Pay transparency with "Excellence in Fair Compensation

Markus Jordi is the Chief Human Resources Officer of SBB, which employs 33,000 people from 84 nations in 150 different professions. On average, more than a million people use SBB AG's 3024-kilometre-long rail network every day. And every day, SBB Cargo transports 210000 tonnes of goods by rail. SBB AG is not only the country's largest travel and transport company, but also one of Switzerland's biggest employers.

Mr Jordi, you have achieved your goal. SBB is certified according to "Excellence in Fair Compensation". What advantages does this bring to the company?
We are very pleased about the certificate. It confirms independently that SBB has a fair and progressive salary system and is a modern and attractive employer. This is of course an important argument on the labour market, but also in discussions with employees or social partners. The certification also points to levers for further development of the salary system. For example, we were able to accelerate the wage equality dialogue and conclude it to the full satisfaction of our social partners.

What was the impetus to strive for this certificate?
As a former federal company, SBB has always pursued a socially responsible human resources policy. In the transition to a market-based company, we have naturally also adapted the salary system. After many years of demanding negotiations with the social partners, we introduced a new, modern, performance- and market-oriented salary system in 2011. We wanted to have this wage system reviewed by an independent body and thus take on a pioneering role in the labour market. We are proud to be the first company to be certified by the SQS as having equal pay in terms of gender, age and nationality. SBB leads the way in Switzerland, particularly in the comparison between the sexes: the company pays women and men the same wages for work of equal value. According to the Swiss Federal Statistical Office, on average women still earn around 20% less than their male colleagues.

How was the decision made on this?
It was quickly clear that SQS, as a leading, independent organisation, was the right partner for us. With the comprehensive review and the modular structure of the certification, SQS offers the best product on the market.

And who ultimately made the decision?
The decision was taken at the highest human resources level, in the so-called HR Board. The HR Board is made up of the HR managers of the divisions and thus forms the Executive Board of the Human Resources Division. I myself chair this body.

Which stakeholders were involved in the project?
It was an HR leadership project.

What was the composition of the project team?
The project was led by the Head of Compensation & Benefits. The project team included the Head of Human Resources Policy and

"The social partners are delighted"

specialists from the areas of compensation & benefits, personnel marketing and communications.

In a nutshell: How is the SBB pay system structured to achieve "pay equity in terms of gender, age and nationality"?
SBB employs around 33,000 people in around 150 professions. Around 80 nationalities are represented. The company has concluded a collective employment agreement with four contractual partners (SEV, VSLF, transfair and KVöV). The degree of organisation (trade union membership) is very high at around 60%. Each function is assigned to a requirement level with a requirement profile. We know a total of 15 different requirement levels (function levels). The requirement level of the function determines the wage range and thus the minimum and maximum wage. The salary is determined according to clear criteria: The basis is the applicant's education and useful experience as well as internal and external comparisons. Neither gender nor nationality play a role. Salary development depends on the level of requirements, experience, performance and the available funds negotiated with the staff associations. Salaries are reviewed as part of the annual salary review on 1 May each year.

What criteria did SBB have to consider and check?
The assessment is based on a comprehensive analysis of SBB's entire occupational diversity (10 sectors, 150 occupational categories). Regulations, processes and remuneration payments were taken into account. The certification covers both CLA and OR terms of employment.

What exactly is the certification procedure?
Specialists from acbe (Association of Compensation & Benefits Experts) carried out the audit on behalf of SQS. SBB disclosed all basic documents to the auditors (e.g. CLA, directives, process descriptions, checklists, manuals, etc.). The experts checked all the salary data of all employees, confidentially of course. Various audits were carried out.

"Over 150 professions and 80 nationalities".

workshops were held to discuss the results and open questions.

What does the statement "There is now wage transparency at SBB" mean in practice?
At SBB, the salary ranges per requirement level are available for everyone to see (available on the intranet). The annual salary development is also disclosed for each requirement level and depending on target achievement (table is available on the intranet). In addition, all basic documents are available on the intranet.

You have only had the certificate for a year. Can you already report on your first experiences - from the system, from the management, from the employees, from the social partners and from the "public"?
Since certification in October 2015, we have received a great deal of positive feedback internally. However, employees who are dissatisfied with their personal situation or who complain about salary development have also come forward. Our social partners are delighted with the certificate and confirm that there is no discrimination at SBB. We have not yet received any feedback from the public.

Looking back, which steps took the most time?
We have a very comprehensive CLA and set of rules. The auditors were surprised by the scope of the documents. The effort required for the detailed examination of all texts was significantly higher than originally expected. The data volume of 33,000 employees was also a major challenge.

And what was the sticking point in the project?
The sticking point was clearly the analysis regarding age discrimination. SBB will continue to reduce the wage guarantees resulting from the new wage system accordingly. We were particularly pleased with the result of the analysis regarding equal pay for men and women. With a deviation of 0.3 %, we achieved a brilliant result throughout Switzerland. Conclusion: The certificate confirms SBB as a modern and attractive employer and rewards SBB for its long-term, consistent pay policy.