Deloitte CEO Thomas Pippos discusses the company's 'ALLin' approach to closing the pay gap.

Professional Services firm Deloitte takes an ‘ALLin’ approach to closing its gender gap, by attacking it on all fronts. We spoke to Champion for Change and CEO of Deloitte New Zealand Thomas Pippos about what that looks like in practice.

Champions for Change: How do you measure, and continue to measure, your organisational gender pay gap?

Thomas Pippos: We first began reviewing our gender gap in 2015. Since then our analysis has evolved to a point where it has become entrenched in our annual salary review process. The analysis itself has also become more granular as we look to understand pay equity, which is about equal pay for equal work as well as our gender pay gap, which involves looking at mean and median salaries and how this compares across genders.   

Deloitte's 3 factors

 

From your experience, what factors have been driving your gender pay gap?

We’ve identified three factors exacerbating the gender pay gap at Deloitte.

Firstly, having more men in senior roles compared to women.

Secondly and somewhat related to the first, more men in higher paying areas of the business – like technology and more women in the lower paying areas - like admin and support roles.

Finally, how we recruit experienced staff. Our attrition levels for men and women are largely equal, however, we tend to replace those who leave with more men, particularly at senior levels. This is because men refer other men in their circles and recruitment agencies are also more likely to provide shortlists of men. 

Reducing the gender pay gap requires equal representation across all levels of the organisation. So addressing those three factors will be fundamental. However, we can’t forget about pay equity and ensuring equal pay for equal work.

Thomas Pippos

 

"You need to understand the components that make up your gender pay gap and seek to understand the drivers that are impacting it for your business."

Thomas Pippos, CEO Deloitte New Zealand

 

 

So what steps is Deloitte taking to tackle their gender pay gap?

Understanding these drivers means we can focus on the systemic factors that will have the greatest impact on our gender gap. This means a recruitment policy that is committed to 50:50 representation at each stage of the process particularly focused on senior roles coupled with a leader lead requirement to have a 50:50 gender split for those promoted to senior roles.

A parental leave policy that ensures all those returning from parental leave are reviewed for an increase that is at least the average of their peer group.

Constantly assessing our progress on various diversity metrics and sharing this with our firm’s leadership and the board.

Pipelining and succession planning.

Flexible working for all and sharing those flexible working stories, particularly those involving men because flexible working is a family issue not just an issue for women.

Key is the support of leadership and a willingness to hold the partners accountable for our progress on our ALL IN policies and practices.

 
What support and/or guides do you use to assist you in the process?

We have designed our own tools to assist with our pay gap analysis as well as utilising Deloitte’s global network and the resources and thought leadership that come with that.

 
What insights would you give to support other organisations looking to measure their gender pay gap?

Firstly ensure you engage the support of your leaders. 

You then need to understand the components that make up your gender pay gap and seek to understand the drivers that are impacting it for your business.  

If you’re unsure, seek help or expertise on how to measure it.  

Recognise that it is going to be something that develops over time, but be open to evolving your process and ensure you are constantly measuring your progress so we can see if the steps you are putting in place are paying dividends.