APPENDIX 2
Memorandum by the Chartered Institute
of Personnel and Development
The Chartered Institute of Personnel and Development
(CIPD) is the leading professional institute concerned with the
management and development of people in organisations in the UK
and Ireland. We have over 120,000 members covering all specialisms
and levels in the field, ranging from HR Directors in FTSE 100
companies and Government departments, to training and remuneration
specialists and consultants.
We are a charity with the mission to lead on
the thinking and practice of people management and development
and to promote the public good. As such we have long championed
the importance that organisations ensure that their HR polices
and practices do not discriminate against certain groups of individuals.
Employers should be acting on equal pay because:
— Discrimination between men and women
at work is illegal.
— Pay can affect where and how an individual
lives, the education of their children, their healthcare and whether
they have a pension on which to retire comfortably.
— It makes business sense. If employers
are basing their remuneration decisions on misconception, biased
value systems, stereotypes and prejudice, they are undermining
their ability to realise the full potential of all their employees.
To raise awareness of this issues we have engaged
in a number of initiatives including: presentations among our
48-strong local branch network, and at our specialist reward forum;
held special events, such as last year's diversity showcase, held
seminars at our national conferences at Harrogate and our annual
reward conferences; produced an equal pay guide; and presented
evidence to such bodies as the EOC Equal Pay Taskforce and the
DTI-sponsored Kingsmill review.
We recently commissioned the pay research organisation
IDS to look at how organisations are ensuring that all aspects
of their reward system, such as starting salaries, structures
and progression mechanisms, are free from bias.
I enclose some of our latest research. The first
document is a summary of a survey of pay and benefits within the
HR sector carried out on our behalf by the research company Croner
Reward. It covers 10,000 personnel jobs from around 1,800 organisations.
The enclosed tables show pay data by gender for HR professionals
by broad industrial sector and reveal a complex picture with women
doing similar jobs than men being paid less in certain industries
and more in others.
For instance, in the public services, the median
basic salary for female personnel directors is £63,430 while
for men it's £56,250. While at personnel manager level the
median salary for women is £35,806 and for men is £38,000.
In the private sector, the median salary received by female directors,
heads of department and personnel managers is less than their
male counterparts. However, the situation is reversed as for job
roles at and below at senior personnel officer level.
Within specific industrial sectors we find a
complex picture. For instance, within education and health services,
the median salary levels received by male and female directors
is almost the same. In finance, the median salary for male heads
of personnel is £70,000 while for females it is £52,399,
while in food, drink and tobacco companies the median salaries
for heads of personnel are the same for both females and males.
These data are influenced by such factors as
the size of the organisation (the larger the organisation the
higher the pay) and location (those working in London and the
southeast receive more). Another factor is the over representation
of females in the lower sized jobs, such as personnel assistant.
There is also the impact of personal choice, females may opt to
work in more "worthwhile", but lower paid, voluntary
and public services sectors. Also, the voluntary and public sectors
are often regarded as offering a better work-life balance. This
evidence indicates that a "one-size-fits all" enforced
approach will not be appropriate. Rather, organisations need to
be encouraged of the business benefits of ensuring a bias-free
way of rewarding and recognising contribution and think about
the approaches that most make sense in their individual circumstances.
The second document is the chapter on equal
pay reviews from the latest reward management survey carried out
by the CIPD, and to be launched at our conference on 9 February.
The findings show that over half of organisations covered have
carried out an EPR, are in the midst of carrying one out or are
planning to implement one.
We asked these organisations why they had not
carried out an EPR. Some, particularly smaller employers, believe
rightly or wrongly, that they have don't have a problem. Others,
particularly larger organisations, are concerned by practical
barriers, such as having the time, financial resources or the
data to carry one out.
If the Government wants to encourage more EPRs
among smaller employers it is important to shift the mindset,
so employers recognise the business benefits of rewarding employers
equitably. There is also a need for women to realise the importance
of this issue and to challenge the status quo. Larger employers
appear to be more ready to take on board the value of carrying
out an EPR, but there are issues about having the necessary resources
to do it properly. In this instance, it is a matter of priority
and top management putting in the resources to demonstrate fairness.
The last two tables are based on the findings
from the reward management survey, the first looks at the overall
pay gap uncovered by an EPR and the second looks at the factors
identified as the cause of the gap. While based on a sample of
40 organisations, they give a useful indication of the issues
concerned and their complexity. We should stress that the factors
accounting for the gap are not excuses for inaction but should
be a push for further investigation. Organisations need to increase
their curiosity to investigate the pay gaps and to identify whether
the differences are justifiable.
22 Janaury 2005
BASIC SALARY BY RANK, GENDER AND BUSINESS
SECTOR
| Personnel Rewards
| | | |
| | Summary |
| Rank and Job Level | Lower
Decile
£
| Lower
Quartile
£ |
Median
£
| Upper
Quartile
£ | Upper
Decile
£
| Sample |
| Public Services | |
| | |
| |
0 Personnel Director (main
| F
| 53,151
| 63,430 | 76,250
| | 10 |
| board) | M
|
50,250 | 56,250 | 63,759
| | 14 |
| 1 Head of Personnel Function | F 38,300
| 40,075 | 44,262 | 50,006
| 55,700 | 44 |
| M 39,700 | 44,329
| 49,733 | 59,500 | 71,099
| 38 |
| 2 Personnel Manager | F 30,000
| 32,802 | 35,806 | 37,993
| 41,250 | 98 |
| M 32,920 | 35,000
| 36,000 | 45,000 | 58,683
| 37 |
| 3 Personnel Mgr/Snr Personnel Officer
|
F 24,925 |
25,977
|
28,997 |
32,000 |
35,000 |
160 |
| M 26,289 | 28,067
| 31,750 | 33,318 | 34,984
| 52 |
| 4 Personnel Officer | F 20,000
| 21,770 | 23,600 | 25,911
| 27,012 | 143 |
| M 20,583 | 21,701
| 23,661 | 24,726 | 26,346
| 27 |
| 5 Personnel Officer (new graduate level)
|
F 16,854 |
18,000
|
18,500 |
20,812 |
23,000 |
97 |
| M
| 16,000
| 16,000 | 18,808 |
| 14 |
| 6 Personnel Administrator | F 14,000
| 14,500 | 15,053 | 16,850
| 18,163 | 99 |
| M 16,000 | 16,000
| 16,515 | 17,000 | 17,000
| 26 |
| 7 Personnel Assistant | F 13,000
| 13,335 | 14,000 | 14,524
| 15,229 | 90 |
| M
| |
| | | 2
|
| 8 General Admin Support | F 10,767
| 12,000 | 12,755 | 13,000
| 13,000 | 21 |
| M
| |
12,000 | | | 8
|
| Voluntary/Charity/Not-for-Profit
| | | |
| |
0 Personnel Director (main |
F
| 49,772 | 57,296
| 67,215 | | 10
|
| board) | M
|
| | |
| 1 |
| 1 Head of Personnel Function | F 36,200
| 39,073 | 44,658 | 50,000
| 54,648 | 29 |
| M
| 40,000
| 43,000 | 51,030 |
| 11 |
| 2 Personnel Manager | F 30,060
| 32,000 | 35,000 | 37,000
| 40,800 | 53 |
| M
| 33,632
| 38,250 | 40,394 |
| 14 |
| 3 Personnel Mgr/Snr Personnel Officer
|
F 24,570 |
25,414
|
27,385 |
29,798 |
32,814 |
58 |
| M
| 29,455
| 30,000 | 30,880 |
| 15 |
| | |
| | | |
BASIC SALARY BY RANK, GENDER AND BUSINESS SECTOR (Continued)
| Personnel Rewards | |
| | | | Summary
|
| Rank and Job Level | Lower
Decile
£
| Lower
Quartile
£ |
Median
£ | Upper
Quartile
£
| Upper
Decile
£ |
Sample
|
| 4 Personnel Officer | F 19,114
| 21,439 | 22,712 | 24,000
| 27,000 | 53 |
| M
| |
| | | 3
|
| 5 Personnel Officer (new graduate level)
|
F 17,817 |
18,183
|
19,760 |
22,000 |
22,000 |
27 |
| M
| |
| | | 2
|
| 6 Personnel Administrator | F 13,000
| 15,250 | 16,500 | 17,960
| 19,200 | 23 |
| M
| |
| | | 2
|
| 7 Personnel Assistant | F
| | 14,000 | |
| 9 |
| 8 General Admin Support | F
| | | |
| 1 |
| Private Services and Manufacturing |
| | |
| | |
| 0 Personnel Director (main | F 50,000
| 52,000 | 65,000 | 77,750
| 89,500 | 28 |
| board) | M 50,000
| 64,250 | 75,000 | 85,000
| 125,799 | 38 |
| 1 Head of Personnel Function | F 40,000
| 44,000 | 50,000 | 60,000
| 73,000 | 121 |
| M 42,640 | 50,000
| 60,000 | 75,000 | 94,911
| 93 |
| 2 Personnel Manager | F 32,000
| 35,000 | 38,000 | 42,000
| 47,501 | 215 |
| M 35,000 | 35,650
| 42,000 | 46,000 | 53,739
| 86 |
| 3 Personnel Mgr/Snr Personnel Officer
|
F 25,000 |
26,638
|
30,000 |
33,000 |
37,260 |
279 |
| M 25,000 | 25,998
| 29,150 | 33,811 | 38,250
| 56 |
| 4 Personnel Officer | F 19,520
| 21,500 | 23,875 | 26,000
| 28,500 | 230 |
| M 19,600 | 22,000
| 22,000 | 26,000 | 26,000
| 33 |
| 5 Personnel Officer (new graduate level)
|
F 16,550 |
17,919
|
20,000 |
22,000 |
24,000 |
136 |
| M 15,000 | 17,000
| 19,500 | 21,800 | 23,000
| 21 |
| 6 Personnel Administrator | F 14,000
| 15,000 | 16,000 | 18,000
| 18,620 | 98 |
| M
| |
18,000 | | | 5
|
| 7 Personnel Assistant | F 11,371
| 13,000 | 14,000 | 15,000
| 15,350 | 34 |
| M
| |
| | | 1
|
| 8 General Admin Support | F
| | 12,000 | |
| 8 |
| | |
| | | |
BASIC SALARY BY BUSINESS ACTIVITY AND GENDER
| Sex | Median
| Sample |
| | £
| |
Rank 0—Personnel Director (main-board)
Business Services
| F | 76,801 | 10
|
| Charity and Welfare | F |
51,734 | 8 |
| Communications | M | 74,970
| 5 |
| Financial Services | F |
70,000 | 5 |
| Other Consultants | M | 70,000
| 10 |
| Education and Health Service | M
| 60,019 | 14 |
| F | 60,000
| 13 |
| Transport | M | 72,000
| 5 |
Rank 1—Head of Personnel Function
Bricks, China and Glass Manufacturing
| F | 45,000 | 9
|
| Business Services | M | 65,000
| 11 |
| F | 52,500
| 22 |
| Charity and Welfare | M |
40,000 | 11 |
| F | 42,000
| 29 |
| Chemicals and Man Made Fibres | M
| 58,500 | 10 |
| F | 48,600
| 6 |
| Communications | M | 63,504
| 6 |
| Computer Services | M | 82,000
| 13 |
| F | 58,212
| 18 |
| Construction | F | 50,000
| 6 |
| Distribution | M | 75,250
| 5 |
| F | 45,000
| 13 |
| Electronic Engineering | F |
57,700 | 8 |
| Financial Services | M |
70,000 | 15 |
| F | 52,399
| 26 |
| Food, Drink and Tobacco | M
| 60,000 | 12 |
| F | 60,000
| 13 |
| Hotels and Catering | M |
46,000 | 5 |
| F | 45,000
| 7 |
| Local Councils | M | 45,500
| 12 |
| Paper, Printing and Publishing | F
| 60,000 | 5 |
| Education and Health Service | M
| 50,000 | 32 |
| F | 45,000
| 49 |
| Public Administration | M |
50,000 | 20 |
| F | 45,000
| 14 |
| Retail and Repairs | M |
49,500 | 5 |
| F | 55,000
| 13 |
| Miscellaneous Services | M |
54,280 | 6 |
| F | 43,250
| 12 |
| Technical Services | F |
50,000 | 8 |
| Transport | F | 45,000
| 11 |
| Vehicles and Parts | M |
48,600 | 5 |
Rank 2—Personnel Manager
Business Services
| M | 41,150 | 10
|
| F | 40,034
| 54 |
| Charity and Welfare | M |
35,000 | 13 |
| F | 34,915
| 50 |
| Chemicals and Man Made Fibres | M
| 46,000 | 9 |
| F | 39,000
| 16 |
| Communications | F | 40,300
| 19 |
| Computer Services | M | 50,000
| 5 |
| F | 46,500
| 29 |
| Construction | F | 35,000
| 13 |
| Distribution | M | 48,500
| 10 |
| F | 39,500
| 15 |
| Electronic Engineering | F |
36,000 | 8 |
| Energy | F | 44,375
| 8 |
| Financial Services | M |
60,000 | 18 |
| F | 40,500
| 47 |
| Food, Drink and Tobacco | M
| 40,000 | 20 |
| F | 37,800
| 14 |
| Hotels and Catering | F |
42,500 | 10 |
| Instrument Engineering | F |
38,670 | 6 |
| Local Councils | M | 40,000
| 28 |
| F | 35,000
| 16 |
| Other Consultants | F | 45,000
| 18 |
| Paper, Printing and Publishing | F
| 42,000 | 10 |
| Other Manufacturing Industries | M
| 35,000 | 5 |
| F | 34,000
| 15 |
| Education and Health Service | M
| 39,162 | 25 |
| F | 37,000
| 121 |
| Public Administration | M |
38,000 | 23 |
| F | 35,175
| 32 |
| Retail and Repairs | M |
42,000 | 14 |
| F | 38,000
| 37 |
| Miscellaneous Services | M |
43,000 | 6 |
| F | 35,000
| 34 |
| Technical Services | M |
41,171 | 9 |
| F | 36,000
| 7 |
| Transport | M | 43,960
| 5 |
| F | 41,700
| 7 |
| Vehicles and Parts | M |
37,450 | 8 |
| F | 35,000
| 25 |
| |
| |
Pank 3—Personnel Manager/Senior Officer
Business Services
| M | 33,000 | 25
|
| F | 30,000
| 79 |
| Charity and Welfare | M |
29,767 | 24 |
| F | 29,000
| 78 |
| Chemicals and Man Made Fibres | M
| 45,000 | 24 |
| F | 30,000
| 28 |
| Communications | M | 35,000
| 12 |
| F | 35,000
| 7 |
| Computer Services | M | 37,500
| 10 |
| F | 36,000
| 56 |
| Construction | M | 28,000
| 6 |
| F | 30,000
| 15 |
| Distribution | F | 28,850
| 36 |
| Electrical Engineering | M |
26,000 | 10 |
| F | 30,000
| 15 |
| Electronic Engineering | F |
36,000 | 21 |
| Energy | F | 33,200
| 13 |
| Financial Services | M |
45,000 | 15 |
| F | 34,000
| 87 |
| Food, Drink and Tobacco | M
| 30,500 | 21 |
| F | 32,625
| 30 |
| Hotels and Catering | M |
30,000 | 19 |
| F | 29,500
| 16 |
| Instrument Engineering | F |
32,700 | 8 |
| Local Councils | M | 30,000
| 39 |
| F | 28,320
| 47 |
| | |
|
| Mechanical Engineering | M |
31,500 | 6 |
| F | 29,250
| 6 |
| | |
|
| Mineral Extraction | M |
29,000 | 5 |
| Other Consultants | F | 30,000
| 18 |
| Paper, Printing and Publishing | F
| 29,727 | 20 |
| Oil/Gas Extraction/Process | F
| 34,000 | 5 |
| Other Manufacturing Industries | F
| 25,500 | 11 |
| Education and Health Service | M
| 32,000 | 35 |
| F | 29,304
| 230 |
| Public Administration | M |
31,000 | 53 |
| F | 28116
| 89 |
| Retail and Repairs | M |
30,000 | 15 |
| F | 30,000
| 107 |
| Miscellaneous Services | M |
30,750 | 6 |
| F | 30,900
| 33 |
| Technical Services | F |
30,080 | 22 |
| Transport | M | 30,850
| 12 |
| F | 29,727
| 22 |
| Vehicles and Parts | M |
28,100 | 7 |
| F | 32,000
| 21 |
Rank 4—Personnel Officer
Bricks, China and Glass Manufacturing
| F | 23,400 | 7
|
| Business Services | F | 25,000
| 70 |
| Charity and Welfare | M |
25,000 | 18 |
| F | 24,000
| 102 |
| Chemicals and Man Made Fibres | F
| 23,378 | 18 |
| Communications | F | 25,478
| 10 |
| Computer Services | F | 27,500
| 46 |
| Construction | F | 25,000
| 19 |
| Distribution | M | 24000
| 8 |
| F | 25,000
| 21 |
| Electronic Engineering | F |
23,000 | 7 |
| Energy | F | 28,000
| 8 |
| Financial Services | M |
24,647 | 12 |
| F | 25,000
| 71 |
| Food, Drink and Tobacco | M
| 22,000 | 13 |
| F | 22,000
| 39 |
| Hotels and Catering | F |
22,000 | 23 |
| Instrument Engineering | F |
24,750 | 12 |
| Local Councils | M | 25,000
| 13 |
| F | 25,000
| 52 |
| Mechanical Engineering | F |
22,000 | 6 |
| Other Consultants | F | 28,187
| 5 |
| Paper, Printing and Publishing | F
| 27,000 | 25 |
| Other Manufacturing Industries | F
| 24,500 | 21 |
| Education and Health Service | M
| 26,000 | 47 |
| F | 24,161
| 215 |
| Public Administration | M |
23,370 | 40 |
| F | 23,750
| 109 |
| Retail and Repairs | M |
24,500 | 22 |
| F | 24,000
| 56 |
| Miscellaneous Services | M |
22,879 | 8 |
| F | 25,000
| 49 |
| Technical Services | F |
25,000 | 30 |
| Transport | F | 25,000
| 28 |
| Vehicles and Parts | M |
25,800 | 12 |
| F | 24,000
| 35 |
| |
| |
Rank 5—Personnel Officer (new graduate level)
Business Services
| M | 23,500 | 16
|
| F | 22,000
| 55 |
| Charity and Welfare | M |
18,000 | 7 |
| F | 19,750
| 76 |
| Chemicals and Man Made Fibres | F
| 20,500 | 27 |
| Communications | F | 22,000
| 30 |
| Computer Services | F | 25,000
| 39 |
| Construction | F | 20,000
| 13 |
| Distribution | F | 19,000
| 27 |
| Electrical Engineering | F |
22,670 | 7 |
| Electronic Engineering | F |
24,500 | 12 |
| Energy | F | 25,000
| 9 |
| Financial Services | F |
19,000 | 71 |
| Food, Drink and Tobacco | F
| 20,000 | 30 |
| Hotels and Catering | M |
15,000 | 5 |
| F | 15,750
| 20 |
| Instrument Engineering | F |
21,000 | 15 |
| Local Councils | M | 21,000
| 12 |
| F | 21,000
| 66 |
| Mechanical Engineering | F |
20,000 | 6 |
| Other Consultants | F | 24,000
| 7 |
| Paper, Printing and Publishing | F
| 20,000 | 12 |
| Other Manufacturing Industries | F
| 18,750 | 14 |
| Education and Health Service | M
| 20,088 | 15 |
| F | 19,637
| 156 |
| Public Administration | M |
17,445 | 30 |
| F | 19,271
| 79 |
| Retail and Repairs | M |
18,575 | 16 |
| F | 18,000
| 61 |
| Miscellaneous Services | F |
19,000 | 26 |
| Technical Services | F |
19,000 | 9 |
| Transport | M | 22,815
| 6 |
| F | 20,000
| 17 |
| Vehicles and Parts | M |
21,800 | 5 |
| F | 20,000
| 29 |
Rank 6—Personnel Administrator
Bricks, China and Glass Manufacturing
| F | 17,500 | 7
|
| Business Services | M | 16,500
| 6 |
| F | 18,000
| 66 |
| Charity and Welfare | M |
14,250 | 5 |
| F | 16,260
| 88 |
| Chemicals and Man Made Fibres | F
| 18,300 | 28 |
| Computer Services | F | 18,250
| 34 |
| Construction | F | 16,250
| 13 |
| Distribution | F | 15,000
| 23 |
| Electrical Engineering | F |
17,500 | 20 |
| Electronic Engineering | F |
17,000 | 7 |
| Financial Services | M |
18,500 | 8 |
| F | 18,000
| 59 |
| Food, Drink and Tobacco | F
| 18,000 | 28 |
| Hotels and Catering | F |
16,000 | 30 |
| Instrument Engineering | F |
16,000 | 9 |
| Local Councils | M | 16,515
| 8 |
| F | 16,000
| 98 |
| Paper, Printing and Publishing | F
| 17,000 | 21 |
| Oil/Gas Extraction/Process | F
| 18,500 | 5 |
| Other Manufacturing Industries | F
| 16,800 | 20 |
| Education and Health Service | M
| 15,886 | 8 |
| F | 16,500
| 280 |
| Public Administration | M |
16,000 | 19 |
| F | 16,000
| 87 |
| Retail and Repairs | F |
16,000 | 50 |
| Miscellaneous Services | M |
17,000 | 9 |
| F | 16,000
| 32 |
| Technical Services | F |
18,000 | 25 |
| Transport | F | 18,000
| 20 |
| Vehicles and Parts | F |
16,665 | 41 |
Rank 7—Personnel Assistant
Business Services
| F | 14,000 | 32
|
| Charity and Welfare | F |
14,500 | 27 |
| Computer Services | F | 15,000
| 11 |
| Construction | F | 13,800
| 7 |
| Distribution | F | 15,000
| 16 |
| Energy | F | 15,250
| 5 |
| Financial Services | F |
15,000 | 20 |
| Food, Drink and Tobacco | F
| 15,000 | 30 |
| Hotels and Catering | F |
13,000 | 6 |
| Instrument Engineering | F |
15,000 | 7 |
| Local Councils | F | 14,375
| 40 |
| Other Consultants | F | 15,000
| 7 |
| Other Manufacturing Industries | F
| 14,348 | 6 |
| Education and Health Service | F
| 14,000 | 133 |
| Public Administration | M |
13,500 | 5 |
| F | 14,000
| 88 |
| Retail and Repairs | F |
13,390 | 45 |
| Miscellaneous Services | F |
14,100 | 10 |
| Technical Services | F |
15,000 | 8 |
| Transport | F | 14,375
| 12 |
| Vehicles and Parts | F |
13,692 | 12 |
Rank 8—General Administration Support
Business Services
| F | 12,000 | 10
|
| Charity and Welfare | F |
13,000 | 10 |
| Distribution | F | 13,000
| 9 |
| Financial Services | F |
12,000 | 8 |
| Education and Health Service | F
| 12,877 | 48 |
| Public Administration | M |
12,000 | 8 |
| F | 12,000
| 15 |
| Retail and Repairs | F |
13,000 | 17 |
| | |
|
EQUAL PAY
REVIEWS
Increased awareness about the importance of ensuring that
staff are rewarded in a non-discriminatory way and government
encouragement has led to a rise in the proportion of employers
carrying out an equal pay review (EPR).
Just under one quarter of our sample had carried out an equal
pay audit between 1998 and 2003. Just over a quarter did likewise
in 2004, while two-fifths of employers plan to do so in 2005.
All sectors show an increase in EPR activity, with the private
sector service firms and voluntary organisations catching up with
the public sector, and a significant jump in planned audits in
2005. All size categories show an increase, except those organisations
employing fewer than 50 staff.
The majority of EPRs in 2005 will cover age and race, as
well as gender, so there is growth in coverage as well as incidence.
Table 37
PROPORTION OF EMPLOYERS WHO HAVE COMPLETED UNDERTAKING
AN EQUAL PAY REVIEW OR PLAN AN EQUAL PAY REVIEW, BY SECTOR AND
EMPLOYER SIZE
| Percentage of respondents
| 1998-2003 | 2004
|
| 2005 | |
| |
| All respondents | 24 | 26
| 41 |
| By sector | |
| |
| Manufacturing and production | 20
| 18 | 34 |
| Private sector services | 23
| 30 | 40 |
| Voluntary | 23 | 15
| 53 |
| Public sector | 32 | 31
| 45 |
| By size | |
| |
| 0-49 employees | 21 | 21
| 19 |
| 50-249 | 16 | 19
| 34 |
| 250-999 | 24 | 27
| 41 |
| 1,000-4,999 | 32 | 33
| 47 |
| 5,000+ | 26 | 27
| 58 |
| | |
|
Table 38
WHAT ELSE THE EQUAL PAY REVIEWS HAVE COVERED
| Percentage of respondents
| 1998-2003 | 2004
|
| 2005 | |
| |
| Age | 25 | 31
| 60 |
| Race | 30 | 37
| 60 |
| | |
|
47% of respondents have not carried out an EPR, and have
no plans of doing so in the near future. By sector, manufacturing
and private service firms seem most reluctant to carry out an
EPR. By size, smaller employers are least likely to be planning
to undertake a review.
Table 39
PROPORTION OF EMPLOYERS WITH NO INTENTION OF CARRYING
OUT AN EQUAL PAY REVIEW, BY SECTOR AND SIZE+
| Percentage of respondents
|
| All respondents | 47 |
| By sector | |
| Manufacturing and production | 55
|
| Private sector services | 49
|
| Voluntary | 38 |
| Public sector | 40 |
| By size | |
| 0-49 employees | 59 |
| 50-249 | 64 |
| 250-999 | 48 |
| 1,000-4,999 | 29 |
| 5,000+ | 31 |
| |
We asked these organisations why they had not carried out an EPR.
Some, particularly smaller employers, believe rightly or
wrongly, that they have don't have a problem. The top three reasons
given for inactivity are that the organisation regards its existing
pay systems as non-discriminatory (62%), that use an analytical
job evaluation scheme (27%), and that top managers do not see
the need.
Others, particularly larger organisations, are concerned
by practical barriers. Respondents report that they do not have
the time, financial resources or the data to carry one out. Or
that as the organisation is currently implementing, or about to
introduce, a new pay system there is no point in doing one.
Given the amount of pay reform in the public sector, it is
not surprising that this is a common explanation among employers
for inactivity. In the voluntary sector it is more to do with
feeling they don't have the time, financial resources or data
to carry out an EPR. In the private sectors, lack of top management
support is more of an issue.
Table 40
REASONS GIVEN FOR NOT UNDERTAKING, OR PLANNING TO CARRY
OUT, AN EQUAL PAY REVIEW, BY SECTOR
| All | Manufacturing and production
| Private sector services | Voluntary sector
| Public services |
| Pay systems assumed to be non-discriminatory
| 62 | 57 | 65 |
67 | 57 |
| Have an analytical job evaluation scheme |
27 | 35 | 16 | 33
| 39 |
| Top management do not see the need for a review
| 24 | 24 | 27 |
13 | 20 |
| Do not have the time to carry out a review |
16 | 15 | 20 | 27
| 2 |
| Implementing or planning to introduce a new pay and grading system
| 12 | 9 | 8 |
20 | 22 |
| Do not have the financial resources or the data to carry out a review
| 12 | 11 | 13 |
27 | 7 |
| Concerns about what the review will find |
2 | 2 | 2 | —
| 4 |
| | |
| | |
If the government wants to encourage more EPRs among smaller
employers (where the majority of workforce is employed), it is
important to shift the mindset, so employers recognise the business
benefits of rewarding employees equitably.
The importance of carrying out an EPR appears to have been
taken on board by larger organisations, but there are issues about
having the necessary resources to do it properly. In this instance,
it is a matter of priority and top management putting in the resources
to demonstrate fairness.
Table 41
MOST COMMON REASONS GIVEN FOR NOT UNDERTAKING, OR PLANNING
TO CARRY OUT, AN EQUAL PAY REVIEW, BY EMPLOYER SIZE
Employer size
| 0-49
| 50-249 | 250-999
| 1,000-4,999 |
| 5,000+ | |
| | |
| Pay systems assumed to be non-discriminatory (77%)
| Pay systems assumed to be non-discriminatory (64%)
| Pay systems assumed to be non-discriminatory (54%)
| Pay systems assumed to be non-discriminatory (50%)
| Pay systems assumed to be non-discriminatory (47%)
|
| Top management do not see the need for a review (20%)
| Have an analytical job evaluation scheme (32%)
| Top management do not see the need for a review (26%)
| Top management do not see the need for a review (30%); have an analytical job evaluation scheme (30%)
| Have an analytical job evaluation scheme (35%)
|
| Do not have the time to carry out a review (10%)
| Top management do not see the need for a review (27%)
| Have an analytical job evaluation scheme (25%)
| Do not have the time to carry out a review (23%)
| Do not have the financial resources or the data to carry out a review (29%); implementing or planning to introduce a new pay and grading system (29%)
|
| | |
| |
PERCENTAGE SIZE OF OVERALL PAY GAP BETWEEN MALE AND FEMALE
STAFF
Size of overall
pay gap | Sector
| Overall | Manufacturing
and
Production
| Private Sector | Voluntary Sector
| Public Sector | Total No Employees
| 0-49 | 50-249 |
250-999 |
| 1,000-4,999 | 5,000+
| | | |
| | | |
| |
0.0% | 31.6% |
25.0% | 36.8% | 33.3%
| 25.0% | 100.0% | 33.3%
| 44.4% | 7.7% | 0.0%
|
| 2.0% | 2.6% | 0.0%
| 5.3% | 0.0% | 0.0%
| 0.0% | 16.7% | 0.0%
| 0.0% | 0.0% |
| 3.0% | 5.3% | 25.0%
| 0.0% | 0.0% | 0.0%
| 0.0% | 16.7% | 0.0%
| 7.7% | 0.0% |
| 5.0% | 13.2% | 12.5%
| 5.3% | 0.0% | 37.5%
| 0.0% | 0.0% | 0.0%
| 23.1% | 25.0% |
| 6.0% | 2.6% | 12.5%
| 0.0% | 0.0% | 0.0%
| 0.0% | 0.0% | 0.0%
| 7.7% | 0.0% |
| 7.0% | 2.6% | 0.0%
| 5.3% | 0.0% | 0.0%
| 0.0% | 0.0% | 0.0%
| 0.0% | 25.0% |
| 8.0% | 5.3% | 0.0%
| 5.3% | 0.0% | 12.5%
| 0.0% | 0.0% | 0.0%
| 15.4% | 0.0% |
| 10+% | 36.8% | 25.0%
| 42.1% | 66.7% | 25.0%
| 0.0% | 33.3% | 55.6%
| 38.5% | 50.0% |
| | |
| | | |
| | | |
MAIN FACTORS ACCOUNTING FOR THE OVERALL PAY GAP BETWEEN
MALE AND FEMALE STAFF
Factors accounting
for gap | Sector
| Overall | Manufacturing
and
Production
| Private Sector | Voluntary Sector
| Public Sector | Total No Employees
| 0-49 | 50-249 |
250-999 |
| 1,000-4,999 | 5,000+
| | | |
| | | |
| |
| | |
| | | |
| | | |
| Length of service/experience | 56.8%
| 42.9% | 70.0% | 0.0%
| 57.1% | 0.0% | 50.0%
| 66.7% | 50.0% | 85.7%
|
| Job segregation | 38.6% | 57.1%
| 30.0% | 33.3% | 42.9%
| 0.0% | 0.0% | 44.4%
| 61.1% | 14.3% |
| Skills/qualifications | 22.7%
| 14.3% | 30.0% | 33.3%
| 14.3% | 0.0% | 50.0%
| 22.2% | 16.7% | 28.6%
|
| Broadband pay structure | 18.2%
| 28.6% | 15.0% | 33.3%
| 14.3% | 0.0% | 16.7%
| 11.1% | 16.7% | 28.6%
|
| Out of date JE system | 13.6%
| 0.0% | 5.0% | 0.0%
| 35.7% | 0.0% | 16.7%
| 22.2% | 5.6% | 14.3%
|
| Undetermined | 13.6% | 28.6%
| 5.0% | 33.3% | 14.3%
| 100.0% | 16.7% | 0.0%
| 11.1% | 14.3% |
| Regional pay variation | 11.4%
| 14.3% | 15.0% | 0.0%
| 7.1% | 0.0% | 33.3%
| 22.2% | 0.0% | 14.3%
|
| Performance based pay/bonus/incentive system
| 6.8% | 0.0% | 5.0%
| 0.0% | 14.3% | 0.0%
| 16.7% | 11.1% | 5.6%
| 0.0% |
| Red circling | 6.8% | 14.3%
| 10.0% | 0.0% | 0.0%
| 0.0% | 0.0% | 22.2%
| 5.6% | 0.0% |
| | |
| | | |
| | | |
|
