Rockwell Automation 2019 Gender Pay Gap Report Analysis and Commentary

2019 Gender Pay Gap

What is the Gender Pay Gap Report?

As required by the UK Equality Act 2010, Rockwell Automation filed the attached 2019 Gender Pay Gap Report with the Government Equalities Office for Rockwell Automation Ltd, our employing entity in the UK. As a company, we are committed to equality, diversity and inclusion and we appreciate initiatives that promote industry-wide transparency and awareness regarding equity and equal opportunity within the workplace.

Our report presents mean (average) and median (the midpoint) gender pay gap data. The median gender pay gap refers to the difference between the average/median earnings of men and the average/median earnings of women working within our United Kingdom offices and facilities, without regard to the nature of the work being performed. A gender pay gap is different from an equal pay comparison, which examines whether there is a difference in pay between men and women with similar qualifications and experience carrying out the same or comparable work. A gender pay gap does not equate to an equal pay issue.

In many instances, a gender pay gap results from having fewer female employees and/or having fewer women in higher paid positions, this can only be addressed by the ongoing commitment and collaboration between industrial companies such as ours, educational establishments, and key influencers from a variety of organisations. As with many other organisations in our industry, gender representation is a challenge in our core business, industrial and information solutions, and the industries that we serve. These industries are strongly male dominant. The predominant skillset and education required at Rockwell Automation, and in our industry, is engineering, and this extends to managerial and leadership roles. Women remain in the gender minority in STEM (Science, Technology, Engineering and Math) education and occupations. The 2019 Women in STEM Workforce Report published by wisecampaign.co.uk, indicates that only 10.3% of engineering professionals are women.  It also reports that just 14% of science, engineering and technology management roles are occupied by women.

The gender distribution of our employees reflects this market reality.  We are committed to providing equal pay for equal work and we are confident that we pay our workers in the UK comparably by role, regardless of their gender. We review pay equity on an ongoing basis to ensure this is the case.  However, consistent with the industry demographics as a whole, men occupy more of the positions within our UK operation that are higher paid because they require an engineering or technology degree. This distribution within our workforce has led to the gender pay gap data reported.

Rockwell Automation’s gender pay gap reflects the challenges faced across an industry that historically has attracted more men than women. As a company, we are committed to recruiting and retaining a more diverse workforce and creating an inclusive culture where everyone can and wants to do their best work. We strive to increase the number of women employed in all positions at our company and, as a result, reduce the gender pay gap over time.

Our Commitment

We have been focused on increasing the diversity of our global workforce for many years. The progress we have made on this, along with our achievements within the wider business market, is clearly making an impact. The Wall Street Journal Europe Management Top 250 List ranks us as 61st, that’s’ the top quartile alongside other notable U.S businesses like Amazon, Apple, Cisco, Microsoft and IBM.  And, our record of diversity goes from strength to strength too. We have made great progress, as evidenced by the addition of Rockwell Automation for the second time to the DiversityInc, 2019 list of Noteworthy Companies. We were among the select 33 U.S. companies named to this list from an organization that strives to bring education and clarity to the business benefits of diversity. Further demonstrating our commitment to and success in diversity is bestowment of the honor to achieve the 2019 Corporate Equality Index (CEI) with a 100% perfect score. This is the seventh consecutive year we have achieved this accolade – a particularly noteworthy accomplishment since the criteria to receive a perfect score increases every few years.

Our diversity and inclusion efforts have produced successes that we are committed to building on globally, including within the UK.

One of the drawbacks to Gender Pay Gap reporting is that the figures can lead to misleading anomalies – especially in our sector where women with certain requisite skills, especially for higher paid positions, form just 10.3% of the workforce. In this instance, an overall rise in women employed by the company (including non-engineering roles) year-on-year can negatively affect the GPG results, meaning something that is good for gender diversity in general appears to be negative for fairness in how employed women are recompensed. This simplistic reading of the results can be avoided with further analysis, while the underlying issue of female representation in STEM job functions needs to be addressed by companies and institutions, including government and education, to fully meet the challenges of gender diversity in our industry.

Rockwell Automation is taking an active, leadership role in addressing the underlying reasons for gender imbalances in STEM occupations. Specific to the EMEA region, Rockwell Automation is committed to continuing current initiatives including FIRST®, the EMEA Graduate Training Programme, and our Professional Women’s Council. In the UK we continue our initiative with Primary Engineer that started in 2018 to encourage all children to learn engineering skills and consider careers that use them. This programme is equally attended by boys and girls and engaged more than a thousand children in its first full year. Further, the Primary Engineer programme undertaken by Rockwell Automation leveraged our position as an industry leader to encourage local engineering companies to join the programme, with five other organisations taking part in 2018/19.  We know there is more work to be done, and we continuously seek to expand and amplify our diversity and inclusion efforts and to increase the representation of women at all levels of our organisation and within our industry. 

The information and data reported in the attached are accurate and in line with the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017.

Rockwell Automation is committed to the highest standards of ethics, integrity and compliance. Our culture of integrity is a pillar of our global success and one of the key reasons we have been a respected business leader for over a century. It is another reason why we have been named one of the World's Most Ethical Companies on numerous occasions. Find out more here.