Insurance Australia Group (IAG) has shared insights into its efforts to narrow the gender pay gap within its ranks.
The group is actively working towards balancing the scales of gender pay equity and enhancing the presence of women in its leadership cadre to diminish pay discrepancies.
The latest data from the Workplace Gender Equality Agency (WGEA) for the fiscal year ending in March 2023 revealed a median total remuneration gap of 25.2% and a base salary gap of 27.5% between genders at IAG.
IAG said that these numbers, while indicative of the broader issue, do not fully account for the complexities of role differentiation, including the skills and experiences individuals contribute to their positions. The insurer said it has regularly reviewed its pay structures, employing detailed analyses that show negligible discrepancies in pay for comparable roles and at the time of hiring or promotions.
Acknowledging the persistence of a gender pay gap, IAG is doubling down on initiatives aimed at achieving pay equity.
The insurer identifies a critical factor in the pay gap as the disparity in gender representation in senior leadership roles. Despite women making up 60% of IAG's workforce, they occupied only 44% of senior management positions as of the close of FY23, showing a minor increase from the previous fiscal year.
IAG, which recently reported healthy profits and gross written premium growth in its latest financial report, vowed to reach a 50% representation in senior management by June 2024 and focus on maintaining gender balance within its board of directors.
To close the gender pay gap, IAG has launched several targeted programs to bolster female representation in leadership and traditionally male-dominated fields like technology and risk management. Initiatives such as the “Game Changers” program, internships through “Code Like a Girl,” and support networks for women in risk and technology aim to pave the way for more equitable gender representation.
Moreover, IAG said that its recruitment and orientation processes have been designed to ensure an inclusive and unbiased experience for all candidates, incorporating practices like gender-balanced interviewing panels and adaptive assessment methods.
In its broader commitment to diversity, equity, and inclusion (DEI), IAG has invested in a wide array of programs and partnerships focusing on various aspects of workplace diversity, from LGBTQ+ rights to cultural diversity and beyond. Employee Network Groups (ENGs) within the company serve as vital platforms for fostering inclusivity and support among staff.
Integral to IAG's approach to DEI is the requirement for all employees, including top leadership, to complete annual DEI training, embedding these principles deeply within the company culture.
Furthermore, IAG promotes flexible working arrangements through its MyFlex program, accommodating the diverse needs and life circumstances of its employees.
