OUR GENDER PAY GAP REPORT - CIPD OUR GENDER PAY GAP REPORT 1 Our gender pay gap report ¢â‚¬â€œ Introduction

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  • OUR GENDER PAY GAP REPORT Corporate report

    November 2018

  • OUR GENDER PAY GAP REPORT

    1 Our gender pay gap report – Introduction 3

    2 Gender pay gap reporting – An overview 4

    3 The CIPD’s pay journey 4 4 Taking action – The year in review 5

    5 Our year two data explored 9

    6 Chief executive’s perspective: Peter Cheese 13

    7 Our wider work on pay and transparency 14

    Contents

    The CIPD is the professional body for HR and people development. The not- for-profit organisation champions better work and working lives and has been setting the benchmark for excellence in people and organisation development for more than 100 years. It has 150,000 members across the world, provides thought leadership through independent research on the world of work, and offers professional training and accreditation for those working in HR and learning and development.

    2 Our gender pay gap report

  • 1 Our gender pay gap report – Introduction

    The CIPD is committed to championing better work and working lives and we recognise that fairness, inclusion and opportunity are at the heart of this important agenda.

    We explore this through our work as the professional body for HR and people development, but it’s also a fundamental part of our own culture.

    We want the CIPD to be a place where our people can bring their whole selves to work and that means making a consistent effort to attract as diverse a candidate base as possible. It means ensuring that we are creating opportunities so that people can move through their career in a way that works for them. But it also means that we have the right systems in place so progression and pay are fair for everyone.

    Gender pay gap reporting has helped us, and UK businesses as a whole, shine a light on some of the organisational and societal factors that contribute to the gender pay gap.

    It has also confirmed that good intentions are not enough, and that organisations need to be making a consistent effort to understand and monitor their pay and progression activities. People professionals have a key part to play in this but this also needs to be front of mind for business leaders and line managers as well. We must all look to be principles- led, evidence-based and outcomes-driven in our approach to people management. That’s why, in this second year of mandatory gender pay gap reporting, we’re proud to share the journey that we have been on at the CIPD and the steps we have taken to ensure we’re in a strong position to narrow our gender pay gap.

    We have strengthened our training for line managers, introduced new tools to help heads of department make and monitor pay decisions and we have continued to champion flexible working across our workforce. These steps, and other actions we have taken, are a positive foundation for the future growth of the CIPD and confirm our commitment to our people.

    Declaration I confirm that our data has been calculated according to the requirements of the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017.

    Brad Taylor, Director of People, CIPD

    Declaration I confirm that our data has been calculated according to the requirements of the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017.

    Louise Fisher, Chair of the CIPD Board

    3 Our gender pay gap report

  • 2 Gender pay gap reporting – An overview

    As of April 2017, public, private and voluntary sector organisations with 250 or more employees have to report on their gender pay gaps annually, using six different measures:

    • Mean gender pay gap: The difference between the mean hourly rate of pay of male full- pay relevant employees and that of female full-pay relevant employees.

    • Median gender pay gap: The difference between the median hourly rate of pay of male full-pay relevant employees and that of female full-pay relevant employees.

    • Mean bonus gap: The difference between the mean bonus pay paid to male relevant employees and that paid to female relevant employees.

    • Median bonus gap: The difference between the median bonus pay paid to male relevant employees and that paid to female relevant employees.

    • Bonus proportions: The proportions of male and female relevant employees who were paid bonus pay during the relevant period.

    • Quartile pay bands: The proportions of male and female full-pay relevant employees in the lower, lower-middle, upper-middle and upper quartile pay bands.

    The aim of gender pay gap reporting is to show how large the pay gap is between an organisation’s male and female employees. The data must be published on the employer’s own website and a government website, and the intention is to encourage employers to take action to reduce or eliminate their gender pay gaps in order to create fairer, more inclusive workplaces.

    Taking a ‘snapshot’ of this data on a set date, as required by regulation, creates a level playing field for all reporting organisations, but a snapshot may also mask the fluidity of gender pay gaps. Gender pay gaps can fluctuate from month to month and across pay quartiles depending on changes to headcount. It’s important to monitor the gender pay gap across the year, and not just on the snapshot date. Doing so gives an organisation a better understanding of what drives its gender pay gap figure at any given time, and in turn, how it can be reduced.

    3 The CIPD’s pay journey

    In recent years, the CIPD has explored and introduced a number of practices to ensure there is pay equality across our organisation. Between 2016 and 2017, we undertook an extensive salary review to ensure that pay processes and outcomes are fair at every level of our organisation. Gender pay gap reporting provides a further opportunity to build on many of the policies and practices that we already have in place, and to enhance key elements of our culture, such as flexible working.

    In this report we describe what we’ve been doing more recently to ensure pay fairness and address our gender pay gap.

    4 Our gender pay gap report

  • 4 Taking action – The year in review

    In our first gender pay gap report, which was published in November 2017, we prioritised three areas for action to reduce our gender pay gap. Here we report on our progress for each area and how we are building on our 2017 plan in order to encourage further progress towards our goal of reducing the CIPD’s gender pay gap.

    Improved analysis capability

    We committed to:

    • Building gender pay gap analysis into the tools our department heads use when they complete their annual pay reviews.

    • Using these tools to monitor pay, enabling us to take action to ensure there is no bias towards either gender from the point of recruitment right through to salary conversations and progression opportunities.

    Our progress towards this goal:

    • We created tools that help our department heads to monitor pay equality within their departments, and to enable managers to see the potential impact of pay decisions before those decisions are made. We introduced these tools in July 2018, so the impact of this change should be reflected in our 2019 gender pay gap reporting data.

    • We are being more transparent and publishing our pay ranges for each role so employees, line managers and department heads have a clear indication of how individuals can progress within their salary band.

    • As part of our transparency around pay, we continue to clearly display a narrow salary range in all our recruitment advertisements. This helps to set candidates’ expectations and reduces the potential of importing pay inequalities from previous employment.

    • Our narrow salary ranges reduce the likelihood of pay inequality within job families.

    Melanie Bellis

    Head of Customer Services and Operations

    ‘I’ve always felt that I’ve had the opportunity to progress and I’ve known what I need to deliver to do well. I work compressed hours, doing 10 days in nine which helps me to have interests outside of work. In my spare time I’m an artist, it’s a big part of who I am and having compressed hours gives me a full wage but it’s also created space for me and helps to bring balance to my life. I get a lot of support at work for my creative efforts and while I’m already motivated, this extra layer of support and flexibility helps me bring a better self to work. At the CIPD I manage at team of 50 people and have found the new tools that we have to monitor pay really useful. It’s about fairness and having sound data to make decisions on. By having checks and balances in place, I’m confident that I’m making the right decisions as a manager.’

    5 Our gender pay gap report

  • Creating better gender balance

    We committed to:

    • Explore how we can attract more men into our organisation to create better gender balance at all levels.

    Our progress towards this goal:

    • We have continued rolling out our internal unconscious bias training, which addresses how bias can impact recruitment and pay award decisions. Initially this training was voluntary, but we are now making it part of our mandatory Leading the Way training for line managers, to ensure any potential for bias is reduced in hiring and pay decisions as well as more generally in workplace practices.

    • All of our recruitment advertisements are put through specialist software that ensures they only carry gender-neutral