The 2022 Pay and Equalities Survey gathered 897 responses between 4 April and 5 May 2022 and comes as the sector emerges from two years of rapidly adapting services in response to the Covid-19 pandemic with more challenges to overcome. The results overall demonstrate that civil society is beginning to look ahead though there is yet some way to go to achieve ambitions for sector leadership to be truly reflective of the communities it represents.
The median annual basic salary reported by sector leaders in 2022 was £56,000, and while during Covid-19 one in 10 leaders took a pay cut, salary reviews are now gradually becoming more common with 58% of leaders reporting a pay rise in 2022, a significant increase from 37% last year. It’s encouraging to see that greater flexibility in working practices is becoming more common with 71% of CEOs benefitting from flexible working policies.
Access to personal development has been steadily decreasing since 2018, from 60% to 50% this year; 37% of respondents reported having no regular appraisal of their performance, the highest percentage yet. It’s positive to note that 83% of respondents were satisfied with their job security, a slight increase from 2021, but satisfaction in the board’s support for investing in CEO development continues to decline, with only 48% reporting satisfaction in 2022 from a high of 60% in 2017. This is a trend that ACEVO wants to see reversed as investing in ongoing professional development is essential to maintaining strong and effective leadership that keeps pace with change.
Progress to accelerate the diversity of leadership must be a priority for the sector, with responses to the 2022 survey indicating that just 7% were from Black, Asian and Minoritised Ethnic backgrounds, in line with previous years. Disappointingly, the gender pay gap rose to 10.8% from 7.6% in 2021, reversing the downward trend that had been achieved over the past few years, with male respondents reporting a median salary of £60K compared with £53,500 for female respondents.
The 2022 survey included questions on socio economic diversity for the first time and responses indicate that 77% of CEOs attended state funded schools with 66% of respondents reporting that neither parent had attended university. The proportion of leaders who are comfortable to report that they consider themselves to have an impairment, learning condition or learning difference increased to 20%, close to the 21% of working age adults nationally who declare an impairment.
It remains the case the sector is not making progress at the pace necessary for civil society to be diverse, inclusive and equitable, and that investment in leadership development must not become a forgotten necessity. ACEVO remains committed to providing services through our research, policy, training and events which support leaders to address these issues, face challenges and plan effectively to make the biggest possible difference.
Jane Ide, CEO, ACEVO said: “It’s encouraging that we’re seeing a return to some stability in senior leader pay and reward and leaders’ own sense of job security in the wake of the Covid-19 pandemic. Stability is important to enable leaders to plan ahead effectively with certainty.
It’s to be welcomed that more flexibility in working practices is becoming the norm at senior leadership level but it’s concerning that the trend to invest in ongoing professional development of leaders is declining. It is important that chairs and boards return to investment in leadership development to ensure that leaders’ skills and knowledge keep pace with the demands of the role and that they are equipped to deal with the constant challenges that face the sector. Development is not a ‘nice to have’ if leaders are to continue to make the biggest possible difference.
It’s clear that increasing diversity, equity and inclusion of sector leaders is not accelerating at the necessary pace and must remain at the centre of focused attention. We need to ask ourselves what positive action we need to take to encourage greater change and accelerate progress. We remain committed at ACEVO to work to support our members and the wider sector make the biggest possible difference.”
