5 micro-actions to drive Equal Pay in your workforce

Does Santa arrive on February 24 with Christmas presents for your daughters?

As parents we strive to treat our children the same, after-school activities, homework, pocket money, household chores – boys and girls get the same, the thought of making our daughters wait until almost the end of February for their Christmas presents whilst watching their brother open theirs on Christmas Day seems unthinkable!

This unthinkable however becomes a reality once we enter the grown up world of work. The average women in Switzerland needs to work 551 days longer than a man to earn the same salary, for the same work – this year’s equal pay day was on February 24. According to the European Commission, at the current rate of progress, the salary gap will close by 20772, by then my daughters will be 78 and 76 years old! And I (probably) sadly will not be around to witness this fundamental measurement of equality take place.

Government legislation regarding non-discrimination has been in force for years, and 73 countries in Europe have even gone so far as to legislate the representation of men and women on company boards. How come in-equal pay is still acceptable for equal work?

We can all make a difference to closing the gap by carrying out these conscious micro-actions every day:

Drive equal-pay for men and women with PwC

1. Set starting salaries based on internal benchmarks – not previous salary levels

As human beings, we are all susceptible to unconscious biases, one of these is called ‘anchoring’. This is where our mind gets fixed on an initial number (the previous salary), with the result that when it comes to offering a new salary, there is a tendency to anchor too much on someone’s current salary instead of what the job is actually worth.

A micro-action Google has taken is to exclude the candidate’s previous salary data from the hiring process. The results are clear – during 2015, women hired at Google received a salary increase on joining that was 30% higher on average than their male counterparts4.

Another simple action is to use pre-defined salary grids, the pay gap starts when people enter the workforce (in the UK, male apprentices are paid upto 2.0oo GBP p.a more than their female colleagues)5 widely communicating and tracking the adherence to these starting salaries will level the playing field.

 

2. Regularly track and monitor your workforce pay – know your numbers

Take emotion out of the equation by monitoring on an ongoing basis the compensation of your talent to identify and action any discrepancies. Research shows that 25% of Companies5 are not regularly tracking this data. In addition, we all want to attract the very best talent to our organization, over 90% of potential candidates will choose to work for an employer that publically states they pay equally.

 

3. Be aware of the “Breadwinner” bias – seek a challenger for your pay decisions

Have you ever awarded a higher pay rise to a man because you knew they were the sole income earner of the family? I know this is a hard question to answer no to truthfully. A solution could be to benchmark and seek input and challenge from peers and HR. When comparing multiple data sets, unconscious biases are mitigated and decisions based on fact and proof.

 

4. Review your reward policies to ensure fairness in remuneration practices

HR policies are the building blocks of how we manage the hire to retire cycle of our employees, often they can be: written, published and then set in stone. I encourage you to review these policies and practices to ensure there is fairness in all remuneration and recognition procedures. Be transparent with your workforce, clearly stating what you value and recognize, and how they will be assessed and rewarded. This ensures everyone has the tools and knowledge at their fingertips of what it takes to “get on”.

 

5. Become an EQUAL-SALARY employer

Finally, and most importantly, “Talk the Walk” – by becoming an EQUAL-SALARY employer. Every company and culture has a different approach to how they talk about salaries, for some it is taboo and others a dinner party conversation topic. The key is to recognize and understand where are the gaps (for top earners the gap is higher than low earners – 20% vs 5%7) and put in place process interrupters (e.g. user salary grid when discussing promotions) to permanently ensure we are proactively and objectively rewarding and promoting the men and women who deserve it.

Through these micro-actions every one of us can ensure Santa arrives on the same day for everyone.

 

PwC are partners with the EQUAL-SALARY Foundation – certifying companies that pay men and women equally around the globe.

 


Source

1http://bpw.ch/en/Politics/Equal-Pay-Day

2http://www.europarl.europa.eu/news/en/news-room/20170203STO61042/gender-equality-time-to-close-the-gap

3http://ec.europa.eu/justice/gender-equality/files/womenonboards/factsheet_women_on_boards_web_2015-10_en.pdf

4 https://rework.withgoogle.com/guides/pay-equity/steps/structure-your-pay-process/

5http://www.fawcettsociety.org.uk/policy-research/the-gender-pay-gap/?gclid=CjwKEAjwq5LHBRCN0YLf9-GyywYSJAAhOw6m7Ktl04l0_tK2GcqmxhlGIAgszYn5npUvYSPqcNzXVBoCg4Dw_wcB

6 http://www.pwc.com/gx/en/about/diversity/iwd/iwd-female-talent-report-web.pdf

7 http://www.equalpayportal.co.uk/statistics/

Steady progress in boosting female economic empowerment, but gender pay gap still a major issue

PwC Women in Work Index

Prize of pay parity in OECD could mean US$2 trillion increase in total female earnings

Latest PwC Women in Work Index reveals:

  • Gradual improvement in female economic empowerment in OECD
  • Nordic countries still lead the way, with Iceland, Sweden and Norway taking top 3 spots
  • Poland climbs into top 10 thanks to gains in cutting female unemployment
  • Other top 10 places held by New Zealand, Slovenia, Denmark, Luxembourg, Finland and Switzerland
  • But gender pay gap poses major challenge, with parity still decades if not centuries away
  • Potential prize of closing the gap could boost total female earnings by US$2 trillion

21st February, 2017 – Slow but steady progress continues to be made in OECD countries towards greater female economic empowerment, according to a new PwC report.

But the gender pay gap continues to be a major issue, with the average working woman in the OECD still earning 16% less than her male counterpart – despite becoming better qualified.

The latest PwC Women in Work Index, which measures levels of female economic empowerment across 33 OECD countries based on five key indicators, shows that the Nordic countries – particularly Iceland, Sweden and Norway – continue to occupy the top positions on the Index. Poland stands out for achieving the largest annual improvement, rising from 12th to 9th. This is due to a fall in female unemployment and an increase in the full-time employment rate.

PwC analysis shows that there are significant economic benefits in the long term from increasing the female employment rate to match that of Sweden; the GDP gains across the OECD could be around US$6 trillion.

pwc_infographic

When it comes to closing the gender pay gap, countries such as Poland, Luxembourg and Belgium could see the gap fully close within two decades if historical trends continue. But much slower historical progress in Germany and Spain means that their gap might not close for more than two centuries, although making this a policy priority could accelerate progress. The gains from achieving pay parity in the OECD are substantial – it could result in a potential boost in female earnings of around US$2 trillion at today’s values.

Picture1
Download the full report here.

 

Contacts:

Hans Geene
Partner
+41 58 792 9124
hans.h.geene@ch.pwc.com

Charles Donkor
Partner
+41 58 792 4554
charles.donkor@ch.pwc.com

New report: PwC’s 20th Global CEO Survey – Harnessing the power of human skills in the machine age

The talent challenge: Harnessing the power of human skills in the machine age

pwc_ceo survey_2017

With the rise of automation, we’ve reached a point where we’re questioning the role people play in the workplace. How to achieve the right mix of people and machines in the workplace is the critical talent question of our age.

Fifty-two percent of CEOs say that they’re exploring the benefits of humans and machine working together and 39% are considering the impact of Artificial Intelligence on future skills needs. This is a delicate balancing act for CEOs in every sector and region.

However, you can’t have a machine age without humans and 52% are planning to increase headcount over the next 12 months. They are focused on obtaining the skills that they need to create a world where humans and machines work alongside each other.

Different skills will be needed, roles will disappear and others will evolve. Some organisations will need fewer people, but others will need more. There will be a rebalancing of human capital as organisations adjust.

Exceptional skills and leadership will be needed, and yet 77% of CEOs say they see the availability of key skills as the biggest business threat. Todays in demand skills are exclusively human capabilities – adaptability, problem solving, creativity and leadership. Software cannot imitate passion, character or collaborative spirit. By marrying these skills with technology, innovation can thrive and organisations can succeed in competitive market places.

CEOs have an enormous challenge ahead of them; it is the role of business leaders to protect and nurture their people to show that in the technological age, humans are their priority.

Our new report – The talent challenge: Harnessing the power of human skills in the machine age – looks at the dilemmas facing CEOs and their HR teams in today’s environment and how their businesses can stay ahead.

Picture1
Download the full report here.

 

Contacts:

Hans Geene
Partner
+41 58 792 9124
hans.h.geene@ch.pwc.com

Charles Donkor
Partner
+41 58 792 4554
charles.donkor@ch.pwc.com