EQUAL PAY AUDIT AND ACTION PLAN

Transcription

1 EQUAL PAY AUDIT AND ACTION PLAN 1 Introduction 1.1 In late 2016, an Equal Pay Audit (EPA) was prepared by the management consultants Beamans as part of a regular two-yearly cycle to determine any gender pay differences amongst Royal Holloway s employees, and any other pay inequities arising because of ethnicity, disability, employment status or work pattern. The analysis was made using data with a snap shot date of 31 July As a public body, Royal Holloway is required to comply with equalities legislation, and as part of its compliance, the audit has been carried out at a timely moment as the Gender Equality Duty becomes law (6 April 2017), requiring all public sector organisations to report on differences in pay between males and females. The Equality Act 2010 also requires equal treatment of full and part time staff, those of different ages, ethnic minorities and disabled staff. 1.3 The Equality Act and the statutory Code of Practice published by the Equality and Human Rights Commission (EHRC) recommends that the most effective way of establishing whether a public authority's pay policies and pay systems are discriminatory is to undertake an equal pay audit. This should seek to establish whether there are significant differences in pay between equality groups and, if so, the extent to which these can be objectively justified and are due to factors other than membership of a particular equality group. 1.4 The EHRC states that any differences, or pay gaps, of more than 5% may be regarded as significant enough to warrant further investigation, as may a pattern of lesser differences (i.e. 3% or more) in favour of any particular group. This approach ensures that potential issues can be identified for further exploration of the underlying causes. 2 Key Findings of the Equal Pay Audit 2.1 The Equal Pay Audit 2016 has highlighted pay gaps in the following areas which warranted further investigation: Gender Ethnicity Employment Status No significant pay gaps have been highlighted for disabled staff. 2.2 The purpose of this report is to present further analysis of the available data and to give further explanation as to the cause of the identified pay gaps. An accompanying action plan is designed to address the pay gaps identified and ensure equality of opportunity. April 2017 Page 1

2 3 Gender The findings for the whole College show that the mean gender pay gap reduced from 25.5% in 2014 to 21.2% in This reflects pay differences across different grades and the greater gap in median base pay reflects the higher number of female employees in lower grades. The report observed that there are fewer females (38.2%) than males in academic roles, and more females (65.5%) than males in professional service grades 1-5. There were a number of specific concerns raised as below. 3.1 Academic staff Senior Lecturers The Equal Pay Audit demonstrates that the median base pay gap for Senior Lecturers has widened in favour of males since the last audit (when the mean pay gap was 1.2%) and is statistically significant at 5.7%. There is a mean pay gap of 3.2% in favour of males in the total pay of Senior Lecturers up from 1.3% in The median gap is 5.5% Further analysis of the available data reveals that: The percentage of females on the top point of the core salary scale has decreased to 36% in 2016 from 50% in The percentage of males has increased from 52.4% to 57% during this period. Below point 47 females are spread relatively evenly across each pay point from The smaller percentage of males below point 47 are spread relatively evenly. There are a limited number of females and males in the contribution zone (points 48 and 49) and overall the figures remain relatively stable with an increase in females on point 49 (3% against 1.9%) and a decrease in the number of males on point 48 (there are no females on this point) from 9.2% to 7% in Possible reasons One key reason for the difference in pay distribution is likely to be that women have a shorter time in service. 48% of male senior lecturers have more than 9 years of service. Of these, 17% have more than 20 years service (our longest serving man has 38 years of service). 37% of female senior lecturers have more than 9 years of service. Of these, 6% have more than 20 years service (our longest serving woman has 25 years of service. This suggests that a degree of clustering exists of males with longer service at the top of the Senior Lecturer grade, who have not progressed to Reader/Professor. Consistent numbers of male and female staff have been recruited or promoted to Senior Lecturer level since The recruitment data for 2015/6 shows that there were 4 females and 4 males appointed at Senior Lecturer level. In 2015/16, there were 11 females and 10 males promoted to Senior Lecturer (26% of female and 16% of male lecturers). Analysis of starting salaries shows there is no difference in starting pay in grade. April 2017 Page 2

3 3.2 Professional Services Grade 3 There is variability in the pay gaps at different grades and the median difference in grades 3 and 6 exceeds 5% in favour of females and for grade 8 in favour of males. There is a majority of female staff in all professional services grades below grade The Equal Pay Audit reports that the median pay gap for Grade 3 was 5.4% in favour of female employees. Further analysis of the data associated with this grade indicates that: A high percentage of employees (47%) in this grade are at the top of the scale (point 12). Females make up 60% of those on the top point Thirty five percent of the total in grade are on the first point of the scale (point 8). Males make up 67% of those on point 8 All females, except one, on the top point have been in the same grade for more than 5 years and a third of them are team leaders in the catering services Of the male staff at point 8, 50% are porters and a third are maintenance assistants Possible reasons for the pay gap The higher concentration of females at the top of grade 3 will impact on the median and skew it in favour of women. Females have a greater length in service in post - all except one has been at grade 3 for more than 5 years. Only one case of accelerated incremental progression has been recorded in this grade since 2014 (female). A review of starting salaries in this grade shows no bias towards males or females, as the majority of new employees were appointed to the lowest point on the scale. 3.3 Professional Services - Grade The Equal Pay Audit reports that the median pay gap in Grade 6 was 6.4 % in favour of females. Further analysis of the data reveals that: Females make up 71% of the grade and account for 83% of all those on the top point of the normal salary scale (without contribution points), point 30 Females make up 74% of those who have spent 5 years or more at grade 6 The percentage of females in each point is lower at point 25 (66%) compared to the top of the scale (point 30) at 83% There are only three individuals on contribution points one male on the top point of the contribution zone on point 33 and two females on point 31. April 2017 Page 3

4 3.3.2 Possible reasons for the pay gap The greater length in service for females results in higher salaries due to automatic annual progression up the salary scale, and the higher concentration of women at the higher pay points in grade 6 impacts upon the median pay Assessment of regrading cases since 2013 indicates that more females than males have been regraded into this grade (6 to 2). Normally these staff would be placed on the bottom point of the scale, which would mean that most would now be mid-scale. Since 2014, 8 individuals in this grade are recorded as having received accelerated incremental progression or contribution points. Of these 5 are female and 3 are male reflecting the higher percentage of females in the grade. A review of starting salaries in this grade shows no bias towards males or females with the majority of new employees appointed to the lowest point on the scale. 3.4 Professional Services - Grade The Equal Pay Audit reports that the median pay for Grade 8 was 6.4 % in favour of male employees. Further analysis of the data reveals that: The percentage breakdown of males and females in this group is 44/56% A higher proportion of males are paid at point 41 or above (the penultimate point of the core zone) - 69% of males as opposed to 57% of females. More males are paid in the contribution points than females 6 males and 5 females despite females making up a larger proportion of the total group 69 to 48 Breakdown by department (below) shows that IT Services has the highest number of staff in this grade. Department Female Male Communications and External Relations 2 1 Department of Economics 1 Department of Finance 4 4 Department of Media Arts 1 Department of Music 1 Department of Social Work 2 Estates 2 4 Human Resources Department 3 1 IT Services 8 8 Library 3 Registry 2 1 Research and Enterprise 5 2 School of Management 1 School of Maths & Information Security 1 April 2017 Page 4

5 Strategic Planning and Change 2 2 Student Life 5 Student Recruitment and Partnerships 1 Grand Total An analysis of IT staff at grade 8 shows that they are all paid at point 41 or above (the penultimate point before the discretionary range). Of these, females are paid on lower points with 2 females on point 41, 6 females and males paid on point 42 and 2 men paid on point 43. The breakdown of length of service for the grade 8 Professional Services staff in the College reveals the following: Males Females Service No of staff %age of male No of staff %age of female staff at G8 staff at G8 Less than 5 years service 34 48% 40 43% 5-9 years service 12 17% 25 27% 10+ years service 25 35% 27 29% Possible reasons Comparing the distribution of the proportion of female and male staff across the pay points and different lengths of service does not show any significant factors that may cause the median pay gap for this group of staff. A review of successful regrading and accelerated increment cases for this grade since 2013 does shows a bias towards females being regraded into this grade of seven cases to one. As these individuals would normally start at the bottom of the scale many would not yet be at the top of the salary scale. Accelerated incremental progression or the award of contribution points since 2014 shows 5 cases in total with 3 for females and 2 for males. More analysis is needed to understand the pay gap at Grade 8. Factors to explore include the number of males and females recruited and applying for internal promotion to this grade, and starting salaries. Market factors will influence the pay distribution of newly-recruited staff at grade 8. A further comparison of different occupations and the gender breakdown is needed to establish if gender differences exist. April 2017 Page 5

6 3.5 General 4 Ethnicity Overtime - The proportion of males in receipt of overtime exceeds their proportion of the total workforce. In terms of the payments received, the mean value of payments favours men at all grades other than 6 and 7. Gaps of up to 86% are reported. Fewer females than males received market supplements (26.3%) Female employees were more likely to receive an award. However, the mean value of an award received by males was generally higher. The auditors recommend that a review is undertaken of roles which qualified for overtime and a check made that policies relating to market supplements and performance awards are being consistently applied. 4.1 Over the whole workforce, there is a mean Base Pay gap of 10.9% for ethnic minority employees and a gap of 10.8% for Total Pay. This is a slight overall increase since 2014 in terms of mean Base Pay, which was then 10.1%, but lower than the 2012 figure of 11.9%. This may be attributable to an increased representation of ethnic minorities in grades 1-5 and decreased representation in grades Overall the report highlighted that there is a small number of ethnic minority professors (6.5%) and that while ethnic minorities exceed 10% in grades 1-4, they make up only 4.5% of the grade 10 population. The following table compares the 2016 EPA with the 2014 EPA: 2016 EPA 2014 EPA RHUL Grades BAME Prefer not to say White BAME Prefer not to say White Grade % 2.4% 80.9% 15.4% 1.5% 83.1% Grade 6 and above 13.4% 3.7% 82.9% 13.9% 3.0% 83.1% 4.2 Readers In relation to the pay gap in different grades, only two are highlighted in the report as statistically significant: Further analysis of the data reveals that: The mean ethnicity Total Pay gap for staff at Reader level has increased to 5.2%, in favour of BAME staff, a change since 2014 when the pay gap was 3.4% in favour of White staff. There were 9 BAME staff at Reader level in the 2016 EPA, all of whom are paid at or above pay point 46, the normal maximum being 47. This is a change since the EPA 2014, where there was a greater distribution of salary amongst the 8 BAME staff at Reader level - 5 were paid above points 47 with two below point 45. April 2017 Page 6

7 4.2.2 Possible reasons BAME employees are significantly underrepresented at Reader level 87% of Reader staff are White, whilst just 11% are BAME. BAME Readers have a greater length of service to White Readers 78% have more than seven years service compared to 69%. This may indicate a tendency to stay longer in the grade for BAME staff, which would also contribute to the pay gap. 4.3 Professional Services staff at RHUL Grade Further analysis of the data reveals that: The mean ethnicity Total Pay gap for staff at grade 6 is 4.6%, and the median Total Pay gap is 5.3% in favour of White staff. This is a change since 2014 when the mean Total Pay gap was 1.7% and the median Total Pay gap was 1.4% in favour of White staff. There were 10 BAME staff at Grade 6 in the 2016 EPA, 5 of whom were paid at the first point in the scale (point 25), with the other five staff evenly distributed up to point 29. The top point in the scale is point 30. There were 70 White staff at this Grade, a third of whom were paid at point Possible reasons The difference in distribution in pay points as set out above Only one of the 10 BAME staff at Grade 6 has more than two years service, whilst length of service for White staff is more evenly distributed. 36% of White staff at grade 6 have more than two years service. This difference in length of service will contribute to more White staff being at the top of the pay scale. 4.4 General There is an under-representation of minority ethnic employees in receipt of performance awards. The auditors recommend a check that policies relating performance awards are being consistently applied. 5 Employment Status 5.1 The analysis shows that there is an institution-wide mean Base Pay gap of 17.3% and a 16.76% total pay gap in favour of full-time staff. In relation to the gender pay gap for part-time staff in different grades, one statistic is highlighted in the report as statistically significant: 5.2 Part-time Employees - Grade Further analysis of the data reveals that: There is a pay lead for female part-time employees over their male counterparts, which at grade 5 exceeds 5%. April 2017 Page 7

8 There is a total of 48 such employees, 10 of which are male and 38 female. Eight out of the ten of the men in this category were recruited in 2015 and were paid at point 18, the lowest point on the scale Possible reasons Part time female employees at this grade have significantly longer length of service 60% have more than two years service, compared to just 20% of males. This explains the higher proportion of females who are paid at higher points on the payscale. Males are significantly under-represented in this group just 21% are male, whilst 79% are female. 5.3 Fixed Term employees Further analysis of the data reveals that: Permanent employees have a pay lead over fixed term employees at all grades with a significant pay gap of 9.7% of mean base pay. Lecturers - Ten fixed term lecturers were employed by the College and were paid on points (the bottom points of the scale). Over 54% of permanent lecturers are paid above point 39. There is one senior lecturer on a fixed term contract. Research employees - The percentage of research staff on fixed term contracts is 83.5% compared to the College average of 13.8% Grade 8 - As set out below there are proportionately more employees on fixed term contracts on lower pay points (37 40) compared to permanent employees Possible reasons Grade 8 Fixed term Permanent pay points Nos. % Nos. % % % % % % % Employees on fixed term contracts have shorter length of service and have therefore not been subject to the same automatic incremental increases. The Lecturers and Senior Lecturer on fixed term contracts all started in mid/late 2015 and Most were placed on the bottom point of the scale. Research employees are often placed on fixed term contracts due to the nature of their funding or project work. Researchers then seek to progress into other academic roles at higher grades. April 2017 Page 8

9 6 Disabled Staff In addition to the above, the report highlighted that people with identified disabilities were under represented in terms of receipt of performance awards. However, only 21 staff in the College have identified as having a disability so this may not be representative of the true situation. The auditors recommend that a check be made that policies relating to performance awards are being consistently applied. 7 Conclusions 7.1 Overall the 2016 Equal Pay Audit report reported an encouraging reduction in the mean gender pay difference between 2014 and However, the report highlighted a number of areas of inequity and highlight the need to ensure equality of opportunity for all. Our action plan is designed to address issues specifically related to fair recruitment, progression, retention and reward. 7.2 A representative, diverse working community will allow the College to develop into the future ensuring it is able to react to an ever-changing environment and compete with its competitors both locally, nationally and globally. 8 Recommendations 8.1 Analysis of the issues related to the pay gaps highlighted in the Equal Pay Audit raise a number of consistent themes related to ensuring equality of opportunity for all. Our action plan should ensure that we maximise our support for ensuring fair recruitment, career progression, reward and retention. 8.2 We propose a range of actions which relate to these issues overall, and further actions related to the needs of specific groups, which are presented in the following action plan. College Executive is asked to consider the following plans and restate its commitment to equality for all by providing the resources and backing to implement the College s action plan. April 2017 Page 9

10 Equal Pay Audit Action Plan 2016 Royal Holloway is committed to valuing diversity and promoting equality of opportunity for all in employment, admissions and in its teaching, learning and research activities. We aspire to create a positive, inclusive environment, free from prejudice, bullying, harassment and unlawful discrimination and will take action to challenge inappropriate behaviour and discriminatory practice. All staff, students, applicants for employment or study, visitors and other persons in contact with the College are treated fairly, with dignity and respect. People and diverse groups with multiple identities and individual differences are recognised and valued. We will provide our staff and associates with the knowledge and skills they need to understand and meet their equality and diversity responsibilities.] Issues Action Lead(s) Success criteria and outcome Fair recruitment to ensure equal access to opportunities at all grades and role types Fewer females than males in academic roles (38.2%) and more females (65.5%) than males in professional services grades 1 5 Senior lecturers - widening mean pay gap since 2014 in favour of males Professional services gaps in pay particularly in grades 3, 6 and 8 Overall gap in mean base pay for ethnic minority employees Under-representation of BAME in grades 6-10 Work with recruiting managers to review induction, training and literature to ensure that all recruiters and managers are aware of good practice and legal obligations Consider instigating mandatory training for managers i.e. unconscious bias training Review recruitment policy and its application Review effectiveness of recruitment media for reaching different diversity groups Review recruitment at grade 8 level, including gender distribution, starting salaries and market factors. Head of HR Operations/ Head of Organisational Development New recruitment policy following reviewing of process agreed and distributed for implementation. Increase in female academics by 1% to 39.2% The overall gap in mean base pay for ethnic minority employees is reduced by 1% from 10.8% to 9.8% Completion date February 2018 April 2017 Page 10

11 Number of BAME staff in grades increased to 14%. Career progression support for all who wish it A number of areas show pay gaps because of a high degree of clustering of staff with greater length of service at the high end of the pay scale. This is particularly the case for: Male Senior Lecturers BAME Readers Female part time employees at grade 5 Male employees at grade 3 and grade 6 Ensure that all staff who seek career progression are able to access support and development to help them to do so Review appraisal process and application to include a career conversation as standard for all Review line manager training in supporting performance and career development for their staff Offer workshops for all to support academic promotion Offer workshops running alongside On- Track for early career researchers and academic staff to support career development and networking Introduce short training courses for Professional Service staff in career Head of Organisational Development Reviewed appraisal process to include career conversation agreed and implemented. Career pathways for professional and support staff developed. Line managers using them as aid career progression conversation as part of appraisal process. Career and personal development programme for BAME staff in place. Follow up evaluation of programme to take place. April 2018 July 2020 April 2018 April 2017 Page 11

12 planning, applying for an internal roles, interview skills and networking Consider the introduction of career pathways for Professional Services staff, similar to those developed for Registry Expand the coaching and mentoring schemes Introduce a specific career and personal development programme for BAME staff which aims to address barriers and increase the number who successfully apply for promotion. Gender pay gap for all staff groups to be at 3% and below July 2018 Fair reward mechanisms Overtime: The proportion of males receiving overtime exceeds their proportion of workforce and, with exception of grades 6 and 7 payments, favour men Fewer ethnic minorities receive overtime notably in grade 3 Ensure the overtime policy is being applied consistently and correctly. HR Business Partners to work with their areas of responsibility to remind them of eligibility HR Policy and Reward Manager/ HR Business Partners Any inconsistent applications of the policy to be identified, addressed and reported. December 2017 April 2017 Page 12

13 Market Supplements: Fewer females receive market supplements Performance Awards: More females receive performance awards but the mean value is higher for males Under-representation of minority ethnic employees in receipt of performance awards Ensure market supplements policy is being applied consistently and correctly. HR Policy and Reward Manager and HR Business Partners to advise accordingly. Market Supplements Group and Performance Group to ensure consistency of application Review policy to check it does not discourage any employee groups Ensure policy is being applied consistently and correctly The Performance awards group to ensure consistency of application. HR Policy and Reward Manager/ HR Business Partners HR Policy and Reward Manager/ HR Business Partners Any inconsistent applications identified, addressed and reported. Inconsistencies identified, addressed and reported. December 2017 December 2017 Employment status Institution wide mean base pay gap of 17.3% and a 16.7% total pay gap in favour of full time employees Permanent employees at all levels have a pay lead over fixed term employees of 9.7% of mean base pay Fixed term lecturers over 54% of permanent lecturers Review the use of fixed term posts. If appropriate, conversion to permanent may result in higher pay over time with automatic progression. Recruiting managers to be reminded that in instances where a candidate has extensive experience, appointment at a higher point may be applicable subject to discussion with HR. HR Business Partners Reduction in number of fixed term contracts. To record where candidates with relevant experience are put on an appropriate pay point when offered a fixed term contract. February 2018 April 2017 Page 13

14 are paid at a higher point than fixed term colleagues Fixed term grade 8 there are significantly higher numbers on lower pay points in grade than permanent employees April 2017 Page 14