Gender Pay Gap Report (as at 31 March 2020)

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 2020, 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:            10.04%

MEDIAN AVERAGE        LMC Median Gender Pay Gap is:        13.79%

QUARTILES

  Male Female
Lower Quartile 31% 69%
Lower Middle Quartile 21%  79%
Upper Middle Quartile 39% 61%
Upper Quartile 41%

59%

Gender pay gap quartiles

LMC PAY GAP: INFLUENCING FACTORS

Impact of Shortage Skills Allowance (SSA)

  • In 2019, 79% of higher paid teachers who received SSA were male.  Of all male contracted teaching staff, 42% received SSA; of all female contracted teaching staff, 9% received SSA.  Shortage skills’ teaching areas are predominantly in the construction / engineering trades and are traditionally staffed by males. 

  • In the current year’s data, the mean pay gap excluding additional SSA was 9% (as opposed to actual 10%), and the median pay gap excluding additional SSA was 12% (as opposed to actual 13.8%).  This demonstrates the impact of the SSA on the Pay Gap.
     

Impact of Senior Management Team pay

  • The Senior Management Team is a small group of higher paid individuals.  As at March 2020, the gender split was 43% male: 57% female, but the 2 highest paid senior managers were male. This has a disproportionate impact on the mean calculation.

Impact of staff profile more generally 

  • A higher proportion of all female staff fall in the lower half of the distribution profile of female pay, while a higher proportion of all male staff fall in the top half.  This distribution has seen a bigger increase from last year for males than for females. Each male member of staff has approximately double the % value of a female member due to the overall gender profile of the staff body. 
  • Unlike some otherwise comparable colleges, LMC does not contract out the traditionally lower paid activities of catering and cleaning with roles predominantly held by females.

Gender Distribution between QuartilesComparison: total headcount

  • Apart from an increase in the National Living Wage affecting a proportion of staff in the lower quartile and a global 1% increase, there have been no changes to pay scales between the GPG report in 2019 and this report.  

  • A further significant identifiable change is a 17.5% drop in the number of people paid in March 2020.  This is a bigger drop than in previous recent years, as it captures the impact of the summer 2019 large scale redundancy process.
    Of the 130 total leavers in the period, 62% were female and 38% male.  59 leavers were as a result of personal decisions/circumstances (voluntary resignation; retirement); 71 were as a result of college processes (redundancy; dismissal; end of fixed term contract).  Leavers and joiners in the period are within a reasonable range of the gender proportion for the overall staff profile and would not therefore appear to have had a direct impact on the pay gap.   

 Quick Stats

  • For every male paid in the period, there were 2 females.

  • 31% of males employed are in the upper quartile but only 22% of females employed are in the upper quartile

  • The male ratio has seen a small migration towards the 2 higher quartiles: 2019 - 43:57; 2020 - 40:60 

  • The female ratio has seen a very small migration towards the 2 lower quartiles: 2019 - 54:46; 2020 - 55:45

COMPARISON DATA

The SIR report for 2018/19 shows some interesting variance in distribution of job role by gender across the sector, which helps to contextualise some of LMC’s gender pay gap.

Gender balance by occupation

Gender balance by occupation

SUMMARY CONTENT

2 specific elements impacting the LMC pay gap position have been identified as the gender of highest paid staff in the organisation, and the shortage subject areas which carry a premium pay allowance and are predominantly roles currently filled by males.  There are also broader trends in play across the whole staff profile which are common in the sector.

Comparison with data published by other NW colleges suggests that the gender of the College Principal / senior staff, alongside the extent to which there is a predominance of female staff in the lower quartile (including the fact that some lower paid roles are contracted out by some colleges) each have a significant impact on these extremely sensitive mean and median measures.

Director HR Strategy & Support
December 2020