Gender pay at Nestlé
Read our gender pay report 2023 for Nestlé UK and Ireland
What is gender pay reporting?
The gender pay gap is a comparison of the average earnings for men and women regardless of the work they do. In both the UK and Ireland, there is a legal requirement for organisations with more than 250 employees to publish data on their gender pay gap.
In Ireland we are not legally required to publish our figures as our employee numbers are below the threshold, however, we are doing this voluntarily using the methodology stipulated by the Irish government.
The calculations for Ireland are slightly different to those required in the UK.
In my first year as CEO, I have embraced a commitment to foster a culture which values different styles, perspectives and experiences and gender equity is a significant part of this. This is vital to help us meet the evolving needs of our consumers and the communities in which we operate. My senior leadership team and I understand representation matters and the positive impact it has on people, business, culture and communities. We take gender balance seriously and have set ourselves key targets to reflect this. We want all of our people to feel valued and to thrive."
Why does it matter?
Gender pay reporting can highlight where there are differences in representation in organisations. For instance, if an organisation has more men than women in well-paid senior roles and more women than men in less well-paid junior roles, then the average pay for men will be higher than for women and there will be a gender pay gap in favour of men.
Our organisation is complex and so is our data. However, our approach is simple. We embrace difference and champion inclusion which is why gender representation across our business is an important area of focus. Improving gender balance is an important part of our ongoing commitment to foster a culture where everyone thrives.
Our organisation
We have a variety of sites across the UK, including factories (manufacturing and supply operations), offices, Nespresso boutiques and a product technology centre. In Ireland, we have a head office and Nespresso boutiques.
Across our business, we have some high-level patterns in representation. In the UK and in Ireland, we have a slightly higher proportion of women than men in our offices, around 60%. We have a similar picture in our Nespresso boutiques. Across our factory sites we have a high proportion of men, more than 80%. At our most senior level, men still make up almost 70% of the represented group and so we know that we need to continue to focus on these areas although change takes time here and in the factory sites.
2023 data
When we refer to Nestlé in the UK, this includes our seven main Nestlé legal entities in the UK: Nestlé UK Ltd (our Nescafé, Nestlé Confectionery, Nestlé Food, Nestlé Nutrition & Dairy, Nestlé Health Science and Nestlé Professional businesses, as well as factories and corporate functions such as Group Supply Chain and HR). It also includes two Nestlé Purina legal entities which cover Nestlé Purina manufacturing and commercial operations, Nespresso, Cereal Partners, Nestlé Waters and Nestec York Ltd, which houses our Research and Development centre. Nestlé in Ireland includes Nestlé Ireland and individuals in Ireland employed by Nespresso.
All these businesses share a common approach to pay and bonuses although there are some different schemes in place reflecting where individuals work. They are all managed through the same payroll service. The 2023 report covers 7,723 people across a range of offices, factories, coffee boutiques and our product technology centre in the UK; and 147 people in the head office and coffee boutiques in Ireland.
* We are not able to provide figures for this gender pay comparison as we have no men working part time in Nestlé (Ireland) Ltd.
** We are not able to provide figures for this gender pay comparison as we have no individuals working on temporary contracts in Nespresso UK Ltd (Based in Ireland).
Data
We have to report on mean and median data. Mean data is calculated by adding up all the numbers in a sample and dividing by the number in that sample.
Median data is calculated by arranging the numbers in order from the lowest paid to the highest paid, and the middle number is the median.
In our report, the calculations of mean and median gender pay gap and bonus pay gap are calculated by taking the figure for women away from the figure for men and dividing by the figure for men.
To calculate pay quartiles or quarters we put the pay of all individuals in descending order and then split them into four equally sized groups. We then report on the percentage of men and women in each group.
Declaration of accuracy: I confirm that this statement is true to the best of my knowledge and belief."
Having a team which is full of different styles, perspectives and experiences is incredibly important to me particularly in research and development. I am committed to seeing more women in science and technology roles, including in holding senior positions, and I am passionate about creating the right environment that enables women to thrive and excel in their careers.”
About our data
Whilst the data for each legal entity may look different, the challenges which sit behind this data are the same. We have higher proportions of men in our manufacturing and supply sites as well as in our most senior roles and this imbalance drives our figures.
This is amplified in our bonus data as the bonus data relates to an annual figure.
We’ve been working to change this for some time and we’re not managing to drive change as quickly as we’d like in all areas. This is why our key areas of focus remain to increase representation across manufacturing and supply; increase representation in our most senior roles and ensure every facet of our employee experience fosters an inclusive culture.
We’ve outlined below the actions we continue to take. We continue to monitor progress and actions, making adjustments and improvements.
A business can’t thrive without creating an inclusive workplace, and supporting people during their life changing periods is vital. As a mum, I have had two periods of parental leave during my time as a senior leader. Each time Nestlé has been flexible to my needs and my changing circumstances. As a business we understand one size doesn’t fit all and we need to continue to have open, flexible and understanding conversations that support everyone to fulfil their potential.”
Our Approach
Our ambition remains to be an organisation which reflects our society and therefore, we continue to aim for balanced gender representation across our business. This currently varies across our teams, however, we are committed to continuing the work in this area.
Our leaders are held accountable to help us stay focused on where we need to be and our leadership team continue to review progress, to revise our plans and to identify additional action required.
As a result, we are continually taking stock and making changes to our plans to make sure they fit our goals.
It’s vital we continue to attract talented people of all genders to work with us, and progress their careers at Nestlé. We continue to review our recruitment methods to help us do this for example, we use software and selection processes to remove gender bias from job adverts and our hiring decisions.
Our Nestlé Academy team are successfully recruiting increasingly diverse groups of young people to ensure there is a balanced pipeline of future leaders. We foster a lifelong learning culture, offering a range of development and support to enable our colleagues to thrive and progress. Our networks connect and support colleagues, while championing change.
Beyond Nestlé, we actively support female farmers through the Nestlé First Milk Women in Agriculture Group and have been announced as the principal sponsor for the first National Women in Agriculture Awards in 2024. Both are intended to help our farmers in a male dominated industry to connect together, share ideas and to recognise the amazing work done by female farmers in the UK.
Our data reinforces the need to stay focused on improving representation, to ensure gender diversity at all levels and in all roles, throughout the organisation. We are not where we aimed to be. We need to do more particularly at senior levels, and in manufacturing and technical roles where historically representation has been lower, not just at Nestlé, but across the industry. We continue to work with others to improve this. Whilst changes don’t happen overnight, I expect our progress to be reflected incrementally.”
We continue to report voluntarily our data on gender as I believe this is the right thing to do. Gender equity is really important to us and we are taking action to look at ways to improve. We know it is an area where changes we implement truly make a difference, and we are committed to taking the right action.”
Gender balance levels in manufacturing are low, but we are continually looking for ways to improve this at Nestlé. We continue to nurture and support our Women in Operations employee network, with an increased focus on attracting women into manufacturing roles and providing mentorship and support so that their careers flourish. These changes cannot happen overnight. We have a plan in place and are taking incremental steps that are bringing positive results."
