Article

Reducing our pay gap, increasing our commitment

Reducing our pay gaps are an integral part of our inclusion strategy. That’s why we’ve taken a lead on voluntarily reporting our gender pay gap since 2015 and our ethnicity pay gap since 2017.

Today we have published Deloitte UK’s gender and ethnicity pay gap data for 2020.

What is a pay gap?

Not to be confused with the issue of equal pay, the gender and ethnicity pay gaps shows the difference in the average hourly rate of pay between males and females and ethnic minority and non-ethnic minority employees. It is expressed as a percentage of average male and average non-ethnic minority earnings.

We also include two important voluntary calculations: an equity partner earnings gap, and a total earnings gap which reflects the earnings of both employees and equity partners.
 

2020 headline figures

This year, when looking at our gender pay gap we see small reductions in both our mean hourly pay gap - reducing 0.9% to 17.8% and median hourly pay gap - reducing 0.4% to 15.7%. Our total earnings gender gap (which includes equity partners) has reduced by 4.5% to 34.8%.

For ethnicity, our headline figures show minimal increases of 0.1% on the mean hourly pay gap - taking this to 14.6% and 0.6% on the median hourly pay gap - taking this to 7.3%. This is due to our efforts to recruit a more diverse workforce and greater numbers of our colleagues from ethnic minorities at our more junior levels. Our total earnings ethnicity pay gap (including equity partners) has reduced by 3.4% to 40.1%.

When looking at bonuses we see small increases compared to 2019. For gender the mean bonus gap has increased 0.5% to 51.6% and the median has increased 3.5% to 38.6%. Likewise for ethnicity the mean bonus gap has widened 1.5% to 44.4% and the median by 6.2% to 33.9%. However as cited above this is attributed to us recruiting more female and ethnic minority colleagues at a junior level – an action that will work to reduce the gap in the long term.

A full breakdown of the data can be found here.
 

Mending the gap

In recognition that both our gender and ethnicity pay gaps are driven by us having lower female and ethnic minority representation at senior grades, we are working hard to address this imbalance with a focus on recruitment and promotion.

Dimple Agarwal, Deputy CEO and managing partner for people and purpose at Deloitte, said:

I’m proud to report a marked increase in the number of women being promoted to director for the second year in a row; an increase from 34% in 2019 to 40% in 2020. We’ve also seen the number of ethnic minority partner promotions increase from 10% in 2019 to over 11% in 2020.

While we’ve made progress on our wider inclusion agenda over recent years, it is absolutely clear that we need to do more. We are 100% committed to continue to focus on inclusion and follow this through with concrete actions that will make a meaningful and sustained difference to our people, our clients and our society.

In addition to our long standing gender and ethnicity action plans we have also launched a dedicated Black Action Plan in response to the Black Lives Matter movement. The plan is based on five key commitments and each action comes with meaningful and measurable objectives.

Detailed information on our actions and progress across all areas of inclusion will be shared as part of our Inclusion Report due to be published in early 2021.

Background/definitions

Publication of gender pay gap data is required under regulations introduced by the Government in 2017. The legislation requires legal entities employing more than 250 people to publish information about their gender pay and bonus gaps annually.

Publication of ethnicity pay gap data is not yet required under Government regulation but Deloitte have voluntarily published their data since 2017. We fully support the growing calls for this to become a mandated requirement in future years.

What is a ‘median’ calculation?
The median is the figure that falls in the middle of a range when the wages of all relevant employees are lined up from smallest to largest. The median gap is calculated based on the difference between the employee in the middle of the range of male wages and the middle employee in the range of female wages.

What is a ‘mean’ calculation?
The mean is calculated by adding up the wages of all relevant employees and dividing the figure by the number of employees. The mean gender pay gap is calculated based on the difference between mean male pay and mean female pay.

Equal Pay
It is important to note that ‘pay gap’ is different to ‘equal pay’ – namely the legal requirement to pay men and women the same for equal work – which is governed by the Equality Act.

Did you find this useful?