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Women in Leadership
Working Group
Session 2Assess Your
Female Talent Pipeline
May 16, 2019
2
Participating institutions
Access Bank (Nigeria) Ficohsa (Honduras)
Banco BHD Leon (Dominican Republic) FMO (Netherlands)
Banco Estado (Chile) HBL (Pakistan)
Banco Galicia (Argentina) KCB Bank (Kenya)
BNCR (Costa Rica) Mastercard (Global)
Banco Regional (Paraguay) NMB (Tanzania)
Bank al Etihad (Jordan) RAWBANK (Democratic Republic of Congo)
Bank of Palestine (Palestine) Royal Bank of Scotland (UK)
Banque Misr (Egypt) Stanbic Bank (Zambia)
Banistmo (Panama) TEB (Turkey)
BLC Bank (Lebanon) QNB Al Ahli Bank Egypt)
BRAC (Banglaesh) Vietnam Prosperity Bank (Vietnam)
Centenary Bank (Uganda) Zanaco (Zambia)
Central Bank of Egypt (Egypt)
WORKING GROUP MEMBERS
33
5 minutes Welcome
25 minutes Assessing Your Female Talent Pipeline
30 minutes Pay Equity Analysis
25 minutes Case Study: Bank al Etihad
5 minutes Wrap-Up and Next Steps
AGENDA
44
MERCER PRESENTERS
Lucye Provera Multinational Group Career
Consultant, Principal
Brian LevinePay Equity Leader , Partner
55
5 minutes Welcome
25 minutes Assessing Your Female Talent Pipeline
30 minutes Pay Equity Analysis
25 minutes Case Study: Bank al Etihad
5 minutes Wrap-Up and Next Steps
AGENDA
6
Assessing the Female Pipeline
Tools and strategies to assess the current state1
Translate findings into action2
7
QUESTIONHow much visibility do you have on your organization’s talent flows and pipeline?
8
GLOBAL INSURER CASE STUDY
% Female Hire
Female Male Female Male
0 0 1 10% 0% 33% 17%
Female: 0 (0%) Male: 0 (0%)
1 4 1 414% 13% 14% 13%
Female: 0 (0%) Male: 2 (4%)
5 8 6 514% 18% 17% 11%
Female: 3 (4%) Male: 5 (6%)
21 23 11 1325% 28% 13% 16%
Female: 1 (4%) Male: 1 (7%)
5 5 3 119% 36% 12% 7%
Female: 1 (4%) Male: 1 (33%)
3 0 2 011% 0% 7% 0%
35 40 183 181 24 2419% 22% 13% 13%
Total ExitsHires
Female Male
Executive (board) N/A
Leadership 20%
Principal 38%
Professional 48%
Associate 50%
Administrative 100%
Total Hires Total Headcount Total Exits
27
26
85
35
7
3
3
14
83
45
30
6
The “flip point” where the number of females becomes
lower than the number of males occurred at the principal level.
IDENTIFYING BARRIERS TO WORKFORCE DIVERSITY
99
Workforce projections can help focus interventions
Projections: % Female Senior Managers 2014–2024
22%
24%
26%
28%
30%
32%
34%
36%
38%
40%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024Year
% F
em
ale
(Se
nio
r Ma
nag
ers
)
Baseline
With adjusted promotion %
With adjusted hire, promotion and exit %
“Soft target”
With adjusted hire %With adjusted exit %
This organization needs to focus on a combination of interventions to expeditiously achieve its objectives
Disguised case example
1010
Statistical analysis can identify critical levers
-6%
-3%
12%
17%
17%
25%
39%
48%
-12%Rating: Excellent
Stock Option Value ($60K v $50K)
Base Pay ($70K v $60K)
Promoted
Rating: Needs Improv ement
Changed Job
Changed Business
Lev els from Superv isor (+1)
Superv isor's Span (+10 EEs)
Percentage difference in turnover probability
Disguised case example
Modeling the drivers of retention/voluntary turnover
1111
Policies & Practices Benchmark Data
Internal Labor Market (ILM) Map
5- & 10-Year Workforce ProjectionsFigure 2.1: Policies and Practices.
Indicate the degree to which you agree or disagree with the following statements (1 = strongly disagree; 3 = neutral; 5 = strongly agree).
Note: the regional and industry averages are based on the most relevant geography and sector. Overall Regional Industry1 If your response is more than 0.5 points above the overall global survey average
0 If your response is within ± 0.5 points of the overall global survey average
-1 If your response is more than -0.5 points below the overall global survey average
Survey Sample Size (overall, regional, and industry data are masked if less than 10 respondents): (n=835)
Engagement, Accountability, and Leadership
5.00 1 3.85 3.86 3.69
3.00 0 3.48 3.22 3.18
4.00 0 3.55 3.57 3.52
3.00 0 3.28 3.14 3.04
3.00 0 3.15 3.24 3.06
1.00 -1 2.10 1.99 2.11
1.00 -1 2.01 1.85 2.15
1.00 -2 2.82 2.47 3.05
(n=1)
Your Response
colored circles show comparison against overall survey results
Global SurveyAverage
My organization believes there is a clear business case for improving gender diversity.Board members are actively involved/ engaged in diversity and inclusion (D&I) programs/ initiatives.Senior executives (i.e., CEO plus direct reports) are actively involved/ engaged in D&I programs/ initiatives.Middle management is actively involved/ engaged in D&I programs/ initiatives.
Men are actively involved/ engaged in D&I programs/ initiatives.
Bonuses/ incentives for senior executives (i.e., CEO plus direct reports) are linked to the achievement of D&I goals.There are non-financial consequences (e.g., termination) for individuals who fail to drive D&I goals.Women are equally represented in profit and loss (P&L) roles as they are in non-P&L positions.
Career Level Average Representation and Total Promotions Total Exits
Executive 4 45
Senior Manager 4 45
Manager 4 45
Professional 4 45
Support Staff 4 4
Females: 21%
(338)
Males: 27%
(477)
Females: 27% (425) | Males: 11% (188)Females: 46%
(736)
Males: 10%
(179)
Females: 17%
(17)
Males: 64%
(7)
Females: n/ a (0) | Males: 0% (0)Females: n/ a
(0)
Males: 18%
(2)
Overall representation: 46% female (2,606) | 54% male (3,042)
Females: 12%
(36)
Males: 8%
(36)
Females: 0% (0) | Males: 8% (35)Females: 0%
(0)
Males: 6%
(26)
Females: 9%
(51)
Males: 12%
(81)
Females: 4% (21) | Males: 15% (102)Females: 7%
(42)
Males: 8%
(51)
Females: 9%
(4)
Males: 11%
(13)
Total Hires
Females: 7%
(3)
Males: 3%
(4)
26% (43)
39% (295)
46% (567)
47% (1,599)
90% (102)
74% (121)
61% (463)
54% (662)
53% (1,785)
10% (11)
Female
Male
Note: Insufficient data provided for a custom ILM map.
A COMPLEMENTARY CUSTOM BENCHMARK REPORT
12
QUESTIONWould you like this complimentary report?
1313
5 minutes Welcome
25 minutes Assessing Your Female Talent Pipeline
30 minutes Pay Equity Analysis
25 minutes Case Study: Bank al Etihad
5 minutes Wrap-Up and Next Steps
AGENDA
14
Pay Equity Analysis
Why Pay Equity Matters1
Environmental Pressures2
Best Practices Methodologies3
15
What is the difference between Gender Pay Gap and Equal Pay
Gender Pay Gap
• (Gender) Pay Gap– Ambiguous - describes the gap in pay for like
work, OR the gap in pay in a given cohort e.g. company or a job family
• Pay Reporting or Pay Disclosure– Regulations that require a company to disclose
information and statistics related to pay and gender
Equal Pay
• Pay Equity (US) or Equal Pay (EU) – Requirement in some countries that men and
women must be paid the same/ similarly for performing like work or work of equal value
• Equal Value– Where jobs are rated as equivalent through
analysis, typically by a factor based evaluation scheme
16
True or False, at your organization:• Gender equality is a core part of the
compensation & benefits philosophy• Commitments to gender equality and pay
equity are communicated and documented• There is a team responsible for pay equity, and
process relies on a robust statistical approach
17
Why Pay Equity Matters
Gender equality is a core part of the compensation & benefits philosophy
Commitments to gender equality and pay equity are communicated and documented
There is a team responsible for pay equity, and process relies on a robust statistical approach
Current female representation
Future female representation
18
E nv i r o n m e n ta l P r e s s u r e s
19
Environmental Pressures
• New disclosure requirements • Investor proposals• Peer effects• Media interest
Leading companies are looking to conduct their ownproactive analyses… and tell their unique stories
20
QUESTIONWhere are you submitting disclosure on the gender pay gap?
21
New disclosure requirements across the world
In the US there are laws being introduced at the city and state level, including banning questions about salary history. In Ontario there is new reporting requirements for Federally regulated organizations.
Many European countries (e.g. France, UK, Germany, Switzerland) have disclosure requirements and are get more strict on non-compliance
Little regulation currently exists throughout APAC. Australia is an exception.
B A K E R & M C K E N Z I E G E N D E R P A Y G A P S E R I E S I S A G R E A T R E S O U R C E T O S T A Y A B R E A S T O F L A T E S T
T R E N D S
22
Spotlight on France
Which companies must report?
When must I report?
What are the consequences?
Companies with:• 1,001 employees (as of 3/2019)• 251 to 1,000 employees (as of 9/2019)• 50 to 250 employees (as of 3/2020)
• Annually
• Penalty/fine (up to 1% of the total remuneration for non compliance)
23
Spotlight on UK
Measure How is It calculatedGender pay gap Mean and Median difference
Ordinary pay + bonus pay
Quartiles (even quartiles)
Male and Female incidence per quartileOrdinary pay + bonus pay
Bonus pay gap Mean and Median difference Bonus pay
Bonus pay proportion
Male and Female incidenceBonus pay
Treatment of bonus pay• In the gender pay gap calculation the bonus values are adjusted back to the relevant measurement period
e.g. weekly, monthly• In the bonus pay calculation the bonus values reflect what is paid during the 12 months prior to the snapshot
date
24
Investor and public relations opportunities and challenges
Some companies have made strong public relations statements on pay equity on the media, for example Salesforce was on the US news program 60 Minutes
Shareholder organizations like Arjuna Capital put
out scorecardsgrading companies
on pay equity
“Well, you know, I mean there is a lot of resistance. But this--there's never been an easier time to make this change. CEOs with one button on one computer can pay every man and every woman equally. We have the data. We know what everyone makes. There's no excuse. Everybody can easily do this now.” –Mark Benioff, CEO, Salesforce
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M e a s u r i n g p ay e q u i t y
26
Just the tip of the iceberg
Gender pay gap
reporting
Equal Pay Pay drivers
Pay processes
Workforce/Women’s career
Diversity and Inclusion
Understand your exposure - a snapshot of current riskUnderstand the extent to which current pay processes potentially drive unequal pay
Major causes of gaps are female progression, workforce profile and occupational segregation
A culture of diversity and inclusion is key part of realising a long-term solution
Required set of statistics that provides limited insight into root causesPublicly visible
Hidden, provides narrative
Source of root causes
27
There are a number of critical steps a company can consider
28
Leading companies conduct pay equity analysis
Provides an objective, systematic and repeatable process to identify illegitimate drivers of pay
29
Establishing drivers of pay… and determining the norms to enforce
10%
9%
8%
6%
6%
5%
4%
3%
3%
1%
-1%
-2%
-3%
-4%
Supervisor vs. individual contributor
New hire in year
Advanced degree beyond college
Part-time
5 more years in grade (5 vs. 0)
College degree
Above average rating vs. average
5 years older (45 vs. 40)
Identified as top talent
5 years more tenure (10 vs. 5)
Lateral job change in year
Past leave of absence
Below average rating vs. average rating
Promoted in year
Difference in FTE base pay rate
30
Remediation, focusing on the “outliers”
Actual Pay
Minimum Adjustment
Contain pay
Focus on �outliers,� regardless of class …In workforce segments with potential issues …Fund through redistribution
Expected Pay Range
31
Case Study: Drilling Down on Pay Inequity
Remediation:
Mercer worked with the Company to change its starting pay practices in two ways.
The first step was to stop recruiters from asking about prior pay during the hiring process.
In the second step Mercer then helped TechCo develop a starting pay calculator.
Finding:
In a global multinational organization, a review of the types of outliers indicated that the majority of them were new hires
This suggested that a large portion of their unexplained pay gaps were due to starting pay.
Source: https://news.starbucks.com/news/starbucks-pay-equity-for-partners
32
Broaden the look … ensure equity in ratings
% impact on likelihood of minority employee receiving a high rating (vs. an average rating), based on timing of
manager's unconscious bias training
33
Case Study: Starbucks Pay Equity Principles & Best Practices
Equal Footing: from the start and throughout your career• We do not ask candidates
about their salary history. Starting pay should be based on the candidate’s skills, abilities and experience, not on a prior salary from another employer.
• We remove any caps on promotional increases. If you are promoted at Starbucks, your salary will not depend on what you made before.
• We provide a position’s pay range upon a candidate’s request.
Accountability• We set a goal to achieve and
maintain 100% gender pay equity globally and maintain 100% pay equity in the United States.
• We conduct comprehensive compensation analyses to further the goal of equity for our partners. We look at base pay, bonus, stock, and other rewards.
• We analyze all rewards decisions before they are final.
• We address any unexplained differences in pay between women and men performing similar work when we discover discrepancies.
Transparency• We will publish our pay equity
progress annually, along with updates on the efforts we’re taking to achieve and maintain pay equity globally.
• We use an offer standards calculator to determine starting pay range for all Store Managers and District Managers.
• We do not retaliate or discriminate against employees for asking about or discussing wages.
Source: https://news.starbucks.com/news/starbucks-pay-equity-for-partners
34
Q & A
3535
5 minutes Welcome
25 minutes Assessing Your Female Talent Pipeline
30 minutes Pay Equity Analysis
25 minutes Case Study: Bank al Etihad
5 minutes Wrap-Up and Next Steps
AGENDA
Gender Diversity and Inclusion
37
Female Economic Participation in Jordan vs. our Bank
Source: TheGlobalEconomy.com, The world Bank
60% 59% 58% 57% 57%
40% 41% 42% 43% 43%
2014 2015 2016 2017 2018
Female vs Male Participation in Bank al Etihad
Males Females
63.83% 63.76% 63.84% 63.68% 63.49%
13.87% 13.89% 13.90% 13.96% 14.02%
2014 2015 2016 2017 2018
Female vs male labor force participation in Jordan
Males Females
38
Pay Equity Scene in Jordan
Source: The Jordanian Equal pay committee, 2018
13.8%in the Public Sector 14.2%
in the Private Sector
0%at Bank al Etihad
Pay Equity
• Pay per position• Equal allowances and
benefits• Merit based promotions
40
Monthly reports including:
• Talent acquisition and management
• Learning and development
• Diversity indicators
How do we monitor performance of women internally?
Sample slides to follow
41
4991,147 Total Headcount 648
Females: 44%
Males: 56%
Hired: 4Resigned: 5
0.44% Turnover rate
340Training Opportunity
April’s insights
42
YTM Online ApplicationsFemale:52%Male: 48%
No. of interviewed Candidates:
Hired23
1st
168
Recruitment Statistics
43
13%
57%50%
78%70%
41%33%
28%
11%47%
86%19%
57%88%
17%48%
57%45%
39%7%
87%100%
43%50%
22%30%
59%67%
72%100%
89%53%
14%81%
43%13%
83%52%
43%55%
61%93%
100%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
AdministrationBonded Warehouse
Business Process ManagementCentral Operation
Chairman OfficeCompliance
Corporate Banking ServicesCredit
Credit Administrat ionEngineering Unit
Etihad LeasingFinance
HRInternal Audit
LegalMarketingRemedial
RetailRisk
SM EsTechnology department
Treasury DepartmentWASATA
Gender Per department
44
We are aiming to increase the % as below:
Gender Per Job Level
21%, 3
32%, 111
53%, 384
2%, 1
79%, 11
68%, 234
47%, 343
98%, 60
0 50 100 150 200 250 300 350 400
Executive
Middle Management
Non- Management
Support
Male Female
Level 2017 2018 2019 2020
Executive/Top Management 27% - - 28%
Middle Management 32% 33% 35% 37%
45
Resignation Per Gender
10,48%
11,52%
14, 61%
9, 39%Hires Per Gender
Resignations and Hires per Gender (YTM)
46
In-house Orientation Certification Internal External Online
F M F M F M F M F M F M
28 32 12 8 34 38 368 320 3 5 5 0
External Certification Aspire Managing @ Etihad Job Shadowing Total
F M F M F M F M F M
3 0 152 85 34 49 19 14 658 551
Female, 658, 54%Male, 551, 46%
Learning Opportunities (YTM)
47
Gender D&I Survey Results
38.0
4%
37.4
2%
19.6
3%
2.45
%
2.45
%
S T R O N G L Y A G R E E
A G R E E N E U T R A L D I S A G R E E S T R O N G L Y D I S A G R E E
To which extent do you think that females in the bank are able to lead?
41.7
2%
42.3
3%
11.0
4%
3.07
%
1.84
%
S T R O N G L Y A G R E E A G R E E N E U T R A L D I S A G R E E S T R O N G L Y D I S A G R E E
Do you think that the Bank's policies support gender equality ?
4848
What are the challenges that we face?
Work Life Balance
Resistance
Support System
Confidence
Q&A
5050
5 minutes Welcome
25 minutes Assessing Your Female Talent Pipeline
30 minutes Pay Equity Analysis
25 minutes Case Study: Bank al Etihad
5 minutes Wrap-Up and Next Steps
AGENDA
51
Our next call will be on the 6th of June.
WIL Working Group Learning Journey
Session Month1 Making the Business Case: Increasing Women in Leadership Apr
2 Assessing Your Organization May
3 Engaging in Building Gender Balance Jun4 Take Action: Enabling Women’s Career Ambitions Jul5 Take Action: Building Programs & Policies that Boost WIL Aug6 Take Action: Responding to Women’s Financial, Health, Career Needs Sept7 Measuring Progress Oct
8 Revisiting the Business Case Nov9 Best Practices & What’s Next Dec
When Women Thrive Survey –data collection & analysis
The learning journey will support your institution to tackle key challenges to advancing and retaining women in leadership
52
Next Steps
Please keep an eye out for email communications coming from Hilary Nichols!
• Post-webinar email, including this deck• Calendar invitations for monthly webinar sessions
For the May session: Identify and commit to 1-3 actions your institution will work on during the course of this Working Group in order to drive the growth of Women in Leadership in your organization.
53
Please do not hesitate to reach out with any questions, feedback and/or suggestions!
All communications and resources will be shared by Hilary Nichols, so please be on the look out!
Hilary Nichols, Manager of Peer Learning & [email protected]
+1-781-801-2664
