We are committed to embracing the full scope of human diversity and fostering an inclusive working environment. We work strategically to eliminate biases and inequalities in order to ensure equal opportunities and equal access for all. Equal Pay is part of our inclusion and diversity strategy, and we ensure equal pay for equal work.
Schindler Group is committed to embracing the full scope of human diversity and fostering an inclusive working environment. We work strategically to eliminate biases and inequalities in order to ensure equal opportunities and equal access for all.
Equal Pay is part of our inclusion and diversity strategy. To ensure equal pay for equal work, we made three specific commitments, which we believe will support us to ensure pay equity and achieve gender balance.
Country by country, we monitor equal pay via an annual analysis which evaluates salary levels to identify and close any gender-based pay gaps between comparable positions in terms of job level, responsibility, and skills level. Any identified gaps must be objectively explained through differences of experience, qualifications, performance, or regional location of the position. Any unexplained gaps must be closed.
When making internal and external offers, we focus on an objective assessment of a candidate’s relevant experience, education, and competency against internal and external benchmarking to remove possible bias. Gender should not be considered as a factor when making offers to candidates. By doing so we can ensure equal pay for all genders from the start of employment at Schindler.
Even with equal pay for equal work, organizations can have an overall gender pay gap due to unequal representation of one gender in senior leadership levels. As a part of our sustainability targets, we are committed to reaching at least 30% female representation among our global senior leaders by 2030. This corporate level target also drives increases in representation at local levels in the organizations and will mechanically reduce any overall gender pay gaps.
At Schindler, we are striving to build an inclusive and equitable workplace that empowers all our colleagues to achieve their full potential. That’s why we are committed to achieving at least 30% gender balance in senior management by 2030 and ensuring pay equity via an annual global equal pay analysis.
Two ways of looking at pay differences in regard to gender:
For instance, the gender pay gap might show that women, on average, earn less than men across the company, which could be influenced by factors like unequal representation in job roles and leadership levels. Equal pay, however, focuses on ensuring that a female engineer and a male engineer with the same qualifications and skill levels receive a salary at a similar level, in a given job market.
From a human rights approach and reflecting our core values, equal pay for equal work is our chosen global approach to monitor and ensure pay equity. Meanwhile, we also aim to reduce the overall gender pay gap by focusing on achieving gender balance in management at all levels of our organization.
Schindler’s equal pay analysis has been conducted since 2020, using regression analysis that takes Schindler’s pay philosophy into account.
Dependent variables like job levels, working experience, education, performance, and geographical location are included in the regression analysis as legitimate factors impacting salaries, based on our pay philosophy.
Gender is included in the regression as an independent verification variable. In the absence of discrimination or bias, this variable will show no significant influence on pay.
A 5% tolerance threshold has been set in the regression analysis. Countries with overall gaps above 5% are required to identify the underlying causes and take actions to remediate the gaps as soon as possible. Countries with overall results below 5% will focus on addressing any individual gaps identified.
Even with equal pay for equal work, organizations can have an overall gender pay gap due to unequal representation of one gender in senior leadership levels. Women currently make up 13% of our overall workforce, with 20% women in senior management and 10% women in our Group Executive Committee. By focusing on achieving gender balance at all levels of our organization, we aim to eliminate any overall gender pay gap. We are making progress; however, we know we still have more work to do. For this reason, we set the global target to reach at least 30% female representation among our global senior leaders by 2030.
Additional steps taken towards improving gender balance include global and local hiring and talent development programs to achieve a more natural distribution of genders in all roles at all levels in the company. By doing so we can mechanically ensure a more equal average pay for all genders.
We recognize that maintaining pay equity and achieving gender balance is a continuous journey. By setting clear goals, analyzing progress regularly, and implementing dedicated initiatives, we are not only committed to fostering fairness but also to enhance employee satisfaction and organizational performance.