On the go: Nest has outlined a path to closing the gender and ethnicity pay gaps following the release of two years’ worth of equality and inclusion data.
The pay gap charts a difference in average earnings between groups, and Nest’s data as of March 31 showed an improvement in both categories — the median gender pay gap standing at 9.5 per cent (or £3.07 an hour), down 1.4 percentage points from 2020-21 when the gap was 10.9 per cent (or £3.41 an hour).
The median ethnicity pay gap was 11.9 per cent (or £3.79 an hour), a reduction of 1.3 percentage points from 2020-21 when the gap stood at 13.2 per cent (and £3.99 an hour).
Such average differences are often explicable by the share of each group employed at different levels of seniority at a given company, and Nest confirmed that women and ethnic minorities are still overrepresented in lower-quartile roles, accounting in part for the difference in average earnings.
It cited an improvement in this area over previous years, however, the data showing a 5 percentage point increase of these employees in the upper-mid quartile roles between 2020-21 and 2021-22.
Overall, the number of women working at Nest increased, with 52 per cent of the workforce being female, and 27 per cent of staff were from an ethnic minority background. By contrast, women make up 51 per cent of the general population of England and Wales, while people from ethnic minority backgrounds make up 14 per cent, as of the last published census.
Despite claiming improvement, Nest pledged to continue increasing these figures. It aims to exceed “the target of gender parity in director-level roles”, aiming for at least 30 per cent of its executive team being women and at least 13 per cent from an ethnic minority background by 2025.
It also aims to have at least two black directors by 2025, to increase personalised training and career development, and to “ensure each member of the executive team has a diversity-related objective, building an organisation which is inclusive by instinct, led from the top down”, among other goals.
Nest chief executive Helen Dean said: “While I am pleased we’ve made progress over the past two years, we’re not going to become complacent. I have said I want Nest to do much, much better, and the data shows we’re still on our journey.
“At Nest, we work to create an inclusive environment where everyone, including women and people from ethnic minority backgrounds, can progress and not be held back by bias or unfairness. We’ll keep finding new ways to do this, and we understand that there are areas where we need to improve.”
She said Nest was “on the right track”, having exceeded its targets for representation of women in director-level roles, “and for a gender-balanced workforce”.
“This is another sign that the plans we have in place can and will lead to pay equality at Nest,” she added.
Richard Lockwood, diversity, equity and inclusion lead and chief financial officer at Nest, added: “We’re committed to reducing our pay gaps year on year, and I’m proud of our clear plan to drive us towards our long-term goal of pay parity for women and people from ethnic minority backgrounds at Nest.
“I believe our continued focus on recruitment and development, and on building an inclusive culture where all employees can progress, will help us to achieve this.”
