Historias de éxito de clientes

VÍS — Working towards gender equality

VÍS, the largest insurance company in Iceland, offers comprehensive insurance solutions in the consumer and corporate sectors. They have close to 200 employees, mainly in Reykjavik and in different field offices around the country.

The company has a long history of action and emphasis on gender equality and equal pay, dating back to its first equality and equal pay strategy in 2002. Since then, it has regularly reviewed its workplace policies and practices to ensure that gender discrimination does not find a foothold.

One way VÍS has been working towards gender equality is by changing the gender composition in its jobs through its recruiting practices. Many new hires have run counter to traditional gender job roles. This means that VÍS has proactively hired women in management and executive positions and has employed more men in formerly female-dominated roles like customer service and other frontline jobs.

VÍS became a partner of UN Women and adopted its Women's Empowerment Principles in 2011. Through this partnership, VÍS committed to becoming a social leader on gender equality. In addition, VÍS uses UN sustainability goal no. 5, "Achieve gender equality and empower all women and girls," as a guiding light in its operations.

The company started working towards Equal Pay Certification years before it became mandatory by law in Iceland in 2018. As of 2014, VÍS was already on its way to implementing Equal Pay Certification and viewed it as critical for its success. 

Anna Rós Ívarsdóttir / Director of HR at VÍS
We at VÍS believe that we are a more attractive workplace if we prioritize equality. We know from experience that qualified and ambitious people want to work for a company that places equality first. After receiving the certification, we could feel that our employees were very proud to be part of our company. We have seen a growth in job satisfaction and engagement as a result.
— Anna Rós Ívarsdóttir / Director of HR at VÍS

JOB EVALUATION

Anna Rós Ívarsdóttir, the director of HR at VÍS, has been with the company and has managed its equal pay efforts for over 20 years. Reflecting on this process, Anna Rós says, "The company wanted its equal pay practices certified to attest to its status as a leader on equality." 
VÍS uses a job evaluation system with different factors to determine each job's value to the company's operations. To create this system, the HR team worked with the management team to assess the value of each job. The executive board took part in choosing the method and in the valuation of different factors, and it was a great supporter of the project from the beginning.

"It was essential to get the senior management buy-in and their say in which competencies are necessary for the operations," Anna Rós recalls. "The team held meetings with managers on the existing job classification and how it served the operations. Then, to help us with the job evaluation, we in the HR department adapted it to our operations at VÍS. In addition, to prevent subjective evaluation or discrepancies between the estimates from our managers, we have included detailed descriptions of the requirements for each level. At this point, it is crucial to remember that we are evaluating the roles but not the performance of our employees." Although creating this job evaluation system was time-consuming, it was necessary for the company to analyze whether the pay structure was fair and paid equally for employees working in jobs of equal value, even though the jobs were different. Previously, the company's leadership, management, and HR teams only had vague ideas about which jobs were comparable, but the job evaluation process created a much clearer, shared understanding.

Looking back, Anna Rós says she would have liked to have worked with a consulting service on equal pay systems and how to construct them. But, unfortunately, since VÍS was one of the first companies to implement Iceland's equal pay standard, there were no such services available at the time.  

SALARY ANALYSIS 
VÍS now conducts salary analysis four times a year. If the investigation reveals pay discrepancies for equally valuable jobs, the HR team looks for explanations from the managers and corrects employees' wages accordingly. Results of the salary analyses are accessible to employees. Anna Rós says that the company's emphasis on equal pay has resulted in higher employee loyalty and pride in being part of VÍS and that its transparent, equal pay system increases trust in management.  

CLOSING THE GENDER PAY GAP
The company is proud of its success in closing the gender pay gap quickly. In 2021, its pay gap measured in favor of women for the first time by 0.05%. This negligible number indicates no actual gender pay gap at VÍS.

Adjusted Gender Pay Gap at VÍS from 2016 to 2021

Adjusted Gender Pay Gap at VÍS from 2016 to 2021

Unadjusted Gender Pay Gap at VÍS from 2016 to 2021

Unadjusted Gender Pay Gap at VÍS from 2016 to 2021

The company also found that its unadjusted pay gap – the difference in the average pay of males and females – has also gone down in just four years, from 19.3% in 2017 to 10.2% in 2021. This is both a result of closing the adjusted gender pay gap and changing the gender composition in the company's jobs.

I would recommend for companies is to get access to powerful analytical software like PayAnalytics to measure results
— Anna Rós Ívarsdóttir / Director of HR at VÍS

ADVICE TO OTHERS

What would Anna Rós advise HR professionals or managers just starting on their equal pay journey? "First, I recommend that anyone implementing equal pay hire a consultant to speed up the work. We were pioneers, so those were not accessible to us. Today companies have more available resources to help them on this journey. The other thing I would recommend for companies is to get access to powerful analytical software like PayAnalytics to measure results and get recommendations on the next steps to close the pay gap."

VÍS is a company that views equality and equal pay as a social issue and sustainability. It has also found that its equal pay efforts have made the company an attractive workplace and given it a positive brand image. As Anna Rós reflects, "We at VÍS believe that we are a more attractive workplace if we prioritize equality. We know from experience that qualified and ambitious people want to work for a company that places equality first. After receiving the certification, we could feel that our employees were very proud to be part of our company. We have seen a growth in job satisfaction and engagement as a result."

Download the Customer Success Story as a PDF

  • Download the article as A4

  • Download the article as US Letter


California strengthens its pay equity requirements

California, the first U.S. state to pass a law on pay data reporting, is considering proposed legislation taking the requirements of the original bill even further. Senate Bill 973 on pay equity was passed in September 2020 and requires large employers to provide data on employees by race, ethnicity, and sex in the ten job categories and pay ranges used by the U.S. Bureau of Labor Statistics. The first data reports were submitted to the Department of Fair Employment and Housing (DFEH) in March 2021.

What Italy's new equal pay legislation means for Italian companies

On December 3, 2021 Italy signed a new equal pay law (Law 162/2021) that seeks to tackle the pay gap between men and women and encourage the participation of women in the labor market. The law introduces some important amendments to the Italian Equal Opportunity Code (Legislative Decree 198/2006), which prohibits all direct and indirect remuneration discrimination for the same job or a job considered as having the same status. The new law, focusing on transparency and rewards, is consistent with the Italian National Recovery and Resilience Plan (PNRR), which contains, among other things, a National Strategy for gender equality for the years 2021-2026.

How to use use People Analytics to Build an Equitable Workplace

Harvard Business Review just published this article, which is written by two of PayAnalytics' founders, Professors Margrét Bjarnadóttir and David Anderson, along with Professor David Gaddis Ross. It discusses how automation is changing HR and what we need to be aware of when applying Automation and AI in People Analytics.

Can Pay Gap Analysis be the driver of equal opportunities in the workplace?

The unjustified pay gap between men and women is still present, and it seems that it will not go away without some focused efforts. Although countless studies and reports show that the gap is there, many still do not believe it impacts their own organisation. The EU Commission is increasingly communicating that the issue must be addressed. Some countries have begun the journey and have insights to share. Data analysis to determine the gap and structured implementation of measures to close the gap is increasingly used.

Dr Margrét Vilborg Bjarnadóttir will participate in this important event on the 29 June.

California Pay Data Reporting
Artículo

California Pay Data Reporting

California Pay Data Reporting (SB 973) requires large employers to report pay and specific other data to the DFEH (Department of Fair Employment and Housing) by March 31, 2021, and annually after that.

Entrega de los premios Universal Fair Pay Check

El 17 de marzo, las empresas recibirán un galardón en base al certificado de igualdad retributiva Universal Fair Pay Check. Este certificado internacional mide, de forma coordinada, el cumplimiento de la igualdad retributiva entre las empresas de diferentes países.

Consulta la conferencia que realizó Laura Bayés Sánchez sobre cómo PayAnalytics proporciona las medidas necesarias para la nueva legislación española

En la conferencia se analiza la nueva situación laboral que la publicación del Real Decreto 901/2020 y 902/2020 del 13 de octubre dejará en las empresas españolas. Así mismo, se examinan los problemas que derivan de estas normativas y la manera en la que PayAnalytics los aborda y proporciona soluciones rápidas, eficaces y sencillas.

Companies in Spain are now obligated to take action to ensure equal pay for work of equal value

Companies in Spain are now obligated to take action to ensure equal pay for work of equal value. DireACTIVAS, one of our partners in Spain, wrote an article (in Spanish) on the new legislation and the potential impact it will have on equality in Spain. We are happy to assist Spanish companies in fulfilling the requirements of the new legislation - and our solution is of course also in Spanish!

Margrét Bjarnadóttir will participate in a Reykjavik Global Forum 2020 digital session

Come and join us virtually for a conversation about equal pay: the fast changing legislation around the world, the role of analysis and data driven decision support, the equal pay journey and key levers to drive change - all packed into 90 minutes.

Margrét Bjarnadóttir from PayAnalytics will participate in a Reykjavik Global Forum 2020 digital session on Wednesday 11th November 09:30 UTC.

The name of the event is A Fair Diagnosis: It’s time to close the wage gap - FPI Lab and you can register using the registration link below.

Margret Bjarnadottir wrote for Ms. Magazine: We're Not Waiting 200 Years to Close the Gender Pay Gap

The World Economic Forum estimates that it will take over 200 years to close the gender pay gap. No one should have the patience to wait that long. How can we accelerate change? The answer may lay in data and models with a good dose of transparency.

The journey starts with gathering the data and understanding the pay structure. Then companies move on to identifying areas for improvement and eliminating unexplained demographic pay gaps through corrective action—in other words, ensuring equal pay for equal work.

42% of organizations are planning for pay equity adjustments in 2020

42% of organizations are planning for pay equity adjustments in 2020 according to the recently published @WorldatWork 2019-2020 Salary Budget Survey. Is yours one of them? PayAnalytics can help. Our customers use PayAnalytics to assist them in every step on the way towards a transparent and fair pay structure. Our software solution recommends individual raises to close the gap, quickly detects outliers, gives an overview of the cost to help with the budgeting, and so much more.

Addressing Demographic Pay Gaps with Data-driven Solutions | guest feature for insideBIGDATA

Dr. Margret Bjarnadottir (@mvilborg2) from @payanalytics recently wrote a guest feature for @insideBigData about addressing demographic #PayGaps with Data-driven Solutions.

Demographic pay gaps, including the gender pay gap, are the result of more complex factors than just a desire to minimize payroll expenses. They stem from unconscious biases and processes that are better suited to one group compared to another. And, as multiple executives have found out, good intentions and “mindfulness” are not enough to eliminate the gaps.

Why Companies' Attempts to Close the Gender Pay Gap Often Fail

PayAnalytics co-founders David Anderson and Margrét V. Bjarnadóttir wrote an article together with Cristian Dezso and David Gaddis Ross for Harvard Business Review about closing the gender pay gap.

Gender pay equity has become a big point of contention at many companies. Not only have politicians and other public figures spoken out against the gender pay gap, but there has also been a rising tide of high profile lawsuits targeting major employers, most notably in the U.S., with all the bad publicity and financial liability they entail.