TARGETS AND PRACTICAL STEPS TO GENDER EQUALITY

Leading the Fintech Industry in Gender Diversity | Best Practice by Avaloq

#fixthepoliciesprocesses #flexhybridworking #recruitment

Avaloq is a global leader in digital banking solutions, core banking software and wealth management technology. Over the past 20 years, we have grown into a CHF600 million revenue business employing more than 2,000 highly skilled people around the world. Our solutions are used by 160 of the world’s largest financial institutions – including HSBC, Deutsche Bank, Maybank, DBS Group and Barclays. Our headquarter is based in Zurich.

This best practice was first published in the Gender Intelligence Report 2020.

Read the report

MAKING INROADS IN A MALE-DOMINATED INDUSTRY

The fintech industry is notoriously male dominated. The average percentage of women in the software industry is only 29%. This needs to change, and fast. Why? Because diversity in the workplace leads to higher levels of creativity, innovation and productivity, which ultimately increases stakeholder value. Our solutions are used by banks and wealth managers all over the globe, but most importantly, by people. These solutions must work intuitively and reliably, across all sizes and areas of financial institutions, in many cultures, used by all genders. In order to best serve our diverse client community, we rely on a workforce that is just as diverse.

With this in mind, Avaloq is setting itself targets and taking practical steps to improve gender diversity at all levels – with the aim of leading the global fintech industry.

  • Christina Hübschen

    Chief Human Resources Officer at Avaloq

USING THE POWER OF DATA TO DEFINE OUR ACTIONS

At the end of 2019, 25% of our 1,380-strong workforce in Switzerland was female, compared with 29% (2,035) globally, which presents us with a significant gender imbalance. The gender imbalance is seen most starkly at leadership levels. As the graph shows, the higher the grade, the lower the percentage of women. The Board of Directors comprises seven members and not one of them is a woman.

As an employer, we strive to pay fair salaries. In order to ensure fair pay, all positions are evaluated based on a grading methodology provided by an external service provider, which allows us to compare positions of similar job scope and to determine salaries in light of market practice and to ensure internal equity.

We analyse pay on a regular basis. The mathematical result of the gender pay-gap analysis showed that, on average, women’s salaries were 0.8% lower than men’s. Although we are proud that our gap is relatively small, we carefully review areas where average salaries are considerably higher for one gender than the other.

We also monitored the gender distribution in relation to career-growth moves. On average, male employees work in positions with a higher grade. In order to boost our female employees’ development, we take careful decisions about who to consider for a career-growth move at Avaloq.

A MULTI-PRONGED SOLUTION IS NEEDED

Our Global Policy on Diversity and Equal Opportunity sets out minimum standards and measures to provide equal employment and advancement opportunities for all employees. However, as everyone knows, it is not enough just to have a policy.

As with many businesses in finance and technology, we recognize there is a gender imbalance that we need to address at all levels through our recruitment, training and retention strategies.

  • Recruitment – our initial aim is to increase the inflow of women into Avaloq to at least 30% through proactive outreach to educational institutions, job fairs and communications programs like the Women in Sustainable FinTech Roundtable in Zurich in 2020 to target “best tech” female talent.
  • Retention – given the lack of women higher up in the organization, we are committed to doubling the number of women in senior and management roles by 2025, focusing more on external hiring and on internal development and promotion measures.
  • Training – in 2019, all hiring managers attended a training course focusing on unconscious bias in hiring. A general course on unconscious bias is already available for all employees in a soft-skills learning tool rolled out globally at the beginning of 2020. Additionally, the Corporate Social Responsibility team is sponsoring a “Lean In Group” to help cultivate female career progression.

IMPLEMENTATION – MAKING CHANGE HAPPEN FROM THE GROUND UP

Various teams and committed individuals have joined forces and set three targets, mapped out the process, and zeroed in on the partners and stakeholders to help us on this journey.

WE HAVE DEFINED AMBITIOUS TARGETS

  • To achieve equal pay by the end of 2020
  • To increase the percentage of women in the company to at least 30% by 2022, bearing in mind that there is currently a 5% gap in Switzerland and we operate in a fintech environment
  • To double the number of women in leadership positions by 2025, again, heeding that as of December 2019, on average women currently make up just 10% of the first three levels of management

IT’S EARLY DAYS BUT WE ARE ALREADY SEEING RESULTS

  • We are delighted to say that in Q1 2020 we closed the existing gap through annual pay reviews (based on internal analysis.) As an employer, we strive to pay fair salaries, and this sends out exactly the right message to the fintech industry and, of course, to our employees too.
  • Looking at recruitment, in 2019, 29% of the applicants to open positions in Switzerland were female. Ultimately, 28% of all new hires in the country were women, showing a pleasing alignment between the number of applications from women and the candidates actually hired.
  • In retention and promotion, we achieved significant improvements in increasing the chance of being promoted if you are a woman. Looking at the pool of promotions in 2020, 11.4% of women were promoted compared with 9.4% of men. This is a positive start in addressing the promotion imbalance.
  • Our management is identifying women with notable growth potential and specifically tailoring a leadership path for them such as through mentoring.

Finally, when it comes to challenging the dichotomy between part-time and full-time employment, many departments are offering the option to work flexibly with different contracted hours (i.e. 40%, 60%, 80% of full-time hours). We proactively promote sabbaticals and we have a new flexibility to accommodate working from home that was not possible before.

This paradigm shift implies a change in evaluating the work done, with a focus on performance over physical presence, thus increasing employee dedication.

www.avaloq.com

This Best Practice was first published in the Gender Intelligence Report 2020.

Read the report

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