On 11th February QCG facilitated a networking event for the construction, engineering and rail sector survey groups on the topic of diversity and inclusion (D&I). This event provided a space for survey participants to network with each other and discuss what is currently on their D&I agendas.

This document provides an overview of key discussion points from the event.

Gender pay: Looking past the numbers

Participants discussed that when tackling gender pay, sights have moved past simply reducing the gender pay gap figures – with the focus being on increasing the representation of females in the workforce.

It was highlighted that the majority of efforts in this space so far has been targeted at the recruitment of women into junior roles – with the likely outcome of median and average salaries for females decreasing, resulting in the gender pay gap increasing.

Attendees indicated this makes it crucial to have a clear, action-oriented narrative accompanying the publication of gender pay gaps. For example, participants have communicated to employees that their focus is twofold - increasing the representation of women in the workforce, and ensuring that females can progress up to managerial levels.

Participants also outlined that these areas are being investigated further than only conducting the high level pay gaps. Comparable roles (e.g. roles with similar responsibilities or job titles) which are occupied by both males and females are being analysed to identify whether one gender is being disproportionately under or over-paid compared to the other.

The crucial question to ask is whether pay differences can be justified by a factor other than gender.

Attendees acknowledged that it is going to take years, if not decades, to see long lasting change in representation within the sector – but it is important actions are taken now to begin the process.

Challenges around ethnicity pay gaps

The majority of attendees highlighted they are also calculating ethnicity pay gaps, and expect reporting to be mandatory in the next couple of years (as per gender pay gap).

However, challenges remain around capturing accurate data for analysis, and improving declaration rates. Some organisations outlined the recent success of improving the latter – with examples including the use of campaigns across multiple communication channels, and simplifying the way employees can declare their ethnicity.

Our view is that the key to increasing declaration rates is communication – employees are more likely to provide this information if they are aware of the reasoning behind the collection of such data as well as the action plans that are put in place in light of the results, showing a commitment to change in a transparent manner.

Participants identified the importance of not grouping different ethnicities together unless it’s the only way meaningful analysis can be conducted, as different ethnic groups have very different workplace experiences and face different challenges.

However, it was acknowledged that there is a difficult balancing act between reporting on a wide range of ethnicities and also being able to provide meaningful data which delivers adequate insight to tackle any potential underlying causes of inequality.

What is the role of reward?

Attendees indicated that the responsibility of D&I does not sit within a single team. Instead, it is important to take a joined-up approach from HR as a whole to educate different areas of the business – whether that be managers, employees or senior leaders – on the principles of reward, the employee experience different demographics have, and the impact on D&I.

In terms of reward, organisations have recently been looking past cash compensation and focusing on the wider Employee Value Proposition (EVP). With this broader definition of reward in mind, our views of the impact reward can have on the D&I agenda are:

1. Reward should be conducting meaningful analyses past high level pay gaps to uncover any areas of risk where reward decisions may not be justifiable on the basis of factors outside of demographics. Examples of these are pay audits and equality impact assessments.
2. Organisations should continuously test their EVP to identify aspects of work that employees of different demographics value – and therefore ensure that the employee experience appeals to a diverse workforce.
3. Wellbeing is currently front and centre of the EVP for a number of organisations. Therefore, reward should look to different aspects of wellbeing for different demographics. For example, understanding and celebrating different cultural events can positively impact the mental and social wellbeing of under-represented groups. Financial wellbeing support can also form an important step to helping employees who earn less – where employees from minority demographic groups are typically over-represented.

As the reward profession starts to operate more broadly than just being responsible for cash compensation, there is an opportunity to more closely align reward with talent management and other HR/business initiatives with the goal of providing a truly diverse and inclusive employee experience.

QCG’s Project Management, Engineering and Technical Roles and Rail Rolling Stock & Maintenance Roles Surveys are the most reliable source of specialist reward data in the sector. For additional information about QCG or the survey please contact Peter Fairchild on ku/oc/gcq//retep