BBC Gender Pay Gap Report 2019

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BBCGender Pay GapReport 2019

BBC Gender Pay Gap Report 2019Contents1Introduction2Gender pay at the BBC3Gender pay split by quartile4Pay gaps on other diversity measures5What we’ve achieved on pay6Gender pay across the industryAdditional payments at the BBC7Why the gender pay gapis not the same as equal pay8Assurance Statement BBC Copyright 2019The text of this document (this excludes,where present, the Royal Arms and alldepartmental or agency logos) may bereproduced free of charge in any formator medium provided that it is reproducedaccurately and not in a misleading context.The material must be acknowledged asBBC copyright and the document titlespecified. Photographs are used BBCor used under the terms of the PACTagreement except where otherwiseidentified. Permission from copyrightholders must be sought before anyphotographs are reproduced.You can download this publication frombbc.com/aboutthebbc/reports/reportsDesigned by Emperoremperor.worksPrepared pursuant to Article 10 of thetransitional provisions of the BBC RoyalCharter 2017 (Schedule to the Charter).

BBC Gender Pay Gap Report 2019Introduction1In 2017, I set us a tough challenge ofclosing the gender pay gap by theend of 2020. It’s a goal which is morestretching and ambitious than forany other organisation, becauseI wanted to achieve real change –and you can see how far we’ve come.Tony HallDirector-GeneralBBC Public Service Broadcastingmedian pay gapI’m proud that the BBC has been a leader in paygap reporting. We were the first broadcasterto publish our gender pay gap in 2017, whichshowed BBC Public Service Broadcasting had amedian gap of 9.3%. Last year, that fell to 7.6%and now we’ve reduced it further to 6.7%.And, in each of our reports so far, we’ve voluntarilypublished the pay gap for people from BAMEbackgrounds, those who are disabled and thosewho work part-time. This year, we are alsopublishing the pay gap for LGBTQ employees.We already have the lowest gender pay gap acrossUK broadcasters, and it’s significantly lower than thenational average of 17.9%, but we can’t be complacent.That’s why, in 2017, I set us a tough challenge ofclosing the gender pay gap by the end of 2020. It’s agoal which is more stretching and ambitious than forany other organisation, because I wanted to achievereal change – and you can see how far we’ve come.When you look at the data in more detail, we havea gender pay gap of 3% or less in each of the BBC’scareer level bands.We see the same thing when we look at individualjob titles which have similar numbers of men andwomen in them. For example in the Journalist job –with 2,700 in the role, the single most common jobin the BBC – the gender pay gap is less than 1%.As we learn more from reports on pay gaps across theUK, we can see there are structural causes which needto be addressed. And it’s a simple structural reasonthat is driving our remaining gap: we still have too fewwomen in senior roles. This is why our focus, across theorganisation, has been on developing senior femaleleaders and 43.8% of our leadership roles are now filledby women. Last year, we published a report looking atthe culture and career progression of women in the20179.3%20187.6%20196.7%BBC and since then have implemented the majorityof its recommendations. We’ve done the same infour other reviews to ensure the BBC is a great placeto work whatever your ethnicity, sexuality or socialbackground and whether you have a disability or not.We’ve also seen that fluctuations and workforcechanges will make it challenging for any largeorganisation to sustain a 0% pay gap over the courseof a year or more. And so, as we explained in lastyear’s report, our commitment is to achieving andmaintaining a gender pay gap of plus or minus 3%– I want us to continue on that path and to reachthat target, or as close to it, as soon as we can.But the gender pay gap is only part of the story. I’mpleased this report also shows that our BAME, disabled,part-time and LGBTQ pay gaps already sit within ourtarget of being /- 3%.We remain committed to reaching our target. We knowthis will be challenging. The changes we’re making needto be sustainable in the long-term and not quick fixesthat address it in the short-term. That’s why, whilst wecontinue to compare favourably to most other largeorganisations, I am determined that we go further andlead the way.Tony HallDirector-GeneralJuly 2019

BBC Gender Pay Gap Report 20192Gender pay at the BBCThe median gender pay gap for BBC PublicService Broadcasting has fallen again to 6.7%.The national median for 2018 is 17.9%. Our meanpay gap is 6.8%, down from 10.7% since 2017.Career level bandWe have achieved further reductions in the past yearprimarily through increasing the number of women insenior roles and addressing specific pay issues.The changes implemented as part of our Terms andConditions reforms have also helped to reduce the gap.Each job in the BBC now has an individual pay range,informed by the market, and everyone within that job sitsat the minimum of the pay range or above. The salary ofanyone sitting below that pay range was brought up tothe minimum. This was an important reform to ensurewe have a pay framework that matches our pay principles– Fair, Consistent, Transparent, Competitive and Clear.We also changed our pay and grading structure as partof the reforms, moving from grades numbered 2 to 11to seven career levels – A to F, and Senior Leaders.When you look at the gender pay gap for each careerlevel, all sit at 3% or below.Number of peopleMedian gender pay Ec.1,8002.6%Fc.6302.6%Senior Leaderc.2702.7%This confirms that the vast majority of the overallpay gap is caused by having too few women in moresenior jobs and more women than men in the lowestquartile of the workforce. 6.2% of our mediangender pay gap is driven by these structural issues,leaving a residual pay gap of less than 0.5%.We are focused on addressing this structural imbalance.There are already jobs in the BBC with a 50:50 genderbalance, but we need to achieve this across the board.The recommendations that we’ve implementedfollowing the culture and career progressionreview for women are making a difference.We’ve introduced a flexible working policy and 77%of our jobs have been advertised on a flexible workingbasis. We have also launched a pan-BBC mentoringscheme to provide career support. Our recruitmentprocesses have been updated, allowing those withpotential to gain more experience in short-termattachments, and we have introduced mixed genderpanels and shortlists. We have also increased trainingand support for all our team leaders to ensure theyact as role models to set the culture of the BBC. In ourtechnology division, Design and Engineering, we’veintroduced a career returners programme to help womenand men who have taken a career break to return tothe workplace. We have also recently announced ‘Stepinto Tech’ – a scheme to help women gain the skills theyneed to move into a career in software engineering.When you look at thegender pay gap foreach career level, allsit at 3% or below.

BBC Gender Pay Gap Report 20193Gender pay split by quartileQUARTILESWhen reviewing our genderpay gap, we draw up a list ofour employees’ earnings – fromthe highest to the lowest – andsplit it into four even groups,or quartiles. This allows us tocalculate the proportion of menand women in each quartile.Gender split of staff covered by thegender pay gap reporting requirements:46.3In line with statutory requirements,the gender pay and workforcefigures shown in the reportare for BBC Public ServiceBroadcasting staff based inEngland, Scotland and Wales.53.7Female (%)Male (%)The gender pay gap includingNorthern Ireland is 6.6% (median);6.9% (mean).BBC Studios reports on its genderpay gap separately as it has over250 employees, and therefore is notincluded in this report. However,when you look at the gender splitacross the whole workforce includingBBC Studios, 47.9% are women.Gender split per quartileQUARTILEupperFemale 39.5%Male60.5%Female 41.2%Male58.8%Female 46.4%Male53.6%Female 54.6%Male45.4%upper middlelower middlelower

BBC Gender Pay Gap Report 20194Pay gaps on otherdiversity measuresThe more diverse our workforce is, the better we areat responding to and reflecting our audiences in alltheir diversity.Although not required by legislation, we continue tomonitor the pay gap for our Black, Asian, and minorityethnic (BAME), part-time and disabled employees.We believe it is important to be open about this issue andso we continue to disclose these figures voluntarily, aswe have done since 2017. Furthermore we have added,for the first time, the pay gap for LGBTQ employeesand have seen a median pay gap of 0.7% in 2019.Median (2019)Mean (2019)Median (2018)Mean LGBTQ 0.7%-0.7%n/an/aPart-time1.7%1.5%1.7%4.5%BAMEThe more diverse ourworkforce is, the better weare at responding to andreflecting our audiences inall their diversity.

BBC Gender Pay Gap Report 20195What we’ve achieved on payFairness and transparency in pay remain a priorityat the BBC. We have continued to make significantprogress this year through a series of importantreforms. This has been recognised by the NationalAudit Office (NAO) in its recent report ‘Managingthe BBC’s pay bill’ which says the BBC has takenbig steps in improving consistency and fairness.OUR PAY PRINCIPLES1We have:—— conducted a fair pay check reviewing the salaryposition of every employee against their relevant jobpay range to ensure their pay is fair;attershelpingtheir—— gone further on pay transparency. The pay ranges forevery job are available for all staff to see. We havepreviously shown staff where they sit in comparisonto colleagues either in their job pay range or careerlevel band. We have now also shown this comparisonsplit by gender;2—— published two reports on transparency that foundthat the BBC has led one of the most ambitious shiftsaround pay transparency in the public sector. TheBBC is also found to be more transparent than mostprivate sector organisations of comparable size. TheNAO also recognised in its report that the BBC iswell ahead of other organisations with regards to paytransparency;—— completed our reviews of career progression andculture for five diversity groups (Gender, BAME,Disability, Socio-economic and LGBTQ );3—— launched our Leadership Matters programme,which ensures that we are helping our leadersprovide the very best management and developmentof their teams;—— increased the minimum wage to 20,000, improvedsick pay and our offer of paternity and sharedparental leave. We have also increased maternity andpaternity pay for parents of premature babies; and—— resolved nearly 90% of pay queries and are strivingto close those outstanding.In 2019 we launched ourLeadership Matters programme,which ensures that we arehelping our leaders provide thevery best management anddevelopment of their teams.45Fair: Pay fairness is a responsibility wetake very seriously – it goes to the heart ofour values and it’s critical to our creativeambition and success. We also have a legalresponsibility to our employees; equal payis enshrined in law and everyone is entitledto equal pay when doing equal work. Thatdoesn’t mean that everyone gets paid thesame, but that any differences betweenindividuals should not be based on genderor any other protected characteristic.Consistent: We have consistent frameworkssuch as the Career Path Framework andmarket-informed job pay ranges that underpinour approach to career development and payand that enable us to be clear and consistentin our approach to individual pay decisionsand ensure that we never pay below theminimum of a job pay range. Additionalgovernance is provided through establishedregular reviews and approval mechanismsat Divisional and Corporate levels.Transparent: We are more transparent inour reporting on pay than required by lawand commit to a degree of transparencyabout pay that we believe is more wideranging than other organisations. We have,of course, to make sure that the data ofindividuals is protected but aside fromthat, our aim is to make sure that the vastmajority of staff can see how they, as anindividual, relate to other people acrossthe organisation doing the same job.Competitive: We balance the need to paycompetitively with the need to ensure valuefor money for our licence fee payers. Togetherwith our strong BBC brand and breadth ofopportunities, this enables us to attract andkeep the great talent we need to create thebest content and services for our audiences.Clear: We are clear on how pay adjustmentsare made. We have clear policies onjob moves up a band or to another jobwithin the same band and short-termassignments. We also have a clear approachto where we would expect individuals to bepositioned in their job pay range relatedto individual factors (knowledge, skills,values, experiences), role factors (scope,complexity, responsibilities and impact) andexternal factors (supply and demand).

BBC Gender Pay Gap Report 20196Gender pay across the industryBBC Public Service Broadcasting has the lowestgender pay gap across UK broadcasters. Asdiscussed elsewhere in this report, we remaincommitted to improving this with an aim toget within a /- 3% tolerance by 2020.However, as we have acknowledged, we knowthat the BBC is seen as an example for the wholecountry. That is why we want to demonstrate thatthe gender pay gap can be tackled by determinedmanagement action. It is not good enough tosimply be better than the rest of the industry.BBC Public ServiceBroadcasting has thelowest gender pay gapacross UK broadcasters.A critical element of our plan is a commitment toensuring 50:50 gender representation at all levelsof our organisation by 2020, irrespective of thewider societal issues regarding the representationof women in senior leadership roles.Additional payments at the BBCThe BBC ended licence fee-funded discretionarybonuses for senior management and executivesin 2009. The “bonus gap” we report each yearis based on our voucher recognition schemeand long-service awards. The voucher-basedrecognition scheme allows staff at bands A to Fto be rewarded for exceptional performance.The BBC does not regard the voucher scheme orlong-service awards as bonus payments. However,in line with government guidance, both cash andvoucher payments have been used to calculatethe gender “bonus gap” reported below.BandGender bonus gapProportion receiving a paymentDuring the year 1,341 staff received vouchers,with the median for both men and women being 250. 229 staff received long-service awardsand the average payment was 4,259.We expect this number to vary year on year, dependingon the recipients, but we continue to monitor it toensure that both men and women are rewarded fairly.The mean gap in this area has increased thisyear due to the profile of employees who were inreceipt of the long-service award this year.MedianMean0.0%23.1%F: 9.1%M: 8.0%

BBC Gender Pay Gap Report 20197Why the gender pay gapis not the same as equal payWhat is the difference between thegender pay gap and equal pay?The gender pay gap is not the same as equal pay.Ever since the Equal Pay Act of 1970, it has beenillegal to pay different amounts to men andwomen doing the same work, unless there is a‘genuine material factor’ for the difference.The gender pay gap measures the difference in thehourly pay of all men and women in an organisation,and is expressed as a percentage of male employees’hourly pay. It is reported on a mean and median basis.The mean is the overall average of all employees’salaries and can therefore be skewed by anyextremely high or low salaries. The medianinvolves listing all salaries in order, from lowest tohighest, and picking the salary in the middle.What does this report include?The BBC’s gender pay gap report sets out the differencein hourly pay between men and women, on both amean and median basis. As before, we have includedvoluntary disclosures of other pay gaps at theBBC. Statutory calculations and results have beenindependently assured by EY (as set out on page 8).This report provides both the statutory disclosuresrequired of BBC Public Service Broadcasting, aswell as further context around gender pay at theBBC. BBC Public Service Broadcasting for staffbased in England, Scotland and Wales includesthe World Service but excludes our commercialsubsidiaries, BBC Studios, Global News Limited, BBCStudioworks, Children in Need and Media Action.We have included data for people on staff contracts(both permanent and fixed-term). This includes ouron-air presenters who have BBC staff contracts,but not presenters on freelance contracts.As in previous years, the BBC also excludes from itsgender pay gap reporting agency workers who wereengaged full-time for the BBC but employed throughthird party agencies. This is because they will be includedin the gender pay gap report submitted by the agencythat employs them, in line with the regulations.Nationally, one ofthe main reasons forthe gender pay gapis that more menare likely to holdsenior positions.17.9%National averageThe national gender pay gap is 17.9%EQUAL PAYMen and women are paidthe same for the work.THE GENDERPAY GAPThe difference betweenthe gross hourly earningsfor both men and women.

BBC Gender Pay Gap Report 20198Assurance StatementIndependent Assurance Statement to BritishBroadcasting Corporation’s (‘BBC’) ManagementThe BBC requested that EY perform an assuranceengagement on selected performance data andstatements presented in the 2019 BBC PublicService Broadcasting’s (‘BBC PSB’) Gender PayGap statutory disclosures (‘the Report’). Thisengagement was conducted under a ‘limited level’of assurance as set out in ISAE3000 (Revised)1.Respective responsibilitiesThe BBC’s Management are responsible for thecollection and presentation of the informationwithin the Report. Management are also responsiblefor the design, implementation and maintenanceof internal controls relevant to the preparationof the Report, so that it is free from materialmisstatement, whether due to fraud or error.Our responsibility, in accordance with Management’sinstructions, is to carry out a ‘limited level’ assuranceengagement on selected data in the Report.We do not accept or assume any responsibilityfor any other purpose or to any other person ororganisation. Any reliance any such third party mayplace on the Report is entirely at its own risk.What we did to form our conclusionsOur assurance engagement has been designed to providea limited level of assurance in accordance with ISAE3000(Revised). The criteria we have used to evaluate theselected data (‘the Criteria’) are described in the GenderPay Gap legislation2, and within the Report narrative.The procedures we performed were based on ourprofessional judgement and included the stepsoutlined below:1.Interviewed a selection of internal stakeholdersfrom Senior Management, Human Resources andPayroll to understand the current status of theGender, Ethnicity, Disability and Sexual OrientationPay Gap within BBC PSB, the methodology,definition and approach used to calculate thePay Gap, and structure of the data processesand current controls to support data quality.2.Carried out the following activities to reviewPay Gap data samples and processes:a.b.c.3.Reviewed disaggregated Pay Gap data for BBCPSB to assess whether the data had beencollected, consolidated and reported accurately.Reviewed and challenged supporting evidenceprovided.Tested whether Pay Gap data had beencollected, consolidated and reportedappropriately and accurately at the aggregatedlevel.Challenged and reviewed disclosuresin the supporting narrative relating toselected data to assess accuracy, balance andconsistency with observations made duringwork steps 1 and 2 as set out above.Our review of the data processes was limitedto the following statutory disclosures:—— the differ

BBC Gender Pay Gap eport 2019 2 Gender pay at the BBC The median gender pay gap for BBC Public Service Broadcasting has fallen again to 6.7%. The national median for 2018 is 17.9%. Our mean pay gap is 6.8%, down from 10.7% since 2017. We have achieved further reductions in the past year primarily through increasing the number of women in

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