Best Practice by Schneider Electric
MIND THE (PAY) GAP! REDUCING THE PAY GAP TO BELOW 1% IN A MALE-DOMINATED INDUSTRY
Sophie Barmpadimos
HR Business Partner at Schneider Electric
Anja Kovse
Reward Manager DACH at Schneider Electric
At Schneider Electric, we strongly value fairness, consistency, and transparency. Differences between genders in salaries clearly contradicts our company ethics. To ensure immediate identification and closure of gender pay gaps at Schneider Electric globally and throughout employees’ careers, we introduced a four-pillar pay equity framework. Today, the framework covers 99.6% of our workforce and has reduced the gender pay gap to below 1%.
This best practice was first published in the Gender Intelligence Report 2021.
read the report
With our overarching principles being fairness, consistency, and greater transparency, equal pay for equal work is a core component of our reward philosophy. In an industry such as ours where female employees are rather scarce, pay equity for all genders is of very high importance, especially since it might not naturally be a topic on the agenda.
Eliminating pay gaps and having a clear framework in place, is therefore one of the main pillars of our People Ambition and Sustainability Strategy. To position ourselves as an equal employer, we needed to adapt internal processes to fully support this ambition.
One of our sustainable company workstreams is our pay equity framework which was launched on a global level in 2015. Its goal was to cover 85% of our workforce. By 2020 we had reached 99.6% and reduced the gender pay gap at Schneider Electric to below 1%.
The pay equity framework consists of 4 pillars: (1) methodology & analysis, (2) HR processes, (3) governance & audit, and (4) education & communication.
Source: Schneider Electric Pay Equity Framework
We analyze fair pay on a global scale every year, using our pay equity tool and including all new joiners. The findings are reported on an executive level. We use consistent methods worldwide to ensure objectivity. This enables us to identify and close pay gaps, where they have emerged.
Our pay equity tool is used by all managers and is fed with live current and historical salary data for their employees. In the background, HR runs pay equity checks twice a year. The data in the tool is the basis for the annual salary review. During the review phase managers are supported with an annual pay equity campaign including a separate budget for them to close the identified pay gaps. This ensures that gaps are not only identified but quickly eliminated. It is vital to include the entire HR ecosystem in the analysis of pay gaps: From equitable pay at job entry to fair merit-based salary increases and promotions with equal pay for equal performance. Relying on an individual’s current salary to make an adjustment during these various stages of the employee life cycle isn’t sound: If their salary is already below that of their peers, the pay gap is not being eliminated, rather being added to. That’s why an holistic approach is needed.
Source: Schneider Electric HR Ecosystem for pay equity
By 2020 we had reached 99.6% of our global workforce with our pay equity framework. In Switzerland we have reached 100% of employees. Our current gender pay gap is below 1%. We commit to keep this at below 1% for all genders. We are also committed to leading by example: Schneider Electric is a UN Women HeForShe IMPACT Corporate Champion and has publicly committed to achieving gender equality and promoting women’s empowerment.
Pay gaps often start with the employee life cycle in recruitment and then leak into promotions and annual salary increases. The key to equal pay throughout our employees’ entire careers, is educating HR and managers and communicating consistently. We equip our leaders with the necessary knowledge and tools to always make informed reward decisions. We expect our leaders to communicate openly with employees when having reward discussions as the principles of fairness, equity and transparency are fully embedded in our values.
“Equality and pay-equity are not just words, guidelines or tools – at Schneider Electric, we live these values every day. I am very proud to work for such a future-oriented company that truly cares about paying equal salaries for the same work and also to live, develop and share this value with my team. For me personally, there should be no question about it. We need more role models like Schneider Electric in the whole economy to make it a matter of course for the future”
Equal pay is embedded in our Sustainability Strategy 2021-2025 designed to drive change inside and outside of Schneider. By stating it plainly we hold ourselves accountable. That’s why we went beyond an internal analysis showing a below 1% gender pay gap. The external review as part of the “Lohngleichstellungsgesetz” introduced in 2020 in Switzerland, via Logib came to the same conclusion: 0 gaps identified. For additional accountability, our external auditor will also review our analysis.
We aim to provide equal opportunities for everyone, everywhere and are proud that we pay our salaries in a gender-neutral way. As a next step, to be truly sustainable we are looking into differences in pay potentially caused by other diversity factors such as nationality, employment percentage, age, living wage, etc.
Find more information about Schneider Electric’s Sustainability Strategy 2021-2025 by clicking the button below:
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Sophie Barmpadimos and Anja Kovse are available for an exchange to interested Advance member companies. Feel free to contact them at sophie.barmpadimos@se.com or anja.kovse@se.com
#equalpay #fixthepoliciesandprocesses #recruitment #talentmanagement
Syngenta's 'Future of Work' program engages employees through co-creation of a new Flexible Workplace policy, innovative office floor plan and a comprehensive Employee Assistance Program.
Looking beyond data helps Syngenta make pay equity a fundamental element of the company's culture rather than just a project to tick off.
Leaders insisting on pay equity and undertaking serious independent analyses builds trust and a culture of inclusion.
Ein massgeschneidertes internes Gehaltsmodellierungstool sorgt für faire Löhne und stärkt das Vertrauen der Mitarbeitenden.
