Gender Pay Gap report 2019 (as at 31 March 2019)

GENERAL EXPLANATORY NOTES: 

  • ‘Gender Pay Gap’ is not the same as ‘Equal pay’.  The latter refers to the difference between men and women’s pay for the same job, and is illegal; whereas the gender pay gap relates to the difference calculated between average earnings, irrespective of their roles in any given sector, and is a way of measuring gender equality in respect of equal access to, and take up of, all types and levels of roles within an organisation.  
  • All calculations have been made as at 31 March 2019, in line with Government requirements for Public Sector bodies.  
  • Lancaster & Morecambe College does not have a bonus pay scheme for any staff, so reporting requirements for bonuses are not applicable.
  • The mean calculation shows the difference between the mean average hourly rate of pay that male and female employees receive.  Mean averages (division of total sum of all values by number of values) are useful because they place the same value on every number they use, giving a good overall indication of the gender pay gap; however, very large or small pay rates can ‘dominate’ and distort the answer. 
  • The median calculation shows the difference between the median hourly rate of pay that male and female full-pay relevant employees receive.  Median averages (middle point in a list of all values from smallest to largest) are useful to indicate what the ‘typical’ situation is i.e. in the middle of an organisation, and are not distorted by very large or small pay rates or bonuses.  However, this means that not all gender pay gap issues will be picked up. 
  • Using these two different types of average is helpful to give a more balanced overview of an employer’s gender pay gap.
  • Quartiles: comparing the two results in each quartile will indicate the distribution of male and female employees in the quartile. Comparing results between the quartiles will indicate the distribution of male and female employees across the organisation.

MEAN AVERAGE            LMC Mean Gender Pay Gap is:            9.7%
No Mean benchmark available 

MEDIAN AVERAGE        LMC Median Gender Pay Gap is:        17.3%
According to SIR 2017/18 data, FE Colleges Median GPG benchmark is: 9.3% (16/17: 9.7%)

QUARTILES     

Quartile   Male Female
Lower Quartile 32% 68%
Lower Middle Quartile 24.7%  75.3%
Upper Middle Quartile 34% 66%
Upper Quartile 43.3% 56.7%

Why has the LMC Pay Gap increased, apparently against the sector trend?

Possible contributory factors:

  • The Senior Management Team is a small group of higher paid individuals.  As at March 2019, the gender split was 50% male: 50% female, although the higher paid senior managers were male. This will have a disproportionate impact on the mean calculation.
  • Among contracted teaching staff, there is an imbalance in relation to those eligible for an additional shortage skills’ allowance (SSA), which increases an individual’s overall hourly rate.  79% of higher paid teachers who receive SSA are male.  Of all male contracted teaching staff, 42% receive SSA; of all female contracted teaching staff, 9% receive SSA.  Shortage skills’ teaching areas are predominantly staffed by males. 
  • A high proportion of female staff work as administrators and coordinators, creating a bigger bulge towards the lower end in the distribution profile of female pay, while a higher proportion of male staff are paid in some of the higher pay bands.  This directly impacts the median gender pay gap calculation. 

Quick Stats:

  • For every male employed, LMC employs 2 females
  • 32% (1/3) of males employed are in the upper quartile
  • 21% (<1/4) of females employed are in the upper quartile
  • The ratios of lower:higher quartiles for males and females are reversed
    Male = 43:57; Female = 54:46
  • 42% male teachers (but only 9% female teachers) receive Shortage Skills Allowance

What has changed to cause such an increase in the Gender Pay Gap in 2019? 
Apart from an increase in the National Living Wage affecting a proportion of staff in the lower quartile, there have been no changes to pay scales between the GPG report in 2018 and this report.  The only identifiable significant change is a 10% drop in the number of people paid in March 2019 (388) compared with March 2018 (430).  

An analysis of leaver data during the academic year 2018/19 reveals that leaver profiles have roughly the same gender proportion as the overall staff profile.  

Leavers Female Male
Personal/Voluntary 68% 32%
Organisational process 69% 31%
Overall staff profile 67.5% 32.5%

As recruitment is also largely in line with the overall profile (64%:36% in 18/19), this does not appear to be having an impact on the pay gap

Summary Comment

Since one of the main factors impacting the LMC gender pay gap appears to be the higher proportion of female staff in the lower quartiles (a trend likely to continue), it is likely that the ability to start to reverse the longer-term chronic depression of wages within the organisation would provide, among other benefits, the best potential opportunity available to us to start to reverse the gender pay gap.

Director HR Strategy & Support
December 2019