The gender pay gap is the difference in the average and median pay between men and women in a workforce at a single point in time (March 2017).

Size: px
Start display at page:

Download "The gender pay gap is the difference in the average and median pay between men and women in a workforce at a single point in time (March 2017)."

Transcription

1 1. Background Under the Equality Act 2010 (Specific Duties and Public Authorities) Regulations 2017, all organisations that employ over 250 employees are required to report annually on their gender pay gap. This is the first year that UK organisations have been required to do this. 2. What is a gender pay gap The gender pay gap is the difference in the average and median pay between men and women in a workforce at a single point in time (March 2017). 3. How is the gender pay gap calculated The calculations make use of two averages and the differences in pay are expressed as a percentage: A mean average involves adding up all hourly rates and dividing the result by how many staff were including in the list. A median average involves listing all of the numbers in numerical order. The median average is the middle number. The gender pay gap is the % difference between males and females when we look at the above measures. A positive percentage figure reveals that, on average overall, female employees have lower pay or bonuses than male employees. A negative percentage figure reveals that, on average overall, male employees have lower pay or bonuses than female employees. 4. A gender pay gap is not the same as equal pay It is important to note that in contrast to the gender pay gap, equal pay is a more specific legal concept that deals with the pay differences between men and women carrying out comparable jobs. Men and women in comparable jobs are entitled to the same pay unless an employer can show differences in pay are justified. A gender pay gap does not equate to the existence of an equal pay problem and the College firmly believes that its structured pay and reward systems, and the measures it has undertaken in relation to these, (use of the national pay scale for lecturing staff, job evaluation process for business support staff) has meant that pay for men and women performing equal work is aligned to pay system and structures and not dependent on gender.

2 5. Reward & Pay at Cardiff and Vale College ensuring equal pay For a number of years, the College has had clear and transparent pay frameworks that allow the College to consistently and fairly reward its staff. For Academic staff, the College utilises nationally agreed (with the recognised Trade Unions) pay scales and pay agreements that allow the College to objectively pay staff based on their role, skills, qualifications and experience. For Business Support staff, the College has untaken an extensive job evaluation programme (in consultation with the recognised Trade Unions) where it systematically assesses individual jobs to assess their relative size using an objective framework and then pay according to an agreed pay scale. For Management roles, the College takes part in sector wide pay and reward surveys and benchmarks its roles against this data. Senior post holder pay is evaluated and recommended by the College s remuneration committee and agreed by the Main Board of Governors. The College also voluntarily pays its staff in accordance with the Living Wage Foundation guidelines (rather than the lower government legislation for the minimum Living Wage ). 6. The results of the gender pay gap calculations The data below is a snapshot of data taken for Cardiff and Vale College at the end of March There were 825 relevant employees included in the analysis in accordance with the guidelines, the gender of these employees was: Males Females % 59% The Colleges mean average gender pay gap was 7.4% and the median was 18.8%. Hourly rates of pay Mean pay (average) Median (Mid-point) Female Male Difference (%) % % National figures for this exercise will be available in April for further comparison work to be undertaken, however in the meantime we note the median figure compares with the 26.7% reported for the Education sector by the Office of National Statistics (2015/16). As noted above, a gender pay gap does not mean there are issues around equal pay. In addition, as with all statistics and benchmarks, the headline figure very rarely provides the answer but indicates where questions need to be asked. The College has therefore undertaken a detailed analysis to understand and explore what the makeup and implications of the gender pay gap are.

3 6. The results of the gender pay gap calculations (continued) Gender within each pay quartile Lower Quartile Lower / Middle Quartile Upper / Middle Quartile Upper Quartile Female Male Female Male Female Male Female Male % 63.1% 36.9% 66.5% 33.5% 54.1% 45.9% 52.9% 47.1% No The pay quartiles analysis provides an opportunity for the College to understand the percentages of males and females within the 4 broad categories or quartiles. There are more females employed by the College overall (F-59% /M-41%), however, within the two lower (paid) quartiles we can see that there are a higher than that average proportion of females within these categories (in excess of 60% in both of the lower quartiles). It is this imbalance in the gender mix that drives the overall mean and median pay gap figures reported above. Within the College, some of the explanation for this is due to the higher number of females within professions and roles that have traditionally tended to be dominated by females. Our analysis shows these roles include learner support and learning coaches, nursery and crèche staff, student service and administrative teams and this helps explain some of the differences with a large proportion of female staff working in these areas. Within the two higher (paid) quartiles there is also a higher proportion of females than males, so on average, females are paid more than males. Some of this affect can be explained in the same way as the lower paid roles, where certain professions are dominated by females. For example, within the College, the teaching profession tends to attract more females and those females have tended to progress to become managers however we have analysed this management progression issue further below. 7. What issues might the gender pay gap indicate The requirement to publish gender pay gap figures has led to an increased focus on what issues might be hidden below the surface and leading to inequality between male and female employees. The College has therefore analysed our data to explore four of the most commonly considered issues: There is a glass ceiling, preventing female staff being part of the senior management earning the higher salaries; There are barriers to promotion to managerial roles for female staff; There are barriers to female staff being part of a professional cohort of staff; There is historic bias in rates of pay between male and female staff We comment below on each of those potential issues and the extent to which there is any evidence of such issues in the College.

4 7. What issues might the gender pay gap indicate (continued) Is there a glass ceiling Higher Paid Staff (more than 60,000 per year) Male Female Male Female % GAP Male Female % GAP % % The analysis above is of our higher paid staff (earning over 60,000 per year) excluding the Chief Executive who was appointed via open public advertisement process. It shows there is no evidence of a glass ceiling in the College as: There are an equal number of males and females in this cohort; and There is a small mean pay gap in favour of females. Are there barriers to promotion Managers Male Female Male Female % GAP Male Female % GAP % % The analysis above is of our managers. It shows there is no evidence of barriers to promotion as: There is one more female member of staff in this cohort; and There are small mean and median pay gaps in favour of females.

5 7. What issues might the gender pay gap indicate (continued) Are there barriers to joining the professional cohort of staff Academic Staff Male Female Male Female %GAP Male Female %GAP Academic Total % % (Full time /Fractional) % % Part time % % The analysis above is of our academic staff with a further sub analysis of the difference between full time and fractional contracts and part time hourly paid staff. It shows there is no evidence of barriers to joining the professional cohort as: There are more female (57%) than male (43%) academic staff. There is a small pay gap in favour of males amongst this cohort. We would not expect a significant pay gap in this cohort as all staff are paid according to nationally agreed pay scales with entry to the scale dependent on skills, qualifications and experience. Any pay gap will relate to respective positions on that pay scale. The College does recognise that there are certain lecturing academic roles, for example within engineering and construction (and conversely hair and beauty) where there is a gender imbalance and the College would very much like to recruit and develop more females into these areas in the future and is taking an active role to address this and has introduced its aspiring teachers programme to seek to encourage business support staff in the College to pursue a teaching qualification. Is there historic bias in rates of pay between male and female staff Business Support Staff Male Female Male Female %GAP Male Female %GAP % % The above analysis is of our business support staff, and with 63% of staff in this cohort being female it reflects the point made above that this cohort of staff includes those roles that the College has tended to see more females working within, for example, learner support and learning coaches, nursery and crèche, student service and administrative teams. This greater number of female staff in these roles led to the size of the overall gender pay gap figures showing lower average and median rates of pay for females. However, as can be seen above, that was an anomaly/result of the statistical calculation, as there is only a very small mean pay gap and no median pay gap - within the business support staff cohort.

6 8. Bonus pay Bonuses are paid to a very small number of staff working in our commercial teams. Only 14 staff in total receive bonuses and this is made up of equal numbers (7) males and females. The mean average bonus pay difference between male and female was 22.4% and the median was 70%, however, with such small numbers it is important to note that the information is sensitive to individual staff bonus payments. It is also necessary to understand that there were two different types of bonus payments made, one Sales related paid on the basis of income and sales targets related KPIs and a second Support related bonus, for staff providing account management and other support functions. Whilst the overall bonus gender pay gap was in favour of male staff, the analysis below of the different types of bonus paid shows gender pay gaps in favour of females. Bonus Sales Bonus Support Bonus Number of staff Mean % Gap Median % Gap Mean % Gap Median % Gap Female 7 3,725-3, Male 7 2, % 2, % % % 9. Next steps - Action Plan Recruitment The College will engage with organisations such as Chwarae Teg and Business in the Community to identify approaches to supporting more women to enter male dominated professions and roles; The College will continue to develop its recruitment programme including refresher training for managers on unconscious bias and recruitment techniques, continue best practice blind shortlisting, and advertising all roles internally to support internal progression opportunities; and The HR department will develop monitoring and reporting of recruitment information to understand the recruitment and attraction of females into roles where they are underrepresented. Equality & Diversity The College is an established Leader in Diversity. The National Centre for Diversity (NCFD) has confirmed that Cardiff and Vale College features at number 21 in the Top 100 Index. The Top 100 Index highlights the very best of the UK across 600 organisations. The College will continue to champion its cause of being Inclusive, Inspirational and Influential. This will be achieved through the continuation of staff learning and development on all matters relating to equality and diversity.

7 9. Next steps - Action Plan (continued) Staff Development The College has implemented the Aspiring Teachers Programme giving opportunities for business support staff to undertake a full funded PGCE. In 2017 six females and five males have commenced this programme; The Management Development programme, internally known as The Leadership Journey will continue to develop all managers which further supports progression of both males and females into more senior roles; A corresponding Staff Journey programme is planned and will be developed to prepare staff, ready for their next career move; The College is rolling out a Coaching Programme to continue to help staff develop and promote progression into higher paid roles; and The College encourages staff to undertake continuing professional development as well as developing professional qualifications and training. Apprentices The College employs its own apprentices, promoting from within and developing skills needed for progression to higher paid career paths. The HR team will monitor staff progression into permanent roles. Flexible Working Cardiff and Vale College already has a number of flexible working policies and work practices that allow a large number of staff to work part time and flexibly. In addition, the College has been developing further proposals that will allow further flexibility within working practices so that the workforce can be more agile. Maternity Policy The College will review its maternity policy to ensure that females are fully supported both during their maternity leave and on their return to their careers at the College. Declaration of Senior Postholder We declare that this is accurate reflection of our gender pay gap according to the requirements of The Equality Act 2010 (Gender Pay Gap Information) Regulations Signed - Mark Roberts Chief Operating Officer..Date 28 March 2018