Sharing our pay gaps, increasing our transparency has been saved
Sharing our pay gaps, increasing our transparency
Closing our pay gaps is 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 2022, our Black, Asian and other ethnic minority pay gaps and our CEO to employee pay ratio. For the first time this year, we have also published headline disability, sexual orientation and social mobility representation data.
What is a pay gap?
Not to be confused with the issue of equal pay, the gender and ethnicity pay gap shows the difference in the average hourly rate of pay between men and women and non-ethnic minority and ethnic minority employees. It is expressed as a percentage of the 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.
2022 headline figures
This year, when looking at our gender pay gap we see a small increase in both our median hourly pay gap, which has risen by 2.8% to 16.4% and mean hourly pay gap, which is up 0.5% to 16.7%. Our median gender total earnings gap (which includes equity partners) has reduced by 0.6% to 14.2%.
When looking at bonuses, our median gender bonus gap has reduced by 2.2% to 31.1% while the mean bonus gap has seen a substantial drop of 9.0% to 42.6%.
For ethnicity, our headline figures show a 3.9% improvement in the median hourly pay gap, taking it to 3.7%. We have also seen an improvement of 1.9% in the mean hourly pay gap, taking it to 11.9%. This is due to better ethnic minority representation at senior manager and director grades, pulling up the average hourly pay and reducing the pay gaps. Our median ethnicity total earnings gap (including equity partners) has risen by 1.6% to 10.9%.
Having reported our Black pay gap for the first time last year, we are now able to publish a year-on-year comparison. Our median Black pay gap has fallen by 4.0% to 11.8%; the mean has reduced by 3.6% to 19.4%. Our median Black total earnings gap (including equity partners) has fallen by 1.0% to 17.5%.
There are considerable improvements in both the median ethnicity bonus gap, which has decreased by 3.9% to 21.1% and the mean bonus gap which has reduced by 7.2% to 35.6%. Our median Black bonus gap has also fallen to by 13.2% to 36.8% while the mean bonus gap has dropped by 11.6% to 47.1%.
Our median CEO to employee pay ratio stands at 62:1.
Addressing the gap
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 by supporting the development and progression of women and ethnic minority colleagues through our Future Leaders Programme and, supported by our Ethnicity Council, a continued focus on ensuring our firm is an attractive place to work and progress for ethnic minority and Black talent.
Jackie Henry, UK Managing Partner People & Purpose at Deloitte, said:
We know from our headline figures that we still have more to do to close our pay gaps. We remain committed to increasing diversity at all levels of our firm, including recruiting more junior hires to ensure that we provide a strong pipeline for future leadership.
This year, 35% of those promoted to partner were women, an increase of 5% on 2021. We’ve also seen the number of ethnic minority partner promotions increase from 14% in 2021 to 18% in 2022.
We are proud to have seen an 11% year-on-year rise in our ethnic minority graduate intake. It will take time for this talent to progress up the organisation, but we are confident that by investing for the future, and ensuring our people have equitable opportunities for progression, we will achieve our diversity goals.
Our inclusive culture
At Deloitte, our ambition to be people centred and purpose driven continues to run through everything we do. We are committed to building a diverse firm, with an inclusive culture, and authentic, visible leaders at every level. We’re committed to driving positive change through the impact we make for our people, our clients and society. Find out more about how we’re driving this positive change.
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 call 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.
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.
Access our reports from previous years:
Gender pay gap reports
Ethnicity pay gap reports