EQUITY & DIVERSITY ANNUAL REPORT – 2007

Section 3.4: Remuneration

The Bank has developed a transparent and merit-based remuneration system that discourages any policies or practices that may lead to wage discrimination on the grounds of gender. The remuneration system ensures pay equity through the use of a job evaluation methodology and market benchmarking as well as an annual skill and performance review process. The Bank undertakes regular job evaluations that involve describing and articulating the roles in the Bank, comparisons with other jobs with similar work value and skill requirements and external benchmarking to ensure these jobs are properly valued and correctly remunerated.

Pay distribution continues to be monitored to see if any changes are occurring over time. An analysis of salaries of all staff, irrespective of whether staff are on individual employment contracts or are covered by the Bank’s Enterprise Agreement, indicates that there is no gender inequity in pay distribution. Overall, in 2006/07 women in the Bank earned on average 99 per cent of what men earned; well above the national average of 84 per cent. Under the 2007 Enterprise Agreement, the Bank has undertaken to continue to analyse issues around pay equity.

In the following graph there are three elements requiring further explanation for women at Level 1, Level 4 and Level 7. Firstly, there are more women at Level 1 with higher tenure in the position, hence they are at the top of their salary band; secondly, the situation for Level 4 women is that a larger number of these positions are held by men in the Bank’s IT area; and finally, Level 7 women generally have much shorter tenure when compared to Level 7 men.

In 2006/07, average performance pay outcomes were similar for men, women, people from non-English speaking backgrounds, and people with disabilities.