Mind the gap
We believe in doing the right thing for our environment, our communities and our people. We report on the gender pay gap at AA Insurance to help create fair outcomes for all employees.
Gender pay equity is about ensuring people performing the same role don’t have different pay on the basis of gender, and that women and men performing different work of equal or comparable value are paid equitably. Measuring and understanding our pay gap is an important step in taking action and achieving gender pay equity.
What is a pay gap?
A pay gap is the difference between rates of pay for different groups of people. The gender pay gap is a way to understand the differences in pay for men and women. We use the same method as Statistics NZ to measure our pay gap:
The median hourly rate is the midpoint of all employees’ hourly pay. Half of employees’ earnings will be above the midpoint and half will be below.
The percentage represents the pay gap. If the percentage is zero, there is no difference between the pay received by men and women.
There are several types of pay gaps that can be measured:
Organisation-wide
The difference in pay between all men and all women across the whole organisation.
By-level
The difference in pay between men and women at the same career level.
Like-for-like
The difference in pay between men and women doing the same work.
What is AA Insurance's gender pay gap?
In October 2024, AA Insurance’s organisational-wide gender pay gap was 9.83%. This means that the median pay for men was 9.83% higher than the median pay for women.
This gap can partly be explained by the gender make-up of our organisation. Women account for 65% of AA Insurance’s workforce and are predominantly employed in our Team Member roles such as those within our customer service teams. By contrast, men account for 35% of our workforce but represent 42% of employees in Team Leader or Manager roles.
What is the by-level gender pay gap?
This measure looks at the difference in pay between men and women at the same career level within our organisation. This analysis has been done across three levels.
What is the like-for-like pay gap?
This measure considers if men and women are paid the same for performing the same role, regardless of gender. Using this measure, we can only take into account roles where there are two or more male and female employees in the same role. Analysis of these roles yielded three different results:
For 30% of roles: a gender pay gap of less than 1%
For 33% of roles: women are paid more
For 36% of roles: men are paid more
Roles with more than a 1% gender pay gap were investigated further to understand why a gap exists. We looked at all employees in those roles and considered skills, experience, performance and tenure. For all roles, there is either a difference in skills, experience, performance or tenure with AA Insurance which goes some way to explain the like-for-like gender pay gap.
What else have we analysed
Analysis of results from our 2024 annual remuneration review show:
There was less than 0.30% difference between the average salary wage increase received by gender.
There was 0.55% difference between the average incentive wage received by gender.
This analysis gives us confidence that our leaders are not making pay decisions based on gender.
Our next steps
We are always looking for ways in which we can create a fairer workplace for all genders, ethnicities and backgrounds. Here are some of the things we’ll be focusing on over the next 12 months:
Continuing to measure and publish our gender pay gap.
Reviewing availability of ethnicity data to broaden our pay equity analysis.
Continuing to ensure that our recruitment practices encourage and support women and other underrepresented groups into leadership roles.
Continuing to offer flexible and hybrid ways of working to support our people so they can tailor their work to suit their needs and the needs of their whānau.
Ensuring all genders have equal access to full parental leave and return to work benefits.
Integrating support and commitment of diversity, equity and inclusivity activity into everyday decision making, communication and leadership.
Supporting employee networks to help create safe and supportive spaces so that all our people can bring their true selves to work.