Transparency data

UKEF gender pay gap report 2018 to 2019

Published 23 January 2020

1. Gender pay gap

The Equality Act 2010 (Specific Duties and Public Authorities) Regulations 2017 came in to effect on 31 March 2017 and require organisations with 250 or more employees to publish their gender pay gap data annually. Published data should include mean and median gender pay gaps; the mean and median gender bonus gaps; the proportion of men and women who received bonuses; and the proportions of male and female employees in each pay quartile.

The gender pay gap shows the difference in the average pay between all men and women in a workforce. If a workforce has a particularly high gender pay gap, this can indicate there may be a number of issues to deal with, and the individual calculations may help to identify what those issues are.

The gender pay gap is different to 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 for the same work because they are a man or a woman.

This report sets out the figures in more detail and what we are doing to close the gender pay gap in the organisation.

2. Gender make-up of the Department

As of 31 March 2019, UKEF had 321 employees, of whom 39% identified as female. 5.3% of UKEF employees were graded Senior Civil Servants (SCS); of these 29% identified as female. The proportion of female employees at UKEF has increased steadily over the last three years and the department remains on track to hit it’s 40% target by 2020.

2.1 Impact over the last 3 years

	2016-17	2017-18	2018-19
Number of employees	264	305	321
% Female	36%	38%	39%
% of employees SCS	4%	6%	5.3%
% of SCS are female	20%	24%	29%

3. UKEF’s gender pay gap

UKEF uses Civil Service grades ranging from Administrative Assistant (administrative level grade) to Senior Civil Servant (executive level grade). Grades vary according to the level of responsibility that staff have. Each grade has a set pay range with pay gaps in between grades.

In 2019, the national median gender pay gap for all employees was 17.3%. UKEF’s median pay gap has reduced over the last three years and is below the national average.

• Mean pay gap (ordinary pay): 12.23%
• Median pay gap (ordinary pay): 11.97%

UKEF’s mean and median pay gaps have reduced every year since the reporting requirements were introduced: the mean from 15.97% in 2016-17 to 12.23% in 2018-19, and the median from 16.26% in 2016-17 to 11.97% in 2018-19.

UKEF has a relatively small number of employees hence the data can be skewed by a small number of employees. For example if the SCS population was excluded from the calculation the mean pay gap is reduced to 7.72%, a further positive reduction from the 2017-18 equivalent figure of 8.71%.

3.1 Ordinary pay: trend over the last 3 years

	2016-17	2017-18	2018-19
Mean pay	15.97%	15.25%	12.23%
Median pay	16.26%	12.22%	11.97%

4. Bonus pay

UKEF’s performance awards were paid as a set value depending on grade and performance level.

• Mean pay gap (ordinary pay): 24.68%
• Median pay gap (ordinary pay): 31.06%

Despite the fact that a higher proportion of female staff receive a bonus payment there is a significant bonus pay gap between men and women using the both the mean and median average. This gap is driven by the larger number of male employees at higher grades as bonus payments increase by grade.

4.1 Bonus pay: trend over the last 3 years

	2016-17	2017-18	2018-19
Mean pay	22.36%	20.57%	24.68%
Median pay	7.80%	25.09%	31.06%

Again, SCS bonus pay significantly distorts UKEF figures. If the SCS population is excluded, the mean level of bonus pay is 18.47%.

4.2 Percentage of men and women paid a bonus

• Male: 55%
• Female: 58%

The difference between male and female employees receiving a bonus was small. However, this year saw more female employees compared to their male counterparts received a bonus (55% of men, 58% of women).

4.3 Bonus: trend over the last 3 years

	2016-17	2017-18	2018-19
% Paid a bonus (M/F)	46% / 51%	47% / 41%	55% / 58%

5. Pay by quartiles

When the workforce is segmented in to quartiles based on pay, and those quartiles are compared on gender grounds, the data shows that UKEF has seen an improvement in two of the four quartiles. Female representation has increased in the upper middle quartile and upper quartile when compared to 2017-18.

	Lower Quartile	Lower Middle Quartile	Upper Middle Quartile	Upper Quartile
Male	52%	60%	65%	67%
Female	48%	40%	35%	33%

5.1 Pay by quartile: trend over the last 3 years

Pay by quartiles (M/F)	2016-17	2017-18	2018-19
Lower Quartile	47% / 53%	54% / 46%	52% / 48%
Lower Middle Quartile	72% / 28%	58% / 42%	60% / 40%
Upper Middle Quartile	64% / 36%	66% / 34%	65% / 35%
Upper Quartile	73% / 27%	70% / 30%	67% / 33%

6. Work on closing the gender pay gap

In October 2017, the Civil Service Diversity and Inclusion Strategy was published. This sets out new programmes and initiatives to realise the Civil Service wide ambition of becoming the UK’s most inclusive employer by 2020. UKEF strongly supports this ambition and wants to create a diverse and representative workplace – one that will attract talented people from all backgrounds, and give everyone, including those already working for us, the opportunity to achieve their potential.

UKEF has developed its own Diversity & Inclusion Action Plan that focuses on four key themes which align to the “Great Civil Service” programme: Effective Leadership; Skilled People; Improved Outcomes; and A Great Place to Work. The UKEF D&I Action Plan is linked to the overarching Business Plan and to our values and behaviours as set out in the UKEF Message House.

The department and the senior leadership team are committed to closing our gender pay gap and to ensure senior level ownership this commitment forms part of the annual performance objectives for our Chief Executive. In addition to the above, the Department has adopted a number of initiatives to reduce the gender pay gap, these include:

• In 2017, UKEF became a signatory to the Women in Finance Charter. By becoming a signatory UKEF are publicly affirming our commitment to improving gender diversity in the Department. We have set ourselves a primary target of increasing female representation at Senior Civil Service (SCS) grades in the Department to 30% by 2020. The department also committed to reducing our gender pay gap and for the third year in succession the gap has decreased.
• Continue to refine our recruitment processes, focusing on attracting women into the Civil Service and anonymising the application process to reduce unconscious bias. At the SCS level, we have mandated that the “long list” must contain female candidates. At a non-SCS level we continue utilise a broader range of careers site which would attract a larger number of female applicants.
• A new assessment methodology (“Success Profiles”) has been rolled out and has moved away from using a purely competency-based system of assessment. The new system has introduced a more flexible framework which assesses candidates against a range of elements using a variety of selection methods, such as structured interviews and skills-based assessments.
• All UKEF Heads of Division have a mandatory objective relating to diversity and inclusion.
• To support this work UKEF has adopted the Working Forward pledge which aims to make workplaces the best they can be for pregnant women and new parents. We offer shared parental leave, as well as job share and part-time opportunities, and have guidance to help line managers ensure those returning from parental/adoption leave feel supported and welcomed.
• Ongoing talent management and support for female staff progression, through programmes such as Crossing Thresholds and sponsoring attendance at the Civil Service Women into Leadership conference (18/19 saw 12 women compared to 5 in 17/18 attend the conference).
• UKEF has an active staff Gender Network which is supported by senior level sponsors within the Department. The network plays a strong role in championing gender diversity issues at UKEF.
• A new performance management system has been introduced and it has led to a significant increase in the number of staff receiving a performance award.
• Senior female stakeholders including UKEF’s Chair have spoken at staff events in their capacity as role models for other females in the department.

7. Staff included in the Gender Pay Gap data

1. Information is based upon individuals employed by UKEF on 31st March 2019.
2. Contractors (off payroll workers) are out of scope for this report.
3. Information prepared and published January 2020.
4. We confirm that data reported by UKEF is accurate and has been calculated according to the requirements and methodology set out in the Equality Act 2010 (Specific Duties and Public Authorities) Regulations 2017: Shane Lynch Director of Resources, UKEF.