Equal Pay Audit 2014/15 Executive Summary September 2015 version 1.0 1 1. Executive Summary All data in this report reflects the Met office position as at February 2014. Based on this information the report includes at Annex A an Equal Pay Action Plan. Workforce Overview The Met Office works at the forefront of weather and climate science for protection, prosperity and wellbeing. It plays a critical role in national life through its development and 24x7 delivery of world-leading operational weather and climate services to citizens, HM Government and many other public and private sector organisations, operating as a Trading Fund Agency within the Business, Innovation and Skills Department. The breadth and depth of our work is incredibly varied, and this is reflected in the expertise and highly skilled workforce we need to deliver our vision of “Global Partner of Choice”. We offer career opportunities throughout the STEM spectrum in the fields of Science, Operational Meteorology, Engineering and Technology through to Business Development, Marketing, Legal & Procurement, Communications, HR, Finance, Project Management and Administration. Excluding the Senior Civil Service (SCS) the Met Office employed 2040 staff as at February 2014 all of whom are on Met Office Role based reward terms & conditions across and throughout fourteen professions. This is an increase on the 1878 staff employed in 2009. The proportion of female employees has increased from 25% to 32% since 2008/9. In the Operational Meteorology profession this has increased from 17% to 30%. As at February 2014, over 60% of females had less than 5 years service. The Met Office moved from a broad banded Job level pay structure to its current pay system (role and market based reward system) in April 2009. On moving to the current pay system in 2008/9 legacy basic pay levels were transferred into the new pay system. Reductions to basic pay were subsequently applied and basic pay levels then contained within the new pay system structure to support pay equality. Overall Gender Gap Gender pay gap is defined as the difference between men’s and women’s hourly earnings as a percentage of men’s earnings. It is common practice to consider the gender pay gap across the organisation taking no account of grades (role) or working pattern. EHRC guideline for acceptable pay gaps is 3.0%. The overall pay gap between men and women at Met Office in February 2014 was 10.7%. Gender Gap Role on Role Overall the role on role findings show that there is a pay gap of less than 3% (female to male) for 89% of staff. Further comparison of the role on role average basic pay of all men and women identifies a range of pay gaps from 0% - 15.5%. There are a number of roles with less than 10 occupants in each gender. As at February 2014 there was no female representation in 5% of total posts (106out of 2040). Working Pattern There were12% of total staff working part time. 8% of the total number of males compared to 21% of total females working part-time. Part time females have a lower average basic pay than both part time and full time males and the pay gap is over the EHRC 3% guideline. 2 Age Full-time staff Analysis by age shows that largest pay gaps are for those over 56 and the lowest in the age range of 25-35 years. Part-time staff Pay gaps were identified in all age groups with the greatest pay gap in those over the age of 56 years. The largest number of female staff was found in the 36-40 years age group where the pay gap was 5.6%. Ethnicity and Disability 31% of employees have not declared their ethnicity or disability; this may impact on the overall findings which show the pay gaps between BME and White staff as 9.5% and disabled and non-disabled staff as 9.9%. Performance Markings The comparison of performance ratings shows: the proportion of female employees receiving 2013/14 “Exceeded” performance ratings was 1% less than the number of males. when comparing “Exceeded” ratings by work pattern, a higher proportion of full time staff received an “Exceeded” rating than part time “Partially Met” and “Not Met” ratings were reviewed similarly; there are so few instances making meaningful analysis difficult. Personal Bonus Personal Bonuses in 2013/14 show that more male (17%) than female staff (14%) received a bonus and that more full than part time staff received a bonus. 3 2. Background Equality Human Rights Commission (EHRC) states an Equal Pay Audit is the most effective way of establishing whether pay systems are free from discrimination. Public organisations are required to regularly audit their pay systems with regards to equal pay. The benefits of conducting regular audits include: establishing whether our pay strategy is delivering as expected identifying where adjustments might be beneficial providing essential information to defend any Equal Pay claims that go to Tribunal. The Met Office committed to undertaking a formal equal pay audit to ensure its pay systems are free from bias. This represents the first full formal pay audit since the pay and grading system transformation of our in 2008/9. On 22 June 2010 the Chancellor announced a two year pay freeze in the public sector. Employees earning a full-time equivalent salary of £21,000 or less were protected from the pay freeze and were required to receive a minimum consolidated pay increase of £250 for each of the two years. The impact of the pay freeze followed by further pay constraints on public sector pay, means that most Met Office staff did not see a consolidated pay increase in 2011/12 and 2012/13 and 1% in 2013/14 & 2014/15. The Met Office Pay and Grading review 2008/9 The primary objectives of the 2008/09 Pay and Grading review were to: evaluate our reward systems to ensure staff are rewarded for the contribution made Following the pay and grading review, the 2009 reward philosophy aimed to: link business performance, individual performance and achievement to the external job market whereby pay and benefits reflect the contribution made in an affordable way. provide a competitive pay and benefits package able to attract, engage and retain the right talent provide personal choice and flexibility assess contribution and enable the development of a high performance culture All roles in the Met Office are evaluated on the objectives that reflect the role and level of accountabilities. A role is a broad area of work that the Met Office needs to be delivered and is broken down into one or more specific job descriptions. All jobs in the Met Office fit into a role. We have staff occupying 114 roles each with a defined purpose, accountability and required professional skills. The Met Office has 14 distinct professions which align with professional bodies and/or professional skills for government; all have distinct professional skills frameworks and levels within. The Met Office 2008/9 pay agreement moved the Met Office to a role and market based pay system1. The move was designed to support the management of pay disparity across the MO removing from the "timeserved" and incremental based approach of the former Job level Broad banded pay and grading structure. reduce the divergence from market, 1 The Met Office pay system includes national pay ranges only. These pay ranges are applied consistently to all roles and all UK and overseas workplaces. Location allowances are paid to those working overseas and London and Shetland Islands 4 reduce gender pay gaps. On moving to this (Role and Reward based) system in 2008/9 staff legacy pay levels were transferred into the new pay ranges at the level of their basic pay at that time. Where these were higher than the relevant [new] pay range maximum for the role they were held above the top of the new pay range. These employees then had the value over the pay range maximum removed in 2 stages in 2012 and 2013. New appointments including those newly recruited or promoted usually join the pay range at the minimum (Development entry level). Public sector pay constraints prevented a complete transformation of the system but Met Office obtained approval to a two year deal for the year 2008/9 to 2009/10. 3. Report Terms of Reference The purpose of this report is to assess the Met Office’s equal pay position consider whether our pay systems are biased in respect of any of the protected characteristics including gender highlight areas of risk or concern and to assess how these risks and issues may be addressed. The report is based on statistical analysis of staff employed by the Met Office as at 28 February 2014. Subsequent staff and pay movement has not materially changed the data and analysis i.e. in the context of continued Public sector pay policy and constraint. Senior Civil Servants (SCS) are not included (2 at time of reporting). SCS pay levels are determined by HM Government centrally. All employees are subject to the Met Office performance management system. 5 Annex A - Action Plan ID 1 Issue Pay leads. (e.g. in the Operational Meteorology profession). 2 Equal Pay Audit. No baseline Equal Pay Audit to consider trends Ethnicity & Disability. Management Information on ethnicity and disability covers 70% with 30% choosing not to provide a declaration, which makes it more difficult to establish/follow trends with certainty when auditing. 3 4 Age. The pay lead in the over 56 age group and the male long service lead. 5 Performance Rating. Long term absence notional “Met” performance rating policy 6 Gender. Nil representation of females in some roles. 7 Working Patterns. Full time male pay lead on female part time staff (e.g. in some science roles). Action to take Review in more detail as part of the Met Office Reward Strategy and paybill controls review to include recommendation(s) for addressing issues Conduct a regular Equal Pay Audit Status Ongoing Progress Review began in 2014 and is ongoing with BIS and HM Treasury Open Improve through internal communications advising staff on the importance of reporting and targeting those with no declaration. Initiate external benchmarking including with private sector and any international comparators Review as part of the Met Office Reward Strategy and paybill controls review Conduct an equality impact assessment on the pay policy for long term absence and performance ratings equality Raise with relevant management areas via HR business partners. Continue to ensure pay equality policy and practice applied when making appointments to all roles. Review in more detail as part of the Met Office Reward Strategy and Paybill controls review & include recommendation(s) for addressing issues Open Conduct a full Equal Pay Audit every 2/3 years. HR to plan further targeted communications to encourage better coverage. 6 Open Review began in 2014 and is ongoing with BIS and HM Treasury Open 2014/15 Pay award applied updated policy for maternity/adoption.. Ongoing Open Science profession already taking action STEM activity continues Talent pipeline work continues Review began in 2014 and is ongoing with BIS and HM Treasury ID 8 Issue Performance ratings and Personal Bonus awards. Lead among male full time workers. 9 Pay System. Constrained ability under current paybill controls to reduce the pay leads to manageable and equitable levels. 10 Promotion/Progression. No data collected on promotion/progression. Action to take Strengthen the performance review consultation processes conducted by senior managers, by supporting formal equality assessments on gender and working pattern. Review in more detail as part of the Met Office reward Strategy and paybill controls review. Introduce mechanisms to reduce the pay range span. Collate data and review consistency of promotion/progression in next Equal Pay Report 7 Status Open Progress Undertake EIA of performance review process Ongoing Ongoing discussions with BIS/HMT on Business cases for pay and paybill control flexibilities. Open To be assessed under future audits Undertake EIA of profession progression rounds. Met Office FitzRoy Road, Exeter Devon EX1 3PB United Kingdom Tel (UK): 0370 900 0100 (Int): +44 1392 885680 Fax (UK): 0370 900 5050 (Int): +44 1392 885681 [email protected] www.metoffice.gov.uk 8
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