Gender and Ethnicity pay gap statements 2020

A 2020 review of our gender and ethnicity pay gaps, featuring actions we are taking to eliminate this in the coming years.

Overview

At ODI we are committed to developing a culture that is inclusive, transparent and accountable. We actively seek to promote workforce diversity and equality of opportunity in everything we do. We see Gender and Ethnicity Pay Reporting as critical in driving change, ensuring ODI remains a great place to work.

Gender pay gap statement

A core part of ODI’s work is promoting and advocating gender equality. As such, we fully embrace gender pay gap reporting in the UK and commit ourselves to reporting on and addressing gender pay gap issues in our own organisation – even though we are not required to do so (because we fall under the government’s 250 or more employee threshold).

As usual, our gender pay gap analysis was carried out by an independent third party, XpertHR, and done in line with the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 and Equality Act 2010 (Specific Duties and Public Authorities) Regulations 2017.

Our submission for 2020 comprised 209 workers of which 209 were categorised as “relevant employees” and used in the reporting of bonus pay gap statistics. 200 employees were classified as “full-pay relevant employees” and were used in the reporting of hourly pay gap statistics. This is made up of 128 women and 72 men. The results are as follows:

  1. Mean gender pay gap: 10.9%
  2. Median gender pay gap: 7.6%
  3. Mean gender bonus gap: 0%
  4. Median gender bonus gap: 0%
  5. The percentage of:
    a) male employees receiving a bonus is 0.0%
    b) female employees receiving a bonus is 0.0%

This year’s analysis showed that we had a mean gender pay gap of 10.9% in 2020. This is a small increase of 0.7% from 2019 when the gap was 10.2%. This means that males made £3.01 per hour more than females in 2020. The median pay gap is 7.6%.

How does ODI compare with national statistics?

Even at the slightly increased figure of 10.9%, the mean gender pay gap for ODI is still significantly below the whole national sample figure, and for the national figure for Human health, social work and other services.

GroupMean gender pay gap (%)Median gender pay gap (%)
ODI10.97.6
National sample13.810.7
Human health, social work and other NP services (Source. Office for National Statistics23.417.3

Our response and commitment to action

ODI believes in co-creating a positive diverse work environment and an organisational culture that values all staff regardless of their gender or other protected characteristics. Treating everyone fairly and with respect is a core value.

We are disappointed with the small increase in the pay gap. However, the mean gender pay gap for ODI is still significantly below the figure for national average and peer organisations (see above) and ODI is taking action to help us resume our trajectory towards a decreasing gender pay gap.

As we are a small organisation it should be noted that each new member of staff or colleague leaving ODI can affect the result by 2%. This is the reason that organisations with less than 250 staff are not required to submit GPG data. Our analysis suggests this slight increase can be attributed to a fluctuation in staff levels caused by restructuring and turnover.

ODI proactively takes gender into account when undertaking salary consistency checks at recruitment, and when implementing approved internal pay alignments. This year we have also conducted an equal pay review alongside the Gender Pay Gap analysis. The Equal pay review did not raise any issues with differences between men and women below 4%.

We believe the following interventions will reduce and ultimately eliminate our gender gap in the coming years:

  1. Identify and focus on ‘hot spot’ areas and, when affordable, consider proactively addressing the pay gap through targeted pay realignments in this grade.
  2. Continue to conduct salary consistency checks at appointment and carry out individual pay realignments where appropriate and necessary.
  3. Review our flexible working arrangements as it pertains to senior roles to sustain the representation of women at this level.
  4. Provide training to raise awareness and mitigate against unconscious bias in recruitment.
  5. Continue to monitor any pay disparity between men and women.

Further details and analysis

  1. Given that ODI has fewer than 250 people, each person’s weighting is significant in terms of gender pay reporting.
  2. ODI employs more women than men.
  3. There are more women than men in both junior and senior roles.
  4. More women than men are promoted at ODI. At promotion, both men and women are normally promoted to the bottom band of the grade. Despite this, we have a small gender pay gap.
  5. Analysis shows that grade 7 has the highest gender pay gap but only slightly at 0.1% outside the 5% tolerance. This grade has the highest proportion of males within the quartile and has an issue of legacy salaries.
  6. The pay disparity in part-time compensation between men and women is very low.
  7. In grades 1, 2, 3 and 5 there is a currently a mean pay gap in favour of women.

Read our 2019 gender pay gap statement. You can also find out more about our Gender Equality and Social Inclusion programme

Ethnicity pay gap statement

In 2017 the UK government sponsored McGregor-Smith Review recommended that all businesses with more than 50 employees should publish a breakdown of employees by race and pay band. Subsequently, in October 2018, the government launched its formal consultation on mandatory Ethnic Pay Gap Reporting. Their aim was “to agree a consistent methodological approach which drives meaningful action, while remaining proportionate and without adding undue burdens on business”. The formal consultation closed in January 2019. The final outcome report has yet to be produced.

We have decided to conduct our own review in advance of mandatory government action, and are publishing our ethnic pay gap data even though this is not currently required by law.

At the moment, there is no agreed methodology for collecting, collating or analysing data for Ethnicity Pay Gap reporting. However, companies who have already published their figures made their calculations in line with Gender Pay reporting. The Ethnicity Pay Gap percentage used here, therefore, shows the difference between the average hourly earnings of all Black Asian and Minority Ethnic (BAME) staff and the average hourly earnings of all white staff, expressed as a percentage of white staff earnings.

ODI’s 209 staff as of April 2020 self-identified as follows: BAME 42, White 145 and not declared 22. Our analysis of the ethnicity pay gap revealed:

  1. Mean ethnicity pay gap: 10.8%
  2. Median ethnicity pay gap: 9.2%
  3. Mean ethnicity bonus gap: 0%
  4. Median ethnicity bonus gap: 0%
  5. The percentage of:
    1. White employees receiving a bonus is 0.0%
    2. BAME employees receiving a bonus is 0.0%

This analysis showed that we had a mean ethnicity pay gap of 10.8% in April 2020. This will form the baseline figure for subsequent analysis. This means that White staff made £2.79 per hour more than BAME staff. The median pay gap is 9.2%.

How does ODI compare with other organisations?

Comparator information is sparse but ODI’s result appears to be similar to others. For example, Manchester University published their data in 2018 with a mean of 10.5% and a median of 8.4%. UCL published their 2019 data showing a mean ethnicity pay gap of 13.3% and a median of 7.9%. PWC’s 2020 data was reported as a mean of 10.8% and a median of 4.7%.

Our response and commitment to action

We are disappointed to discover any ethnicity pay gap. However, the mean ethnicity pay gap for ODI is similar to those of other organisations who have acted ahead of government guidance to publish these statistics. ODI is taking action to help us reduce the ethnicity pay gap going forwards.

As with gender pay gap statistics, the small size of our organisation means that each new member of staff or colleagues leaving ODI can affect the result by 2%.

ODI is proactively focusing on recruiting more staff from minority ethnic backgrounds, especially in the higher pay bands.

We have drawn up an action plan which includes:

  1. Reviewing all vacancies with a diversity lens to and encouraging more applicants from minority ethnic backgrounds
  2. Training for all managers on unconscious bias in recruitment
  3. A review of our recruitment and selection policies and practices to promote greater diversity
  4. A review of our salary structure and policies to ascertain whether there are any in-built or embedded historical imbalances
  5. A review of career development pathways and opportunities with particular reference to employees from minority ethnic groups
  6. Further development of our action plans involving consultation with all levels of staff through the establishment of a new Diversity & Inclusion Forum.

Further details and analysis

  1. Further analysis of our data shows that staff from minority ethnic groups are under-represented in the higher pay grades.
  2. In particular, our findings show that the majority of employees from a Black British/Caribbean/African background (67%) work in jobs at the lower pay grades, compared to Asian staff (28%) and White staff (27%).