First German Fair Pay Leader certified
Press release of the BMW AG from 07 March 2023
Munich. BMW AG is the first company in Germany to be awarded top-level certification from the Fair Pay Innovation Lab (FPI). The document reaffirms the fact that the company’s remuneration structures are fair, with no significant difference between the overall remuneration packages of women and men. Based in Berlin, the FPI is a globally recognised certification organisation for fair pay. The award of the Universal Fair Pay Check, under the patronage of the German Minister of Labour and Social Affairs Hubertus Heil, was announced by the FPI today, 7 March, on international Equal Pay Day.
“This is an accolade we are particularly proud of because it proves that our remuneration structures work. For us, fair salaries are a given and an integral part of our corporate culture, which is based on transparency, appreciation and respect. The BMW Group believes in performance and reward in fair working conditions and an environment that offers career opportunities for all our talented staff,” said Ilka Horstmeier, Member of the Board of Management of BMW AG, People and Real Estate, and Labour Director.
Fair pay as part of diversity
Fair pay and salaries foster inclusion and innovativeness, and motivate employees. What’s more, with skilled people in short supply, they make BMW AG an attractive employer, especially for women.
At BMW AG, remuneration is based on group-wide role evaluations, collective pay agreements and, for management-grade employees, salary brackets, but also personal and company performance. The same level of job, working hours, personal performance and professional experience are subject to equal pay across all BMW AG sites. “It’s great that we can say to our colleagues that with us, they will receive equal pay and salaries. It means they can trust us, and it’s motivating as well. Collective bargaining agreements by the unions make a valuable contribution in this respect, and we are proud to be honoured with this certification,” said Martin Kimmich, Chairman of the General Works Council at BMW AG.
Henrike von Platen, CEO & founder of the FPI Fair Pay Innovation Lab, emphasised: “I’m delighted to announce that BMW AG is Germany’s first Fair Pay Leader. To me, this sends out a clear message to all the other companies: fair pay is possible everywhere, even in the automotive industry. This is traditionally male-dominated, and the gender pay gap is above the German average of 18%, with women earning 22% less on average than their male colleagues. BMW AG was able to close that pay gap for 80,000 employees.”
Annual equal pay analysis: Fair pay is not just for now
BMW AG has established remuneration processes that ensure equal pay is not just for now but integral to a longer-term system. The annual equal pay analysis, for example, is based on scientifically recognised analysis methods and allows annual assessments of the remuneration of men and women, fixed and variable elements included. It identifies the adjusted and non-adjusted gender pay gaps. In 2022 the non-adjusted pay gap at BMW AG was 1.3% in favour of female employees. The adjusted gender pay gap, which takes into account structural factors such as salary group and professional experience, amounted to just under 1% in 2022 in favour of males – equivalent to near parity.
The BMW Group continues to enhance its equal pay analyses, which will be implemented across its sites worldwide in future. This will ensure greater transparency around remuneration structures and allow measures to be developed to counter the gender pay gap over the longer term.
FPI - What we do
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Universal Fair Pay Check
The Universal Fair Pay Check provides guidance for companies and sheds a light on the choas of different certification methods.