29 March Gender pay gap report (2017 snapshot)

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1 Gender pay gap report (2017 snapshot) Incorporating the requirements of the Equality Act 2010 (Gender Pay Gap Information) Regulations March 2018 Contents Page 1

2 Published 29 March 2018 Prepared by Jason Gothard, Senior Human Resources Advisor Confirmed by Penny Phillpotts, Human Resources Director Contents Page 2

3 Contents 1 Purpose Background Our approach to reward and equal pay Statutory analysis Additional analysis Conclusion and recommendations Alternative formats Supporting statement...8 Contents Page 3

4 1 Purpose Bristol Community Health CIC is required to publish information on the organisation s gender pay gap, gender split across the workforce and the receipt of bonuses by gender. This report provides the information that we are required to publish along with additional information that explores our gender pay gap further, before suggesting some options we could undertake to address our gender pay gap in the coming years. 2 Background In recent years, increasing attention has been focused on addressing the size of the gender pay gap in our society and the underlying reasons for this. Whilst the gap is decreasing over time in the United Kingdom i, the Office for National Statistics calculations for April 2017 still show a sizeable gender pay gap as shown below. Area Gender pay gaps at national, local and industry levels Median gender pay gap United Kingdom ii 18.4% 17.4% Bristol travel to work area iii 20.2% 18.0% Human health activities industry iv 17.2% 26.9% Mean gender pay gap The Government now requires larger employers to calculate and publish a variety of figures relating to the gender pay gap to encourage employers to take appropriate action. As we are not specified in Schedule 2 of the Equality Act 2010 (Specific Duties and Public Authorities) Regulations 2017, we fall under the requirements of the Equality Act 2010 (Gender Pay Gap Information) Regulations The snapshot date for the data in this report is 5 April 2017 and we must publish the required information by 4 April The statutory analysis must be kept on our website for at least 3 years as well as being published on the Government portal. It is important to note that the gender pay gap and equal pay are not the same thing. The gender pay gap only looks at the difference between the pay of men and women irrespective of the roles being undertaken. The equal pay provisions of the Equality Act 2010 require that men and women are paid the same where the same work, or work of equal value, is undertaken. As an example, a gender pay gap may exist where there are proportionately more women in junior roles and proportionately more men in senior roles in an organisation. Where the pay for the roles has been set fairly based on the value of the work done, then the equal pay provision is met despite the gender pay gap remaining. 3 Our approach to reward and equal pay Our Valuing All strategy emphasises the importance that we place on equality and diversity in the workplace and we are confident that our reward structure is fair, transparent and supports equal opportunities. Page 1

5 We are proud that as an organisation our Senior Leadership Team has a strong female presence, including an all-female group of executive directors. This demonstrates our ability to support women to progress into senior roles through a culture that enables work-life balance and encourages individuals to develop to their full potential. The vast majority of our posts are subject to the analytical points-based NHS Job Evaluation Scheme, designed in conjunction with trade unions to ensure that it nondiscriminatory and provides equal pay for equal value work. This is linked to the Agenda for Change pay banding structure. Evaluations are conducted in line with our Banding Policy and guidance produced by the national Job Evaluation Group. A small number of posts are subject to spot-salaries where the Agenda for Change pay banding structure does not apply. (In this report s analysis these posts are placed into the Other pay band.) Pay rates for these roles are determined as follows: Directors. Salary ranges are recommended by an independent expert in senior reward. Individuals are placed within the range based on their skills and experience. Apprentices. Salaries are set by considering internal relativities, the level of apprenticeship being undertaken and the individual s skills and experience on joining. General Practitioners. Salaries are set on a pro-rata basis, calculated from the sessional rate that would be payable within the relevant nationally-agreed pay bands. Transfers in. Where individuals join via a TUPE (Transfer of Undertakings (Protection of Employment) Regulations 2006) transfer, their salary and conditions are preserved if these do not align with Agenda for Change in accordance with TUPE legislation. This report takes into account the guidance issued jointly by the Advisory, Conciliation and Arbitration Service (ACAS) and the Government Equalities Office v. We have chosen to go beyond the statutory requirements for gender pay gap reporting to demonstrate the confidence we hold in our equal pay mechanisms and ensure transparency to our employees, stakeholders and the community. 4 Statutory analysis This section presents the gender pay gap calculated as specified in the regulations. The analysis is based on the information held in the Electronic Staff Record (our combined Human Resources/Payroll information system) using the standard report made available throughout the NHS. There are three key elements to consider in these calculations: Employees and workers are included but agency workers and independent contractors are excluded. This means that permanent and fixed-term/temporary employees, bank staff and non-executive directors are all potentially in scope. Only individuals who are on their usual full basic pay in the snapshot pay period are included. This means that only individuals who received their usual full basic pay in April 2017 are included. Individuals that have had unpaid or reduced-pay leave (such as Statutory Sick Pay, Occupational Sick Pay at half-rate or Statutory Maternity Pay) during the April 2017 pay period are excluded. Page 2

6 The hourly rate is based on ordinary pay only. This includes basic pay, allowances, pay for leave and shift premium pay. It excludes overtime pay, redundancy pay, pay on termination of employment, pay in lieu of annual leave and benefits-in-kind. Where an individual has entered into a salary sacrifice agreement (such as childcare vouchers or holiday buying) then the gross amount is used. Calculation Overall statutory gender pay gap Result Mean gender pay gap 8.9% Median gender pay gap 0.0% Our mean gender pay gap comes in significantly below the national (17.4%), local (18.0%) and industry (26.9%) comparators. Our median pay gap compares very favourably against the national (18.4%), local (20.2%) and industry (17.2%) comparators. Gender split in pay quartiles Pay quartile Female Male Lower quartile / Quartile % 8.9% Lower middle quartile / Quartile % 11.0% Upper middle quartile / Quartile % 10.7% Upper quartile / Quartile % 11.8% Overall 89.4% 10.6% The table above shows the breakdown of gender by quartile. There is only a small deviation from the overall male/female split, except in the lower quartile where there is an underrepresentation of males. Almost 90% of the workforce is female and this shows an extremely high gender bias within the workforce, even compared to the NHS in England where 77% of the workforce is female vi. This suggests that there is an opportunity to encourage more men to join our organisation. Calculation Statutory bonus pay calculations Mean bonus gender pay gap 0% Result Median bonus gender pay gap 0% Proportion of males receiving a bonus payment 0% Proportion of females receiving a bonus payment 0% Page 3

7 As an organisation we do not usually pay bonuses to our workforce. In line with this approach, during the snapshot period of 6 April 2016 to 5 April 2017, no males or females received a bonus and hence there is no bonus gender pay gap. The statutory analysis above shows that we perform significantly better than relevant comparators. However, our workforce does not reflect the wider population in terms of gender split and there is potential for us to attract more males to join our organisation particularly in entry-level roles. 5 Additional analysis Section 4 described the rigid requirements of the statutory analysis and the additional analysis in this section allows for a more holistic review of our gender pay gap including analysis by pay band to allow us to plan suitable actions. For example, the removal of individuals on reduced-pay leave during the snapshot window may mean that acting on the statutory analysis alone may not be a fair reflection of our workforce. For this analysis, only permanent and fixed-term/temporary employees are included. Bank staff have been excluded as their working hours are often irregular, with individuals booking shifts as required to meet their work-life balance therefore including Bank staff may change the overall picture on a month-by-month basis making it difficult to pull out underlying issues. The hourly rate used in the analysis is calculated based only on salary plus any off-scale differences. Where an individual occupies multiple posts then each post is counted separately in the analysis. This is as if the multiple posts were consolidated into one hourly rate and the posts were in differing pay bands then it would be impossible to conduct analysis by pay band. The same snapshot date of 5 April 2017 has been used to ensure comparability with the statutory analysis. Calculation Overall employees only gender pay gap Result Mean gender pay gap 4.8% Median gender pay gap 0.0% Looking at our employees only reduces our mean gender pay gap from the statutory figure of 8.9% to 4.8%. This is more yet more favourable against our comparators. Our median gender pay gap remains consistent at 0%. Page 4

8 Employees only gender pay gap by pay band Mean gender pay gap Agenda for Change pay band (Negative results represent women being paid more than men) 1 N/A 2-2.2% 3-4.3% 4-2.0% 5-0.6% 6-0.7% 7-1.0% 8a -4.3% 8b 5.9% 8c 4.7% 8d N/A Other 15.6% Overall 4.8% *There are no female band 1 individuals and no male band 8d individuals so it is not possible to calculate this figure. There are small variances within each pay band, which are caused by the spread of individuals across the spinal column points/increments within the band. In most of the bands (2 to 8a) females are paid marginally more than men. There is a larger pay gap in the Other (spot-salaries) band this is as the roles within the band are not of equal value and hence are not comparable. The band also only contains 15 individuals, making up just 1% of employees. Page 5

9 The chart above shows the gender composition of each pay band. Almost 90% of employees are female and this is reflected quite closely in most of the pay bands. (Bands 1 and 8d are outliers due to only containing 1 individual in each.) The chart above shows how each gender is spread across the pay bands with males predominantly working in bands 5 and above (72%). This is despite the fact that almost the whole of our Senior Leadership Team are female. This effect is caused by the underrepresentation of males choosing to work as Healthcare Assistants, Assistant/Associate Practitioners and in junior administrative roles. 6 Conclusion and recommendations In summary, we are confident that our approach to reward is delivering equal pay for equal value work. This is demonstrated through us having no median pay gap, our mean pay gap (8.9% statutory definition and 4.8% for employees only) being significantly below national, local and industry comparators and only small variances existing within each Agenda for Change pay band. Page 6

10 However, we acknowledge that our organisation still has the ability to progress equality of opportunity for both genders further and this section sets out a number of possible actions we will pursue that can support in reducing our mean gender pay gap. Area to address Increasing male representation in the workforce generally. Increasing male representation in Healthcare Assistant roles. Increasing male representation in junior administrative roles. Use of spot salaries for apprentices. Actions to be taken The underlying reasons for men not choosing to work for us need exploring initially. This will include looking at job application, shortlisting, interview and appointment rates by gender. We will consider our advertising methods and techniques to ensure these reach a male audience. We will also review some of our benefits to see if these are effective in attracting and retaining male workers (for example our Occupational Paternity Pay). We are aware that former Armed Forces personnel can be particularly suited to rehabilitation and reablement roles in healthcare, so will actively target this population to join our organisation. We require individuals joining us as Healthcare Assistants to already hold an NVQ Level 3 in Health and Social Care (or equivalent). It may be that there is a gender bias within individuals studying for the course meaning that the talent pool available to hire from is predominantly female. We will request information from local training providers on the gender makeup of students in order to investigate this further. We will work to build links with schools to encourage more males to consider healthcare as a career, developing a talent pipeline into the course and ultimately our organisation. Relevant statistics will be sought to see if junior administrative roles are predominantly filled by females at a national level or if this is an organisational issue. If this is an organisational issue then our advertising methods and techniques will be reviewed for administrative roles to ensure a male audience is being captured. We will explore investing in administration apprentices to attract male school-leavers into these roles that may otherwise join other organisations. Where possible we will work with our public sector partners outside of healthcare (for example local authorities, the police or fire and rescue service) to identify if they struggle to recruit males into similar roles. We are unable to address the other worker groups that receive spot salaries for their pay. We will consider job evaluation of apprentice roles and slotting these into the Agenda for Change framework. This may have cost implications and may be associated with a suitable training reclaim agreement to ensure our investment is realised. Guidance on apprentice pay is due from the NHS Staff Council due following the 2018 pay agreement and this will need considering before finalising our approach vii. Page 7

11 Area to address Encourage progression of females from bands 3 and 4 to band 5 to address underrepresentation. Actions to be taken We are already working on a career pathways project to provide employees with clarity on how they can develop whilst working with us. Alongside this work we will identify if there are other obstacles preventing females from applying for promotions. This will include collating information on flexible working applications and success rates and the retention of women after maternity leave. 7 Alternative formats We are committed to making this information as accessible as possible and this report is available on request in alternative formats including large print, braille or as an audio recording. Please contact Human Resources on or by at briscomhealth.askhr@nhs.net to discuss your requirements. Jason Gothard Senior Human Resources Advisor 21 March Supporting statement I confirm that the information included in section 4 of this report has been calculated in accordance with the Equality Act 2010 (Gender Pay Gap Information) Regulations Penny Phillpotts Human Resources Director Company Director of Bristol Community Health CIC 29 March 2018 i Office for National Statistics (2017) Statistical bulletin: Annual Survey of Hours and Earnings: 2017 provisional and 2016 revised results. Available from: ualsurveyofhoursandearnings/2017provisionaland2016revisedresults#gender-pay-differences [Accessed 15 March 2018]. ii Office for National Statistics (2017) Table 1.12 Gender pay gap (%) - For all employee jobs: United Kingdom, Available from: asets/annualsurveyofhoursandearningsashegenderpaygaptables/2017/2017.zip [Accessed 15 March 2018]. iii Office for National Statistics (2017) Table Gender pay gap (%) - For all employee jobs: United Kingdom, Available from: asets/annualsurveyofhoursandearningsashegenderpaygaptables/2017/2017.zip [Accessed 15 March 2018]. iv Office for National Statistics (2017) SIC2007 Table 4.12 Gender pay gap (%) - For all employee jobs: United Kingdom, Available from: Page 8

12 asets/annualsurveyofhoursandearningsashegenderpaygaptables/2017/2017.zip [Accessed 15 March 2018]. v ACAS and the Government Equalities Office (2017) Managing gender pay reporting. Available from: [Accessed 15 March 2018]. vi NHS Digital (2017) Equality and Diversity in NHS Trusts and CCGs in England, June Available from: England-June-2017/xls/Equality_and_Diversity_in_NHS_Trusts_and_CCGs_in_England June_2017.xlsx [Accessed 21 March 2018]. vii NHS Employers (2018) Framework agreement. Available at [Accessed 21 March 2018]. Page 9