Today we’ve published our sixth annual Diversity Pay Gap report. We’re sharing the main results of the report, alongside some reflections from our Chief People Officer, Katherine Easter.
We’re committed to being an inclusive employer, so we report on more than just the statutory requirements for gender pay gap reporting. We also voluntarily report on our ethnicity pay gap and, for the first time this year, we’re reporting on our disability and long-term health condition pay gaps.
Some key findings from the report include:
Gender pay gap
The median rate of pay gap increased from 15.86 per cent in 2021 to 16.64 per cent in 2022
We have made good progress on our Women in Finance Charter target, which is to have women in 45 per cent of senior roles by December 2023
Ethnicity pay gap
The overall proportion of employees from an ethnic minority background increased from 23.7 per cent in 2021 to 26.1 per cent in December 2022
The proportion of ethnic minority employees receiving bonus pay has increased from 78 per cent in 2021 to 79 per cent in 2022, compared to an increase from 85 per cent to 88 per cent for white employees. The proportion of black employees receiving bonus pay is 72 per cent.
The proportion of senior managers from an ethnic minority background increased from 14.1 per cent in 2021 to 15.6 per cent in December 2022
Disability and long-term health condition pay gap
There is a pay gap between employees who do not report having a disability or long-term health condition (LTHC) and those who do
The difference in the median hourly rate of pay is 2.04%, and the difference in the mean hourly rate of pay is 11.07%
There isn’t a gap in the proportion of employees receiving bonus pay for people with a self-certified disability or a long-term health condition
We recognise there is still further progress to be made to close our pay gaps, which is partly due to low levels of staff turnover.
Our Chief People Officer, Katherine Easter, said: “We’re passionate about delivering on our commitment to make the PPF an inclusive place to work. Monitoring our pay gaps helps us to make sure our approach to pay supports and reflects that.
“We’re focused on investing in future leaders. We are doing this by bringing in more people from under-represented groups in 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 over time and make a difference in the pensions industry too.”
“Our pay gap exists because our highest paid roles in areas such as investment and technology are over-represented by men. This reflects gender imbalances inherent in our sector and in wider society, where these are traditionally male-dominated fields.”
We’re proud that we’re moving in the right direction in narrowing our pay gaps, despite progress being slower than we’d like, partly due to a high employee retention rate. We’re focussing on investing in our future leaders as outlined in our Diversity and Inclusion Strategy, in order to change the makeup of our organisation and reduce our pay gaps.