Approaching Gender Pay Equity through Analytics

Saturday, July 1, 2023, 12:00 AM - 12:30 AM
(UTC+02:00) Berlin, Bern
Catriona Lindsay

This session covers the important topic of Equitable Pay, and describes the work that Natura &Co (of which Avon is a part) is doing as a group to ensure gender parity around pay.

To understand and tackle our gender pay gap in more detail, we partnered with an independent HR consultants, Mercer, to enable us to understand our current position in more detail and how we can work to improve it.

You will learn what pay equity is and what the different types of pay gap are, and gain an overview of the methodology used in this type of project.

We discuss what we learnt, how it ties in with female representation and how by being able to focus on these actionable insights we can really focus now on achieving gender pay equity across the Group.

According to the World Economic Forum and the United Nations, the current economic gender gap will take 257 years to close, at the current rate of progress!

There have been ongoing calls for equal pay for equal work dating back to the early nineteenth century and here we are two centuries later with a hot topic still needing to be addressed. Today, less than half of countries worldwide – 88 in total – have mandated equitable pay, namely equal remuneration for work of equal value

Gender Pay Gap reporting is now mandatory in many countries, but the resulting Gender Pay Gap is the “Raw gap” which can be misleading and not provide a clear way to address the issue.

The Pay Equity Project we carried out looks further into the Gender Pay Gap and seeks to explain some of the gap leaving an unexplained gap which is the element which may truly be attributable to gender and therefore actionable. This approach can move an organisation with a large raw gap from paralysis and indecision about what to do and what to say about the gap, to having the insight to tackle the residual unexplained gap once pay drivers such as differences in role and location have been accounted for.

This session will explore:

  • Introduction to Avon and the Natura &Co Group – Including our “Commitment to Life” which is our sustainability vision of which Equitable Pay is a key part
  • The Pay Equity Project: The goals of the project, governance, ways of working and high level methodology
  • What is pay equity? An explanation of the difference between the Raw Gap one calculates as part of mandatory
  • Gender Pay Gap Reporting and the “Explained Gap” and “Unexplained Gap” which are outputs of this type of statistical regression modelling
  • What we learnt – how we learnt that as a beauty group, with a female dominated population is great, it can also complicate the understanding of calculating the raw pay gap . When one looks at Representation of Women it allows us to address some of the gap but not all of it. Being able to tackle the unexplained gap using this method gives us actionable insights and develop an action plan to close the unexplained gap.

Learning outcomes:

  • Learn about how we at the Natura &Co Group have set challenging targets around Pay Equity as part of our Sustainability Vision and how we have gone about tackling this
  • Understand how this type of approach can help an organisation to understand and be better equipped to explain all elements of the gender pay gap
  • See how multinational companies as triple bottom line businesses, can aspire to have the goal to bring the same level of scrutiny to gender reporting as they do to financial reporting.