Nest outlines new targets to close pay gaps

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Nest has outlined new goals as part of its drive to increase diversity and inclusion after its latest race and gender pay data showed that while there is progress towards equal pay, more work is needed.

The latest reports from the program showed that the median gender pay gap was 9.56 per cent or £3.07 per hour in 2021/22, down 1.4 percentage points from 2020/21 when the gap was 10.9 per cent or £3.41 per hour.

Improvements were also noted in the mean ethnic pay gap, which was 11.9 per cent, or £3.79 per hour, in 2021/22, a 1.3 percentage point reduction from 2020/21 when the gap was 13.2 per cent.

In addition, the number of women working at Nest increased in 2021/22, with 52 per cent of the workforce being women, slightly more than the 51 per cent of the total population of England and Wales.

People from ethnic minorities also make up around 27 per cent of Nest’s workforce, compared to around 14 per cent of the total population of England and Wales.

Management-level representation also improved, with a 5 percentage point increase in ethnic minority employees in upper-middle quartile positions between 2020/21 and 2021/22.

However, despite the improvements, the program acknowledged that women and people from minority ethnic backgrounds are still over-represented in positions in the bottom quartile and stressed that more needs to be done to address this.

Specifically, the program announced plans to seek gender parity in director-level positions, with a goal of having at least 30 percent of the executive team women and at least 13 percent from ethnic minority backgrounds by 2025, with a further goal of having at least two black directors by 2025 .

It has also introduced personalized training accounts to give employees more control and will ensure that each member of the leadership team has a diversity-related goal to build an inclusive organization from the top down.

In addition, the program committed to building a comprehensive data infrastructure to better understand its workforce and how to address any obstacles at Nest, and to use this data infrastructure to review overarching data and insights.

Commenting on the plans, Nest Chief Executive Officer Helen Dean said: “While I’m glad we’ve made progress over the past two years, we’re not becoming complacent. I’ve said I want Nest to do much, much better, and the data shows we’re still on our way.

“At Nest, we work to create an inclusive environment where everyone, including women and people from minority ethnic backgrounds, can thrive and are not held back by prejudice or injustice. We will always find new ways to do this and we understand that there are areas where we need to improve.

“We are on the right path. I’m encouraged to see Nest exceeding our goals for female representation in director-level positions and for a gender-balanced workforce. This is another sign that our plans for equal pay can and will result at Nest.”

Richard Lockwood, Head and Chief Financial Officer of Nest Diversity Equity and Inclusion, added: “We are committed to narrowing our pay gap year over year and I am proud of our clear plan to propel us towards our long-term goal of Equal pay for women and members of ethnic minorities at Nest.

“I believe our continued focus on recruitment and development, as well as building an inclusive culture where all employees can thrive, will help us achieve this.

“By focusing more on people development, we can improve representation in leadership positions, which is key to closing our pay gap. It also makes economic sense. Nest will benefit from greater diversity of thought at all levels.”

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