out with 49% of Consultants being female. Of the CEA payments included in the above analysis only 39% of the 78 staff were female

5 suggesting that whilst the female medical workforce has grown over the years the numbers receiving CEAs has yet to have the balance redressed. The level of CEAs awarded also differs amongst the genders with levels 35% of male Consultants receiving CEA levels 6-10 compared to 15.15% of female Consultants. 3. Percentage of employees who received bonus pay Gender % who received bonus pay Male 6.25% Female 1.09% The analysis above shows the percentage of male and female staff who received a bonus in 2016/17 against the total number of staff for each gender. Whilst this data would suggest that male employees are more likely to receive bonus payments within the Trust, as explained in section 2, the bonus payments are almost exclusively CEA payments requiring eligible employees to pro-actively apply for before a decision is made by an awarding panel. As a result, basing the likelihood that male staff will receive bonuses over their female counterparts will be misleading as this does not take into account the number of applications made by the two genders. 4. Employees by pay quartile Quartile Female Male Female % Male % % 20.70% % 18.48% % 15.09% % 35.56% The table above shows the gender distribution across 4 equal pay rate quartiles with quartile 4 for upper pay down to quartile 1 for lower pay. With female employees comprising 78% of the total workforce there is a comparatively larger female count in quartiles 1, 2 & 3, yet for quartile 4 the share reduces to just under 65%. Ideally the expectation would be to maintain the overall Trust gender split of 78%:22% across all four quartiles as much as possible, but the table above confirms that female employees have a greater share over the Trust gender split for all pay ranges except the highest. This data corroborates the Trust s gender pay gap by demonstrating that, despite having only comprising 23% of the workforce, male employee s pay is at such a (average) level that it has shifted the gender share of the workforce towards a larger male apportion but only within the highest pay quartiles.