Derbyshire Community Health Services NHS Foundation Trust



Trust Board

|Document Title: |Gender Pay Gap (GPG) Report 2018 |

|Presenter/Title: |Amanda Rawlings, Director People & Organisational Effectiveness |

|Contents of Paper were previously discussed by: |EDILF 7th March, 2018 and QPC 19th March, 2018 |

|Author/Title: |Lynne Shelton, Head of Quality & Business Services. |

| |Harinder Dhaliwal, Head of Equality, Diversity & Inclusion |

|Contact Email and Telephone Number: |Lynne.shelton@ Telephone: 01246 253095 |

|Date of Meeting: |29th March 2018 |Agenda |No of pages |

| | |Item No: |inc. this one: |

|Has an Equality Impact Assessment been undertaken |Yes |x |No | |

|Document is for: |

|(more than one box can be ticked) |

|This paper looks at the requirements under the new GPG reporting and sets out the results of GPG in DCHS |

| |

|Following government consultation, it became mandatory on 31st March 2017 for public sector organisations with over 250 employees to report annually on |

|their gender pay gap (GPG). This data has to be reported by 30th March 2018 and is part of the Public Sector Equality Duty under the Equality Act 2010. |

|Recommendations |

|The Board is asked approve the attached prior to publishing on our external website and Government Equalities Office by 30th March 2018. |

|Board Assurance Framework Risk Reference |

|Quality People |

|2.5 There is a risk to service users, staff and DCHS’ reputation due to staff not adhering to the principles of an equal, diverse and inclusive culture, |

|resulting in discriminatory and non-inclusive behaviours, non-compliance with Equality Act and potential legal costs. |

| |

|Quality Governance |

|4.2 There is a risk to the organisation due to not meeting regulatory, contractual or legal obligations resulting in sanctions. |

|Financial Impact |

|There is no immediate financial impact however following further analysis it may be that DCHS decides to address the gender pay gap and any under/over |

|representation by gender that comes out of such analysis. |

|Further Information and Appendices |

|Background |

| |

|Since the Equality Act 2010 (Specific Duties) Regulations 2011 (SDR) came into force on 10 September 2011, there has been a duty for public bodies with 150 |

|or more employees to publish information on the diversity of their workforce. Although the SDR did not require mandatory GPG reporting, the Government |

|Equalities Office (GEO) and the Equality and Human Rights Commission (EHRC) provided guidance that made it clear that employers should consider including |

|GPG information in the data they already publish. It was evident that not all employers did this, so the government made GPG reporting mandatory by amending|

|the SDR so that all public sector employers with more than 250 employees have to measure and publish their gender pay gaps. |

| |

|The new requirements |

| |

|Employers with 250 employees and over will need to publish the following information annually for all employees who are employed under a contract of |

|employment, a contract of apprenticeship or a contract personally to do work. This will include those under Agenda for Change terms and conditions, medical |

|staff and very senior managers. All calculations should be made relating to the pay period in which the snapshot day falls. For the first year, this will |

|be the pay period including 31 March 2017. |

| |

|Data used |

| |

|The data and calculations for GPG reporting are complex and potentially resource intensive therefore Electronic Staff Record (ESR) have developed a tool |

|that will help NHS organisations nationally to calculate their GPG data. |

| |

|It should be noted that, whilst a standard report has been produced by ESR and the GPG is automatically calculated, the pay elements used in the |

|calculations can be determined locally by individual Trusts therefore it is possible that disparities can occur due to interpretation by different |

|organisations. |

| |

|We have reviewed the output of the ESR report together with Derbyshire Healthcare NHS Foundation Trust and have agreed the format (elements to include and |

|exclude) that both Trusts will use in their reporting to ensure consistency. |

| |

|Our results |

| |

|The data used is at the snapshot date of 31st March 2017 and includes bank workers. At that time bank workers were paid monthly and therefore included in |

|the monthly payroll however from next years’ report (due 30th April 2019) we will be able to show bank workers separately as they moved onto a separate |

|weekly payroll as of 1st April 2017. |

| |

|It should be noted that our overall male/female workforce split is: |

| |

|Female |

|88.95% |

| |

|Male |

|11.05% |

| |

| |

|The results for DCHS gender pay gap ordinary pay is: |

| |

|Gender |

|Avg. Hourly Rate |

|Median Hourly Rate |

| |

| |

|Female |

|14.17 |

|12.73 |

| |

| |

|Male |

|16.29 |

|13.99 |

| |

| |

|Difference |

|2.12 |

|1.26 |

| |

| |

|Pay Gap % |

|13.01% |

|9.00% |

| |

| |

| |

| |

|Although our gender pay gap appears favourable to many other organisations we recognise that we need to do further analysis and consider what steps we want |

|to take to close the gap. Whilst we have structured pay banding and therefore equality in pay, the results show that proportionally there are more males |

|in the higher paid roles, AFC band 8A upwards (see below chart). |

| |

|[pic] |

| |

|We are also required to present our data in quartiles calculated by determining the hourly rate of pay and then ranking the relevant employees in order from|

|the lowest to the highest. The calculation requires an employer to show the proportions of male and female full-pay in four quartile pay bands, which is |

|done by dividing the workforce into four equal parts; lower middle, upper middle and upper quartile pay bands as outlined below. |

|Quartile |

|Female |

|Male |

|Female % |

|Male % |

| |

|1 |

|959 |

|81 |

|92.21% |

|7.79% |

| |

|2 |

|1096 |

|146 |

|88.24% |

|11.76% |

| |

|3 |

|1041 |

|114 |

|90.13% |

|9.87% |

| |

|4 |

|991 |

|161 |

|86.02% |

|13.98% |

| |

| |

|When looking at the gender pay gap for bonus pay it highlighted that the only payments deemed to be “bonus pay” that DCHS make are those made for Long |

|Service Awards. As these payments are typically in the form of vouchers and therefore not through the payroll then we cannot utilise the ESR report and |

|have had to make a manual calculation. |

| |

|The results for DCHS gender pay gap bonus pay is: |

| |

|Gender |

|Avg. Pay |

|Median Pay |

| |

|Gender |

|No of employees paid Bonus |

|Total Relevant Employees |

|% |

| |

|Female |

|308.00 |

|350.00 |

| |

|Female |

|85 |

|4109 |

|2.06% |

| |

|Male |

|290.00 |

|290.00 |

| |

|Male |

|4 |

|510 |

|0.78% |

| |

|Difference |

|-18.00 |

|-60.00 |

| |

| |

| |

| |

| |

| |

|Pay Gap % |

|-6.20% |

|-20.68% |

| |

| |

| |

| |

| |

| |

| |

|Benchmarking |

| |

|As the reporting deadline is not until 30th March 2018 the bench marking information currently available is limited as many organisations are waiting to |

|publish their results. This could be due to various reasons including - timescale for completing the complex payroll calculations, wanting to see the |

|results of other organisations in their sector or concern about a reputational risk of publishing a significant pay gap. |

| |

|The below tables show some benchmarking results so far: |

| |

|NHS Organisations |

| |

|Gender Pay Gap (female hourly rates lower by): |

| |

| |

|Average |

|Median |

| |

|Derbyshire Community Health Services NHS Foundation Trust |

|13% |

|9% |

| |

|Derbyshire Healthcare NHS Foundation Trust |

|19% |

|13% |

| |

|Lincolnshire Partnership NHS Foundation Trust |

|19% |

|15% |

| |

|Department of Health |

|14% |

|13% |

| |

| |

|NON NHS Organisations |

|(as published by CIPD People Management) |

|Gender Pay Gap (female hourly rates lower by): |

| |

| |

|Average across the first 570 organisations to report |

|11% |

| |

|Cambridgeshire Police |

|-12.9% (positive) |

| |

|Unilever |

|-8.8% (positive) |

| |

|Department for Work and Pensions |

|5.3% |

| |

|Rolls Royce |

|6.3% |

| |

|Department for Transport |

|16.9% |

| |

|TSB |

|31% |

| |

|PwC |

|33.1% |

| |

|easyJet |

|51.7% |

| |

|Phase Eight Fashion |

|64.8% |

| |

| |

|It is reported, again by the Chartered Institute of Personnel & Development (CIPD), that the industry sector where females fair better in respect of gender |

|pay gap is the Health sector. |

| |

|Next Steps |

| |

|The Trust is committed to ensuring a representative workforce and addressing the imbalance in our workforce. We recognise that the Gender Pay Gap involves |

|using a national measure across the sector, which is a useful statistical tool to help inform us of gaps and variations between the genders. However, we |

|will be going beyond this to support our decisions and demonstrate our intention to equalise the balance by developing our own robust methods in helping us |

|to identify where the actual gaps are and reasons within the context of our specific organisational composition and practice. |

| |

|There are a number of pieces of further analysis that need to be carried out to understand the issues fully and so that we can address these. |

| |

|We intend to : |

| |

|Explain and communicate with our staff colleagues – it is essential that we provide a clear explanation of gender pay gap reporting and what it means |

|(before the results are published nationally). This is likely to generate questions which will need addressing. |

|Publish our results nationally – by 30th March 2018 including explaining the steps we intend to take to close the gaps. |

|Publish results on our intranet – by 30th March 2018 as above. |

|Undertake further detailed analysis through a task group – there will be an ongoing need for further analysis by the Quality & Business Services Team, |

|People and Organisational Effectiveness colleagues and the Equality, Diversity & Inclusion Team We will analyses the gender pay gap across various areas |

|e.g. staff group, bands, service, protected characteristics and recruitment processes etc. Identify any areas of over or under representation which |

|ultimately impacts the results in the same manner that is used in relation to the Workforce Race Equality Standard (WRES). |

|Continue to promote opportunities for flexible working, shared parental leave, career progression, promotion and leadership development opportunities. |

|Monitoring Information |Brief Summary |

|What are there Governor Involvement implications? |Governors are engaged in the activities to enable the Trust to achieve its inclusion aspirations. |

|What are the Equality and Diversity implications? |EDILF – obtained significant assurance around data quality on the 7th March, 2018. |

| | |

| |The EDILF is the Trusts’ formal sub-group responsible for ensuring progress is made towards the |

| |achievement of DCHS’ equality, diversity, and inclusion and Human Rights aspirations. |

|What are the Patient, Public, Staff, Member and |Equality Leadership Forum members includes service users. |

|Stakeholder Involvement implications? | |

|Risk Register |

|Is the issue on the current Risk |No |If yes, what is the Risk Number? | |

|Register? | | | |

|Does this update recommend a change in the current risk score? (If so, please provide your rationale below) |No |

| |

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