Gender Pay Gap (GPG) Report 2017
Introduction 1. For many NHS bodies, this will be the first time that respective Gender Pay Gap (GPG) reports have been published. For the Trust, this report meets GPG reporting regulations which form part of the specific duties under the Equality Act 2010, and which came into force on 31st March 2017 for public sector bodies. 2. Overall, the Trust has very strong female representation in the organisation, and across the Agenda for Change pay bands (see paragraph 4) and Consultant grades. This is highlighted in the table below which shows the headcount and percentages of females and males as of 31 st January 2018: Female / Male representation across pay bands (data as of 31st January 2018) Pay Band Female % Female Male % Male Total Band 1 111 79.3% 29 20.7% 140 Band 2 132 73.7% 47 26.3% 179 Band 3 628 78.4% 173 21.6% 801 Band 4 419 81.7% 94 18.3% 513 Band 5 440 73.0% 163 27.0% 603 Band 6 651 74.2% 227 25.8% 878 Band 7 354 74.7% 120 25.3% 474 Band 8A 140 74.5% 48 25.5% 188 Band 8B 46 67.7% 22 32.3% 68 Band 8C 23 56.1% 18 43.9% 41 Band 8D 12 60.0% 8 40.0% 20 Band 9 0 0.00% 1 100.00% 1 Career / Staff grade (all medical staff excluding Consultants) 92 73.6% 33 26.4% 125 Consultants 59 47.6% 65 52.4% 124 VSM 4 57.1% 3 42.9% 7 Total 3111 74.7% 1051 25.3% 4162 3. Whilst the representation of females is strong, the challenge for the Trust and across Great Britain is to identify and address any gender pay gap. 4. A note on Agenda for Change (AfC) pay bandings a. Agenda for Change is the current National Health Service (NHS) grading and pay system for NHS staff, with the exception of doctors, dentists, apprentices and some senior managers. b. AfC determines equal pay for the same job and supports the pay terms and conditions that are determined at national level. 2
Background to Gender Pay Gap reporting regulation 5. The aim of the Gender Pay Gap reporting regulations is to enable those authorities with 250+ employees to identify and narrow the gap in the difference between the earnings of men and women by identifying any gender-based pay inequalities and to enable them to make plans to investigate and remedy these. 6. The requirement is to collect, collate and publish the GPG data annually for the given snapshot date (which is 31st March 2017). 7. GPG data for the snapshot date of 31st March 2017 has to be published by the 30 th March 2018, on a website that is accessible to employees and the public. The data also has to be uploaded on the governments Gender Pay Service reporting site. 8. GPG data report should contain a narrative of what the data means and ideally, a commentary on the causes of any gaps and what we plan to do to reduce these. 9. Data has been provided to Trusts nationally by the Electronic Staff Record (ESR) service Definition of Gender Pay Gap : 10. The Gender Pay Gap is a measure of the difference in the average earnings between males and females across an organisation (or the labour market). It is expressed as a percentage of males earnings. It is designed to help organisations identify any defined pay band where there are disproportionately more or fewer of any specific gender than might be expected from the overall proportion of those genders in the organisation. 11. It is important not to confuse this with Equal Pay analysis which tests to see whether genders are paid the same for work of equal weight/value. What are the GPG reporting requirements? 12. The Trust is required to publish the following: The mean and median gender pay gap based on hourly rates of ordinary pay The difference between the mean and median hourly rate of ordinary pay of male and female employees The mean and median bonus gender pay gap based on the bonus paid during the period The proportion of males and females receiving a bonus payment during the period 3
The proportion of males and females in each quartile band of pay based on hourly rates of pay 13. The Mean is calculated from the total of all hourly rates divided by the number of relevant employees. 14. The Median is calculated as the mid-point between maximum and minimum hourly rates Clarifications 15. The government s website on GPG, provides clarifications on definitions related to reporting data. For the Trust, the key clarifications are described below. Employees 16. The regulations define Employees. For the NHS Bodies this means: a. those who have a contract of employment or contract of apprenticeship; b. those with a contract to do work or provide services ( workers and agency workers ); c. some self-employed people (where they have to personally perform a set piece of work) 17. The above will include those under Agenda for Change (AfC) terms and conditions, bank staff, medical staff and very senior managers (VSM). Full Pay Relevant Employees 18. Relevant Employees all employees employed by the organisation on the snapshot date of 31 st March 2017. 19. Full Pay Relevant Employees all employees who were paid their usual full basic pay in their pay period that included the snapshot date. Ordinary Pay and Bonus Pay 20. Ordinary pay includes basic pay, paid leave, including annual, sick, full pay maternity, paternity, adoption or parental leave (except where an employee is paid less than usual or nothing because of being on leave). 21. It also includes area (e.g. London Weighting Allowance) and other allowances, shift premium pay (defined as the difference between basic pay and any higher rate paid for work during different times of the day or night) and pay for piecework. For the Trust, area allowances are not applicable. 4
22. Ordinary pay does not include remuneration attributable to overtime or redundancy or termination of employment. It also does not include remuneration in lieu of leave or remuneration provided otherwise than in money. 23. Bonus pay relates to performance, productivity, incentive, commission or profit-sharing, but excludes remuneration attributable to overtime, redundancy and termination of employment. In the Trust, the pay that is classified as bonus is Clinical Excellence Awards, which are only applicable to Consultants who are eligible to apply. See paragraph 29. The Trust s GPG position at 31 March 2017 Mean and Median Gender Pay Gap Ordinary Hourly Rates 24. Data notes: Gender Mean Hourly Rate Median Hourly Rate Male 18.03 15.16 Female 15.34 13.45 Difference 2.69 1.71 Pay Gap % 14.91% 11.28% The above data excludes bank workers who were not paid to do work on the snapshot date of 31st March 2017. The hourly rate of pay is calculated for each employee based on 'ordinary pay.' The calculations for ordinary pay are based on a total of 2927 females and 1026 males. The calculation for ordinary pay only includes Full Pay Relevant Employees. Employees who were paid less than their usual full basic pay or were not being paid at all (as a result of, for example, being suspended without pay, people on unpaid sabbaticals, those on statutory sick leave, statutory maternity pay or taking agreed unpaid leave ) are not included. Commentary 25. The data shows that the mean gender pay gap is 14.91%. This indicates that even though females are better represented in numbers at every level in the organisation, the average hourly pay is not the same. 26. Initial analysis suggests that gender differentials in staff turnover and length of employment may be contributing to this gap. The Trust will need to do further investigations, including comparisons with other NHS Trusts, to understand where these differentials are across Agenda for Change, Medical and Very Senior Management pay scales. 5
Bonus Pay - Clinical Excellence Awards (CEA) 27. In the Trust, the pay that is classified as bonus is through the Department of Health s Clinical Excellence Awards. Only Consultants with at least one year s service in medical role within the NHS are eligible to apply and only a proportion of them are successful because of excellence in practice that is above contractual requirements. Paragraph 29 provides more detail on Clinical Excellence Awards. Mean / Median Gender pay gap Clinical Excellence Awards for eligible Consultants Gender Mean CEA Median CEA Male 10,834.20 8,876.47 Female 7,708.59 5,967.20 Difference 3,125.62 2,909.27 Pay Gap 28.85% 32.78% Proportion of males and females receiving a Clinical Excellence Awards payment Gender Employees Receiving CEA Total Relevant Employees % Female 22 3655 0.60 Male 32 1298 2.47 28. Data notes: a. The figures for Total Relevant Employees relates to all employees (including bank workers) in our workforce whether they were paid or not to do work on the 31st March 2017. b. The number below Employees Receiving CEA is for the reporting period covering the snapshot date. It includes staff that received the award in the previous years, regardless of whether they did so during the reporting period. This is because once an award is given to an individual for clinical excellence during one year it continues to be paid in subsequent following years, so they must be included in the count. c. The calculation for employees receiving CEA includes those who were Relevant Employees employed on the snapshot date of 31 March 2017 and the awards paid to them over the preceding 12 month period. d. The GPG requirement does not require us to assess if there is a bias within the specific employment group which is eligible for bonus payments 29. A note on Clinical Excellence Awards for Consultants: a. Clinical Excellence Awards are channelled through the Department of Health s Clinical Excellence Awards scheme, which is administered by the national Advisory Committee on Clinical Excellence Awards (ACCEA). b. There are two tiers of Clinical Excellence Awards National Awards (awarded by the ACCEA) and Employer Based Awards (Local Awards) awarded by the Trust s Employer Based Award Group committee. 6
c. Awards are categorised by levels ranging from 1 to 12, which determine the monetary values that are set by ACCEA. d. Local Awards can be made at levels 1 to 9, however Consultants in receipt of level 9 award are not eligible for Local Awards and are transferred directly to the National Awards process e. National Awards can be made at Levels 9 to 12. f. Claiming a bonus award is done through associated application processes for National and Employer Based Awards. g. For Employer Based Awards, the ACCEA sets out the eligibility criteria for the award and its calculation which determines the level of award. h. Changes to these awards require national renegotiation. Commentary 30. At the time of the snapshot date, 54 staff were in receipt of a Clinical Excellence Award - 22 were female (41%) and 32 were male (59%). These employees are medical consultants on medical contracts. 31. There is a gender differential in the mean amount of Clinical Excellence Award of almost 30%. The Trust will need to do more analysis on the number of consultants eligible to apply, the total number of applications received and the award success rate by male and female breakdown Proportions of male and female employees in each quartile bands Quartile Female Male Female % Male % Lower Lower Middle Upper Middle Upper 788 199 79.8% 20.2% 753 224 77.1% 22.9% 734 264 73.5% 26.5% 651 337 65.9% 34.1% Overall 2926 1024 74.1% 25.9% Total/% 32. Data notes a. The above data excludes bank workers who were not paid by the Trust to do work on the snap shot date of 31st March 2017. b. In order to calculate the quartile information, the full-pay relevant employees are sorted by hourly rates of pay and divided into four equal quarters. In this case approximately 980 employees are in each quartile and each quartile is split into a headcount of male and female employees. 7
Commentary 33. Based purely on the overall proportion of females in the Trust (74% females / 26% males) there are more females than might be expected in the bottom two pay quartiles. For nursing and care roles this is likely to reflect the wider workforce pool within which the Trust recruits - where more females than males are being trained. Further research will be required for administrative and facilities roles to understand the key drivers. 34. The Upper Middle quartile better reflects the overall proportion of females in the Trust. However, there are fewer females than might be expected in the upper pay quartile. The Trust will need to gain a better understanding of where the issue lies and also review recruitment, retention and job grading approaches to VSM and Medical staff to ensure they are gender neutral. Next Steps 35. Whilst the Trust has excellent representation of females across levels of the organisation (74% female, 26% male), including Senior, Very Senior Management and at Board Level, this report shows that there are gender pay gaps which require further investigation and the development of actions to close these gaps. 8