Carolynn Ryan
SVP, People & Chief Human Resources Officer
BC Hydro
The gender pay gap has been static over the past 15 years, and at the current rate of progress it will likely take another 30 years to close. CHROs consistently list diversity, equity and inclusion as a top priority each year, yet pay equity initiatives often fall short.
With legislation about pay transparency becoming more common and employees being evermore vocal about their compensation, the workforce is experiencing pay discrepancies on a more personal level. According to Gartner HR research, a staggering 70% of employees believe they are not being paid fairly.
BC Hydro, a Canadian energy company with over 7,000 employees, has cracked the code for identifying and addressing the gender pay gap at their business. DE&I is integral to BC Hydro, and they have built a strong foundation around inclusive principles and habits.
We believe we have a duty to take a hard look at our practices and make intentional choices to address barriers where our practices are causing inequity.”
Here, Carolynn Ryan, Senior VP, People & Chief Human Resources Officer at BC Hydro and Co-Chair of the Vancouver, BC CHRO Community, shares BC Hydro’s pay equity journey and five ways they continue to improve the gender pay gap at their organization.
Identifying Pay Inequity through Data
Comprehensive data analysis is a critical component to their DE&I efforts. In addition to a biennial employee engagement survey, they also conduct a confidential diversity data survey through BC Stats to better understand the employee experience through the lens of the designated groups. Ryan added, “We use these sources [the surveys] to measure our success, and we can’t do that if we don’t know our own blind spots. As a company, we have made good progress on our inclusion and diversity journey, supported by this data.”
Pay equity is an extension of this, and they embarked on their journey about five years ago when their CEO asked a simple question, “Are men and women paid differently at BC Hydro?”
When they looked into the data, they found that there was no pay discrepancy for those with union jobs, as they have fixed rates, but there was pay inequity within their exempt manager and professional groups. This included about 2,900 employees from technology and corporate functions.
Ryan further explained their findings, “The primary reason for the difference in pay is underrepresentation of females in higher paying jobs. We place jobs of equal value into the same salary range, however, due to factors like market rates of pay, different jobs tend to be paid differently within those ranges. So, while men and women are paid the same for the same job (e.g., no difference in pay between male and female natural resource specialists), there are more males in our higher paying jobs, such as engineering or our operations-focused roles. So, when we compare the average salaries for men and women in each salary range, the females’ salaries are lower.”
BC Hydro’s 5 Steps to Pay Equity
After identifying the cause of their pay inequity, they developed five steps for improvement. Ryan stated, “We didn’t know the answer at the time. We’re proud that today we do, and we’re working on ways to reduce the gender pay difference.”
The results of their efforts speak for themselves, and since 2018, they have reduced their pay gap from 3.6% to 1.9%. Here are five ways they are reducing pay inequity at BC Hydro:
#1- Report annually and share results
BC Hydro analyzes and reports on their gender pay gap annually, and they coordinate this report with their salary increase process. Ryan commented, “This allows us to consider how our salary increase process will impact gender pay differences.” In addition, they share the results with both the executive team and employees, no matter the results.
Sharing information like this, even when the data tells us we have a problem, tells our employees broadly and diverse groups that we see the gaps, they matter, and we’re willing to address diversity issues. That’s powerful stuff!”
#2- Present higher increases to those with lower salaries
During their annual salary increase process, BC Hydro provides higher salary increases to those with lower salaries, and females tend to have lower salaries. Ryan noted that although this approach is effective, recent economic headwinds and talent issues can make it difficult. They often struggle with a modest budget, and inflation, the tight labor market and retention efforts can limit their ability to address the gender pay gap.
#3- Provide bias training for people leaders
Ryan made it clear that both performance and salary are considered when making salary increase decisions, and she acknowledged that performance ratings are made by managers who are all subject to unconscious bias. She detailed how they are trying to limit this from affecting the decision-making process:
“BC Hydro has comprehensive performance and talent development processes, guided by our Human Resources Business Partners. We developed a bias guide for managers that our HR business partners share with managers in advance of the year-end process. The guide explains how bias often operates below the level of consciousness and how it can affect your thinking and your choices when you’re making decisions about your employees. It normalizes that it’s human to have bias, but it shares techniques to become more aware of your own biases, as well as actions that can be taken to mitigate them.
To take this one step further, executive leadership tables are provided with a report annually, at the end of the performance process that outlines the current diversity in their talent pipelines. This report includes representation across the designated groups, not just representation of women. This report helps the leadership teams be thoughtful and intentional in assigning work, in guiding development and in their coaching and mentoring relationships.”
#4- Encourage diverse representation in and outside the business
BC Hydro is committed to making an impact for gender pay equity in the future by supporting several STEM programs for elementary, secondary, and post-secondary female students and recent graduates. This includes employees mentoring young girls, funding scholarships and awards, bringing women into their Engineer-in-Training program, and more.
#5 – Narrow salary ranges
They found that narrowing salary ranges allows them to keep employees’ salaries closer together, reducing pay inequity. Formerly, they had very wide salary ranges, and with conservative pay increases, this left some employees stuck towards the bottom of the range.
Key Takeaways
These strategies have been beneficial for BC Hydro, and they plan to use them to not only improve gender pay inequity, but with other designated groups in the future, such as visible minorities. However, every organization is different and has different resources. Ryan shared that HR leaders who are looking to improve pay equity at their organizations should consider these takeaways to start their own journey:
- Measure and report. Do you know what your pay gap is and what’s causing it?
- Act. Once you find the source, identify strategies to close pay differences.
- Share. Consider sharing the results and plans of action with your employees.
This is a continuation of a presentation from the Vancouver, BC CHRO Executive Summit last fall. The next Vancouver BC CHRO Executive Summit will be held on June 6, 2023.
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Special thanks to Carolynn Ryan and BC Hydro.
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