Transparency data

Revenue and Customs Digital Technology Services gender pay gap report 2018

Published 19 December 2018

Overview

In 2017, the government introduced world-leading legislation that made it statutory for organisations with 250 or more employees to report annually on their gender pay gap.

Private and voluntary sector organisations are covered by the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 (‘the Regulations’) which came into force on 6 February 2017. The Regulations require relevant organisations to publish their gender pay gap information annually. This includes:

• the mean and median gender pay gaps
• the mean and median gender bonus pay gaps
• the proportion of men and women who received bonuses
• the proportions of men and women in each pay quartile

Gender pay gap versus equal pay gap

The gender pay gap is different to the equal pay gap.

The gender pay gap shows the difference in the average pay between all relevant men and women in the workforce, regardless of grade or role. A high gender pay gap can indicate there may be issues to deal with, and the individual calculations may help to identify what those issues are.

An equal pay gap will show any pay difference between men and women who carry out the same or similar jobs or work of equal value.

Revenue and Customs Digital Technology Services (RCDTS) strives to achieve fair reward of all our people irrespective of gender, through our values of:

• being professional
• acting with integrity
• showing respect
• being innovative

We are committed to the principle of equal pay for all employees. We use an objective job evaluation system to determine the relative grade of jobs within our grading structure. We use objectively defined spot ranges to recruit specialist digital and technology skills competitively in the market.

This report sets out our headline:

1. gender ratio
2. hourlly rate
3. bonus pay

RCDTS gender pay gap report 2018

This report provides the gender pay gap data in RCDTS on 5 April 2018.

For salaries we used a snapshot date of 5 April 2018.

For bonuses we captured data for the 12 month period from 6 April 2017 to 5 April 2018.

This year we have included for the first time the data for contractors who fall within scope of the Regulations and for whom we had the relevant information (127 contractors).

The gender pay gap data supplied is correct for all people in post with RCDTS on 5 April 2018. The results are below at Annex A.

Since 2017, RCDTS has increased its permanent workforce (ie non-contractors) by 240, to 725. Our gender ratio for such staff at the snapshot date was:

	Female	Male
Number, and per cent of workforce (2018)	139 (19%)	586 (81%)
Number, and per cent of workforce (2017)	89 (18%)	396 (82%)

Of the 725 permanent employees in post in April 2018, 518 had reserved rights to alternative pay arrangements protected by the Transfer of Undertakings (Protection of Employment) Regulations (TUPE) regulations.

Hourly pay

RCDTS has used widely-recognised methodology to grade roles. All posts sit within one of 7 grades, A to G, which have an associated pay range consisting of a minimum and maximum basic pay rate. Grades A to C are combined.

Salaries are paid according to terms protected under TUPE for people who transferred into RCDTS by this mechanism and who remain on those terms, and paid according to role within the grading structure for new employees entering the organisation.

Spot rates for specific roles within the grading structure are used for recruitment, and are applied irrespective of gender. Annual pay awards are paid irrespective of gender.

RCDTS has offices in London, Telford, Newcastle, Worthing, Southend and Shipley.

For pay purposes we are governed by public sector pay policy, which HM Treasury has overall responsibility for.

This defines the overall parameters for public sector pay uplifts each year in the pay guidance, to ensure that public sector pay awards are consistent with the government’s overall objectives.

Our annual pay award currently comprises 2 elements:

• a consolidated award paid to all our people (subject to performance)
• a non-consolidated award linked to performance against objectives

In addition, bonus payments are made to people in RCDTS in a variety of ways. We do not negotiate individual awards, and our bonus pay system is applied irrespective of gender.

Gender pay gap data

No permanent employees were excluded from hourly rate calculations as all were considered ‘full pay relevant employees’ for the specified period. Only contractors who were considered in scope of the Regulations and for whom we held the relevant data, were included in the hourly rate calculations.

Hourly pay (including contractors) 2018

The mean hourly rate for women is £19.50

The mean hourly rate for men is £25.66

Mean gender pay gap is 24%

The median hourly rate for women is £16.88

The median hourly rate for men is £19.62

Median gender pay gap is 14%

Hourly pay (excluded contractors) 2017

The mean hourly rate for women is £16.27

The mean hourly rate for men is £17.06

Mean gender pay gap is 4.6%

The median hourly rate for women is £15.38

The median hourly rate for men is £16.95

Median gender pay gap is 9.3%

The distribution of our workforce drives our mean and median figures. While we are striving to improve our diversity, including through our recruitment practices, RCDTS’ workforce (of which about 70% entered under TUPE) comprised of only 19% women in April 2018.

Our mean and median gender pay gap has increased significantly this year largely due to the inclusion of in scope contractor pay for the first time in 2018.

If these contractors are excluded, our 2018 gender pay gap looks very different.

	2018 RCDTS incl. contractors	2018 RCDTS excl. contractors	2017 RCDTS excl. contractors
Mean gender pay gap	24%	9.3%	4.6%
Median gender pay gap	14%	9.5%	9.3%

A number of factors contribute to the hourly pay gap in RCDTS excluding contractors in scope of the Regulations.

While the number of women working in RCDTS has increased since last year, the data by quartile shows that the biggest increase appears in the first (lowest) quartile, where the proportion of women has increased by 8.2%. In comparison, the proportion of women in the fourth (upper) quartile has decreased by 0.8%.

Additionally, whilst the combined mean hourly rate of pay for men and women (excluding in-scope contractors for whom RCDTS has the relevant data) has increased from £16.92 to £17.83 since last year, this increase affects men’s pay disproportionately to women’s due to the distribution of the workforce in RCDTS.

This section of the workforce is largely inherited through TUPE, with a further 88 people who transferred to RCDTS via this mechanism in July 2017 remaining in the organisation on the snapshot date. Of the TUPE employees who transferred in July 2017, and were still in post at the snapshot date, only 19% were women.

Bonus pay

The structure of our workforce also influences our mean bonus pay gap, which is 8.1% in favour of men in 2018 (2.2% in 2017, where contractors were excluded).

Our median bonus pay gap is 0.0%, which is unchanged since 2017.

RCDTS follows a widely recognised approach to pay and reward, and an agreed fund is reserved for the payment of non-consolidated, non-pensionable awards linked to performance. There are 4 reward schemes:

1. Simply Thanks vouchers £20 – appreciation of good work and positive behaviours
2. Recognition/Contribution Bonus Scheme – exceptional short-term performance
3. Goals Achieved Award – recognises sustained performance leading to achievement and delivery of goals
4. High Performance Award – recognises exceptional effort and achievement

Our bonus systems are gender neutral by design.

Actions

RCDTS supports the fair treatment and reward of all people irrespective of gender. Our pay policy and conditions of employment are consistent with this principle. We use a job evaluation system to assess the relative grade of jobs within our grading structure.

Diversity and inclusion

As part of a continuing programme of work on diversity and inclusion, RCDTS is implementing initiatives to increase the focus on diversity and inclusion within our recruitment practices. This includes a review of our advertising platforms to increase our exposure, and we plan to expand this work in the future to monitor adverts for biases.

Flexible working

We will continue to support people who wish to work more flexibly, across all grades. Most roles are available as job share, reduced hours, or flexible working patterns.

Equal pay review

Continuing work on the regular equal pay review to assess all areas of possible improvement.

Performance management

Following the review of the performance management system we have introduced a new approach to performance and development conversations from July 2018, to improve areas of development, engagement and productivity.

Written statement

Our calculations followed the legislative requirements, and we confirm the gender pay gap information reported is accurate.

Hannah Watson, RCDTS Director, 19 December 2018

Annex A

2018 RCDTS 2018 RCDTS overall gender pay gap results

Details	Percentage
Mean gender pay gap - ordinary pay	24.0%
Median gender pay gap - ordinary pay	14.0%
Mean gender pay gap - bonus pay in the 12 months ending 31 March	8.1%
Median gender pay gap - bonus pay in the 12 months ending 31 March	0.0%
The proportion of male employees paid a bonus in the 12 months ending 31 March	28.1%
The proportion of female employees paid a bonus in the 12 months ending 31 March	20.5%

Proportion of male and female employees in each quartile

Quartile	Female %	Male %
First (lower) quartile	23.0%	77.0%
Second quartile	20.7%	79.3%
Third quartile	15.5%	84.5%
Fourth (upper) quartile	11.7%	88.3%

Total staff

Gender	Number
Female	151
Male	701
Total	852

Note: includes contractors

2017 RCDTS 2017 RCDTS overall gender pay gap results

Details	Percentage
Mean gender pay gap - hourly pay	4.6%
Median gender pay gap - hourly pay	9.3%
Mean gender pay gap - bonus pay in the 12 months ending 5 April	2.2%
Median gender pay gap - bonus pay in the 12 months ending 5 April	0.0%
The proportion of male employees paid a bonus in the 12 months ending 31 March	42.7%
The proportion of female employees paid a bonus in the 12 months ending 31 March	53.9%

Proportion of male and female full pay relevant employees in each quartile

Quartile	Female	Male
First (lower) quartile	16.1%	83.9%
Second quartile	22.9%	77.1%
Third quartile	16.9%	83.1%
Fourth (upper) quartile	15.1%	84.9%

Total staff

Gender	Number
Female	89
Male	396
Total	485

Note: excludes contractors