Oliver Lee OBE, CEO of The Challenge
0% gender pay gap at The Challenge
The Challenge is one of a handful of organisations in the UK – just 9% – that have reported a 0% median pay gap – the measurement used by government, which is calculated by comparing the difference in hourly pay between the middle-ranking woman and middle-ranking man in the same company.
The gender pay gap is the difference in the average hourly wage of all men and women across a workforce
The average median pay gap in favour of men lowered slightly in the UK from 9.7% last year to 9.6% this year.
At 7%, The Challenge also lowered its mean pay gap from 12.4% last year. The mean pay gap is the difference between the average hourly pay of full-pay female employees and the average hourly pay of full-pay male employees, expressed as a percentage. The number is calculated by taking the total wage bill for each and dividing it by the number of men and women employed by the organisation.
Oliver Lee, CEO, says: “Having a diverse and inclusive workforce is vitally important to us and gender equality is a key part of this. Therefore we welcome the insights that have been provided by the gender pay gap reporting regulations.
“The nature of the work we do attracts a high number of female employees. 61% of our workforce is female and women are well represented across all levels of the organisation. Our current median gender pay gap is 0% – an amazing result, which has been made possible through the commitment to equality and diversity we value in the organisation.”
Siân Vernon, director of HR and OD, says: “We are making great strides in this area and are one of the few organisations in the UK that can boast a non-existent gender pay gap as well as the fact that 58% of our highest earners in the organisation are women. We are also performing well against fellow charities, with the sector paying female employees an average of almost 8% less than men, which has only fallen by 0.1% on last year.
“We’re always keen to improve and are doing lots to stay on course, including benchmarking salaries, both internally and externally, to make sure they are fair and competitive, reviewing our existing recruitment methods and working practices to increase candidate diversity and considering the impact on gender pay differences when setting our remuneration policies.”
More than 10,000 companies with 250 or more employees published their figures this month – a legal requirement – comparing men and women’s average pay across their organisation.
Nationally, the overall picture has not changed much since last year – more than three-quarters of companies in the country having a pay gap in favour of men, with 14% favouring women and the rest reporting no difference between men and women. Four in ten employers have actually seen their gender pay gap increase this year and the latest statistics reveal that every single industry pays men more.
Understanding the terminology
Median pay gap
The median pay gap is the difference in pay between the middle-ranking woman and the middle-ranking man. If you place all the men and women working at a company into two lines in order of salary, the median pay gap will be the difference in salary between the woman in the middle of her line and the man in the middle of his.
Mean pay gap
The mean pay gap is the difference between the average hourly pay of full-pay female employees and the average hourly pay of full-pay male employees, expressed as a percentage. The number is calculated by taking the total wage bill for each and dividing it by the number of men and women employed by the organisation.
Pay gap v equal pay
The gender pay gap is not the same as unequal pay. Unequal pay is giving women less than men for the same work. That has been against the law since the Equal Pay Act was introduced in 1970.
The gender pay gap only identifies the overall difference in mean and median pay rates between men and women, not rates of pay for the same or similar work. A company’s gender pay gap can also be influenced by other things, for example, fewer women in senior or highly-paid roles or more women in part-time jobs.