19.04.2024
The highlights of the latest Diversity Pay Gap Report include:
- Mean gender pay gap is at its lowest since we began reporting on gender pay in 2017.
- During the year April 2022 to March 2023, 8.7 per cent of ethnic minority employees and 7.9 per cent of white employees were promoted.
- An improvement in both the pay and bonus gaps year on year for those colleagues reporting a disability. The median pay gap has improved from 2.0 per cent in 2022 to -2.4 per cent in 2023.
The PPF has gone beyond statutory requirements to report on its ethnicity and disability and long-term health condition pay gaps.
The Pension Protection Fund (PPF) has today released its seventh Diversity Pay Gap report, restating its commitment to creating an inclusive workplace and continuing to make significant improvements to the diversity of its senior management. The organisation has set ambitious targets and believes its focus on the leadership pipeline by recruiting more people from under-represented groups into junior levels, nurturing their talent, and providing consistent development opportunities will help change our organisation for the better over time.
The report shows the progress it has made in addressing the imbalances in pay across gender, race and disability and long-term health condition pay gaps.
Katherine Easter, Interim CEO, said: “Our targets set out in the Diversity Pay Gap Report help us to make sure we have a diverse workforce; one that reflects the areas where we work and members we support.
“We remain focused on investing in future leaders by bringing in more people from under-represented groups into junior roles and nurturing and promoting our internal talent. Although we may not see a positive impact on our pay gaps in the short term, we’re confident these actions will help change the makeup of our organisation and even our industry over time. Hearing from people with a range of different backgrounds and experiences supports us all in innovating and managing risk.”
“One reason for our ethnicity pay gap is that most of our senior leaders are white. We acknowledge that we need to adapt our approach to achieve greater ethnic minority representation among senior managers. The Board, Executive Committee and senior leadership team remain passionate about finding ways to ensure that we deliver on the commitments we made in our Diversity & Inclusion Strategy to reap the benefits different perspectives bring.”
The PPF has gone beyond statutory requirements to report on its ethnicity and disability and long-term health condition pay gaps, but recognises there is still further progress to be made to close its pay gaps, which has been partly hindered by low levels of staff turnover.
The median ethnicity pay gap has increased from 14.3 per cent in 2022 to 15.9 per cent in 2023, which is also a result of its ethnic minority employees being underrepresented in areas of the organisation that command higher pay and bonuses. The PPF continues to work with Investment 20/20, to help talented young people to gain access to the industry, and also supports the Diversity Project, an initiative that champions a more inclusive culture in the savings and investment industry, and the 10,000 Black Interns Programme, run by the 10,000 Interns Foundation.
The report states an improvement in both its disability pay gap and disability bonus pay gap since 2022. The median pay gap has improved from 2.0 per cent in 2022 to -2.4 per cent in 2023. The PPF’s success in recruiting and retaining people with disabilities and long-term health conditions led to the fund being recognised with a Disability Confident Scheme Leader status, which the PPF has retained this year following an external validation process.
Women make up 51.6 per cent of the overall number of employees at the PPF. While its mean gender pay gap is at its lowest since it began reporting on gender pay in 2017, the PPF’s median gender pay gap increased slightly from 16.6 per cent in 2022 to 17.5 per cent in 2023.
After signing the Women in Finance Charter in 2018, the PPF met its first target to have 40 per cent female representation in senior management by 2021 a year early. As a result, the PPF increased its target to 45 per cent by December 2023, however narrowly fell short of this target, with women in 43 per cent of senior manager roles at the end of 2023. The PPF looks forward to seeing a positive impact on its data in this area in future years following the appointment of its new CEO Michelle Ostermann.
Notes to editors
The PPF’s Diversity Pay Gap uses data taken in March 2023. Key results on each pay gap show:
Ethnicity pay gap
An increase in the median ethnicity pay gap from 14.3 per cent in 2022 to 15.9 per cent in 2023, and an increase from 14.3 per cent to 14.6 per cent in the difference in the mean hourly rate of pay.
The proportion of ethnic minority employees receiving bonus pay has decreased from 79 per cent in 2022 to 75 per cent in 2023, compared to a decrease from 88 per cent to 85 per cent for white employees.
During the year April 2022 to March 2023, 8.7 per cent of ethnic minority employees and 7.9 per cent of white employees were promoted.
Gender pay gap
The median rate of pay gap increased from 16.6 per cent in 2022 to 17.5per cent in 2023.
There has been a slight increase in the median bonus pay gap from 17.6 per cent in 2022 to 19.3 per cent in 2023.
Disability & long-term health conditions (LTHC) pay gap
This is the second year we’re reporting on the disability and long-term health condition pay gap. We have found that there is a pay gap between employees who do not report having a disability or long-term health condition and those who do.
83 per cent of PPF employees disclosed whether or not they have a disability or LTHC with 26 per cent identifying as having a disability or LTHC. To compare these figures with the population of the local area, 15.8 per cent of Croydon residents report having a disability or long-term illness.
In 2022, the difference in the median hourly rate of pay was 2.04 per cent, and the difference in the mean hourly rate of pay is 11.07 per cent. This year the difference in the median hourly rate of pay was -2.4 per cent, and the difference in the mean hourly rate of pay is 8.2 per cent.
The median bonus pay decreased from 4.06 per cent in 2022 to 3.3 per cent in 2023 and the difference in the mean bonus pay decreased from 49.26 per cent to 41.6 per cent.
Ends
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PPF Press Office
020 8406 2107
[email protected]
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