The Pension Protection Fund (PPF) has announced that its ethnicity pay gap has decreased from 23% in 2020 to 16% in 2021.
The organisation revealed in its Diversity pay gap report 2021, which is its second ever report on the subject, that efforts to increase ethnic minority representation across the business have resulted in a positive drop in its ethnicity pay gap. It now has 50/50 female representation on its board and executive committee.
The PPF stated that an underrepresentation of ethnic minority employees in senior management roles and in business areas which command higher pay and bonuses, such as investment, risk and IT, are the driving factors for its current ethnicity pay gap.
To address this, it has set targets in order to increase ethnic minority representation across the organisation to 30% and within senior management roles to 25% by December 2023.
Katherine Easter, Pension Protection Fund’s chief people officer, commented that the organisation is committed to making it a fair and inclusive place to work, an important part of this being to monitor the pay gaps in order to understand what is preventing them being zero.
She explained that this is why the fund continues to go above and beyond its statutory obligations by report its ethnicity pay gap, which is currently not a legal requirement to disclose.
“We’re pleased to report our efforts to improve representation across the business have reduced our ethnicity pay gap by 7%, and the proportion of ethnic minority employees who receive bonus pay has increased by 21% too in line with our increase in recruiting a more diverse workforce,” Easter said.
In addition, the PPF’s gender median bonus pay gap decreased from 31% in 2020 to 16% in 2021, while its gender median hourly rate of pay remained stable with a marginal increase of 0.2% to 16%.