Gender pay gap

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 gender neutral job evaluation scheme to grade roles and determine pay.

We are required by law to publish an annual gender pay gap report. The figures below come from our most recent snapshot, which was taken at 5 April 2019.

Facts and figures

  • The mean gender pay gap is 16.25%
  • The median gender pay gap is 21.7%
  • The mean gender bonus gap is -7.3%
  • The median gender bonus gap is 0%
  • The proportion of male colleagues in NCHA receiving a bonus is 12% and the proportion of female colleagues receiving a bonus is 16%

Pay quartiles

  • 24% of people in the lower pay quartile are men, and 76% are women
  • 25% of people in the lower middle pay quartile are men, and 75% are women
  • 37% of people in the upper middle pay quartile are men, and 63% are women
  • 46% of people in the upper pay quartile are men, and 54% are women

These figures are based on hourly pay rates, and been calculated using the methodologies used in the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017.

Underlying causes 

NCHA has reduced the gender pay gap for the second year in a row, this time by 1.15%, which represents a 6.6% improvement from the 2018 figures. The following issues still contribute to the gender pay gap:

  • Women are under-represented in more senior roles at NCHA. Our workforce gender split is 67.1% women and 32.9% are men. However, women occupy 63.8% of managerial roles (it was 59.4% in 2018) and they represent only 54% of quartile 4.
  • Women are over-represented in the lowest quartiles (quartile 1 & 2). If there was an even distribution of women across our pay quartiles then we’d expect to see 10% fewer women in quartile 1.
  • In relation to bonus differentials, we have a negative gender pay gap. Because bonus is defined very broadly, we have to include payments made for long service awards, refer a friend recruitment incentives and our colleague recognition scheme, which could be argued as being non-traditional bonus approaches. This year the average bonus gap reduced by 10.3%.

Equal pay

Equal pay deals with the pay differences between men and women who carry out the same jobs, similar jobs or work of equal value. It is unlawful to pay people unequally because they are a man or a woman. The gender pay gap shows the difference in the average pay between all men and women 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 gender-neutral job evaluation scheme to grade roles and determine pay.

Our gender pay gap is the result of the roles in which men and women work within the organisation and the salaries that these roles attract.

Across the UK economy, men are more likely than women to be in senior roles (especially very senior roles at the top of organisations), while women are more likely than men to be in front-line roles at the lower end of the organisation. Women are also more likely than men to have had breaks from work that have affected their career progression, for example to bring up children. Women are also more likely to work part time; part time work is often concentrated at lower ends of the pay spectrum.

This pattern from the UK economy as a whole is reflected in the make-up of NCHA’s workforce, where the majority of front-line colleagues are women, while the majority of line manager and senior manager roles are held by men. For example, 82% of part time colleagues at NCHA are women but only 18% of roles in the upper quartile of pay (quartile 4) are done on a part time basis.

Our commitment

While NCHA’s gender pay gap is similar to the UK average, we are not complacent about this, and we are committed to doing everything that we can to reduce the gap. To date, NCHA has already taken the following steps to promote gender diversity in our workforce:

  • Enhanced maternity pay to encourage those taking maternity leave to return to work
  • Terms and conditions that support work life balance including paid urgent/domestic leave, flexible working and benefits aimed at improving health and wellbeing
  • Anonymising applicant data to reduce unconscious bias in recruitment
  • Training managers about unconscious bias
  • Monitoring workforce data to understand:
    • the proportions of men and women in managerial roles at NCHA
    • the proportions women leaving the organisation and their reasons for leaving
    • the numbers of men and women in managerial roles.

Reducing the pay gap is not a quick fix and it may be several years before we make further inroads into the improvement we have made.

In the meantime, we are committed to reporting on an annual basis the impact of the gender pay gap and NCHA is committed to reducing the gender pay gap. We will, over the next two years:

  • review and simplify our pay arrangements (work started late 2018)
  • review how we will increase the representation of women in higher paid roles and men in care and support roles
  • work with colleagues and trade unions to achieve this.