Weir firmly believes in fair reward practices for all employees, who are considered to be a key asset in the company’s overall activities[1]. As part of this commitment, paying a living wage is considered a basic working condition. This is why Weir undertook a thorough assessment of its wage levels and structure in all its markets to align with the Fair Wage Network’s living wage benchmarks.

The journey to certification began in the second half of 2023 when Weir partnered with the Fair Wage Network to evaluate its global pay rates. The certification process involved a systematic review of pay structures across all Weir locations to ensure compliance with living wage standards.

First, the process required Weir to submit for analysis detailed, anonymized pay data from all its locations. Second, on the basis of these data, the Fair Wage Network conducted a thorough review of living wage gaps, while Weir addressed any observations or queries raised during the assessment.

While the outcome was overwhelmingly positive, the FWN did identify a small number of instances in which pay adjustments were necessary. Over the following months, the wages of the workers concerned were increased to bring them into line with the living wage standards, while ensuring that distortions were not thereby introduced into the overall wage grid. This upward wage adjustment for workers most at risk was a key step in ensuring compliance with the Fair Wage Network’s benchmarks.

The certification process required a collective effort, and support from Weir’s HR community and business leaders, who played a crucial role in implementing the necessary changes based on the Fair Wage Network’s recommendations.

To sustain its living wage commitment and prepare for the FWN global assessment, Weir established a robust digital tracking system to monitor compliance across all business units. This tool allows HR teams to regularly compare employee salaries with the Fair Wage Network’s living wage thresholds and to make any necessary adjustments.

In key regions, localized wage studies were undertaken to tailor the living wage strategy to specific economic conditions. This approach ensures that Weir’s compensation framework remains fair and competitive in all its markets.

During its 2023–2024 pay review process, Weir collaborated with FWN, sharing anonymised wage data on all its employees. This ‘living wage gap analysis’ was conducted in two key steps:

1. Analysis of wage thresholds: FWN assessed whether Weir employees were all paid at least the local living wage. In so doing, the FWN also retained only the wage components that were considered legitimate in the wage package – that is, only guaranteed sources of income such as the basic wage, a thirteenth month payment, if applicable, or other fixed bonuses. Overtime payments and variable pay, for instance, were typically not retained in the calculation.
2. Employee surveys: Randomized worker surveys were conducted in various business units – short anonymous questionnaires delivered to employees in their local language – to confirm that employees were indeed receiving wages at or above the living wage benchmark.

Following successful completion of these steps, which ensured that 100 per cent of workers were being paid at least the living wage, Weir was officially granted the FWN Global Living Wage certification.

Living Wage certification reflects Weir’s commitment to fairness and equity, and its belief in providing a fair reward to all employees, no matter where they are in the world. Being a Living Wage employer also offers a number of other advantages:

• Employee satisfaction and motivation: When employees feel fairly compensated, they feel more valued and respected, leading to higher job satisfaction and motivation. It gives employees a sense of being part of a company that ensures a living wage, fostering an inclusive, diverse and equitable workplace culture.
• Enhanced employer brand: Certification enhances Weir’s reputation as an employer committed to fair pay, ethical practices and social responsibility. For stakeholders, including customers and shareholders, certification reinforces Weir’s value as a sustainable employer.
• Alignment with core values: Certification reflects Weir’s commitment to fairness and equity, reinforcing its core value of doing the right thing for its employees and stakeholders. This living wage commitment is rooted in the recognition of human rights and aligns with Weir’s approach to sustainability and social responsibility.

Weir views fair pay as a fundamental element of employee well-being, productivity and retention. The aim is thus to integrate responsible compensation strategies into its business model, ensuring that employees receive equitable pay in line with evolving economic conditions, even in periods of economic crises.

To maintain its certification, Weir has pledged to further strengthen its internal monitoring and wage data tracking system, and to conduct similar external wage assessments in the future. The extension of this policy to suppliers will help to ensure full coherence in this pay policy across its supply chain.

https://www.global.weir/newsroom/global-news/2024/weir-receives-certification-as-a-global-living-wage-employer/

The Weir Group PLC’s Post

https://www.facebook.com/share/p/1L77BVUtfd/

[1] For Weir’s remuneration policy see: https://www.global.weir/careers/your-weir-career/rewards-and-benefits/