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Ethnicity Pay Gap Report 2022

In March 2021 the UK’s Commission on Race and Ethnic Disparities published a report recommending that all employers voluntarily report pay gaps among diverse ethnic groups. It was advised that this would help organisations identify actions that they need to take to help attract, retain and promote ethnically diverse employees, and to help create inclusive workplaces where talented individuals are supported to progress.

Although the Government responded to say they will not be mandating Ethnicity Pay Gap reporting, Great Places is voluntarily reporting this information to provide greater transparency and support us to take action in aligning our pay gaps. Currently less than 20% of UK organisations are sharing this information.

This report summarises the data for all eligible permanent or fixedterm employees of the entire Great Places Housing Group structure who have disclosed their ethnicity. In this report the term BAME refers to all colleagues who have identified themselves as being from Black, Asian and other minority ethnic communities. Non-BAME colleagues refers to colleagues who have identified themselves as White British.

Understanding the Data

Having a ethnicity pay gap does not necessarily mean that as an organisation we have acted in ways that are inappropriate or discriminatory. Rather, it helps us identify areas of the business where further action can be taken to redress the balance and explore opportunities for positive action.

We are voluntarily publishing:

  • the difference in the median hourly pay of BAME and non-BAME colleagues, expressed as a percentage;
  • the difference in the mean hourly pay of BAME and non-BAME colleagues, expressed as a percentage;
  • the difference in mean hourly bonus pay of BAME and non-BAME colleagues, expressed as a percentage;
  • the proportion of BAME and non-BAME colleagues who received bonus pay; and
  • the percentage of BAME and non-BAME colleagues in each of the four quartile pay bands

The median is the middle value and is calculated by organising all the hourly rates of pay in order and selecting the middle number.

The mean is our average pay and is calculated by adding up all our hourly rates of pay and diving by the number of colleagues.

Pay Gap

On 5th April 2022, we employed 808 permanent or fixed-term employees. Of these colleagues, 749 (92.7%) disclosed their ethnicity data, and the figures reported exclude the 59 (7.3%) colleagues who have not declared their ethnicity.

Great Places Housing Group 2022 Ethnicity Pay Gap

  • Median: BAME colleagues earn 18.0% less than non-BAME colleagues
  • Mean: BAME colleagues earn 21.5% less than non-BAME colleagues

UK Baseline (January 2023): BAME colleagues earn 31.9% less than non-BAME colleagues

13.5% BAME 86.5% non-BAME

Great Places Housing Group 2022 Ethnicity Bonus Gap

  • Median: BAME colleagues receive 0.0% less than non-BAME colleagues
  • Mean: BAME colleagues receive 40.1% less than non-BAME colleagues

Pay Quartile Breakdown

To create pay quartiles, we have listed the salary of every colleague in order and then split the list into four equal parts to give pay quartiles. Salaries increase from quartile 1 to quartile 4. Below is the summary split of where BAME and non-BAME colleagues sit in terms of the quartile pay bands:

Quartile Median Mean
Quartile 1 BAME colleagues paid 2.0% less than non-BAME colleagues BAME colleagues paid 0.5% less than non-BAME colleagues
Quartile 2 BAME colleagues paid 3.0% less than non-BAME colleagues BAME colleagues paid 0.8% less than non-BAME colleagues
Quartile 3 BAME colleagues paid 5.5% less than non-BAME colleagues BAME colleagues paid 1.5% less than non-BAME colleagues
Quartile 4 BAME colleagues paid 2.2% less than non-BAME colleagues BAME colleagues paid 11.9% less than non-BAME colleagues

Great Places Key Findings

  • At Great Places, the hourly median ethnicity pay gap as at 5 April 2022 was 18%; this is an increase of 1.7% from our last reported Ethnicity pay gap
    of 16.3% in 2020.
  • Although at 18%, and the largest pay gap reported for Great Places (compared to our 2% gender pay gap and 7.6% disability pay gap), it is 13.9% better than the current UK average Ethnicity Pay Gap, reported in January 2023 at 31.9%.
  • Quartile 3 has the biggest median gap (5.5%), Quartile 4 has the biggest mean gap (11.9%).
  • Quartiles 1-3 have a smaller mean average pay gap difference to our median results.
  • The Quartile 4 pay gap is the highest at 11.9%. This is reflective of the lack of BAME colleagues at senior leadership level.
  • Quartile 1 has the highest proportion of BAME colleagues within it at 25% compared to 5.7% in Quartile 4, with a visible reduction in representation of BAME colleagues moving up through the quartiles.
  • In relation to bonus pay, 58.4% of diverse heritage colleagues received a bonus, with both BAME and Non-BAME colleagues receiving the same amount on a median level (0.0% bonus gap) against a UK average of 17.3%. However, our mean average showed non-BAME colleagues received 40.1% more than BAME colleagues, due to the different bonus structure operated within a small subsidiary of the group which operates on commercial pay structures. The UK average Mean Bonus gap was reported at 71.1%.

 

Great Places’ Approach and Commitment

Great Places is committed to reducing our pay gaps, ensuring they are reviewed regularly, and that positive actions are agreed to positively shift any gap that exists. As an organisation we take equality, diversity and inclusion seriously with a clear strategy in place to embrace the value of our differences, creating a culture of inclusion and ensuring fairness for all of our people.

Aligned to our EDI and our People Strategies, we will continue to create an environment that provides equal opportunities for all colleagues, irrespective of ethnicity, to reach their career progression potential.

We annually commit to:

Continue to monitor our Ethnicity pay on a regular basis for Great Places Housing Group.

Continue to ensure equal access to external recruitment and internal moves.

Continue to ensure fairness in the provision of any corporate bonus payments.

Since April 2022 we have already:

Created organisational alignment of salaries for similar roles to ensure like-for-like roles are paid fairly.

Introduced greater pay alignment for colleagues identified as being below the average paid salary for their role during a mid-year pay review process.

Introduced spot salaries for some roles to create full alignment of pay where appropriate.

Introduced additional support for colleagues struggling with the impact of the cost of living crisis.

Designed the recruitment campaign for Growing Greatness (our Apprentice and Graduate Talent Programme) to encourage applicants from diverse ethnic communities, with a view to further support internal development and progression of colleagues from under represented ethnic groups.

Introduce a new Recruitment Policy that includes a commitment to:

Ensuring all applicants from diverse ethnic communities are guaranteed an interview if they meet the minimum criteria of the role applied for.

Ensuring diverse recruitment panels are introduced for leadership and management roles.

Validating the imagery and language used within our advertisements are inclusive and attractive to diverse ethnic groups.

Identifying opportunities for targeted recruitment advertising to ensure we are attracting a broader and more diverse candidate pool.

We will increase the support provided to colleagues from diverse ethnic background, in relation to personal development and career progression through:

Introducing a tailored leadership development programme to support colleagues from diverse ethnic communities who are aspiring to progress into management or leadership roles.

Offering personalised career coaching sessions in house, targeted at colleagues from under-represented groups.

Actively promote the Housing Diversity Networks mentoring programme, to ensure our mentee places are filled for each cohort, prioritising attendance for colleagues in under-represented groups.

Ensure participation and learning from the GMHP Boost programme, through providing reciprocal mentoring and engaging as an active member of the Cultural Change Champions.

Proactively marketing other internal and external development opportunities through targeted communication to under-represented groups.

Continue to work with our Race & Religion Counts forum to:

Monitor relevant data to help inform action areas, such as within recruitment and selection practices, from our colleague surveys, and through space to talk sessions developed and led by forum focus areas.

Deliver awareness and celebration events that promote cultural diversity and understanding.

Identify ways to improve inclusive recruitment practices through forum involvement in selection processes.

Further increase forum membership and opportunities for involvement across the organisation.

Embed inclusive leadership practices by:

Ensuring inclusive leadership training is delivered to all managers and leaders.

Identifying ways to improve inclusive recruitment practices and introduce further training.

Piloting the inclusive decision-making framework, with the aim to replace the current Equality Impact Assessment with a more impactful and holistic process.

Focusing on embedding an ethos of belonging at a cultural level through our GREATER Together operating culture, ensuring it is understood and applied across all areas of the business.

Implementing ‘Speak Out’, providing colleagues with the opportunity to feedback/report situations, in the moment, that do not live up to our ethos of mutual respect.

Matt Harrison

Matthew Harrison