Finances and pay

Our approach to pay

This information is correct as at April 2018.

We employ just under 300 people who are based:

  • in our offices in Belfast, Cardiff, Chesterfield, Glasgow and London
  • at home supporting our volunteers in local communities

We believe that although the charity sector can’t, and shouldn’t, compete with the commercial sector on pay, we must offer a fair salary for the skills and the experience that we need to run a high performing, cost-effective and successful charity.

Pay levels for all employees are reviewed annually and any overall percentage increases are authorised by the Board of Trustees. Arthritis Care employees transferred to Arthritis Research UK under TUPE on 1 November 2017 and, as a result, two sets of employment terms and conditions are currently in operation across the Charity.

Pay increases for all employees on Arthritis Research UK employment terms and conditions, including the Chief Executive Officer and members of the Leadership Team, are subject to individual performance assessed in line with appraisal criteria agreed as part of Arthritis Research UK’s performance management system. Pay increases for all employees on Arthritis Care employment terms and conditions are not linked to individual performance and a flat rate percentage increase is applicable to all.

The principle of applying the same terms and conditions of employment and eligibility for employment benefits to all of our people, including our leadership team continues to apply, however, the detail varies according to the underpinning set of terms and conditions that applies. We will develop a new remuneration policy over the course of the next year that will apply to all employees and aim to move to a single set of employment terms and conditions over time.

Our approach to remuneration is, and will continue to be, based on transparency and equality.

We:

  • use relevant benchmarking information when setting salaries and participate in several charity sector pay and benefit surveys
  • pay salaries that recognise the specific skills that employees bring to their role
  • review our pay levels annually
  • pay all our employees at or above the UK living wage as determined by the Living Wage Foundation
  • apply the same eligibility criteria for employment benefits to all
  • are open about how much we pay our employees and why
  • recognise that pay is only one element of the overall employment offer.

The table below shows the gross annual salary distribution of all our employees on a full-time equivalent (FTE) basis within £5,000 bands as at April 2018.

Salary banding Number of employees whose FTE salary falls within banding
£18,500–£19,999 13
£20,000–£24,999 69
£25,000–£29,999 52
£30,000–£34,999 52
£35,000–£39,999 35
£40,000–£44,999 35
£45,000–£49,999 8
£50,000–£54,999 10
£55,000–£59,999 6
£60,000–£64,999 2
£65,000–£69,999 1
£70,000–£74,999 0
£75,000–£79,999 0
£80,000–£84,999 1
£85,000–£89,999 0
£90,000–£94,000 2
£95,000–£99,999 3
£100,000–£104,999 3
£140,000–£145,999 1

 

Senior management pay

Following the merger of Arthritis Care and Arthritis Research UK in November 2017, a new leadership team has been established to lead the Charity through a period of transformation.

As with all of our roles, our transformational leadership team’s pay is reviewed annually and is benchmarked with other salaries in the sector. Members of the transformational leadership team are highlighted in the table below as TLT.

The performance of our chief executive officer and members of our transformational leadership team is assessed against the same criteria as all other employees as part of our annual appraisal and pay award process.

We think it is important to publish the details of all roles paid a basic gross full-time equivalent salary of more than £60,000 a year (this information is correct as at April 2018). Some senior posts referenced, like our Head of High Value Partnerships and Director of Policy, Health and Social Care Improvement, are part-time roles, so their actual salary is lower than the salary banding in the table below.

FTE salary banding Job title Gender FTE
£60,000–£64,999 Head of high value partnerships F 0.9
  Head of finance & procurement M 1.0
£65,000–£69,999 Head of policy & public affairs F 1.0
£80,000–£84,999 Director of communications and marketing (TLT) F 1.0
£90,000–£94,999 Director of involvement and services (TLT) M 1.0
  Director of policy, health and social care improvement (TLT) F 0.8
£95,000–£99,999 Director of digital, technology and data (TLT) M 1.0
  Director of income generation (TLT) F 1.0
  Director of organisational development (TLT) F 1.0
£100,000–£104,999 Director of transformation (TLT) F 1.0
  Director of finance and corporate services (TLT) M 1.0
  Director of research and programmes (TLT) M 1.0
£145,000–£149,999 Chief executive officer (TLT) M 1.0

Note: where no individuals fall within a £5,000 band in the table above the band is not included. This information is correct as at April 2018.

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Our pay ratios

Our highest paid employee receives a gross annual salary of £145,500, which is 4.7 times higher than our median annual salary of £30,928 and 7.9 times more than our lowest salary of £18,500.

Gender pay ratios

This information is correct as of April 2017. Updated information will be published in September 2018.

We are committed to equality and diversity within the workplace and believe that diversity within the workplace is an important part of creating a thriving and effective organisation. We always strive to employ the best person for the job irrespective of gender, and our benchmarked salary ranges are visible at the point of advertising.

We support greater transparency around the reporting of gender pay differences and include the gender of employees earning a full-time equivalent salary of more than £60,000 per annum as part of our senior management pay table above

New regulations on gender pay reporting introduced by the government in April 2017 require organisations with more than 250 employees to calculate and report their gender pay gap based on a snapshot date of 5th April. Although we have under 250 employees we have taken the decision to follow the Government’s guidelines and to publish our results.

Using the calculations set out in the regulations our mean gender pay gap is 14.6% and our median gender pay gap is 15.8%

The regulations also require inclusion of gender pay gap calculation relating to any bonus payments made in the last tax year. For us, this includes long service award vouchers, responsibility allowances and distinction awards. 30.1% of our female population received a bonus compared to 18.9% of our male population. Our mean bonus gender pay gap is 38.3% and our median bonus gender pay gap is 54.6%. It is worth noting that when we exclude the award of vouchers to recognise long employment service the mean and median pay gaps reduce to 29.0% and 35.0% respectively.

In April 2017, 76% of all employees were female and 24% were male. The table below sets out the percentage of female and male employees over four equal pay bands or quartiles. There are 51 employees in the lower quartile and 50 in all the other three:

Pay quartile % female % male
Lower 86.3% 13.7%
Lower middle 78% 22%
Upper middle 70% 30%
Upper 66% 34%

Notes

Our three highest paid employees are male and over the course of 2016/17 we recruited more men to senior management roles across the charity. We are working to address our gender pay gap through attracting a diverse pool of candidates for all roles, regardless of level of functional specialism. We will also be training all recruiting managers on the potential for unconscious bias within the selection process over the course of the next 12 months.

All employees of the charity go through the same appraisal process to determine the level of their annual pay increase. The results from the appraisal analysis show that there was no gender bias in the appraisal results and performance rating awards for 2016/17.

More details on how we’re governed and our finances can be found in our annual report and accounts.