UNIVERSITY OF EXETER EQUAL PAY AUDIT 2014 Introduction

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UNIVERSITY OF EXETER

EQUAL PAY AUDIT 2014

Introduction

1. The 2014 Equal Pay Audit uses snapshot data from March 2014. Appendix 1 summarises the way in which the audit is conducted and the equal pay gap calculated.

2.

3.

Following the practice of early equal pay audits, the 2014 analysis has been carried out on the following protected characteristics covered by the Equality Act:

Gender

Ethnicity

Disability

Table 1 gives an overview of staff numbers in each job family and by grade for the protected characteristics of gender, ethnicity, disability.

4.

5.

Employee data on gender, ethnicity and disability is drawn from the University’s HR database, iTrent. The University recruits most of its new appointments through iTrent’s eRecruitment module and applicants are encouraged to enter this information with their online application to enable equality and diversity recruitment monitoring. All employees are encouraged to keep their personal details up to date in iTrent Employee Self Service.

This is the first equal pay audit since the introduction of the Living Wage in January 2014, when Grade A was deleted and the modified Grade B became the lowest grade in the

University’s pay scale. Approximately two-thirds of the employees who benefited from this were female.

6. The University has conducted equal pay audits each year since 2007. Appendix 2 gives comparable data for each Protected Characteristic at grade level for the most recent equal pay audits (undertaken in 2011 – 2014).

Executive Summary

7. The 2014 Equal Pay Audit shows that there are no significant pay gaps by grade for the three protected characteristics covered in the review, with the exception of ethnicity for

Professors, where there is a white favoured pay gap of 6.5%. Further analysis shows that part of the reason for this is the unequal distribution of Professors of BME ethnicity between disciplines, together with the fact that only 5% of Professors are Black Minority Ethnicity.

The Professorial and Senior Salaries Committee will continue to monitor the pay gap of

Professors as part of its annual review of Professorial pay.

Gender Pay Gap

8. There are no significant - or approaching significant - pay gaps between males or females within Grades B to H or at SAO level

1

(Table 2).

9. Previous years’ equal pay audits have shown male-favoured pay gaps in Grade B. The reason for this pay gap has been the disproportionate number of men who are paid night or day shift allowance compared to women. The 2013 equal pay audit noted that this pay gap had been eliminated and this remains the case in the 2014 audit. Despite this, there continues to be a significant disparity between numbers of males and females in receipt of day/night shift allowances, with 90% of those paid the allowance at Grade B being male.

Campus Services managers should continue to be encouraged to attract more women to such roles. (There has been an increase of 2 since the 2012 audit.)

1

SAO is an abbreviation of “Senior Administrative Officer” which is the name given to the grade of senior managers paid above grade H. The remuneration of these staff is governed by the

Professorial and Senior Salaries Committee and Remuneration Committee. They are, in summary, the Professional Services equivalent of Professors.

10. Analysed by College, the only significant gender pay gap for Professors (Table 6) in the

2014 audit is a male favoured pay gap of 8.1% in the Business School. The median length of service for male Professors in the Business School is 9 years and 6 months while the median length of service for female Professors is significantly lower, at 3 years and 6 months, which suggests that time in grade may be a reason. Comparable data is not available for previous years since there were too few female Professors to make an analysis.

In 2014, the College of Engineering, Mathematics and Physical Sciences is the only

College where there are too few female Professors to make analyse the gender pay gap.

The 2012 audit indicated a male favoured pay gap of 7.1% in the College of Social

Sciences and International Studies, which increased to 13.2% in 2013. The 2014 audit indicates that there is no longer a significant pay gap within this College.

In 2012 there was a 6.4% male favoured pay gap in the College of Life and Environmental

Sciences. This reduced significantly in 2013 and remains insignificant in the 2014 audit.

The 2013 equal pay audit identified a male favoured pay gap of 8.9% in the College of

Humanities but in 2014 there is no longer a significant pay gap between the genders.

11. Taking all Professors together, there is a small male favoured pay gap of 2.5%. Professorial salaries are determined by the Professorial and Senior Salaries Committee which carefully reviews the pay gap between female and male Professors in each College and considers equality issues within its annual review of Professorial remuneration.

Ethnicity Pay Gap by Grade

12. The 2014 equal pay audit had found no significant pay gaps between white and BME

2

employees within Grades B to H (Table 3)

3

.

13. The 2012 equal pay audit identified a white-favoured pay gap of 5.6% for Grade C. It was noted that Grade C is a long grade with 6 normal progression points and 5 contribution points, and that the pay gap was mainly attributable to the fact that white staff have longer service and have progressed further through the grade. Therefore, it was expected that with time, new staff will progress through the grade, reducing the pay gap. Subsequent equal pay audits suggest this was the case. The 2013 equal pay audit revealed there to be no significant pay gaps between white and BME employees within the grades. This continues to be the case in 2014.

14. With the exception of the College of Engineering, Mathematics and Physical Sciences

(where there was no significant pay gap), it has not been possible to analyse the pay gap for Professors by ethnicity at College level due to the low number of BME Professors employed in each College (Table 7).

15. Taking all Professors together, there is a white favoured pay gap of 6.5%. Analysis reveals that white Professors have a median length of service of 8 years and 2 months, whereas for

BME Professors it is just over 5 years, which suggests that time in grade may be one of the reasons. Additionally, 10 of the 14 BME Professors are in the College of Engineering,

Mathematics and Physical Sciences and the pay of the median pay of all the Professors in the College of Engineering, Mathematics and Physical Sciences is 5.0% lower than the

2

The ethnicity categories recorded in the University’s HR database are those used by (and reported to) HESA in the annual staff return – there is a single “White” category. For the purposes of the equal pay audit, employees declaring their ethnicity in any of the following categories are grouped together as “Black Minority Ethnicity” (BME): Black or Black British – Caribbean, Black or Black British –

African, Other Black background, Asian or Asian British – Indian, Asian or Asian British – Pakistani,

Asian or Asian British – Bangladeshi, Chinese, Other Asian background, Mixed - White and Black

Caribbean, Mixed - White and Black African, Mixed - White and Asian, Other mixed background,

Arab, Other ethnic background.

3

5% of staff have their ethnicity recorded as Not known or Information refused. These are excluded from the analysis of pay gap by declared ethnicity.

median pay for all Professors employed by the University. The combination of these two factors may also have contributed to the 6.5% ethnicity pay gap at Professorial level.

Disability Pay Gap by Grade

16. The 2014 equal pay audit reveals there are no significant pay gaps between disabled staff and staff who have not declared a disability within Grades B to H (Table 4).

17. A pay gap at Grade E in favour of staff who have not declared a disability reduced from

6.1% in 2012 to 4.2% in 2013. The 2014 equal pay audit reveals that this gap has been further reduced to 2.2%.

18. The 2013 equal pay audit indicated a continued disabled-favoured pay gap at Grade B. It was noted in 2013 that 4 out of the 7 staff with disabilities are paid a shift allowance. The view of the University management is that the payment of an allowance for working unsocial hours is objectively justifiable due to the nature of the working arrangement and is not related to whether or not an employee has a disability. In 2014 there is no pay gap between disabled staff and staff who have not declared a disability at Grade B. This is likely to have been a result of the University of Exeter implementing the Living Wage in January

2014, which saw the merging of Grade A and B. As a result, only 19% of staff with a declared disability in the new Grade B receive a shift allowance, compared to the 57% in

2013.

19. It has not been possible to conduct an analysis by disability for Professors – either by

College or at University level - due to the low numbers who have declared that they are disabled (Table 7). The low representation of disabled people in the Professoriate is an area of concern which will continue to be monitored.

Merit Pay

20. Appendix 3 shows the outcomes, by protected characteristic, of decisions made by merit panels in Colleges and Services in 2013 and 2014, with comparative data for 2010, 2011 and 2012. In 2013, only contribution points were awarded as the merit scheme was suspended. In 2014, merit panels in Colleges and Services were required to take account of performance in both 2012/13 (when the merit scheme was suspended) and 2013/14.

2014 was the final year of the merit pay scheme and revised arrangements will be introduced in 2015.

Andrew Johnson

HR Services

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N:\Equality and Diversity\Equal Pay Audits\Equal Pay Audit 2014\Equal Pay Audit Report 2014_revised

030215_FINAL.docx

Appendices

Parameters of equal pay audits at the University of Exeter

Comparable data for equal pay audits 2009 – 2014

Analysis of Outcomes of Merit Panels 2013 and 2014 Protected Characteristic (with comparative data for 2009 – 2013)

Summary of Tables

1. overview of staff numbers in each job family and by grade for the protected characteristics of gender, ethnicity, disability

2. Pay Gap for gender by grade

3. Pay Gap for ethnicity by grade

4. Pay Gap for disability by grade

5. Pay Gap by gender for Professors

6. Pay Gap by ethnicity for Professors

7. Pay Gap by disability for Professors

Appendix 1

Parameters of equal pay audits at the University of Exeter a) The University’s equal pay audits are undertaken with due regard to the JNCHES revised

Equal Pay Review Guidance (November 2013).

Calculation of Pay Gap b) The JNCHES Equal Pay Review Guidance November 2013 explains that ‘A pay gap describes the difference between the pay of men compared to the pay of women, or between the pay of those in other equality groups. It is determined by calculating the average pay of one group as a percentage of the average pay of another. Thus, the pay gap between men and women would be 18 per cent when women’s pay is 82 per cent of men’s. The individual pay gap is the percentage difference between the pay of an individual and the pay received by a person of the opposite sex, or likewise between the pay of members of other equality groups.

In other words:

Pay Gap = 100*(1-(M/F)), where M=median male total earnings (FTE salary and allowances) F= median female salary (FTE salary and allowances)

A pay gap of 5% or greater is considered a concern which requires further investigation. c) A negative figure indicates that the pay gap is (for example) male favoured or white favoured; a positive figure that the pay gap is (for example) female favoured, BME favoured or disabled favoured. d) After consideration of the outcomes of the New JNCHES Equality Working Group

4

, since 2013

equal pay audits have been based on median salary rather than mean. The University accepts the reasoning of the Office of National Statistics (quoted in the Overview Report of the Working

Group) that “the median is the more useful measure since it is not affected by small numbers of high earners which can have a significant and potentially distortive effect on the mean”. e) The 2014 equal pay audit has been conducted using a ‘total pay’ figure, including contractual remuneration for basic salary plus any contractual permanent allowances. The allowances included are: Protection, Market Supplement, Split Duty, Standby, Marie Curie, Day (Shift) and

Night (Shift), Tree Surgeon, Tree Ground Worker, Property Services Managers and any other contractual allowances applicable to individuals. The University considers that it is more appropriate to examine total contractual remuneration as this is the actual amount which individuals receive. Ad hoc, bonuses and claimable payments and temporary allowances are not included. f) The pay gap has been analysed for each grade so that the remuneration of staff in jobs of equal value are being compared. The University does not consider it appropriate to conduct a pay gap analysis at University level since this does not compare jobs of equal value. Rather it indicates inequalities in the distribution of employees with protected characteristics between grades rather than inequality within grades. The numbers and percentages of employees with each protected characteristics is monitored by the University and published at http://www.exeter.ac.uk/staff/equality/equalitydata/

Scope g) Staff with more than one contract are counted as separate people. h) Following the practice of early equal pay audits, the 2014 analysis has been carried out on the following protected characteristics covered by the Equality Act: Gender, Ethnicity and

Disability. Most other Russell Group Universities have also concentrated on these protected characteristics in their equal pay audits. i) The data held by the University on sexual orientation (only 14% of staff have declared their sexual orientation), religion and belief (only 26.5% have declared their religion/belief), gender reassignment and marriage /civil partnership means that it is not possible to analyse pay gap at grade level for these protected characteristics. Earlier analysis of pay gap by age shows (as

4 http://www.ucea.ac.uk/en/empres/epl/eandd/pay/index.cfm

would be expected given the incremental and hierarchical nature of the University’s payscales) that there is a correlation between age and remuneration. Analysis shows that employees taking maternity leave are not paid less than employees who do not take maternity leave within the same grade. The JNCHES Guidance does not include the protected characteristics of recommends pregnancy/maternity, gender reassignment or marriage /civil partnership within its recommendations on equal pay reviews. j) The numbers and percentages of employees with each protected characteristics is monitored by the University and published at http://www.exeter.ac.uk/staff/equality/equalitydata/ k) Although the JNCHES Guidance recommends that equal pay reviews should analyse

‘inequities arising because of… differing contractual arrangements’ – ie full/part-time working and fixed-term/open-ended employment – it should be noted that these are not a Protected

Characteristics covered by the Equality Act. They are not included in this analysis.

Excluded data l) Although the JNCHES Guidance provided by does not suggest a minimum number of people to make the data meaningful, it is difficult to make any meaningful conclusions from a sample smaller than 5. There are also data protection concerns with small samples which may lead to individual employees being identified. Consequently, no information is provided where the sample size is smaller than 5. This is consistent with the approach taken by HESA in its release of institutional data. It is noted however, that the low numbers themselves are an issue that the University may need to address. m) The University has decided to exclude clinical members of staff on NHS pay bands (since their pay is determined by the NHS rather than the University and the numbers in each grade are small). Additionally, two members of staff on zero hour contracts and ‘Apprentice’ members of staff were excluded from analyses. Individuals engaged by the University on a casual basis and postgraduate students employed as Postgraduate Teaching Assistants are also excluded.

Table 1: Staff numbers by job family

Education & Research (Teaching and Research)

Total Male Female White BME

Ethnicity not known

Not disabled

Disabled

Grade B

Grade C

Grade D

Grade E

Grade F

Grade G

Grade H

Prof/SAO

Table 1, continued

239

257

101

260

127

144

71

211

112

113

30

49

190

210

92

218

40

23

5

14

9

24

4

28

232

8

100

257

7

249

1

3

Research

Total Male Female White BME

Ethnicity not known

Not disabled

Disabled

Grade B

Grade C

Grade D

Grade E

Grade F

Grade G

Grade H

Prof/SAO

Table 1, continued

337

207

49

2

186

94

35

1

151

113

14

1

254

166

46

2

55

26

1

0

28

15

2

0

332

202

49

2

5

5

0

0

Grade B

Grade C

Grade D

Grade E

Grade F

Grade G

Grade H

Prof/SAO

Total

422

450

568

825

993

547

156

289

4250

Male

186

165

174

360

474

288

99

230

1976

46%

All University Employees

Female White BME

Ethnicity not known

236

285

396

465

519

259

57

59

2276

54%

386

414

537

703

858

483

142

244

3767

89%

6

14

265

82

85

31

15

17

15

6%

8

31

220

40

50

33

21

19

18

5%

Not disabled

Disabled

397

426

533

415

586

289

150

286

3082

73%

410

407

258

25

24

37

6

3

1170

28%

Total

67

127

63

11

Tota

1

422

450

568

421

420

178

42

28 l

Male

15

63

28

6

1

Male

186

165

174

159

190

81

21

18

Education & Scholarship (Teaching Only)

Female

52

64

35

5

0

Female

236

285

396

262

230

97

21

10

White

58

106

53

11

1

BME

Ethnicity not known

Not disabled

Disabled

7

8

5

0

0

2

13

5

0

0

66

125

60

9

1

Professional Services

White

386

414

537

391

396

174

37

25

BME

Ethnicity not known

Not disabled

Disabled

15

17

15

20

11

2

1

0

21

19

18

10

13

2

4

3

397

426

533

17

27

172

39

28

25

24

37

404

393

6

3

0

If less than 5 in category, shown as blank

3

2

0

1

2

Table 2: Pay Gap by Gender by Grade

Number. Males

Number.

Females

Median pay -

Males

Median pay -

Females

Median Pay

Gap (with

Allowances)%

Grade B

Grade C

Grade D

Grade E

Grade F

186

165

174

360

474

236

285

396

465

519

14520

16706

20972

27318

36117

Grade G

Grade H

Professors

288

99

209

259

57

48

46401

55375

79,164

SAO 21 11 93425

Negative figure = Male favoured; Positive figure = Female favoured

14520

16706

20972

27318

35597

46401

55375

77,265

91963

-1.5

0

0

-2.5

-1.6

0

0

0

0

Table 3: Pay Gap by Ethnicity by Grade

Number white Number BME

Median pay -

White ethnicity

Median pay -

BME Ethnicity

Median Pay

Gap (with

Allowances)%

Grade B

Grade C

Grade D

Grade E

Grade F

386

414

537

703

858

15

17

15

82

85

14520

16706

20972

27318

35597

Grade G

Grade H

483

142

31

6

46401

55375

Professors 215 14 79000

SAO 29 0 93425

(Excludes staff where ethnicity is Not known or Information not provided .)

Negative figure = White favoured; Positive figure = BME favoured

If less than 5 in category, shown as blank

14520

16252

20972

26741

35597

46401

55375

74212

0

-2.8

0

-2.2

0

0

0

-6.5

Table 4: Pay Gap by Disability by Grade

Grade B

Grade C

Grade D

Grade E

Grade F

Grade G

Grade H

Professor

Number not disabled

397

426

534

802

952

530

150

254

Number disabled

25

Median pay -

Staff not disabled

14520

Median pay - staff disabled

14520

Median Pay

Gap (with

Allowances)%

0

24

36

23

41

17

6

3

16706

20972

27318

35597

46401

55375

78664

16252

20972

26741

36661

45054

56204

-2.8

0

-2.2

2.9

-3.0

1.5

SAO 32 0 92963

(Staff who have not declared a disability or where disability information is not recorded are included under "not disabled".)

Negative figure = No disability favoured; Positive figure = Disability favoured

If less than 5 in category, shown as blank

Table 6: Analysis for Professors - Gender

Gender - Median Salary

Business School

Engineering, Mathematics & Physical Sciences*

Humanities

Life & Environmental Sciences

Medical School

Social Sciences & International Studies

All Professors**

Negative figure = Male favoured; Positive figure =

Female favoured

If less than 5 in category, shown as blank

No

Males

27

56

37

46

13

30

209

No

Females

5

3

12

11

5

12

48

Male

Median £

101,000

74,212

70,700

78,890

85,850

79,438

79,164

Female

Median

£

93,425

68,680

75,750

88,375

77,265

77,265

Pay Gap

(%)

-8.11

-2.94

-4.15

2.86

-2.81

-2.46

Table 7: Analysis for Professors - Ethnicity

Ethnicity - Median Salary

Business School*

Engineering, Mathematics & Physical Sciences

Humanities*

Life & Environmental Sciences*

Medical School*

Social Sciences & International Studies*

No

White No BME

25

43

2

10

44

50

17

36

1

1

White

Median £

101,000

75,000

71,205

78,890

90,900

78,780

79,000

BME

Median

£

74,212

74,212

Pay Gap

(%)

-1.06

-6.45 All Professors 215 14

(Excludes staff where ethnicity is Not known or Information not provided.)

Negative figure = White favoured; Positive figure = BME favoured

If less than 5 in category, shown as blank

Table 8: Analysis for Professors - Disability

Disability - Median Salary

Num ber

Decl ared

Disa bled

No Not

Disabled

Business School*

Engineering, Mathematics & Physical Sciences*

Humanities*

Life & Environmental Sciences*

1

1

31

59

48

56

Disabled

Median £

Not

Disabled

Median

£

101,000

75,000

70,700

78,000

Pay Gap

(%)

Medical School*

Social Sciences & International Studies*

1 17

42

85,850

78,428

All Professors* 3 253

(Staff who have not declared a disability or where disability information is not recorded are included under "not disabled".)

If less than 5 in category, shown as blank

NOTE: A pay gap of 5% or greater is considered a concern which requires further investigation.

* Although JNCHES does not offer advice on sample size, the University has decided that where there are less than 5 people in a group, the sample size is too small to make the data meaningful and so a % is not to be included in the Pay Gap columns. It is noted however, that the low numbers themselves are an issue that the University may need to address

Staff with more than one contract are counted as separate people

Appendix 2

Comparable data for equal pay audits 2011 – 2014

Table A: Gender

2014 2013 2012 2011

Grade A

Grade B

Grade C

Grade D

Grade E

Grade F

Grade G

Grade H

SAO

186

165

174

360

474

288

99

21

236

285

396

465

519

259

57

11

0.00

0.00

0.00

0.00

-1.46

0.00

0.00

-1.59

Negative figure = Male favoured; Positive figure = Female favoured

99

83

152

162

346

425

277

87

197

40

285

363

448

466

254

42

0.00

0.00

0.00

0.00

-2.16

0.00

0.00

1.47

100

85

129

164

295

386

264

92

207

37

282

299

394

435

229

39

0.00

-10.74

0.00

-4.51

-1.07

-2.99

0.00

2.91

98

80

115

140

271

366

245

94

212

38

264

267

347

389

218

36

-0.15

-2.09

2.35

-4.60

0.40

-1.31

-1.50

1.89

-3.03

-9.00

0.70

-4.49

-0.95

-1.82

-1.08

2.65

Table B: Ethnicity

2014 2013 2012 2010

Grade A

Grade B

Grade C

Grade D

Grade E

Grade F

Grade G

Grade H

386

414

537

703

858

483

142

15

17

15

82

85

31

6

0.00

-2.79

0.00

-2.16

0.00

0.00

0.00

267

120

407

486

683

782

468

229

Professors

SAO

215

29

14

0

-6.45

(Excludes staff where ethnicity is Not known or Information not provided .)

Negative figure = White favoured; Positive figure = BME favoured

If less than 5 in category, shown as blank

11

1

11

15

78

72

29

7

0.00

0.00

0.02

-1.06

0.00

0.00

0.00

275

116

379

434

598

725

435

116

15

2

15

15

60

66

30

7

0.28

0.23

276

115

-5.63 351

-4.47 387

-1.07 542

-2.98 673

1.47 409

0.00 113

17

0

14

9

43

54

30

6

-0.41

-4.58

-7.06

-0.18

-1.43

4.82

-5.08

0.40

-4.57

-3.29

-0.79

-1.43

4.47

-5.81

Table C: Disability

2014 2013 2012 2011

Grade A

Grade B

Grade C

Grade D

Grade E

Grade F

Grade G

Grade H

Professor

SAO

397

426

534

802

952

530

150

254

32

25

24

36

23

41

17

6

3

0

0.00

-2.79

0.00

-2.16

2.90

-2.99

1.47

277

116

414

499

770

857

519

124 3

19

7

23

24

24

34

12

0.00

9.71

-1.37

2.89

-4.07

2.90

0.00

285

115

398

441

664

794

479

129

22

7

14

22

25

27

14

2

(Staff who have not declared a disability or where disability information is not recorded are included under "not disabled".)

Negative figure = No disability favoured; Positive figure = Disability favoured

If less than 5 in category, shown as blank

0.00

9.71

286

111

0.08 358

0.04 391

-6.05 598

24

7

19

16

19

2.90 729

-1.47 450

0.00 127

26

13

3

0.27

1.01

2.04

4.21

-0.44

3.58

-3.43

-0.51

9.16

1.82

3.57

-0.98

1.63

-3.80

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