Inclusive Governance Hub
Practical resources for charities and social enterprises
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Paying real Living Wage
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The real Living Wage is set independently by the Living Wage Foundation and is calculated based on the basic things needed to have a “low but acceptable standard of living”. Employers choose to pay it on a voluntary basis and at present only 11,000 employers have signed up.
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The Joseph Rowntree Foundation released a report in December 2018 highlighting that one in five of the population is now living in poverty. Furthermore, eight million people live in poverty in families where at least one person is in work – with low pay and rising cost of living trapping people in poverty. By paying a Living Wage and providing opportunities for employees, employers can help to reduce poverty levels in the UK.
Gender and ethnicity pay gap reporting
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Employers with more than 250 employees are required by law to report on their gender pay gap, and to publish the information annually. The gender pay gap is effectively the average difference between the amounts paid to men compared to the amounts paid to women. Employers are expected to report on the following information: gender pay gap (mean and median averages); gender bonus gap (mean and median averages); proportion of men and women receiving bonuses; and, proportion of men and women in each quartile of the pay structure. Ethnicity pay gap reporting is not currently mandatory in the United Kingdom; however, employers can voluntarily opt to report their pay gaps and any action that they will be taking to close the gaps.
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Although reporting on gender is not mandatory for charities with less than 250 employees, and for ethnicity pay gaps, voluntary reporting could significantly help to reduce inequality in the work place. ACAS has published a guide which includes worked examples, of how to calculate and report the gender pay gap.
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Diversity in recruitment: General
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Although progress is being made with regards to female representation at SMT/board level, people from Black, Asian and minoritised ethnic backgrounds are still significantly underrepresented on board across the sectors. Likewise, young people below the ages of 30 are also significantly underrepresented, they make up less than 3% of trustee boards. There is also limited research that has been carried out into the representation of individuals with other protected characteristics.
It is therefore imperative for each organisation to put measures in place to improve diversity and inclusion. Capturing diversity data enables charities to monitor different characteristics within their organisations – an important step in ensuring diversity and representation.
Our Diversity Monitoring checklist can be downloaded below.
Diversity in recruitment: Neurodiversity
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Neurodiversity refers to individuals with dyslexia, autism, ADHD, dyspraxia and other spectrum neurocognitive differences. Emerging research argues that neurodivergent individuals should be seen in terms of their diversities rather than only their disabilities, and that they can thrive in employment once barriers are removed.
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The Chartered Institute of Professional Development’s guide will help you learn more about the benefits of diversity and how your charity can support neurodivergent individuals to be comfortable and successful at work. Resources to support adjustments may also be accessed via the Access to Work scheme.
Lived experience trusteeship
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More charities are considering the important contribution that individuals with first- hand experience (lived experience) of the charity’s cause can contribute at a strategic level. Due to their unique position, having first hand experience, these individuals are often in a position where they can critique the strategy of the organisation, offering unique perspectives that individuals with learned experience lack. This is an important skill that can strengthen the trustee board.
In some instances, people with lived expertise face barriers that prevent them from being able to pursue leadership positions in the charity sector. Dedicated programmes may create opportunities for individuals to be supported into roles and positions where they can use their unique lived expertise to contribute towards the development of the charity’s strategy.
Our research into the experiences of women with lived experience of the criminal justice system, serving on charity boards, can be downloaded below.
Safeguarding and protecting people
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Trustees have a duty to safeguard the people that come into contact with the charity from abuse and mistreatment, both domestically and overseas. This includes not just beneficiaries, but also staff and volunteers. Detailed guidance is published by the Charity Commission and includes useful links to additional resources such as the Charity Governance Code; Disclosure and Barring Service (DBS); guidance for safeguarding both children and adults; as well as, how to handle and report incidents and allegations.
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Charities should update and regularly review their safeguarding policy, and put appropriate controls and measures in place.
Board effectiveness and skills audits
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Board composition is integral - trustees should ensure that they have the right skills and diversity on their boards. The Charity Governance Code recommends that charities should consider the mix of skills, the knowledge and experience of trustees currently serving, or to be recruited, to their board. Trustees should also consider the need for retaining experienced long serving trustees, as well as the need for succession planning, recruiting young trustees to their boards.
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Effectiveness reviews carried out by the board, will ensure that the charity is adequately considering how trustees are recruited, retained, appraised and supported. As a result, trustees will be in a position to oversee the strategic direction of the charity.
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Social Practice ENT reviewed the Trustees' Annual Reports of thirty six large charities. More information with regards to our findings on skills audits and effectiveness reviews can be downloaded via the link below.