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Gender Pay Gap Report

East Coast Community Healthcare CIC

Gender Pay Gap Report


Snapshot Date: 31 March 2020

Published: September 2021

 

About East Coast Community Healthcare CIC

 

East Coast Community Healthcare CIC (ECCH) is a staff owned Social Enterprise, providing community based NHS and social care in Norfolk & Suffolk. ECCH is owned by its employees. Our staff have a stake – and therefore a real say – in how the organisation works. Around 84% of staff are shareholders - well above average for a social enterprise - and we have two Staff Directors, appointed by their shareholder colleagues, who sit on the Board and shape our business.

ECCH is committed to being an equal opportunities employer and to building equality, diversity and inclusion into everything that it does.

 

Gender Pay Gap Reporting

 Legislation has made it statutory for organisations with 250 or more employees to report annually on their gender pay gap. Government departments are covered by the Equality Act 2010 (Specific Duties and Public Authorities) Regulations 2017 which came into force on 31 March 2017. These regulations underpin the Public Sector Equality Duty and require the relevant organisations to publish their gender pay gap data annually by 4th April. This data includes mean and median gender pay gaps; the mean and median gender bonus gaps; the proportion of men and women who received bonuses; and the proportions of male and female employees in each pay quartile.

The gender pay gap shows the difference in the average pay between all men and women in a workforce. If a workforce has a particularly high gender pay gap, this can indicate there may be a number of issues to deal with and the individual calculations may help to identify what those issues are.

The gender pay gap is different to equal pay. Equal pay deals with the pay differences between men and women who carry out the same jobs, similar jobs or work of equal value. It is unlawful to pay people unequally because they are a man or a woman.

East Coast Community Healthcare CIC supports the fair treatment and reward of all staff irrespective of gender.

 

This report sets out:

 

  • the reporting requirements for East Coast Community Healthcare CIC;
  • provides additional data where appropriate;
  • provides some analysis to identify the gender pay gap;
  • possible reasons for the gender pay gap; and
  • what we are doing to close the gender pay gap in the

 

Definitions and Scope

 

The gender pay gap is defined as the difference between the mean or median hourly rate of pay that male and female colleagues receive.

The mean pay gap is the difference between average hourly earnings of men and women. Namely, the hourly gap divided by the average for men equates to the mean gender pay gap.

The median pay gap is the difference between the midpoints in the ranges of hourly earnings of men and women. It takes all salaries in the sample, lines them up in order from lowest to highest, and picks the middle-most salary.

The report is based on rates of pay as at 31 March 2020. It includes all employees in scope on 31 March 2020.

 

Gender Pay Gap

 

The following Gender pay report data is taken as the snapshot date of 31 March 2020 and only includes those staff who were in receipt of their ordinary hourly rate on the snapshot date:

 

1.

The mean gender pay gap for ECCH

12.53%*

2.

The median gender pay gap for ECCH

0%*

* A positive figure indicates a slight gender pay gap in favour of males.

 

Pay Quartiles by Gender

 

Quartile

Female Headcount

Male Headcount

Female

%

Male

%

Description

1

(lowest paid)

 

171.00

 

29.00

 

85.50%

 

14.50%

Includes all employees whose standard hourly rate places them at or below the lower quartile

 

2

 

172.00

 

29.00

 

85.57%

 

14.43%

Includes all employees whose standard hourly rate places them

above the lower quartile but at or below the median hourly pay

 

3

 

167.00

 

22.00

 

89.95%

 

10.05%

Includes all employees whose standard hourly rate places them above the median hourly pay but at

or below the upper quartile

4

(highest paid)

 

154.00

 

35.00

 

80.60%

 

19.40%

Includes all employees whose standard hourly rate places them above the upper quartile

 

What do we do to ensure equal pay?

As noted earlier in this report, gender pay is different to equal pay. Legislation requires that men and women must receive equal pay for:

  • the same or broadly similar work;
  • work rated as equivalent under a job evaluation scheme; or
  • work of equal

 

ECCH is committed to the principle of equal opportunities and equal treatment for all employees, regardless of sex, race, religion or belief, age, marriage or civil partnership, pregnancy/maternity, sexual orientation, gender reassignment and disability. It has a clear policy of paying employees equally for the same or equivalent work, regardless of their sex (or any other characteristic set out above).

We deliver equal pay through a number of means but primarily through adopting nationally agreed terms and conditions for our workforce:

National NHS Agenda for Change Terms and Conditions of Service (AfC).

AfC is negotiated nationally by the NHS Staff Council, led by NHS Employers.    The national NHS Staff Council has overall responsibility for the AfC pay system and has representatives from both employers and trade unions. AfC provides the framework for pay arrangements which are in place at ECCH.

Typically, AfC terms and conditions apply to nursing, allied health professionals and administration and clerical staff, which are the majority of the workforce.

Where appropriate, locally agreed policies may supplement AfC arrangements, such as:

 

  • Family friendly policies;
  • Evaluating job roles and pay grades as necessary to ensure a fair structure;
  • Starting salaries

 

Very Senior Managers (VSMs) and Chairs and Non-Executive Directors (NEDs).

As a Social Enterprise, ECCH is free to determine its own rates of pay for its VSMs and Chairs and NEDs. VSMs include Chief Executives, Executive Directors and other senior managers with board level responsibility who report directly to the Chief Executive. Rates of pay for VSM’s are determined via a Remuneration Committee.

The Remuneration Committee (Executive and VSM roles) meets annually. It currently uses the national NHS VSM Pay Guidance to set the rates of pay. This system is based on the principles outlined under VSM which determines the rate of pay for the Chief Executive based on the size of the organisation, turnover and population. Once this rate is determined the executive directors remuneration is set based on a percentage of the Chief Executive.

A Remuneration Committee (Non-Executive roles) also meets annually. Its purpose is to review Non-Executive Director, Chair and Staff Director remuneration. The system of pay review is different and is based on research and benchmarking of pay in similar roles and organisations to ECCH.

 

The Gender Pay Gap at ECCH – further data

 

ECCH is confident that its gender pay gap does not stem from paying men and women differently for doing the same or equivalent work. Rather its gender pay gap is the result of the roles in which men and women work within the Company and the salaries that these roles attract.

It is perhaps helpful to review the staffing profile within ECCH. Below is a table which reflects the pay bands in operation per assignment (excluding bank staff). The bands referred to in the table are the AfC pay bands and range from band 1 (the lowest pay band) through to band 9 (the highest pay band). Personal pay includes the Directors and Non-Executive Directors.

Table 1: Gender Pay Gap by Banding

 

 

 

Pay Band

 

Female Headcount

Female % of total female staff

 

Male Headcount

Male % of total male staff

 

Total Headcount

 

Gender Pay Gap by

Pay Band 2020 (Average Hourly Rate)*

 

Gender Pay Gap by

Pay Band 2019 (Average Hourly Rate)*

Apprentice

1

0.15%

1

0.85%

2

-£2.25

-£3.70

Band 1

30

4.39%

10

8.55%

40

£0.09

£0.14

Band 2

102

14.91%

21

17.95%

123

-£0.46

-£0.37

Band 3

89

13.01%

7

5.98%

96

-£0.15

£0.22

Band 4

92

13.45%

13

11.11%

105

£0.05

-£0.11

Band 5

129

18.86%

12

10.26%

141

-£1.41

-£1.39

Band 6

142

20.76%

23

19.66%

165

£0.24

£0.34

Band 7

66

9.65%

16

13.68%

82

£0.09

-£0.10

Band 8a

19

2.78%

5

4.27%

24

-£0.52

-£0.44

Band 8b

6

0.88%

2

1.71%

8

£1.33

£1.29

Band 8c

2

0.29%

1

0.85%

3

£0.00

£35.79

Band 9

0

0.00%

0

0.00%

0

£0.00

£0.00

Personal Pay

 

6

 

0.88%

 

6

 

5.13%

 

12

 

£22.19

 

£15.57**

Total

684

100%

117

100%

801

 

 

* Negative figures in the column ‘Gender Pay Gap by Pay Band’ indicate a gender pay gap in favour of females. Positive figures indicate a gender pay gap in favour of males.

** Figure originally reported as £1.60 but using same methodology as this report the figure has increased to £15.57

 

Table 1: Average Hourly Rates Breakdown

 

 

2020

2019

Average Hourly Rate Females

£14.98

£14.51

Average Hourly Rate Male

£17.13

£15.61

Average Hourly Rate Difference

£2.15

£1.09

The information contained within the table above is sourced from the same data which provided the gender pay gap figures, i.e. the staffing position as at 31 March 2020.

What is the data telling us?

 

On 31st March 2020, ECCH employed 801 staff of which 684 were female and 117 were male. The average hourly rate for females is £2.15 lower than males. This has increased since 2019 by

£1.06. When this is broken down into different pay bands, it is noted that for bands 2, 3, 5, 8a and 8c there is no gender pay gap. In other words, the pay gap is in favour of women.

In Bands 1, 4, 6 and 7 there is a slight pay gap in favour of men and this is due to length of service within the banding. Within bands 8B and Personal Pay there is a much higher pay gap, with a gap of £1.33 and £22.19 per hour respectively.

When looking deeper at the differences within each of these pay bands where the difference is in favour of men, it is noted as follows;

 

Band 8B

Whilst there are more females than males who are on Band 8b and all individuals within Band 8b sit in quartile 4, the average hourly rate for males is greater due to length of service.

 

Personal Pay

Whilst there are the same number of females and males receiving personal pay, more males have an average hourly rate that sits within Quartile 4;

 

Quartile

Female Headcount

Male Headcount

Total Headcount

1 (lower hourly pay quarter)

0

0

0

2 (lower middle hourly pay

quarter)

2

0

2

3 (upper middle hourly pay

quarter)

0

0

0

4 (upper hourly pay quarter)

4

6

10

 

Those females whose average hourly rate sits with Quartile 2 are in roles which receive much lower pay due to the nature of the role which distorts the figures slightly. Removing the roles which sit within Quartiles 1-3 that receive lower pay due to the nature of the role, the average gender pay gap difference reduces to £13.75 in favour of males.

A number of roles that are in receipt of personal pay are Non-Executive roles whereby an individual is contracted as an officer of the Organisation, not an employee and therefore is not paid based on a certain number of hours worked per week. Instead they are paid based on a expectation of a number of days per month, which may vary, and thus means their hourly rate for the purposes of gender pay falls within Quartile 4.

Conclusion

 

Compared with last year, the gender pay gap mean has increased from 8.79% to 12.53%. Whilst this is an increase, we are below the average mean % gap of 16.45% for all employers with 500- 999 staff that have submitted their gender pay gap data thus far (918 as at June 2021).

It is encouraging to note our median gender pay gap is 0. Looking further into the data we can see that our pay gap is heavily swayed by the salaries of those at the top end of the scales. Removing the hourly rates for all those within the personal pay bracket would reduce our gender pay gap to 2.74%.

With the exception of Personal Pay, the gender pay gap within each band is very small. Analysis suggests that where there is a gender pay gap this may be wholly attributed to the length of service of male staff within these roles as outlined above and therefore the gender pay gap is enhanced.

The AfC pay structure enables staff to receive incremental points within the pay band based on years’ service in the role until they reach the top of the pay band. This is not gender defined and both male and female staff have equal opportunity to reach the top of the pay band.

ECCH continue to monitor the starting salaries of new employees in line with our Starting Salaries Policy and Agenda for Change Terms and Conditions to ensure there is no gender bias and new starters are placed on the appropriate salary based on their experience and the role that they have been recruited into.

 

Download a copy of the report here

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