At ABB Australia we believe that gender equity is not just a matter of fairness but also a fundamental driver of business success. We are committed to fostering an inclusive and equitable workplace where every employee, regardless of gender, can thrive. As part of this commitment, we regularly analyze and report on gender pay gaps to ensure transparency and to drive meaningful change.
The gender pay gap reflects the difference in average earnings between men and women across the workforce. It is important to note that this gap is influenced by various factors, in particular representation of genders at different levels within ABB Australia. At ABB Australia, we recognise the importance of addressing these disparities to achieve true gender equity.
Current State
Our latest analysis, conducted in May 2024, reveals that the overall gender pay gap at ABB Australia based on average total remuneration is 25.1% and based on median total remuneration is 34.7%. From a base salary perspective, the average and median gender pay gaps are notably smaller at 15.8% and 19.9% respectively.
The gender pay gap has continued to improve since 2021, with more significant reductions in the gender pay gap on both median and average base salary (approximately 7% reduction in the gap since 2021-22).
In more detail, gender demographic differences across the business units have a significant influence on the observed gender pay gap for total remuneration. Within the Australian workforce there is 26% female representation, yet there are only 13% females in the more senior roles in this population.
The industries in which ABB participates has traditionally been male dominated with compensation structures having more components and higher incentive percentages for the more senior roles. This also has an impact on the gender pay gap.
Short-term incentive, which is not included in the computation of gender pay gap at the base salary level, is largely driven by business performance and will understandably vary across ABB’s business units. and impacts the total remuneration levels.
Key Initiatives and Actions
We recognize the importance of addressing gender representation, which has a fundamental impact on pay disparities and have implemented several initiatives to promote this, including:
- Career Development Programs: Offering mentorship and leadership training specifically aimed at supporting women in advancing their careers.
- Flexible Working Policies: Providing flexible working arrangements to accommodate diverse work-life balance needs.
- Recruitment and Promotion Practices: Ensuring fair and unbiased recruitment and promotion practices to increase female representation in higher-paying roles.
- Respect at Work and Psychological Safety Training: Providing training to leaders and employees, and working with Employee Reference Groups in the country to focus on key actions to promote a fair, safe and equitable workplace.
Pay equity is a focus area within both ABB’s People Strategy 2023 and ABB’s Diversity and Inclusion Strategy 2030. A component of the ABB People Strategy is to ensure pay competitiveness, transparency and equity which will be delivered through compensation structure harmonization, pay equity projects including policy and practices review. Pay equity is also a concept embedded within ABB’s focus area of Equal Opportunity, which emphasizes creating an environment founded on equity and fair treatment, as well as processes and practices that foster equal opportunities for everyone and inclusion of all.
Specifically in Australia, there has been a recent compensation harmonization review of every employee employed within ABB Australia, with adjustments for impacted individuals to be delivered over a two year period.
Progress and Future Goals
While we have made improvements strides in reducing the gender pay gap, we acknowledge that there is still work to be done. Our goals for the upcoming year include:
- Continuing to look at gender representation at senior levels
- Achieving a further reduction in the gender pay gap.
- Conducting regular pay audits and reviews to monitor progress and identify areas for improvement.
At ABB Australia, we are dedicated to creating a workplace where all employees are valued and rewarded fairly. By continuing to address the gender pay gap, we strive to build a more inclusive and equitable organization for everyone.
For further information or questions regarding this report, please contact Sue Paine, Country HR Manager ABB Australia at 0436 527 169.