Ethnicity pay gap

NCHA has made a commitment to reduce the ethnicity pay gap amongst its workforce. 

The data below comes from a snapshot taken in April 2020. When calculating the ethnicity pay gap, NCHA calculates this as the difference between the median hourly earnings of white British colleagues and other ethnic groups as a proportion of those earnings. 

The latest data

  • The mean ethnicity pay gap is 14.2% (15.7% in 2019)
  • The median ethnicity pay gap is 10.3% (10.9% in 2019)
  • The mean ethnicity bonus gap is 16.8% (16.8% in 2019)
  • The median ethnicity bonus gap is 0% (0.2% in 2019)
  • The proportion of white British colleagues in NCHA receiving a bonus is 15.6% (16.3%) and the proportion of colleagues from ethnic minority backgrounds receiving a bonus is 8.5% (10.1%).

Pay quartiles by ethnicity

  • 30% of people in the lower pay quartile are from an ethnic minority, and 70% are white British
  • 27% of people in the lower middle pay quartile are from an ethnic minority, and 73% are white British
  • 24% of people in the upper middle pay quartile are from an ethnic minority, and 76% are white British
  • 14% of people in the upper pay quartile are from an ethnic minority, and 86% are white British

These figures have been calculated using the methodologies used in the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017.

Summary

  • The ethnicity pay gap mean average at NCHA has reduced by 1.5% this year, and 0.7% for the median gap.
  • The percentage of white British and black, Asian and minority ethnic colleagues in each pay quartile has been reasonably stable over the last two years, but there has been a 3% increase to the lower and upper quartile of minority ethnic colleagues.
  • A deeper dive into the data tells us that that the ethnicity pay gap has decreased in all quartiles except the upper quartile, where it has increased.
  • Bonus payments include long service awards, refer a friend recruitment incentives and VIP awards. The median and mean gaps for bonus remain unchanged from 2020.
  • NCHA’s ethnicity pay gap is higher than the 2019 ethnicity pay gap reported by the ONS for the East Midlands, 6.9%. We are not complacent about this, and we are committed to doing everything that we can to reduce the gap.

Why we have an ethnicity pay gap

Most of the issues that contribute to NCHA's ethnicity pay gap are reflected in the UK economy and are not unique to NCHA:

  • The lack of ethnic minority groups in higher pay grades. For example, on the date of the snapshot, representation in the Executive and Senior group was 0% and in management positions, representation was 10.5%. This is compared with 24.8% black, Asian and minority ethnic colleagues in the workforce. In terms of ethnicity there is over-representation in our lower quartile pay bands. This picture is replicated across the UK economy, as people from minority ethnic backgrounds are less likely to hold senior roles and more likely to be in front-line roles. We know that in the UK ethnic minorities are more likely to experience educational and social disadvantage and are 47% more likely to work in zero hour contract roles than their white counterparts.
  • Occupational segregation. The divide between occupations is a factor for the gap. We know that most of our ethnic minority colleagues work in Care and Support (74%) and very few work in the maintenance services (3.5%) at the snapshot date.
  • Current complex pay arrangements. A review of the data by quartiles shows that our pay gaps are not just an ethnicity representation issue. We don’t have any pay gap in the lower quartiles so further review of the issues in the upper quartile is needed. Given the diversity of our organisation and the fact that NCHA reflects a number of UK occupational segregation issues it is unlikely that we will eliminate the ethnicity pay gap entirely, and reducing it further will take many years. We are making a concerted effort to increase representation of black and minority ethnic colleagues in people manager roles and have strategies and targets in place to do so. For example we have committed to increasing the proportion of our black, Asian and minority ethnic managers to 14% in the next five years.

The ethnicity pay gap is different to equal pay

Equal pay deals with the pay differences between people who carry out the same jobs, similar jobs or work of equal value. It is unlawful to pay people unequally because of their ethnicity. The ethnicity pay gap shows the difference in the average pay between those who are white British and those who belong to a minority ethnic group in a workforce.

NCHA is committed to the principle of equal opportunities and equal treatment for all colleagues, regardless of sex, race, religion or belief, age, marriage or civil partnership, pregnancy/maternity, sexual orientation, gender reassignment or disability. As such, we use a job evaluation scheme to grade roles and determine pay.

Addressing the ethnicity pay gap

NCHA is committed to doing everything that we can to reduce the ethnicity pay gap. Reducing the pay gap is not a quick fix and it will be several years before we make further inroads into the improvement we have made to date.

We will, over the next two years:

  • Continue to increase the representation of black, Asian and minority ethnic colleagues in higher paid positions including people manager roles through use of initiatives like the Rooney Rule and diverse panels
  • Target an increase in black, Asian and minority ethnic colleagues in managerial roles for our environmental, social and governance link within our new loan agreement with NatWest
  • Increase the number of people from black, Asian and minority ethnicity backgrounds in our Property Services section
  • Continue to use anonymised applicant data to reduce unconscious bias in recruitment
  • Continue to monitor workforce data to understand the impact of our recruitment processes on appointments to people manager roles in relation to ethnicity
  • Review and simplify our pay and terms and conditions arrangements (started and will continue into coming year)
  • Work with colleagues and trade unions to achieve this.