OPDC Ethnicity Pay Gap Audit: March 2017 data

The Mayor of London, has pledged to lead by example on London’s black and minority ethnic (BAME) pay gap, as part of his drive to tackle inequality. In line with the Mayor’s commitment to publish data on the pay gap affecting BAME employees across the Greater London Authority (GLA) group, the Old Oak and Park Royal Development Corporation (OPDC) published their first overall mean and median ethnicity pay audit. There is no legislative requirement for this data to be published. However, the Mayor has made the commitment that all functional bodies regardless of size will report on ethnicity and pay. As a public sector body, the snapshot date for the data collection was 31 March 2017.

The purpose of the ethnicity pay gap audit

The purpose of the ethnicity pay gap audit is to explore the extent of disparities of pay and ethnicity, and look at ways to mitigate against them.  The OPDC was established on 1 April 2015, and is the Mayor’s fifth and youngest functional body to date. It is important to note that due to the size of the organisation, very small changes can have a significant impact on percentages and overall findings of the audit and this will apply in the case of the OPDC. 

For the purposes of this audit the calculations used for ethnicity pay gap reporting are the same as the gender pay gap calculations, and we are publishing the overall mean and median pay gaps.  

The OPDC has followed the gender pay gap reporting methodology to calculate the ethnicity pay gap. The formula is below:  

A – B x 100
   A         

*where A is the mean/median hourly rate of pay for relevant White staff; and,
**where B is the mean/median hourly rate of pay for relevant BAME staff. 

The Equality and Human Rights Commission express the ethnicity pay gap as follows:

The pay gap is defined as the difference between the average hourly pay of ethnic minorities and White British people. When ethnic minorities are paid less, overall, than White British people they experience a pay gap. When they are paid more they experience a pay advantage. The pay gap is often expressed as a percentage difference between the pay of people from ethnic minorities and the pay of White British people, with the latter representing 100%.

The aim of the ethnicity pay gap audit

The aim of the ethnicity pay gap audit is to:

  • Review the data and identify where the ethnicity pay gaps exist 
  • Mitigate against ethnicity pay gaps by way of an action plan     

The OPDC is a single status organisation and does not have different staff groups.  Salaries at the OPDC are determined through a job evaluation scheme (Hay). This scheme evaluates the job and not the post holder. It makes no reference to gender, ethnicity or personal characteristics of existing or potential job holders. Therefore, we are satisfied that the job evaluation scheme is a fair and transparent process that does not have any bias towards gender and ethnicity.    

The OPDC has made a commitment to monitor ethnicity and pay, and we will outline how we intend to address any areas of inequality. We welcome publishing the ethnicity pay gap information, and will develop action plans to address any inequality in respect of ethnicity and pay. The OPDC has a shared services arrangement with the GLA and where appropriate we will adopt the GLA ethnicity pay gap action plan which will set out the programme of activity for the organisation to work towards addressing ethnicity and pay. 

Headline Ethnicity Pay Gap Summary  

The headline ethnicity pay gap data for OPDC in table 1 is broken down into ethnicity groups; BAME (Black, Asian, Dual, Other) and ethnicity group – White. There is no ethnicity data for four members of staff which is equivalent to 14% of the workforce.  As at 1 April 2017 the total number of permanent members of staff and staff on Fixed Term Contracts is 29. Of the 29 members of staff, 17% are from a BAME background, 69% from a White Background, and 14% not known. In terms of obtaining the data used for the ethnicity pay gap audit, we are reliant on staff completing an equality monitoring form. However, not all of the OPDC staff have completed an equality monitoring form which has meant that we are unable to determine the ethnicity of 14% of the workforce. This means that we do not have an accurate picture of the diversity breakdown in the organisation.      

Overall the calculations show there is a mean pay gap of 31.51% and a median pay gap of 37.52%.

It is important to note that the OPDC was established on 1 April 2015, and is a new and small organisation, which is reflected in the numbers of permanent staff. During this reporting period a number of posts were covered on a secondment basis which are not included in these figures (including some senior BAME staff from the GLA). Following a recent staffing restructure the OPDC has filled a number of posts on a permanent basis. As a result OPDC has seen an increase in BAME representation across the organisation, which will be reported in next years’ ethnicity pay gap report.  

Ethnicity No. of Staff Mean Median Mean Pay Gap Median Pay Gap
BAME (Black, Asian, Dual, Other) 5 £17.80 £16.75 31.51% 37.52%
White 20 £25.99 £26.81 - -
Not Known/Provided 4 - - - -

Mean Ethnicity Pay Gap/Median Ethnicity Pay Gap

Tables 2 and 3 provide the mean and median ethnicity pay gap information respectively, by grade. There is little difference in the mean and median data. The largest difference is at Grade 8 where there is a 4% pay advantage. The only job level with a pay gap is Grade 6. The data suggests that only one member of staff from a BAME background is in the upper half of the organisation based on pay. The perceived pay gap identified at grade 6 is a consequence of the automatic increment cycle and length of service, and is unrelated to ethnicity.

The most significant ethnicity imbalance based on count of staff is at Grade 10. The data shows there are eight employees from a White background and none from a BAME background. The OPDC will look at ways to address the ethnicity imbalance. We have taken into consideration how we can address this. The organisation is small and turnover is relatively low. Therefore, as and when Grade 10 vacancies arise through our recruitment processes we will make every effort to address the ethnicity pay gap at this level. Also in order to mitigate against inequality in respect of ethnicity and pay, efforts will be made to attract talent from a BAME background, for senior roles within the organisation, as and when vacancies arise. We will appoint an executive search agency to assist with attracting talent from a diverse background However, appointments are still to be based on merit.

There is the case for comparing data for males from a white background and males from a BAME background, and similarly for females from a white background and females from a BAME background to eliminate any gender pay bias from the calculations.

Table 2: Mean Gap White/BAME

Mean Pay Gap White/BAME      
Mean Pay White BAME Pay Gap
London's Living Wage £ - £9.75 n/a
Grade 1 £10.98 £ - n/a
Grade 6 £16.76 £16.55 1%
Grade 8 £22.09 £23.08 -4%
Grade 10 £27.63 £ - n/a
Grade 12 £34.65 £ - n/a
Grade 13 £40.22 £ - n/a
Grade 15 £55.77 £ - n/a
Count of Staff    
By Job Level White BAME
London's Living Wage 0 1
Grade 1 1 0
Grade 6 4 2
Grade 8 4 2
Grade 10 8 0
Grade 12 1 0
Grade 13 1 0
Grade 15 1 0

Grades 2, 3, 4, 5 and 9 - there are no posts at that level 
Grades 1, 10, 12, 13, 15 - there are no BAME employees in these grades
Grades 7, 11, 14 - we do not have diversity information 
London Living wage - there are no employees from a White background

Table 3: Median Pay Gap White/BAME

Median Pay Gap White/BAME      

Median Pay

White BAME Pay Gap
London's Living Wage £ - £9.75 n/a
Grade 1 £10.98

£ - 

n/a
Grade 6 £16.75 £16.55 1%
Grade 8 £22.22 £23.08  
Grade 10 £27.35 £ - n/a
Grade 12 £34.65 £ - n/a
Grade 13 £40.22 £ - n/a
Grade 15 £55.77 £ - n/a
Count of Staff    
By Job Level White BAME
London's Living Wage 0 1
Grade 1 1 0
Grade 6 4 2
Grade 8 4 2
Grade 10 8 0
Grade 12 1 0
Grade 13 1 0
Grade 15 1 0

Grades 2, 3, 4, 5 and 9 - there are no posts at that level 
Grades 1, 12, 13, 15 - there are no BAME employees in these grades 
Grades 7, 11, 14 - we do not have diversity information 
London Living wage - there are no employees from a White background

Ethnicity Pay Gap - Action Plan

Where appropriate the OPDC will adopt the GLA’s action plan to address ethnicity and pay. In addition, to address the Ethnicity Pay Gap, the OPDC will take the following course of action outlined below:

Data Transparency  
Action Owner
The OPDC will continue to analyse and publish transparent, clear and detailed workforce information including information on the gender pay gap and the ethnicity pay gap. HR & Organisational Development
Inclusive Leadership and Un-conscious bias  
Action Owner

Name Blind Applications

The OPDC will continue to use the name blind recruitment process for all internal and external recruitment campaigns. The name blind application process is a positive effort to reduce any potential impact of unconscious bias at the shortlisting stage.

HR & Organisational Development

Diverse interview panels

It is mandatory that all interview panels are diverse with BAME representation.

HR & Organisational Development

Unconscious Bias Script

Include an unconscious bias script/reminder in the interview pack for recruiting managers, to ensure unconscious bias (and how to minimise it) is front of mind.

HR & Organisational Development

Unconscious Bias Training

The OPDC aims to build an inclusive culture with a workforce that reflects London's diversity.

Unconscious Bias training will be rolled out across the organisation.
Bespoke training will be provided for SMT, managers, and staff. 

Unconscious Bias training will also be rolled out for OPDC Board and Committee members.

Senior Management Team / HR & Organisational Development

Senior Level roles and OPDC Board/Committee member recruitment 
 
Action Owner
Moving forward, future senior roles and board recruitment campaigns will aim for balanced shortlists. If recruitment agencies are procured, they will be required to provide a high quality diverse shortlist. Appointments are still to be based on merit. HR & Organisational Development