This report provides The Pensions Regulator's (TPR) gender pay gap data as at 31 March 2020, together with an analysis of the data, an update towards our gender pay gap action plan, and our plans for the future.
At TPR we are committed to promoting transparency and going beyond compliance to drive meaningful change. As such, we have started to explore our additional pay gap data for ethnicity, disability and sexual orientation. This information is voluntarily included for the first time, at the end of this report and will help guide us in developing future priorities for action.
Gender pay gap reporting – an overview
Within the UK, employers with 250 or more employees are required by law to publish gender pay gap information annually. This includes the 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 between the average pay between men and women. If a workplace 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. Used to its full potential, gender pay gap reporting is a valuable tool for assessing levels of equality in the workplace, female and male participation, and how effectively talent is being maximised.
The gender pay gap differs from equal pay.
Equal pay deals with the 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.
This report fulfils TPR’s gender pay gap reporting requirements. In addition to our statutory requirements, we have also included further analysis of the data to better understand TPR’s gender pay gap and provided an update on progress towards our gender pay gap action plan and plans for the future.
This information is published on the government’s designated gender pay gap reporting website and TPR’s intranet.
Gender pay gap data
Gender composition
TPR’s gender pay gap data was collected on the snapshot date of 31 March 2020. At this time there were 726 people within TPR’s workforce in scope for reporting, consisting of 369 women (50.8%) and 357 (49.2%) men.
This shows that there was a relatively even balance of females and males in scope of the calculation.
The tables below show TPR’s overall median and mean gender pay and bonus gap based on hourly rates of pay and bonus.
Gender pay gap
| Gender pay gap | 2020 | 2019 | Difference to 2019 |
|---|---|---|---|
| Median | 6.3% | 8.7% | -2.4% |
| Mean | 6.4% | 11.0% | -4.7% |
This year our median pay gap decreased by 2.4% and our mean pay gap decreased by 4.7%.
Further analysis shows that there are three primary contributing factors driving the change in the mean and median gender pay metrics which show a positive shift in the proportion of women in higher paying grades, these are:
- An increase in the proportion of women in the highest paying quartile (Q4) to 47.5%, and a decrease in the proportion of women in the lowest paid quartile (Q1) by 7.7%. In effect placing more women in our higher paying quartiles and roles.
- A change in the grade bands which the female starters joined and compare to 2018/19, which shows a relative increase of 10.5% in the number of women entering the organisation in higher paid roles graded 5 to 8 and less women (relatively) are being externally attracted to our lower paying grades and roles.
- A higher proportion of women moving roles internally and being promoted. The data shows our female population have been more mobile than their male counterparts and taking promotions (and subsequently higher paying roles) at a much higher rate than men.
Proportion of males and females in each quartile band
| Quartile | Female % | % Difference in female to 2019 | Male % |
|---|---|---|---|
| Upper quartile (Q4) | 47.50% | 4.90% | 52.50% |
| Upper middle quartile (Q3) | 46.70% | 0.80% | 53.30% |
| Lower middle quartile (Q2) | 54.40% | 4.40% | 45.60% |
| Lower quartile (Q1) | 54.70% | -7.70% | 45.30% |
| 50.80% | 4.90% | 49.20% |
There has been a notable increase of females occupying the upper quartile and lower middle quartile, and a decrease of females occupying the lower quartile.
Gender bonus gap
| Gender bonus gap | 2020 | 2019 | Difference to 2019 |
|---|---|---|---|
| Median | -0.1% | 9.6% | -9.6% |
| Mean | 5.0% | 11.1% | -6.1% |
The mean bonus gap decreased by 6.1% and sits at 5.0% in favour of men.
The median bonus figure decreased significantly by 9.6% and is now -0.1% in favour of women.
This shows that we are moving closer to parity with regards to the gender bonus gap.
The changes to the bonus metrics are attributed to the significant increase in the volume of awards being made in the 2019/20 period when compared to 2018/19 as well as the decrease in the financial value of the awards. Both are attributed to the introduction of a new lower 'Special' bonus category in the 2019/20 period.
At an all TPR level (ie not looking at men and women separately), the mean average value of the bonuses being awarded fell by 12.5% and the number of bonuses awarded increased by 54.9%.
We have also seen a reduction in the disparity between the relative number of men and women who received a bonus. In the 2018/19 period the percentage of women receiving a bonus was 5.7% higher than the amount of men who received one (24.7% women versus 23.4% men) and this figure dropped to 3.3% (again in favour of women) for the 2019/20 reporting period.
The proportion of males and females receiving a bonus payment
| Gender bonus gap | 2020 | 2019 | Difference to 2019 |
|---|---|---|---|
| Male | 36.67% | 23.39% | 13.27% |
| Female | 37.89% | 24.73% | 13.17% |
TPR operates an annual discretionary bonus scheme for performance over and above the requirements of the job. The proportion of females receiving a bonus this year was 37.89% and for males 36.67%. This was an increase for both genders of 13.17% for females and 13.27% for males since 2019.
This shows that on average, women and men at TPR have a very similar chance of being awarded a bonus.
We continue to use moderation meetings to guard against discrimination or favouritism to ensure performance ratings and bonus decisions are fair and consistent.
Understanding the data
In addition to our statutory requirements, we have chosen to carry out further analysis to better understand our gender pay gap and its causes, in order to tackle it more effectively going forward.
Our analysis shows that the pay gap continues to be the result of an under representation of women working in technical roles which attract a higher salary and an under representation of men working in non-technical roles which attract a lower salary, notwithstanding the movement of women towards higher paying roles in general.
Taking action to close the gap
Over the last three years TPR has prioritised three areas for action:
- Continuing to ensure our recruitment processes are fair and transparent.
- Encouraging internships and apprenticeships in areas with a larger gender pay gap.
- Ensuring our entire workforce receives education around unconscious bias and other principles around diversity and inclusion.
A report on our progress towards these actions is set out below. These actions started in 2019/20 and are still ongoing in early 2021.
Continuing to ensure our recruitment processes are fair and transparent
Our existing recruitment process is aligned to the Civil Service Recruitment Principles as this ensures the recruitment and selection of staff is based on merit, as well as fair and open competition.
We consistently review our recruitment guidance, practices, tools and training to ensure diversity considerations are embedded and promoted and aim to move away from traditional recruitment methods. This year we expanded our recruitment team. The team is committed to delivering the recruitment strategy for TPR and has started to explore an applicant tracking system and other tools which will support diversity monitoring at all stages of the recruitment process.
People managers receive ongoing support and guidance. We are in the process of re-designing and rolling out ongoing recruitment training and a library of resources for all our people managers to ensure that good practice is being applied across the organisation. This is from the beginning of the recruitment process, through to when hiring decisions are being made.
Encouraging internships and apprenticeships in areas with a larger gender pay gap
We have continued to engage with the business about apprenticeships, both in terms of the possibility of creating new entry-level roles into TPR and providing professional development opportunities for existing staff. During this period, there have been no new roles created in areas where you would expect to see STEM (science, technology, engineering and maths) opportunities, such as Data, IT and Risk. Nevertheless, our approach remains unchanged and we actively encourage female applicants for any roles that are created.
More widely, we are actively exploring how we can embed diversity and inclusion into apprenticeship recruitment to help us attract and retain more diverse talent.
Ensuring our entire workforce receives education around unconscious bias and other principles around diversity and inclusion
At TPR we have a wide range of inclusive related training to take advantage of through Civil Service Learning. Equality and diversity essentials elearning is mandatory for all staff.
During the year we created a new ‘Respect at Work’ framework, with the aim of making TPR a great place to work, where everyone feels supported and able to reach their full potential. Its main objectives are being an equal opportunities and inclusive employer, preventing bullying and harassment and looking after employee wellbeing.
As part of this programme we launched a series of mandatory webinars for all staff which cover preventing workplace discrimination, preventing bullying and harassment, preventing sexual harassment at work, and preventing racial inequality. We also developed a Respect at Work section in the induction programme focused on acceptable and unacceptable behaviours to set the behavioural expectations for new starters.
We also developed our Wellbeing programme which consists of one-to-one resilience coaching, elearning to support working from home during a pandemic and a wide range of webinars that have given colleagues the opportunity to learn about stress management, resilience and mindfulness techniques to ensure that they are able to work and manage themselves and others with kindness.
Our plans for the future
While we are encouraged by positive progress towards reducing our pay gap, we know we have more work to do, and we will continue to deliver the actions in our existing gender pay gap action plan.
Alongside this, we are currently developing a longer-term Diversity and Inclusion Strategy and Action Plan. As part of this work we will develop a new gender pay gap action plan.
Additional pay gaps for disability, ethnicity, and sexual orientation
Over the last three years TPR has prioritised three areas for action:
- Continuing to ensure our recruitment processes are fair and transparent.
- Encouraging internships and apprenticeships in areas with a larger gender pay gap.
- Ensuring our entire workforce receives education around unconscious bias and other principles around diversity and inclusion.
A report on our progress towards these actions is set out below. These actions started in 2019/20 and are still ongoing in early 2021.
Continuing to ensure our recruitment processes are fair and transparent
Our existing recruitment process is aligned to the Civil Service Recruitment Principles as this ensures the recruitment and selection of staff is based on merit, as well as fair and open competition.
We consistently review our recruitment guidance, practices, tools and training to ensure diversity considerations are embedded and promoted and aim to move away from traditional recruitment methods. This year we expanded our recruitment team. The team is committed to delivering the recruitment strategy for TPR and has started to explore an applicant tracking system and other tools which will support diversity monitoring at all stages of the recruitment process.
People managers receive ongoing support and guidance. We are in the process of re-designing and rolling out ongoing recruitment training and a library of resources for all our people managers to ensure that good practice is being applied across the organisation. This is from the beginning of the recruitment process, through to when hiring decisions are being made.
Encouraging internships and apprenticeships in areas with a larger gender pay gap
We have continued to engage with the business about apprenticeships, both in terms of the possibility of creating new entry-level roles into TPR and providing professional development opportunities for existing staff. During this period, there have been no new roles created in areas where you would expect to see STEM (science, technology, engineering and maths) opportunities, such as Data, IT and Risk. Nevertheless, our approach remains unchanged and we actively encourage female applicants for any roles that are created.
More widely, we are actively exploring how we can embed diversity and inclusion into apprenticeship recruitment to help us attract and retain more diverse talent.
Ensuring our entire workforce receives education around unconscious bias and other principles around diversity and inclusion
At TPR we have a wide range of inclusive related training to take advantage of through Civil Service Learning. Equality and diversity essentials elearning is mandatory for all staff.
During the year we created a new ‘Respect at Work’ framework, with the aim of making TPR a great place to work, where everyone feels supported and able to reach their full potential. Its main objectives are being an equal opportunities and inclusive employer, preventing bullying and harassment and looking after employee wellbeing.
As part of this programme we launched a series of mandatory webinars for all staff which cover preventing workplace discrimination, preventing bullying and harassment, preventing sexual harassment at work, and preventing racial inequality. We also developed a Respect at Work section in the induction programme focused on acceptable and unacceptable behaviours to set the behavioural expectations for new starters.
We also developed our Wellbeing programme which consists of one-to-one resilience coaching, elearning to support working from home during a pandemic and a wide range of webinars that have given colleagues the opportunity to learn about stress management, resilience and mindfulness techniques to ensure that they are able to work and manage themselves and others with kindness.
Our plans for the future
While we are encouraged by positive progress towards reducing our pay gap, we know we have more work to do, and we will continue to deliver the actions in our existing gender pay gap action plan.
Alongside this, we are currently developing a longer-term Diversity and Inclusion Strategy and Action Plan. As part of this work we will develop a new gender pay gap action plan.
Additional pay gaps for disability, ethnicity, and sexual orientation
At TPR we are committed to promoting transparency and going beyond compliance to drive meaningful change. As such, and as part of our longer-term Diversity and Inclusion Strategy, we have started to explore our disability, ethnicity and sexual orientation pay gaps. These figures are preliminary, not least because we need to improve the rates of those declaring these demographics and explore the contributing factors to the pay gaps to enable it to be addressed.
Based on the information we have currently, disability, ethnicity and sexual orientation pay gaps are set out below. This data will be used to help us develop our Diversity and Inclusion Strategy and to identify future priorities for action.
Disability
The overall disability pay and bonus gap is more favourable for those declaring a disability compared to non-disabled staff.
| Disability pay gap | 2020 | 2019 | Difference to 2019 |
|---|---|---|---|
| Median | -24.8% | -31.5% | 6.7% |
| Mean | -20.9% | -17.9% | -3.0% |
| Disability bonus gap | 2020 | 2019 | Difference to 2019 |
|---|---|---|---|
| Median | -12.7% | -18.6% | 5.9% |
| Mean | -0.6% | -15.4% | 14.7% |
| Percentage receiving a bonus | 2020 | 2019 | Difference to 2019 |
|---|---|---|---|
| No disability | 37.4% | 24.5% | 12.9% |
| Disability | 40.0% | 11.8% | 28.2% |
Ethnicity
The overall ethnicity pay and bonus gap is less favourable compared to non-BAME staff.
| Ethnicity pay gap | 2020 | 2019 | Difference to 2019 |
|---|---|---|---|
| Median | 11.7% | 6.1% | 5.5% |
| Mean | 11.4% | 9.7% | 1.7% |
| Ethnicity bonus gap | 2020 | 2019 | Difference to 2019 |
|---|---|---|---|
| Median | 23.7% | -1.3% | 25.0% |
| Mean | 0.8% | 20.9% | -20.2% |
| Percentage receiving a bonus | 2020 | 2019 | Difference to 2019 |
|---|---|---|---|
| White | 38.5% | 24.4% | 14.1% |
| BAME | 26.9% | 16.0% | 10.9% |
Sexual orientation
The overall sexual orientation pay and bonus gaps are less favourable for those who identify as lesbian, gay, bisexual or recorded their sexual orientation as ‘other’ (LGBO[1] ) compared to heterosexual staff.
| Sexual orientation pay gap | 2020 | 2019 | Difference to 2019 |
|---|---|---|---|
| Median | 15.1% | 6.8% | 8.3% |
| Mean | 12.2% | 8.2% | 4.0% |
| Sexual orientation bonus gap | 2020 | 2019 | Difference to 2019 |
|---|---|---|---|
| Median | 18.5% | 5.3% | 13.2% |
| Mean | 6.3% | 23.5% | -17.2% |
| Percentage receiving a bonus | 2020 | 2019 | Difference to 2019 |
|---|---|---|---|
| Hetrosexual | 37.1% | 22.8% | 14.3% |
| LGBO | 41.2% | 25.5% | 15.6% |
Footnote
[1] For the purposes of accuracy of reporting we have aligned with Civil Service terminology where transgender is included under gender and not sexual orientation. At TPR we cannot report on transgender because the sample size is too small, and we would not be able to protect anonymity, so it is omitted from the gender calculations. We acknowledge that this does not reflect our efforts towards inclusion of the trans and non-binary community and we are working with our PROUD (LGBT+) diversity network to monitor the use of this terminology and how our reporting can be more inclusive going forward.