The Ethnicity Pay Gap

There are 2,791 employees included in the analysis, noting a high disclosure rate of 99% for ethnicity data used.

Table 6 shows the ethnicity pay gap for 2023.

The University has a negative ethnicity pay gap.
The mean ethnicity pay gap is -4.5% and remains unchanged from 2022.
The median ethnicity pay gap is -11.3%, a widening of 2 percentage points from 2022.

Since the University began monitoring its ethnicity pay gap information, it has consistently reported a negative ethnicity pay gap. A negative percentage means that minority ethnic employees earn a higher average hourly rate than employees who identify as white.

Work taking place through the Race Equality Charter ensures that race remains an institutional priority.

Table 6: Ethnicity Pay Gap, 2021-2023

Pay Gap	2023	2022	2021
Mean	-4.5%	-4.5%	-2.4%
Median	-11.3%	-9.2%	-4.10%

Across the UK, the ethnicity pay gap has been steadily narrowing of the ethnicity pay gap (6.9% to 5.6% - (ONS, 2024). The University compares well when externally benchmarked and suggests that the work being undertaken to support the career pipeline of its ethnic minority employees is having an impact.

Bonus Payments by Ethnicity

Table 7 outlines the bonus payments by proportion and ethnicity for 2023.

Overall, there were fewer bonus payments made during 2023.
People who are ethnically white are more likely to receive a bonus (3%).
The percentage of ethnic minority people receiving a bonus has not changed since 2022 (1.3% to 1.2%).

Table 7: Proportions of Bonus Payments by Ethnicity, 2022-2023

2023

Bonus Payments	Percentage	Headcount
All Ethnic Minority Groups	1.2%	4
Ethnically White	3.03%	67

2022

Bonus Payments	Percentage	Headcount
All Ethnic Minority Groups	1.3%	4
Ethnically White	3.73%	84

Table 8 presents the mean and median bonus payments made by ethnicity in 2023.

On average, the bonus payments made to white employees are higher than those made to minority ethnic employees and have increased by 26 percentage points (-2.02% to 24%).

Table 8: Mean and Median Bonus Payments by Ethnicity, 2022-2023

Bonus Payments	2023	2022
Mean	24%	-2.02%
Median	30%	0%

Hourly Pay

Table 9 shows the average hourly pay of all employees by ethnicity in 2023.

All hourly rates have increased over the last twelve months.
The mean hourly pay for ethnic minority employees (£20.82) is higher than for ethnically white employees (£19.90).
The median hourly pay for ethnic minority employees (£20.50) is higher than for ethnically white employees (£18.41).
Employees who identify as mixed heritage are paid slightly below the average hourly rate for white employees.

Table 9: Average Hourly Pay Rates by Ethnicity, 2021-2023

2023

All ethnic groups	Hourly Pay	Difference in hourly pay to ethnically white
White	£19.90
Black	£21.62	-0.01
Asian	£20.52	-0.01
Mixed Race	£19.24	0.1
Arab	£24.18	-0.9
Other	£22.05	-0.02
Unknown	£22.16	-0.08

	Mean	Median
White	£19.90	£18.41
All ethnic minority groups	£20.82	£20.50

2022

All ethnic groups	Hourly Pay	Difference in hourly pay to ethnically white
White	£18.58
Black	£20.01	-0.01
Asian	£19.85	-0.01
Mixed Race	£17.10	+0.10
Arab	£21.45	-0.09
Other	£20.10	-0.02
Unknown	£21.34	-0.04

	Mean	Median
White	£18.89	£17.25
All ethnic minority groups	£19.74	£18.84

2021

All ethnic groups	Hourly Pay	Difference in hourly pay to ethnically white
White	£18.58
Black	£19.87	-0.04
Asian	£18.68	+0.02
Mixed Race	£16.92	+0.11
Arab	£18.69	+0.02
Other	£20.59	-0.08
Unknown	£20.77	+0.02

	Mean	Median
White	£18.58	£17.31
All ethnic minority groups	£19.03	£18.02

Pay Quartiles by Ethnicity

Table 10 highlights the distribution of ethnicity by quartile in 2023. Quartile 1 contains the junior and lower paid roles and Quartile 4 the most senior and highest paid.

There is diverse representation across all four pay quartiles.
In Quartile 1, ethnic diversity has slightly increased since 2022 by 2 percentage points (16% to 18%).
In Quartile 4, the percentage of employees who identify as white has slightly decreased over the last year (90% to 89%) and the percentage of people who identify as Asian has increased (4% to 5%).
The diversity of Quartiles 2 and 3 are broadly the same.

Minor increases in diversity from Quartile 3 to Quartile 4 demonstrate a modest, but improved leadership pipeline. Through the Race Equality Charter, the University provides opportunities for employees to develop leadership capability and potential.

Table 10: Pay Quartiles by Ethnicity, 2021-2023

2023

	White	Asian	Black	Mixed	Arab	Other	Unknown	Total all ethnic groups not white
Quartile 1	82%	8%	7%	2%	<1%	1%	1%	18%
Quartile 2	81%	10%	2%	2%	<1%	2%	3%	19%
Quartile 3	89%	6%	1%	3%	0%	<1%	1%	11%
Quartile 4	89%	5%	2%	2%	0%	1%	1%	11%

2022

	White	Asian	Black	Mixed	Arab	Other	Unknown	Total all ethnic groups not white
Quartile 1	84%	7%	5%	2%	<1%	1%	1%	16%
Quartile 2	83%	10%	2%	2%	<1%	1%	1%	17%
Quartile 3	89%	6%	2%	2%	<1%	<1%	<1%	11%
Quartile 4	90%	4%	2%	2%	<1%	<1%	1%	10%

2021

	White	Asian	Black	Mixed	Arab	Other	Unknown	Total all ethnic groups not white
Quartile 1	87%	5%	4%	2%	<1%	1%	1%	13%
Quartile 2	84%	9%	1%	2%	<1%	2%	2%	16%
Quartile 3	89%	7%	2%	1%	0%	<1%	1%	11%
Quartile 4	91%	4%	2%	2%	<1%	<1%	1%	10%

a white female staff member and black male staff member having a discussion

Gender Pay Gap

The University of Derby’s Gender Pay Gap Report is based on data from April 2022 to March 2023.

Disability Pay Gap

This is the second year that the University has voluntarily reported its disability pay gap. The 2023 Disability Pay Gap Report is based on data from April 2022 to March 2023.