1st Universal Fair Pay Check Awards – Companies awarded for fair pay for the first time
Berlin – The non-profit Fair Pay Innovation Lab (FPI) is awarding companies for fair pay for the first time. Regardless of size, location, or respective legislation, companies can close existing pay gaps in the shortest possible time and have themselves certified worldwide with the "UNIVERSAL FAIR PAY CHECK". Under the patronage of the German Minister of Labor, Hubertus Heil, the German insurance company Allianz Deutschland AG, the digital agency Rheingans GmbH and Iceland's second-largest energy company, Reykjavík Energy, are among the companies receiving the award.
For the certification, companies analyze their pay structures in the first step and check whether employees are paid equally for the same and equivalent work. In the second step, existing pay gaps are reduced, and in the third step, all pay gaps are closed. One of the main reasons for income differences is the pay gap between men and women, which is 23 percent on average worldwide. In addition to the gender pay gap, other reasons for unfair pay can include age, ethnicity, or sexual orientation. Companies that thoroughly examine these structures can be recognized as Fair Pay Analysts, as Fair Pay Developers with an adjusted pay gap of 0 percent, and as Fair Pay Leaders if they have been able to close all pay gaps.
Fair pay is a clear competitive advantage, according to Federal Minister of Labor Hubertus Heil, patron of the Universal Fair Pay Check in Germany: "Only with fair wages and good working conditions can companies secure their urgently needed skilled workers. Fair pay also means paying regardless of gender, age, disability, or religious affiliation. The UNIVERSAL FAIR PAY CHECK recognizes companies that have already understood this. They are well ahead of their competitors!"
With around 25,000 employees, Allianz Deutschland AG is the largest pilot company in the first round of awards. "At Allianz, we place a lot of emphasis on equality and fairness, and gender equality has been at the top of our agenda for a long time," said Allianz Board Member Renate Wagner. "At Allianz Germany, we are on the right track with a current equal pay gap close to 1 %." For this, Allianz Deutschland AG will be recognized as a Fair Pay Analyst in 2021/22. The German digital agency Rheingans GmbH and the IT consultancy esentri AG will also be recognized as Fair Pay Analysts.
Iceland's second-largest energy company, Reykjavík Energy, has been subject to the strict legal requirements for equal pay in Iceland for several years. "Reykjavík Energy managed to close its adjusted gender pay gap in the year 2017 and has kept it closed ever since. In 2018, the company received the Icelandic Equal Pay Certification, which confirms that it does not discriminate in its remuneration strategies and pay structure," said Víðir Ragnarsson, Head of Diversity and Inclusion Initiatives at Reykjavík Energy. "I see participation in the UNIVERSAL FAIR PAY CHECK as an opportunity to measure ourselves in new ways. It focuses not only on the adjusted gender pay gap but also on the unadjusted pay gap and other pay gaps stemming from different backgrounds. These are measures that address the fundamental causes of inequalities." For the year 2021/22, the company will be recognized as a Fair Pay Leader, as will Iceland's Landspítali, the leading hospital and the largest employer in the Icelandic healthcare sector.
Henrike von Platen, founder and CEO of FPI, sees the award for the pilot companies as a clear signal for equal opportunities. "Fair pay is the key to equal opportunities, for all people, no matter where they come from, who they love or what they believe in, no matter if they have children or how old they are. Our goal: Fair pay for all in the world." Von Platen sees the Universal Fair Pay Check as a flagship and compass for all companies that want to pay fairly.
Interested companies and organizations from around the world can register for certification with the nonprofit Berlin-based Fair Pay Innovation Lab.
The recording of the award premiere can be found here.
FPI - What we do
Why does the gender pay gap prove so intractable? What is standing in the way of fair pay for all? What do companies need to do in order to put sustainable pay strategies into practice?
Universal Fair Pay Check
The Universal Fair Pay Check provides guidance for companies and sheds a light on the choas of different certification methods.