IAG Employer Statement – WGEA Gender Pay Gap

IAG has a long-standing commitment to achieve gender pay equity and remains focused on advancing opportunities and increasing the representation of women in leadership to address and reduce the gender pay gap.

IAG’s gender pay gap

For April 2022 – March 2023 as reported by WGEA, IAG’s median total remuneration gender pay gap is 25.2%, and median base salary gap is 27.5%.

These figures highlight the organisation-wide gender pay gap which is the difference between full-time equivalent pay between women and men at IAG. While this is a universally recognised metric of workplace gender equality, it is only one measure of an employer’s commitment to achieving gender pay equity. It does not consider differences in role attributes (i.e. career level or job function) or other factors (i.e. the skills, experience, and qualifications each person brings to a role). We review our gender pay metrics annually, and for the past two years have included regression analysis of like-for-like roles, and analysis of gender pay on recruitment and promotion. When comparing the median pay across genders in ‘like for like’ roles, there is no evidence of significant pay gaps at IAG and our analysis of pay on recruitment and promotion similarly has not identified any material differences.

While recognising we have further work to do to achieve gender pay equity, IAG is committed to accelerating our efforts with a continuous improvement approach.

Contributing factors to IAG’s gender pay gap

The key contributing factor to IAG’s gender pay gap is representation at the higher career and senior leadership level.

While IAG has a greater representation of women than men across our workforce, there are fewer women than men at senior career levels where role pay is typically higher, and fewer women than men in higher-paying roles.

At the end of FY23, women comprised 60% of IAG’s total workforce and occupied 44% of senior management roles in Australia [up from 43% FY22]. IAG has set the target for women to occupy 50% of senior management roles by the end of June 2024. Senior management roles are defined as Group Executives, Executive General Managers, and their direct reports.

IAG’s Board also aspires to achieve gender equality, setting its own target in April 2023 of 40 – 60% of either gender represented, and remains actively focused on recruiting more female Directors.

How IAG is closing the gender pay gap

To reduce the gender pay gap, IAG continues to focus on increasing the representation of women in senior and higher paying roles through a multitude of established programs and initiatives, some of which target specific areas where women have traditionally been underrepresented, such as Risk and Technology. These initiatives include:

• Game Changers - a leadership development program focused on enabling female future leaders to build skillsets and networks while solving real business problems
• Code Like a Girl - a paid internship for women in technology roles, supporting gender diverse talent in STEM roles
• Women in Risk - actively promoting the development of women who are involved in managing risk across IAG
• Women in Technology - an inclusive, equity initiative to nurture and empower women to embrace, thrive and lead in Technology, through mentorship, networking, and targeted development experiences

IAG’s recruitment and onboarding process aims to deliver a fair, equitable and inclusive experience for all candidates, and actively provides adjustments and support for applicants of diverse backgrounds. Some examples of considerations and adjustments are as follows:

• Gender balanced interview panels with male and female representation
• Scenario-based written assessment instead of a psychometric assessment
• Supporting use own laptop or assistive technology
• Ensuring the interview and assessment rooms meet individual needs
• Providing multilingual/ Auslan support, sound amplification devices

Diversity, Equity & Inclusion at IAG

In line with IAG’s purpose ‘we make your world a safer place’, our culture is built on the principles of inclusion, fairness and equity, and providing equal opportunities for all. We invest in a variety of memberships, partnerships, scholarships and benchmarking indices to help deliver on our Diversity Equity & Inclusion (DEI) strategy, these include:

• LGBTQ+: Australian Workplace Equality Index 
• Gender Equity: Workplace Gender Equality Agency (WGEA)
• Gender Equality: Champions of Change Coalition – Action Report
• Aboriginal and Torres Strait Islander peoples: IAG’s Stretch RAP
• Accessibility: Alumni Connect; Access & Inclusion Index via Australian Disability Network
• Early Careers: Career Trackers and Career Seekers
• Recognition at Work: OC Tanner

Fundamental to embracing and embedding diversity within our workplace, is cultivating connection between our community of colleagues. IAG has Employee Network Groups (ENGs) to celebrate and support inclusivity and diversity, against five key areas:

• Aboriginal & Torres Strait Islanders
• Accessibility and Wellbeing
• Cultural Diversity
• Gender Equity
• Pride

These community groups and initiatives underpin IAG’s DEI strategy which outlines actions to accelerate gender equity in the organisation.

Entrenching Diversity, Equity & Inclusion into IAG’s DNA

To raise awareness and cement understanding across IAG of key DEI principles, all employees including IAG’s Group Leadership Team, must complete an annual DEI module as part of our ongoing learning and development program.

Additionally, we proactively find opportunities to inform and educate our leaders on the importance of considering equity, and in particular, the gender pay context, when making decisions regarding performance, pay, recruitment and careers.

Importance of flexible work and supporting people with caring responsibilities

IAG is committed to ensuring our people have equal access to working opportunities, regardless of their roles and responsibilities outside of work. MyFlex enables all IAG employees to request a flexible working arrangement to support their individual needs and assist those with caring responsibilities. Options include:

• FlexiTime: adjusted start / finish times, reduced hours, compressed working weeks / fortnights
• FlexiPlace: work from home, a main IAG site, or from an IAG hub
• FlexiJob: job sharing and secondments
• FlexiLeave: career break, personal and emergency leave, special leave, gender affirmation leave, defence force leave, shorter working year, mid-service leave, long service leave
• Circle In: to support people by providing practical resources to help better manage work and home life

Conclusion

We welcome the increased focus and transparency through WGEA publishing these important metrics and look forward to reporting on our progress in future years.