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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