The Pension Protection Fund (PPF) has today released its sixth Diversity Pay Gap report which shows the progress it has made in addressing the imbalances in pay across gender and race. This year for the first time the report covers the PPF’s disability and long-term health condition pay gaps.
The fund has gone beyond statutory requirements to report on its ethnicity and disability and long-term health condition pay gaps. The PPF 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.
Katherine Easter, Chief People Officer at the PPF, 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.”
The report also shows that the PPF’s gender pay and bonus gaps have reduced on both a mean and median basis since it started reporting on them in 2017.
The PPF has made progress on its Women in Finance Charter target, which is to have women in 45 per cent of senior roles by December 2023. In August 2022, 44 per cent of senior roles were held by women, and half of its Board and Executive Committee are female.
Katherine added: “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.”
As outlined in its Diversity and Inclusion Strategy, the PPF is nurturing future leaders through mentoring, coaching and internal development programmes. There are also ambitions for its employee population to reflect the ethnic diversity of the local area where its head office is based in Croydon, South London. 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, which is on track to meet the target to increase ethnic minority representation across the organisation to 30 per cent by December 2023.
The Disability Confident Scheme has recognised the PPF as a Disability Confident Leader as result of its success in recruiting and retaining people with disabilities and long-term health conditions.
Notes to editors
The PPF’s Diversity Pay Gap uses data taken in March 2022 for the gender pay gap and the ethnicity pay gap. The data for the disability pay gap was taken in November 2022. Key results on each pay gap show:
Ethnicity pay gap
A decrease in the median ethnicity pay gap from 15.60 per cent in 2021 to 14.26 per cent in 2022, and a decrease from 18.82 per cent to 14.43 per cent in the difference in the mean hourly rate of pay.
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.
PPF has met the target set in 2020 to increase black representation across the organisation to nine per cent by December 2023.
Gender pay gap
The median rate of pay gap increased from 15.86 per cent in 2021 to 16.64 per cent in 2022.
There has been a slight increase in the median bonus pay gap from 16.21 per cent in 2021 to 17.64 per cent in 2022.
Disability & long-term health conditions pay gap
This is the first 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.
Of our employees who chose to share their disability and long-term health information, five per cent reported having a disability, and 23 per cent said they have a long-term health condition. 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.
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%
The difference in the median bonus pay is 4.06% and the difference in the mean bonus pay is 49.26%