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Gender and ethnicity pay gap statements

A 2021 review of our Gender and Ethnicity pay gaps, featuring actions we are taking to eliminate this in the coming years.

Overview

At ODI we are committed to developing a culture that is inclusive, transparent and accountable. We actively seek to promote workforce diversity and equality of opportunity in everything we do. We see Gender and Ethnicity Pay Reporting as critical in driving change, ensuring ODI remains a great place to work.

Gender pay gap statement

A core part of ODI’s work is promoting and advocating gender equality. As such, we fully embrace gender pay gap reporting in the UK and commit ourselves to reporting on and addressing gender pay gap issues in our own organisation – even though we are not required to do so as we fall under the government’s 250 or more employee threshold.

As usual, our gender pay gap analysis was carried out by an independent third party, XpertHR, and done in line with the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 and Equality Act 2010 (Specific Duties and Public Authorities) Regulations 2017.

Our submission for 2021 comprised 212 relevant workers of which 145 were women and 67 men. The results are as follows:

  1. Mean gender pay gap: 10.5%
  2. Median gender pay gap: 2.3%
  3. Mean gender bonus gap: 0%
  4. Median gender bonus gap: 0%
  5. The percentage of:
    a) male employees receiving a bonus is 0.0%
    b) female employees receiving a bonus is 0.0%

This year’s analysis showed that we had a mean gender pay gap of 10.5% in 2021. This is a small decrease of 0.4% from 2020 when the gap was 10.9%. This means that males made £2.95 per hour more than females in 2021. The median pay gap is 2.3%, which is considerably improved compared to 7.6% in 2020.

How does ODI compare with national statistics?

Note that most organisations required to disclose their gender pay data are yet to publish their reports on the UK government’s portal. Three-quarters of eligible organisations – those with 250 or more employees – are taking advantage of the extended deadline being offered by the Government Equalities Office in light of the pandemic and have until 5 October 2021 to publish their data for the 2020-21 reporting round.

Of those that published their reports by the usual deadline (31 March for public sector organisations, 4 April for private sector firms), a majority recorded a drop in their mean gender pay gap (Source: Personnel Today).

Although we do not have comparator data available for 2020-21 yet, from the early returns, the indication is that ODI continues to be below both the mean and median National sample and Not-for-profit sector averages.

Our response and commitment to action

ODI believes in co-creating a positive diverse work environment and an organisational culture that values all staff regardless of their gender or other protected characteristics. Treating everyone fairly and with respect is a core value.

We are pleased to be making progress on our gender pay gap, particularly the median figure.

As we are a small organisation, it should be noted that each new member of staff or colleague leaving ODI can affect the result by up to 2% depending on their salary level. This is one of the reasons that organisations with less than 250 staff are not required to submit GPG data.

ODI proactively takes gender into account when undertaking salary consistency checks at recruitment, and when implementing approved internal pay alignments.

This year we have conducted another Equal pay review alongside the Gender pay Gap analysis. The Equal pay review did not raise any issues, with differences between men and woman below 3%. This is well below the ACAS good practice tolerance parameters of plus or minus 5%.

We believe the following interventions will reduce and ultimately eliminate our gender gap in the coming years:

  1. Continuing to review roles at senior level in the light of our new corporate plan and our changing funding environment
  2. Continuing our work on identifying ‘hot spot’ areas and, when affordable, proactively addressing the pay gap through targeted pay realignments.
  3. Continue to conduct salary consistency checks at appointment and carry out individual pay realignments where appropriate and necessary.
  4. Continuing targeted pay re-alignments at grade 6 and above.
  5. A new pay progression structure designed to address historical imbalances.
  6. Provide training to raise awareness and mitigate against unconscious bias in recruitment.
  7. Continue to monitor any pay disparity between men and women.

Further details and analysis

  1. Given that ODI has fewer than 250 employees, each person’s weighting is significant in terms of gender pay reporting.
  2. ODI employs more women than men.
  3. There are more women than men in both junior and senior roles.
  4. More women than men are promoted at ODI.
  5. Our gender pay gap is greatest in the most senior roles, particularly grade 7, where we have a small number of legacy salaries.
  6. The pay disparity in part-time compensation between men and women is very low.
  7. In grades 1, 2, 3 and 5 there is a currently a mean pay gap in favour of women.

You can also find out more about our Gender Equality and Social Inclusion programme

Ethnicity pay gap statement

In 2017 the UK government sponsored McGregor-Smith Review recommended that all businesses with more than 50 employees should publish a breakdown of employees by race and pay band. Subsequently, in October 2018, the government launched its formal consultation on mandatory Ethnic Pay Gap Reporting. Their aim was “to agree a consistent methodological approach which drives meaningful action, while remaining proportionate and without adding undue burdens on

business”. The formal consultation closed in January 2019. The outcome report has yet to be produced.

We have decided to conduct our own review in advance of mandatory government action and are publishing our ethnic pay gap data even though this is not currently required by law.

At the moment, there is no agreed methodology for collecting, collating or analysing data for Ethnicity Pay Gap reporting. However, companies who have already published their figures made their calculations in line with Gender Pay reporting. The Ethnicity Pay Gap percentage used here, therefore, shows the difference between the average hourly earnings of all Black Asian and Minority Ethnic (BAME) staff and the average hourly earnings of all white staff, expressed as a percentage of white staff earnings.

ODI’s 212 employees as of April 2021 self-identified as follows: BAME 52, White 140 and not declared 20. Our analysis of the ethnicity pay gap revealed:

  1. Mean ethnicity pay gap: 6.9%
  2. Median ethnicity pay gap: 10.7%
  3. Mean ethnicity bonus gap: 0%
  4. Median ethnicity bonus gap: 0%
  5. The percentage of:
    1. White employees receiving a bonus is 0.0%
    2. BAME employees receiving a bonus is 0.0%

This analysis showed that we had a mean ethnicity pay gap of 6.9% in April 2021. This is a decrease of 3.9% compared to 2020 when we had a figure of 10.8%. This means that White staff made £1.81 per hour more than BAME staff. The median pay gap is 10.7%.

Our response and commitment to action

We are pleased to have made important progress on reducing our ethnicity pay gap.

As with gender pay gap statistics, the small size of our organisation means that each new member of staff or colleagues leaving ODI can affect the result by up to 2% depending on their salary level.

ODI continues to proactively focus on recruiting more staff from minority ethnic backgrounds, especially in the higher pay bands.

Our action plan includes:

  1. Continuing to review all vacancies with a diversity lens to and encouraging more applicants from minority ethnic backgrounds
  2. Our training for all managers on unconscious bias in recruitment is achieving results so we will continue to encourage recruiting managers to review their person specifications, adverts and selection criteria for unconscious bias.
  3. A new pay progression structure designed to address historical imbalances.
  4. Ongoing reviews of our action plans involving consultation with all levels of staff through the staff Diversity Forum.