Trouble at the top

As independent organisations, housing associations are entitled to set salaries and other terms and conditions. But as not-for-profit businesses, housing some of the most vulnerable people in society, the Housing Corporation expects associations to be sensitive when dealing with such issues, to ensure large payments that would tarnish the sector's good reputation are not made.

Following a number of adverse press reports on the issue, the deputy prime minister has called for a crackdown on what he sees as excessive salaries and pay-offs.

In contracts of employment for any employee, it is important to be able objectively to justify the terms offered. In particular, consider the total value of the remuneration package being granted, the payments that will be payable if the employment relationship is brought to an end prematurely and whether or not the level of these payments are suitable for a not-for-profit organisation.

Boosting diversity
The Housing Corporation is also taking steps to improve diversity within the senior ranks of the sector. At the moment, only 13% of the top 200 associations have women chief executives. There are only one or two black or minority ethnic chief executives among the larger associations and, although 70% of the workforce of associations are women, women hold just 12% of the most senior jobs.

Issues around recruitment practice and the aspirations of potential candidates are among the barriers to achieving a diverse workforce at senior management level. The corporation's Leadership 2010 programme will identify practical steps and long-term strategies to achieve a more diverse leadership. It sets a target of increasing the number of women heading housing associations to 50% by 2010; targets will also be set for BME leaders and board membership.

Leadership 2010 will run a number of initiatives to help achieve these figures, including setting up a steering group that will launch a range of leadership programmes and support schemes. It will also introduce recruitment packs for boards and set up an electronic network to target women and people from BME backgrounds with opportunities for training, support and development. Housing associations should take full advantage of all these initiatives and the help they offer.