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Capital Magazine Examines "Women-Friendly Companies" in Its 12th Annual Survey

By Özlem Aydın Ayvacı

[email protected]

In Turkey, women earn 840 TL for every 1,000 TL earned by men for the same work. So, is a more equitable labor world without gender discrimination too utopian? While preparing the "Women-Friendly Companies" research for the 12th time this year, Capital Magazine also questioned the “equal pay for equal work” approach of each company and group. Although there is still a long way to go, it is noteworthy that many companies with a high ratio of women employees and executives have embraced the principle of pay equality.

“Jöfn kjör strax! Annad er bull!” These words in Icelandic, written on a banner held by a little girl during a women's protest, mean “Equal conditions now! Anything else is nonsense!” Icelandic women earned 14-18% less than men on average. When comparing wages, it was revealed that women essentially worked for free after 2:38 PM. In October 2016, Icelandic women walked out of work at 2:38 PM, demanding equal pay for equal work. Following this protest, the Icelandic government drafted a bill. According to the law voted on March 8, International Women’s Day, all employers with more than 25 employees are required to obtain a certificate proving they pay equal wages for equal work. By 2017, Icelandic women and girls had achieved equal pay for equal work in both the public and private sectors through their struggle. Switzerland also enacted a revised gender equality law requiring companies to have their gender pay gaps analyzed by an independent body and report the results to employees. In 2023, the European Parliament and European Council adopted a new EU directive reinforcing the principle of equal pay. EU member states have three years to incorporate this directive into their national laws. By 2027, companies will begin reporting and ensuring transparency on gender pay gaps.

Earning 20% Less for the Same Work

According to the International Labour Organization (ILO), women globally earn less than 80 cents for every dollar men earn. This figure is even lower for disadvantaged groups such as women with children, refugee and migrant women, and disabled women, especially those working in the informal economy. A report published by the ILO indicates that the gender pay gap in Turkey is 15.6%. This is an average figure, and the gap varies by age. For instance, the pay gap between men and women employees aged 20-29 is 3.8%, while it rises to 29.9% for those aged 60 and above. In Turkey, women earn 840 TL for every 1,000 TL men earn for the same work. So, is a more equitable labor world without gender discrimination too utopian? While preparing the “Women-Friendly Companies” research for the 12th time this year, Capital questioned every company and group’s equal pay for equal work approach. UN Global Compact Turkey Secretary-General Melda Çele says, “Companies can support gender equality and help women gain a fairer place in the business world by implementing equal pay for equal work policies.”

A PIONEER IN TURKEY

There are significant groups in Turkey's business world that support the approach of equal pay for equal work. Kibar Holding is one of the pioneering players in this area. Highlighting that they address gender and equal opportunity issues holistically, Kibar Holding CEO Haluk Kayabaşı states:

"Since we primarily operate in the production and industrial sectors, the majority of our employees are men. For this reason, we have been taking various actions for many years to increase the number of female employees in both white- and blue-collar positions. To increase the number of female employees at all levels—part of our sustainability commitments—we set performance targets at the general manager level and monitor our activities throughout the year.”

Kayabaşı emphasizes that all their practices and procedures are implemented to ensure gender and equal opportunity, adding, “We carry out processes such as salary, appointments, and promotions with this approach as well. Last year, we received the 'Equal Opportunity Model' certificate from KAGİDER for our HR practices that support women’s employment and provide equal opportunities for women in the workplace. This July, we also became the first holding in Turkey to receive the 'Equal-Salary Certification' from the Swiss EQUAL-SALARY Foundation, which independently evaluates wage disparities in organizations and awards this certification to companies meeting the necessary criteria.”

FIRST IN ITS SECTOR

Yıldız Holding became the first group in its sector to prove that it offers equal pay for equal work. Bahattin Aydın, Head of People and Business Support at Yıldız Holding, explains their equal pay approach as follows:

"Equal pay has been a matter of great sensitivity for us since our establishment. To officially document the pay equality between our male and female employees, we successfully completed the evaluation and review process conducted by the EQUAL-SALARY Foundation and became the first holding in the food and retail sector to receive the 'Equal-Salary Certification.' At the end of this meticulously conducted process, we were deemed worthy of the 'Equal-Salary Certification,' which is recognized worldwide as a document that adds value to employer branding."

Aylin İyicik, Human Resources Director of the Fiba Group, also emphasizes that they adopt equality as a core value, saying, "As one of Turkey's groups with the highest proportion of female employees, we ensure equality in our wage policies as well. We adopt an approach based on position, competencies, and areas of responsibility."

PAY EQUITY MATTERS

When we look at companies in Turkey with the highest female employment rates and ratios of female employees, retail leads the way. It is followed by service sectors such as banking, education, and healthcare. Neslihan Nigiz Ulak, Chairwoman of the Board of LEAD Network Turkey, evaluates wage inequality within the retail sector and notes:

"In Turkey, women in the retail sector are often employed in low-wage or minimum-wage positions, such as cashier, sales associate, or warehouse staff. As men dominate managerial roles, wage gaps also widen."

Migros is among the most prominent advocates and strict followers of equal pay for equal work. At Migros, 35% of employees in the highest pay quartile are women, while 52% of those in the lowest pay quartile are also women.

FLO Group CEO Yenal Gökyıldırım is a significant figure leading gender equality in the retail sector. Gökyıldırım explains:

"We have declared our commitment to not tolerating any form of discrimination in processes like recruitment, training, career progression, and wage management, as well as in the workplace environment. We have scrutinized our processes to ensure women participate in the workforce with equal opportunities, work according to the principle of equal pay for equal work, overcome unconscious biases like ‘women’s jobs’ and ‘men’s jobs,’ and take on managerial roles. We have audited our equal pay practices to confirm our fair wage policy."

Funda Temoçin, Deputy General Manager responsible for Human Resources at HSBC Turkey, emphasizes their zero-tolerance approach to discrimination, stating, "We do not tolerate any differences in pay among our colleagues under any circumstances."

IT’S NOT A TARGET, IT’S A MATTER OF DEMOCRACY

So, can the leading companies in female employment ensure pay equity? Elif Ateşok Şatıroğlu, Executive Committee Member and Vice President of Strategy and Business Development at Boyner Group, answers:

“We take pride in being among the top-ranking companies in terms of the number and ratio of female employees. However, we do not limit this success to numbers alone. One of our fundamental principles is to adhere to the principle of equal pay for equal work, ensuring that everyone is compensated proportionally to their position, responsibilities, and experience, regardless of gender. With this approach, we embrace gender equality not just as a goal but as a matter of democracy within our company and ecosystem.”

LC Waikiki leads its sector in female employment and ranks among the top three companies in cross-sector lists. At LC Waikiki, 44% of employees in the highest pay quartile are women, while 56% of those in the lowest pay quartile are also women. LC Waikiki General Manager and Board Member Berna Akyüz Öğüt explains:

“One of our top priorities is to create equal opportunities in our workplace. With programs that contribute to the career and personal development of our female employees, we support their advancement to higher-level positions within the company. Naturally, this is reflected in wages as well.”

DURATION AND PERFORMANCE MATTER

Many large-scale companies have committed in writing not to discriminate based on gender. Cenk Akıncılar, Deputy General Manager of Human Resources at QNB Turkey, states that everyone starts any position with equal pay at QNB Turkey. He adds that wages later vary based on the duration of service and performance in the role. CarrefourSA CEO Kutay Kartallıoğlu emphasizes their adoption of a fair and equitable wage system unaffected by gender. Hakan Öker, HR Group President at TAV Airports, states, “We embrace and implement the principle of equal pay for equal work. We have committed not to engage in gender-based discrimination.” Sabancı Holding’s HR and Sustainability Group President Yeşim Özlale Önen notes, “Under the principle of equal pay for equal work, our male/female pay ratio is 1.” Bosch Turkey, Middle East, and Africa HR Director Umut Güvenç Sonnenberg adds that the company implements a gender-neutral job evaluation process for every role to ensure pay equity. Hüseyin Coşkun, Senior HR Director at BSH Turkey, states, “We equally value all our employees.”

FAIRNESS IN PRODUCTION

What about the production sector? Ali Fuat Orhonoğlu, Country President of Unilever Turkey, explains: “At Unilever, we have a longstanding commitment to this issue. We believe in compensation based on clearly defined policies and performance. Our systems are designed to be gender-neutral.” Abdi İbrahim CEO Süha Taşpolatoğlu states, “In our compensation policy, wages are determined based on the skills and performance of employees for each position. Gender or demographic characteristics do not play a role in our compensation policy.”

Anadolu Efes CEO Onur Altürk shares that the company achieved full pay equity in 2023: “We verify this success each year with independent assurance declarations and maintain our commitment to this principle.” Mey Diageo is one of the companies working on the “glass ceiling” issue in Turkey. General Manager Bahar Uçanlar states, “We are a company without a glass ceiling for women employees in Turkey. We are working to extend the balance of male and female employees at our headquarters to our factories as well.”

Damla Birol, CEO of Türk Tuborg, highlights the results of their commitment to equal opportunities: “By the end of 2023, the ratio of women in the highest pay quartile was higher, while the ratio of women in the lowest pay quartile was lower.” Akkök Holding CEO Gökşin Durusoy explains their approach: “In line with the principle of equal pay for equal work, we determine our compensation policies, while placing equal importance on ensuring that hiring and promotions are based solely on performance and competencies, without any form of discrimination. We also include equality clauses in collective labor agreements.”

"WE HAVE A FAIR COMPENSATION SYSTEM"

AHMET ERDEM, SHELL TURKEY COUNTRY PRESIDENT AND SHELL & TURCAS CHAIRMAN

AWAY FROM PREJUDICE At Shell Turkey, 42% of employees in the highest pay quartile are women, while 38% of those in the lowest pay quartile are women. We have fair compensation strategies that are free from prejudice. Within this strategy, we implement a pay and reward system that is completely independent of employees' gender, race, and other characteristics.

INTERNAL AUDITWe ensure that our key processes, such as recruitment and performance evaluation, are fair and objective. Our compensation processes are aligned globally under the same strategies. Therefore, it is impossible for candidates or employees to experience any form of differential treatment in processes such as recruitment or promotion for any reason. We also review our fair compensation processes through our internal audit mechanisms to ensure their implementation.

"WE APPLY IT WITHOUT EXCEPTION"

YILMAZ YILDIZ, ZURICH INSURANCE GENERAL MANAGER

NEW ENTRIES AND INCREASES In both our new recruitment compensation processes and during salary increase periods, we apply the equal pay for equal work principle without exception. Zurich Group’s Diversity, Equality, Inclusion, Belonging (DEIB) approach, implemented globally and locally, supports and monitors gender equality and opportunity equity not only through demographic analyses but also through wage fairness analyses.

MEASUREMENT EVERY YEAR Since 2019, through our annual Equal Pay Process, we measure whether male and female employees in the same or similar roles are paid fairly, and report the results to the Zurich DEIB team. This ensures that gender is not a criterion in determining pay at Zurich Insurance.

TARGET FOR EVERY MANAGER Each of our managers has targets focused on maintaining gender equality in processes like recruitment, career management, and promotion as part of their annual goal-setting. 47% of employees in the highest pay quartile are women, and 66% of those in the lowest pay quartile are women. This ratio is due to our recent focus on hiring more women graduates.

"THE NUMBER OF FEMALE PILOTS WILL INCREASE"

GÜLİZ ÖZTÜRK, PEGASUS AIRLINES CEO

EQUALITY IN BOTH OPPORTUNITY AND PAY In our recruitment processes, as long as there is a proper match between the job and the candidate, we do not take differences such as language, race, citizenship, or gender into account. We are implementing new practices to ensure equal opportunities.

MORE WOMEN We believe that more women should work in the aviation sector. We aim to lead our industry in gender equality. We have clearly stated our intention and efforts in this area. We are the first airline in the world to join the UN Women’s Empowerment Principles (WEPs) platform. Increasing the proportion of female pilots, engineers, and technicians is also one of our goals. We currently have 99 female pilots, representing 8.1% of our pilot workforce. The progress made in female pilot representation is a significant development for aviation.