Catalyst Honors Gap for Pay Equity, Leadership Diversity

By Melissa Anderson

Gap, Inc. was honored last week with a Catalyst award for its achievements in building diversity and inclusion at the company. Not only has the company made strides in increasing the number of women in key leadership positions, it has also focused on improving opportunities for women of color.

Between 2007 and 2015, the company has increased the representation of women reporting directly to the CEO from 33% to 77%. Forty percent of those top level reports are women of color. Similarly, in the same time frame, the number of women serving on Gap’s board has increased from one to four, two of whom are women of color.

Women also lead four of the company’s five brands, and since 2007, the representation of women at the vice president level has increased from 44% to 49.7%.

“Equality is engrained in everything we do. For us, it was not only the right thing to do, but also a business imperative,” said Dan Briskin, VP of Global Employee Relations and HR Shared Services, Gap Inc., during a panel at Catalyst’s annual conference on Wednesday.

The company’s award-winning diversity initiative, “Women and Opportunity,” was made up of three key pillars, according to Heather Robsahm, Senior Director of Talent Management for Banana Republic, one of Gap’s brands. These include career mobility, results oriented work environments (ROWE), and pay equity.

The vast majority (83%) of Gap’s current female executives are promoted from within, and many, like Robsahm, come from the company’s field operation. As part of its career mobility pillar, Gap has created career readiness programs to ensure employees are able to build their skills and set their career trajectory.

“We have a deep bench for women who are poised the lead the company into the future,” Robsham says.

Instituting the ROWE has helped the company improve accountability and engagement, Robsahm says, and demonstrated that people can own their time and still be successful at their jobs.

Finally, in 2014, the company affirmed it had achieved gender pay equity across its global workforce of 150,000 people. When the company set out to track its workforce pay, executives expected they might come across some gaps, so the company set aside some money to make up the difference in pay for women. But after looking at the data and partnering with an external firm to verify the results, the company found it had no significant gaps and hadn’t needed to tap into the extra cash.

“When you are focused on paying people for the work they do, and you are focused on grappling to get the best talent and focused on paying the market rate for that talent, [pay equity] naturally follows,” Briskin said.

This was the first year Catalyst named only one award winner, which, conference organizers said, emphasizes the impressiveness of Gap’s achievements.

Leadership and Courage

Also speaking at the event was Marillyn Hewson, CEO and Chair of Lockheed Martin, the defense and technology firm that took in over $46 billion in revenue last year.

In a Q&A with Catalyst CEO and President Deborah Gillis, Hewson described her views on diversity. Several years ago, she noted, Lockheed’s senior management realized it needed to get more women and minorities into its leadership pipeline.

“It starts with leadership setting the tone from the top,” Hewson said. She emphasized the importance of taking meaningful action to build diversity.

Today 20% of Lockheed’s leadership and a third of its board are women. But earlier in her career, things were different, Hewson recalled. That’s why today she places such importance on mentoring other women, she said.

She recalled often being the only woman in the room coming up in her career and noted how difficult it can be to deal with negative comments or unintentional slights when there’s no one to share them with.

At one point she was greeted in an all-male meeting with a comment that the others were glad she’d arrived because they ‘needed a pretty face’ in the room. “I said, ‘I guess I’m in the wrong room because I have other things to do,’” she remembered.

“You can be caught off guard, and having the chance to talk to other women about those things makes a difference.”

Hewson chairs the diversity and inclusion council at Lockheed Martin, and requires business leaders to meet with her once per quarter to discuss their strategies and metrics on diversity. She expects them to share information on hiring, promotion and attrition with respect to the demographics of their division. The company has also recently made an effort to incorporate white men into the conversation on diversity, she revealed. Previously, this group had felt locked out of diversity efforts, she said, which was presumably doing more harm than good.

An audience member asked Hewson to discuss a quote by Gloria Steinem: “Women still require an adjective and males don’t.”

When will a woman CEO simply be referred to as a CEO, she inquired.

“This is my fourth year as a CEO, and I don’t get the woman question as much anymore,” Hewson said. “That’s why I want to talk about being a leader.”

She encouraged women who aspire to be leaders to be courageous and take difficult assignments that showcase their capabilities and experience.

“Importantly, you bring the character and integrity that the team needs,” she said.