The PPF’s publication of its ethnicity figures makes it one of the first organisations in the pensions industry to announce the difference in the hourly rates of pay and bonus pay between white ethnic minority employees.
At 31 March 2020, the PPF’s median ethnicity pay gap stood at 23 per cent and its bonus pay gap was 11 per cent. The mean ethnicity pay gap stood at 23 per cent and the mean bonus pay gap was 18 per cent.
As a step towards closing its ethnicity pay gap, the PPF has set targets for representation of ethnic minority employees across the organisation and within senior manager roles. In December 2019, the PPF signed the Race at Work Charter and the organisation also runs a reverse mentoring programme to provide senior leaders with insight into the barriers faced by ethnic minorities.
Katherine Easter, PPF’s Chief People Officer, said: “Building an inclusive, representative organisation is very important to us. We recognise that we need to make improvements to ensure we attract and retain the widest, most diverse, talent pool possible. We’re committed to doing this through monitoring and measuring our progress against set targets.
“Our ethnicity report highlights that there is clearly a problem we need to fix. In a step towards addressing this, we’ve set targets for ethnicity representation which ensure we hold ourselves accountable to improving race equality, particularly in senior level roles.”
The Diversity Pay Gap Report also reported that the PPF’s median gender pay gap stood at 15.7 per cent in 2020, up from 13.4 per cent in 2019, and the bonus pay gap between men and women remains unchanged at 31 per cent. In its fourth-year of publication, the report highlighted that PPF’s gender mean pay gap is 25 per cent (22.5 per cent in 2019) and the mean bonus pay gap is 65 per cent (66 per cent in 2019).
The PPF is a signatory of the Women in Finance Charter and has set a new target to have 45 per cent of female representation at senior management level by 2023. This new target was set after the PPF achieved its previous target of 40 per cent two years ahead of schedule in October 2019.
Katherine Easter continued: “We’re disappointed that our gender pay gap has widened slightly this year, but this was something we expected would happen in the short-term as we recruited more women into junior roles so we could build on our female talent pipeline.
“While we’re pleased with our progress on increasing female representation at senior levels, gender imbalance remains and this is reflected in male-dominated functions such as investment, risk and IT.”
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