Deloitte Salary Benchmarking

Deloitte is one of the “Big Four” accounting firms in the world, known for its services in auditing, consulting, tax, and advisory. When it comes to salary benchmarking and addressing the gender pay gap, Deloitte has taken various initiatives to promote transparency and diversity in the workplace.

Deloitte’s method for determining a gross salary

Deloitte salaries are made up of a variety of distinct parts based on the position and level.

The most common parts are:

• Base pay is the regular pay received by an employee, before any bonuses or other incentives are added.
• Payed once a year, a bonus is determined by both individual and company success.
• The majority of the salary for positions of greater seniority (such as a Partner) will often come from profit sharing.

Developing a Single Figure standard

Deloitte’s view is that “fair and reasonable” can be best established by analysis of the current situation and developing a
set of standards based on a responsible positioning within defensible norms. The Single Figure standard should be built
up with the following components:

• Total guaranteed pay that reflects the median of the market, for different company size groupings to set the base; and
• Performance variable pay, with its two components of the Annual Cash Incentives and Long Term Incentive that reflect current market practice regarding on-target mix in relation to Total Guaranteed Pay.

They advocate a more holistic approach to stakeholders when evaluating total executive pay. The Single Figure should be the
primary consideration in targeting or evaluating pay. Thus, they have attempted to establish a Single Figure standard considering the current market for executive pay and in terms of “fair and reasonable” market practice on pay mix.

How Deloitte leverages salary benchmarking

• Internal talent management:

Deloitte also applies benchmarking data to its own talent management practices. They use it to ensure that their compensation packages remain competitive in the industry. This helps Deloitte retain its own high-performing employees and maintain its reputation as an attractive employer.

• Market insights:

Deloitte’s extensive benchmarking data provides them with valuable market insights. This information allows them to anticipate market trends and adjust their own business strategies accordingly.

Gender pay gap

Deloitte, like many leading companies, recognizes the importance of addressing the gender pay gap. They have implemented strategies to promote gender equality in the workplace. This includes conducting regular pay equity analyses to identify and rectify any disparities between genders. Deloitte has also been transparent about its gender diversity initiatives, publishing reports on their progress in reducing the gender pay gap and increasing female representation in leadership roles.

Deloitte’s commitment to addressing the gender pay gap and promoting gender equality is indeed noteworthy. Here are more details about Deloitte’s initiatives in this regard:

• Regular pay equity analyses:

Also, Deloitte conducts periodic pay equity analyses to assess whether there are any disparities in compensation between genders within the organization. Therefore, these analyses help identify areas where gender-based pay gaps may exist, allowing Deloitte to take targeted actions to rectify any imbalances.

• Transparency and reporting:

Deloitte places a strong emphasis on transparency regarding its gender diversity initiatives. They regularly publish reports detailing their progress in reducing the gender pay gap. Specifically, these reports often include specific data and metrics, demonstrating Deloitte’s commitment to accountability and measurable results.

• Equal opportunities for career advancement:

Beyond addressing pay disparities, Deloitte focuses on providing equal opportunities for career advancement to all employees, regardless of gender.

This includes initiatives such as leadership development programs, mentorship opportunities, and clear pathways for career progression.

• Mentorship and sponsorship:

In addition, Deloitte promotes mentorship and sponsorship programs that help women advance in their careers. These programs often pair junior employees with more experienced mentors who provide guidance, support, and networking opportunities.

Sponsorship goes a step further, with senior leaders actively advocating for the career advancement of women within the organization.

• Diversity and inclusion initiatives:

Moreover, Deloitte’s commitment to gender equality is part of a broader diversity and inclusion strategy. They recognize that diversity extends beyond gender and aim to create an inclusive workplace where all employees feel valued and empowered.

• Targeted recruitment:

Furthermore, Deloitte may implement targeted recruitment efforts to attract a diverse talent pool, including women, at all levels of the organization.

This can include participating in diversity-focused career fairs and partnering with organizations that support gender diversity in the workplace.

• Employee Resource Groups (ERGs):

Deloitte often has Employee Resource Groups or networks dedicated to supporting and advancing women in the workplace. These groups can provide a sense of community and advocacy. Hence, Deloitte’s multifaceted approach to addressing the gender pay gap and promoting gender equality demonstrates a commitment that goes beyond mere compliance with regulations. They actively work to create an inclusive work environment where all employees, regardless of their gender, have equal opportunities for growth and advancement. 

Year-on-year comparisons (2022)

The presence of a gender pay gap at Deloitte may be attributed to the underrepresentation of women in higher-level roles within the organization, relative to their male counterparts. As of April 5, 2022, the representation of women among their partners and directors, who hold positions with the highest levels of compensation, were at 25% and 34% respectively. This indicates an increase over the previous year, when the figures were 23% and 30% for partners and directors respectively, as of April 2021. This demonstrates a promising development in relation to grades associated with higher levels of compensation, with the expectation that this trend will contribute to the ongoing reduction of the wage disparity.

As of September 2022, the proportion of women in Deloitte’s total staff has increased. From 44% in September 2021 to 45%. The company has achieved notable success in promoting gender diversity during the current year, with a special emphasis on junior positions. Nevertheless, the progression of these women inside the business will need a considerable amount of time. Certain measures being implemented to address the disparity in the long run may have immediate negative consequences. For instance, augmenting the representation of women in graduate and student admission programs may initially influence the gender disparity.

Nonetheless, if we look closer at the data from their report, at FY2022, they lack a good representation of women on Deloitte Global’s Executive Committee and among partners, principals, and managing directors. Both with a respective percentage of 23% and 25%. They plan on getting to 40% and 30% representation, respectively, by 2025.

Summary

In summary, Deloitte’s approach to salary benchmarking combines data analytics, industry expertise, and strategic advisory services to provide clients with valuable insights into compensation practices. They use this information to enhance their own talent management practices and maintain their position as a leader in the industry. Deloitte’s commitment to staying at the forefront of compensation trends benefits both their clients and their own organization.

If you liked the article, go check out our salary platform and register for free!