Australian Retailers Association

Initiative Description

• A key element of our transformation to agile ways of working at 7-Eleven was redefining how we value and reward work and the contribution our people make.​
• Our ‘contribution model’ replaces the traditional approach to development and pay conversations with an objective assessment of the contribution an employee delivers to the organisation across three core capability streams – their Craft or profession, Leadership and Business Acumen – capabilities deemed critical to the achievement of 7-Eleven’s strategic goals.  This model is reinforced by our new chapter structure and increased focus on the coaching and development of our people.

Context

We needed a new way of developing, rewarding and recognising the contribution of our people while at the same time removing any bias inherent in our previous approach to reward, recognition and career development. The contribution model underpins our new ways of working, allowing for a consistent approach across the organisation to the development of critical skills and the way we recognise the value this delivers to the organisation.​

It addresses many issues commonly associated with a gender pay inequities, such as inconsistent salaries at the point of hire and subjective promotion and pay increase decisions while increasing transparency and visibility of our gender position. 

Action

1. Clearly defined the expectations at each level of the contribution model for all employees against strategically critical capabilities​
2. Mapped all employees to an appropriate pay point based on existing remuneration, then calibrated that against actual contribution​
3. Addressed immediate issues of people, especially women paid at a level below their demonstrated contribution​
4. Ensured that all new hires were placed on a pay point appropriate for their level of contribution rather than an arbitrary point along a pay band​
5. Established robust processes to make decisions on movement through the contribution model based on calibrated demonstration of development.

Result

• Immediate improvements in visibility of the how members of all genders are rewarded for the contribution they make to the success of the business.  ​
• ​By removing the element of negotiation and putting the emphasis on demonstrated capability within an individual’s craft, leadership and business acumen we have been able to identify and immediately address anomalies in pay that had previously been ‘hidden’ within the standard pay band process.  ​
• ​We have also updated our recruitment approach to ensure people joining the organisation are starting on the same pay point for their level of experience.

Lessons Learnt

Without understanding the data in detail, you may be missing areas of concern.  ​

For example, while employees sat within a broad pay band for the assessed size of their role, women were overrepresented at the bottom of those pay bands. We also identified that women were overrepresented at the more junior or lower levels of the contribution model. When aggregated into a company position, this disparity was a significant factor in our gender pay gap.