FCA sees ethnic pay gap narrowing in 2022
In 2022, the median ethnic pay gap in the FCA is 22.5%, down 2% from the previous year, and the average pay gap is 22.8%, down 1.6% from 2021, according to its data.
The regulator’s pay gap data, released on June 19, also pointed to improvements in its gender pay gap. The median gender pay gap is 19.8% in 2022, down 0.3% from 2021, while the average gender pay gap decreased to 15.6%, or a decrease of 0.3% compared to the previous year.
“Our pay and bonus differentials have generally moved in the right direction over the past three years,” the FCA said in its data report. “Our ethnic pay and bonus differentials in particular have seen significant declines at both the median and mean.”
However, the regulator’s average disability pay gap fell from 3.8 per cent in 2021 to 6.2 per cent, which the FCA said was a result of its small number of people claiming a disability – unless of 10% – which “may lead to fluctuations in yearly comparisons”, he said.
FCA’s average bonus spreads have also seen improvements, but its median bonus spreads have increased, which it says “reflects a change in the pattern of bonus allocations.”
The FCA said block funding had been reduced and rewards were based on a fixed value calculated as a percentage of the average salary for each grade, which helped reduce average bonus differentials. The biggest drop is seen in its ethnic average bonus spread, down 12.2%.
The median increase in the bonus gap, compared to the average reduction, “reflects the way the value of the bonuses has been staggered rather than being graduated more evenly across the distribution as in previous years”, said said the regulator. “This approach, combined with an imbalance in representation, led to a greater disparity between the median bonuses awarded to each group.”
In March this year, the FCA rolled out a new job offer which included raising the wages of 800 of its lowest-paid employees by an average of £4,310. The new offer will also see pay and performance-related pay increase by an average of £5,500.
Employees who meet their performance targets – who typically make up 85% of the FCA workforce – will see their salaries rise by 5% this year and 4% in 2023. pension contributions and “flexible benefits,” according to the regulator.
“The combined impact of this on reducing our pay gaps will be reflected in future reporting periods,” he said.
In April, following the new job offer, more than 75% of FCA staff voted in favor of the strike – a historic first for the regulator’s workforce – following the dispute over changes to wages and conditions . A further 89.8% also voted in favor of industrial action without strike action.