Remuneration In Luxembourg: Why The Gender Pay Gap Isn't Closed Yet

Studies have again and again shown that an organisation's success and competitiveness depend on its ability to embrace diversity. Companies today spend a lot of money and time on workplace diversity and outreach programs, though often have little to show for it.

Diversity leads to more innovation, more opportunities for all, better access to talent, and better business performance. Creating a diverse and inclusive workplace results in improved services for customers and better returns for shareholders. It is thus critical to an organisation's ability to adapt to a fast-changing environment, bringing fresh perspectives and experiences from a mix of cultures, genders, and ages.

What progress has been made in Luxembourg?

KPMG's remuneration survey, which provides essential information on HR practices in Luxembourg, looked closely at diversity. The results reveal that 52% of the financial institutions in Luxembourg, as of 2017, have a diversity policy in place.

What does "diversity policy" mean?

As per the survey's results, the main objectives of a diversity policy are various: companies are eager to create and maintain a respectful workplace by fostering respectful behaviour among employees (72%), by improving working conditions (62%), and by enhancing the organisation's image and reputation (62%). Improving business performance (48%) is also central to diversity policies. Participants recognise as well that a workforce with diverse skillsets can provide a variety of solutions to workplace problems.

The types of diversity programs the survey found were gender equality (93%), work-life balance (83%), disability (41%), seniors over 50 (31%), and religion or personal beliefs (28%).

Have companies made efforts to close the gender wage gap?

Luxembourg, along with other OECD countries, has made significant progress in the gender equality realm in recent decades, particularly in education, health, and female workforce participation.

However, the gender gap in the Luxembourg workforce persists: women still earn less than men, and are less likely to advance as far in their careers.

According to the OECD employment database, the gender wage gap among full-time workers is basically unchanged at just below 14.5% in 2015 (the latest available year) although since 2005 it has decreased by 4% or more in some countries. The most improvement has been in Austria, Belgium, the United Kingdom, and especially Luxembourg, which is categorised as one the OECD...