Diversity

Pay Gaps #27 – Don’t mention the Disability Pay Gap!

June 11, 2022 By Nigel

“I mentioned it once but I think I got away with it!”

Basil Fawlty didn’t get away with it in Torquay and neither did this manager.

HR Manager – “Our disability pay gap is zero which surprises me”

Me – “How many disabled employees do you have?”

My response sums up my view on Disability Pay Gap Reporting (DPGR). The manager commented on their pay gap whilst I queried their employment gap. As a statistician who happens to be disabled, I consider the conventional disability pay gap statistic to be at best irrelevant and at worse a lie.

Pay Gaps #26 – Why are female dominated public sector gender pay gaps so large?

May 26, 2022 By Nigel

… & why are gender pay gaps so small at male dominated private sector employers?

When I asked people recently who on average had the larger gender pay gap, the results were –

62% said female dominated (>80% employees are women) public sector (snapshot date 31st March) employers. There were 420 such employers in April 2021 who reported their UK gender pay gap.
38% said male dominated (>80% employees are men) private sector (snapshot date 5th April) employers. There were 1584 such employers in April 2021 who reported their UK gender pay gap.

The majority are correct. In April 2021, for every £1 paid to the average man, the average woman was paid 90p at the average male dominated private sector employer and 77p at the average female dominated public sector employer. For context, the average woman at the average employer in the finance sector (who are often in the news for having large pay gaps) is paid 75p.

Pay Gap Trends #5 – Has pay gap reporting narrowed the gender pay gap?

May 13, 2022 By Nigel

Disinterested employers were 20% less likely than engaged employers to have narrowed their UK gender pay gap between 2017 & 2021 . I draw this conclusion from a statistical model using ~6,000 employers which removed the effect of confounders such as size, sector, furlough, gender ratio, etc. Once accounted for, I found 61% of those reporting their pay gap for 2019 had narrowed their pay gap by 2021 compared to 55% of those not reporting 2019 data.

Pay Gap Data #5 – Where can I find gender pay gap data for 2021?

May 1, 2022 By Nigel

This post was updated on 1st May 2022 with the latest data

The government requires all organisations employing 250 or more employees to submit gender pay gap data. All data is available to the public and can be found on the government’s gender pay gap website. I have downloaded this data and created a spreadsheet tool to present the data in a more user-friendly and visual format.

Pay Gaps #25B – House of Lords’s debate on Ethnicity Pay Gaps – My thoughts

November 9, 2021 By Nigel

Is pay gap reporting about transparency or accountability? This was the main theme of the House of Lords debate on Ethnicity Pay Gap Reporting (EPGR) on 25th October 2021, unlike the Commons debate that preceded it in September. The 9 peers who spoke could be split between those who see EPGR as an exercise in employer transparency and those who see EPGR as an exercise in employer accountability and I consider this to be a fundamental question that has not yet been answered. In this article, I will discuss the implications of both answers to this question for any future EPGR legislation.

Pay Gaps #25A – House of Common’s debate on Ethnicity Pay Gaps – My thoughts

September 27, 2021 By Nigel

The UK Parliament debated Ethnicity Pay Gap Reporting (EPGR) on 20th September 2021 in Westminster Hall. Seven MPs spoke in the hour long debate and, as debates go, I thought it was actually quite good. There was cross party consensus on the merits of EPGR but I saw a divide between those who recognise EPGR is complex and requires trade offs and those who think the complexities of EPGR can be solved with government guidance.

Pay Gaps #24 – Briefing Note for Parliament’s debate on Ethnicity Pay Gaps

September 14, 2021 By Nigel

The UK Parliament is about to debate whether or not ethnicity pay gap reporting (EPGR) by UK employers should be made mandatory. The debate will start at 4.30pm on Monday 20th September 2021 and is a result of an e-petition reaching the threshold to require a parliamentary debate. To assist MPs, journalists, campaigners and anyone else interested in this debate, I have written a briefing note which lists 9 key points that need to be addressed during the debate.

Update 20th September – The Parliament TV link is here and my live-tweet thread is here.

Ethnicity #2 – How many categories are there?

September 13, 2021 By Nigel

When I submitted my evidence to the Commission on Racial and Ethnic Disparities (CRED) in November 2020, I recommended that ethnicity pay gap reporting (EPGR) using the Big 5 ethnicities of White, Asian, Black, Mixed & Other be made mandatory. In the CRED report published in March 2021, recommendation 24 called for analysis of ethnicity to use the Office of National Statistics (ONS) 18+1 ethnicities as much as possible and it is my opinion this is one of the reasons why CRED stopped short of recommending mandatory EPGR in recommendation 9. In June 2021, I published 7 + 5 recommendations for improving gender pay gap reporting (GPGR) and I made it clear that all 12 of my recommendations would also apply to any EPGR system introduced by the government. However, I stated my 2nd recommendation on number of categories to be reported needed more details before it could be applied to EPGR and this article will fill in those details whilst also recording my response to recommendations 9, 10, 23 & 24 of the CRED report.

Pay Gap Trends #4 – Did the UK gender pay gap narrow in 2020?

September 5, 2021 By Nigel

This article was last updated using data submitted as of 4th September 2021.

In February 2021, the EHRC confirmed that all employers with a headcount of 250 employees or more would have to submit their gender pay gaps based on the 2020 snapshot date. Due to the lateness of this confirmation, they also stated that no enforcement action would be taken prior to the end of September 2021. As result, fewer employers than expected have reported 2020 data so far so I have used two methods of imputation to estimate that the median gender pay gap among these employers narrowed by 0.2 to 0.3 pence in the pound in 2020.

Pay Gaps #23 – How long will it take to close your pay gap?

August 9, 2021 By Nigel

Five months ago, I introduced the gender swap number as a superior statistic to the median gender pay gap. Feedback from clients and others since then has confirmed my hope they would find it more intuitive to use and interpret. This encouraged me to call on Parliament to amend the UK gender pay gap legislation so that swap numbers could be published for employers with 250 or more employees. I now want to build on this by showing a couple of simple calculations that can turn a swap number into an estimate of how long it will take an employer to close its pay gap.