An Inclusive and Diverse workforce is increasingly recognised by organisations as key to (business) success. This is demonstrated through: improved financial performance, better attraction and retention of talent, more innovation and deeper customer insight.
Globally the wage earning workforce consists of 52% men and 48% women, so ensuring gender equality is a top priority for organisations. Many countries are introducing legislation regarding gender diversity amongst the C-suite, and working to ensure that men and women are paid equally for equal work.
The pay gap between men and women carrying out equal work globally is approximately 20%, which widens to 45% for the top 1% of earners and varies from country to country (source: ILO 2016 Global Wage Report).
EQUAL-SALARY is an independent non-profit foundation with the aim to promote equal pay for men and women around the world. Together with the University of Geneva, the foundation has developed a robust methodology for objective pay analysis.
Step 1: Statistical analysis
Company employee data is provided to the EQUAL-SALARY Foundation for analysis through a secured IT platform.
All data is made anonymous prior to analysis and compensation data is destroyed after the statistics report has been transmitted.
Using the equal-salary statistical regression method, the wage difference observed needs to be inferior or equal to 5% and the R² is ≥ 90% to proceed to step 2.
A list of individual employee cases falling outside this criteria are provided, enabling the company to put in place a specific action plan demonstrating their commitment to equal pay for men and women.
Step 3: Certification
Depending on the result of the PwC review, the Company is awarded the EQUAL-SALARY Label from the EQUAL-SALARY Foundation.
The EQUAL-SALARY Label can be used on all Company communication such as it’s company website, recruitment advertisements, letter heads, annual reports.
Step 2: On-site Review (PwC)
On-site review carried out by the PwC equal-salary Team following international standards on quality management to assess the:
Step 4: Monitoring Reviews
The EQUAL-SALARY Certification is valid for three years, during that period Certified Companies must submit to two monitoring reviews to demonstrate their ongoing commitment and fulfilment of actions to apply a fair, non-discriminatory wage policy between men and women.
The Global gender pay compass has been prepared for information purposes only and its content cannot be used as a basis for a legal opinion. Specific legal developments may not have been reflected yet. PwC accepts no liability (including for negligence) to anyone in connection with the information provided.
Source WEF wage equality score: The World Economic Forum’s "The Global Gender Gap Report 2017", based on its annual executive opinion survey as a qualitative indicator of wage equality for similar work