Approach to Gender and Ethnicity Pay Reporting
Last year AVEVA made an important commitment to publish its global gender pay gap figures on an annual basis. Alongside gender pay gap figures, this year we are also reporting on ethnicity pay gaps for the first time, starting with our UK and US businesses.
As part of regulatory commitments in the UK, we also publish our UK gender pay figures in the same report.
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 20.4% to 18.6%, a reduction of 8.8%, with representation of women increasing from 26.0% to 26.5%.
Gender Pay Gap reporting
The gender pay gap is an equality measure comparing the earnings of men and women across all jobs. The mean data shows the difference in average earnings between men and women. The median data shows the difference between the midpoints in the ranges of hourly earnings of men and women.
This is different to pay parity which is ensuring that people are paid the same or similar as others for the same work, in the same geographic location, and with the same or similar experience levels.
The pay gap can exist even when pay parity is achieved due to the gender difference in functions that pay differently and in senior representation.
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 organisation 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 organisation; the gap between these triangles is the gender pay gap.
Because there are more women in the lower pay quartiles of the organisation, 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 the constructs for the UK and US, we adopt the definition and language specific to the country.
Our findings for the UK, with data representing 84% of the UK AVEVA workforce, show that the mean ethnicity pay gap between White British employees and Asian/Asian British employees is 0.6%, for Black, Multiracial and Other employees is 4.2% and for White Other is 0.8%.
Our findings for the US, with data representing 95% of the US AVEVA workforce, show that the mean ethnicity pay gap between White employees and Asian employees is 5.7%, for Black, Native American and Multiracial employees is 16.7% and for Hispanic and Latinx employees is 17.6%.
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.