Approach to Gender and Ethnicity Pay Reporting
For the past two years, AVEVA has made an important commitment to publish its global gender pay gap figures on an annual basis. This report details our pay gap progress in both gender and ethnicity exclusively for the UK. Later this year, we have committed to publishing a new report to cover our seven major global locations, along with deeper data analysis.
We are committed to measuring and providing more transparency across our diversity, equity and inclusion performance so that we can take action and hold ourselves accountable for progress.
The overall gender pay gap for AVEVA globally has reduced from 14.9% in 2021 to 14.3% in 2022.
What is the pay gap?
The pay gap is defined the percentage difference between average earnings of demographic groups within the company, spanning all levels of seniority.
Quartiles show the proportion of demographic groups that makes up the company by splitting colleagues into four pay bands: lower, lower middle, upper middle and upper. These help to depict how differences in representation within higher paid roles contribute to the pay gap.
The example below illustrates how the gender pay gap percentage is calculated, using a hypothetical organization with 42% women overall. The diagram shows the proportion of men and women in each quartile.
On the scale, the purple and blue triangles show the average pay of women and men respectively in the organization; the gap between these triangles is the gender pay gap.
Because there are more women in the lower pay quartiles of the organization, and more men in the upper quartiles, average pay for women is lower than average pay for men. This can happen even though pay parity is achieved, ensuring people are paid the same for the same work.
Ethnicity Pay Gap Reporting
Collecting data on ethnicity and race is complex. There are variations around the world on how to define both ethnicity and race, with the language continuously evolving.
When describing our constructs for the UK and the US, for example, we adopt the definition and language specific to the country.
Our findings for the UK, with data representing 83% of the UK AVEVA workforce, show that the mean ethnicity pay gap between White British employees and Asian/Asian British employees is 10.1%, for Black, Multiracial and Other employees is 0.4% and for White Other is 6.4%.
In our commitment to transparency and progress, we have set out our first DEI targets in this year’s report.
Additional targets for ethnicity/race, disability, sexual orientation, and religion, faith, and belief are in development.