HR Roundtable 2015 Key Takeaways – Bridging the Gender Pay Gap

By Posted on : 3 Jun 2016

Annual HR Breakfast 2015

Facts & Figures:

  • Based on May 2015 statistics gathered by the Workplace Gender Equality Agency (WGEA), the current gender pay gap is 17.9% nationally (full time employment):
    • This means that women need to work an additional 65 days to earn the same amount as men (referred to as Equal Pay Day – this year it falls on September 4th – 65 days after the beginning of the financial year)
    • For the Financial and Insurance services, the gender pay gap is the highest of all sectors – 30.5% 2015 (an increase of 0.5% on last year = 30.0% May 2014)
  • Male graduates earn 9.4% more than female graduates.
  • 40% of women in Australia are the main breadwinners in the household.
  • Gender Pay Gap Analysis – in 2014 new reporting requirements came into effect for businesses with over 100 employees –
    • Only 16.4% of organisations conducted analysis on gender pay gap within the last 12 months
      • 50.2% of financial and insurance services conducted analysis – 46% of those organisations took action on the findings.
  • Women will retire with 16% less superannuation than men.

 

Presentation – Alex Hunter (TAL)

  • Background on TAL
    • Australia’s largest life insurer
    • Company is about giving back to society – not just providing life insurance
  • Conducted an across the board survey in 2012 and 2014 –
    • In 2012 was 3 separate surveys; combined to 1 survey in 2014 (1113 responses from 1800 team members).
    • Diversity & Inclusion (D&I) Council was set up as a result of the findings:
      • Support from senior team is essential to the success of any strategies put in place;
      • Having the CEO on board is half the battle – if the CEO is not on board, it is the job of HR to raise the awareness and get the CEO on board! Sometimes it is a case of the CEO not being aware of the issue, rather than them not being accepting.
  • Found from the surveys that it is not just about pay equity, but about the bigger picture – DIVERSITY & INCLUSION
  • Easier to achieve a lowering of the gender pay gap in some industries over others – historically some industries are either male or female dominated.
  • ‘Unconscious Bias’ – in many cases, managers don’t even know that they are differentiating
    between men/women when recruiting, remuneration reviewing, etc.
  • TAL have closed the gap in gender pay from 82% in 2012 to 99.02% in 2014 – aim is 100% in 2020 (set as a KPI).
  • Found that if you rely on only who can work full time, you reduce your talent pool by 50%.
  • Initiatives Introduced:
    • Unconscious bias training;
    • Male Champions of Change – anyone in the business is welcome to join;
    • Report the results both to the market and the team (very significant as it encourages involvement within the business);
    • Integrated Talent Management – this is a key part of the equation;
    • Reverse C Mentoring – mentoring from the bottom up;
      • All about knowing what it is like working at the grass roots
    • Introduced a Working Parents Program ;
    • ALL roles are offered ‘flexibly’ – ie working from home or part time
      • Opens up a massive talent pool
      • MUST be set up properly within the business
      • No longer about being seen sitting at a desk
    • Job Architecture – this is a focus for Remuneration Managers
      • TAL pays for the role, not the individual
      • Helps when a person looks at moving across to a different career path
      • Clear benchmarks are set for each role, band, etc
        • This enables team members to raise concerns with their own
          remuneration
        • TRANSPARENCY!!
        • Constantly measuring and reporting = visibility and transparency
      • AON Hewitt assisted TAL with the Job Architecture
      • Essential that Job Agencies know what the focus is for the business – get them on board to be your voice!
      • 7 Themes at TAL
        • Support – from CEO, executive teams
        • Job Architecture
        • Changing Review process (salary, bonus, KPI’s)
        • Awareness
        • Transparency – releasing of salary bands
        • Great Remuneration & Benefits Leader
        • Recruitment Team is key in NOT continuing the imbalance.

Questions

  • How did TAL bridge the gap?
  • By preparing the managers in the teams to have the conversations – a lot of time and money went into education.
  • Important to know what is going on within the business – and then doing something about it.
  • How do you get managers on board with flexible working?
  • Support from the CEO is essential – CEO driven, so there was no going back on this. TAL do what they can to have team members set up properly at home.
  • How have the changes affected the staff attrition rates after 2014?
  • Attrition rates are quite stable.

Other Comments:

  • Johnson & Johnson – there is a tool used within the business that is used when making offers to candidates/team members.
  • Tool shows a range for roles – candidates brought in at the mid-point. This provides managers the opportunity to argue for remuneration over/under the midpoint.
  • This can sometimes also cause even more disparity between men/women, as women generally speaking, want to stay within a role until they can perform it well, whereas  men have a clear career path and are happy to make changes mid-role.
  • AMP Capital – When the new Managing Director joined the team, the first communication sent out was across gender balance.
  • Flexible working conditions are currently being introduced into AMP.
  • Shortlist Quotas:
    • Parity – over the last year, 30% of roles have been female mandates
      • Parity aim to present 50/50 shortlists
    • TAL – Shortlist quotas are 50/50 (used to be 30/70)
    • Once a quarter the GM talks to everyone on gender within the business.
    • Businesses have a duty to educate the recruiter
      “You want them to be your voice in the market” – Alex Hunter
      “Let recruiters be your voice – educate us” – Victoria Butt
    • HSBC – Run calibration sessions which help with remuneration reviews
    • Historically, the industry is male dominated, which is the challenge.
    • For each function, the remuneration is relatively the same between men and women.
    • Board reports always include a piece around gender analysis – more focused on participation than remuneration disparity.
    • Essential that there is a passionate HR leader pushing the initiatives and
      awareness.
    • Russell – had a Diversity Council, but sits on the side of the business.
    • Gender disparity active on the agenda.

CHANGES WILL ALL START WITH IDEA SHARING!

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