Equity & Diversity Annual Report – 2019 Introduction

This is the 32nd Equity & Diversity Report of the Reserve Bank of Australia (the Bank), covering the reporting period of 1 July 2018 to 30 June 2019.

Our Approach to Diversity

The Reserve Bank serves the Australian public. Accordingly, we aim to create and support a workplace that is both reflective of, and relevant to, all Australians. Australia's diverse population provides the Bank the opportunity to engage an equally diverse workforce who are committed to upholding the vision and values of the Bank. To ensure we achieve this ambition, we work to create an environment that is fully inclusive of all people and respects the individuality each of our employees adds to the Bank.

This report provides an annual review of our workforce diversity profile and the take-up of inclusion-focused initiatives throughout the past year.

Statement of Commitment

The Bank's Diversity and Inclusion Statement of Commitment outlines our commitment to:

• promoting an inclusive and collaborative culture by ensuring employees are treated fairly and equitably in line with the Bank's values
• fostering the inclusion of women, various age groups, people with a disability, people of diverse cultural backgrounds, Indigenous Australians and LGBTI (lesbian, gay, bisexual, transgender and intersex) employees within our workplace
• equitably enacting the Bank's policies, including those in relation to workplace conduct, leave, flexible work arrangements, grievances, performance management, remuneration, recruitment and selection
• providing equal employment opportunities for all current and prospective employees based on their ability and performance
• developing a deep and diverse pool of well-trained potential leaders in order to increase the diversity of people who hold management positions consistent with its gender diversity target for 35 per cent of management roles to be held by women by 2020.

Roles and Responsibilities

To create a fully inclusive workplace, we encourage a culture of diversity, engagement, flexibility and participation. We set and articulate clear expectations around behaviours. All staff undertake annual training in Code of Conduct and Workplace Behaviours and managers are expected to recognise appropriate behaviours. All employees are encouraged to speak up if they experience, or are aware of, any practices or behaviours that do not promote inclusion.

Executive Committee

The Bank's Executive Committee is the key governing body responsible for the strategic direction of the Bank's equity, diversity and inclusion practices.

Diversity and Inclusion Council

The Diversity and Inclusion Council (the Council) is chaired by the Deputy Governor and comprises sponsors and chairs of the six Employee Resource Groups (ERGs) and the Head of Human Resources. The Council meets quarterly and makes recommendations on equity, diversity and inclusion matters to the Executive Committee and the Governor. The Council also monitors and evaluates Diversity and Inclusion initiatives and activities implemented across the Bank and assesses progress in achieving the Bank's diversity goals.

Employee Resource Groups (ERGs)

The Bank's ERGs were created to focus on issues of diversity and inclusion in six specific areas. Participation in the ERGs is voluntary and over 200 employees are active members of the groups. The ERGs are widely viewed as a valuable resource by both leaders and employees.

Each group is led by an Executive Sponsor and Chair. The groups meet monthly to plan and review initiatives, policies and guidelines. ERGs also interact with similar groups in other organisations to share learnings, experiences and resources.

The ERGs are responsible for specific aspects of diversity and inclusion, namely:

• Accessibility
• Flexibility
• Gender Equity
• Indigenous Australians
• LGBTI+ Allies
• Race and Cultural Identity

While ERGs work independently of one another, groups frequently collaborate on initiatives that intersect across two or more groups to ensure the highest level of involvement by the Bank's employees.

Executive management

Executive managers – Deputy Heads of Departments and above – are responsible for ensuring equity in activities such as recruitment and selection processes, performance assessments, development opportunities, remuneration outcomes, flexible work requests and leave applications. Executive managers are responsible for promoting and upholding the Bank's policies and values within their areas.

Managers and supervisors

Managers and supervisors are responsible for taking active measures to promote diversity and inclusion in their work areas as well as steps to prevent discrimination, harassment and exclusion. Managers and supervisors are expected to have a comprehensive understanding of policies and processes relating to diversity and inclusion, and promptly and effectively deal with any issues.

Employees

Employees are expected to ensure their actions in the workplace are consistent with the Bank's values and principles for diversity and inclusion and are encouraged to speak up if they witness or experience behaviours that contravene our policies, or practices that may exclude others.

Employees are encouraged to participate in initiatives and activities organised by ERGs. Employees are involved in researching relevant issues, planning and organising events and promoting the work of the ERG. The Bank further supports involvement by allowing ERG work to be conducted on Bank time.

Strategy and Policy Initiatives

The Bank is committed to promoting an inclusive and flexible workplace that encourages diversity of people, ideas, experience and approaches to work. Inclusion is promoted regardless of gender, age, race, disability, religious beliefs or sexual orientation. The work environment should enable employees to balance their career, family and community commitments. During the reporting period, the ERGs have been instrumental in developing and promoting policies and guidelines relating to accessibility, flexibility and parental leave arrangements. Work has continued on implementing the Bank's Reconciliation Action Plan and raising awareness of diversity and inclusion issues more broadly. More detail on the activities of the ERGs is provided later in the report.

The Bank conducts an annual analysis of the gap in wages paid to men and women. This work shows that the gap between the average full-time equivalent salaries of males and females has declined from 16.6 per cent to 13.3 per cent over the past two years. The gap continues to be largely explained by the fact that women occupy a greater proportion of positions at lower levels and a lower proportion of senior positions compared with men. In recognition of this, the Bank is committed to increasing the representation of women in senior management.

Creating Opportunities

The Bank has again partnered with CareerTrackers and My Gateway to provide internships and traineeships to Indigenous students. One former CareerTrackers intern has taken up part-time employment at the Bank and one trainee was successful in achieving a permanent role in the Banking Department. Five Indigenous trainees commenced the program in 2019.

Two further internships were provided to students through the Australian Network on Disability's Stepping Into program. These internships enable students with a disability to gain valuable workplace experience over a four-week placement at the Bank.

Training and Awareness

In addition to the annual requirement to undertake Code of Conduct and Workplace Behaviours training, the Bank provides all employees with access to SBS's Cultural Competence Program, an online learning program aimed at raising awareness of issues related to workplace inclusion.

The Bank also engaged David Widders, an Anaiwan man from Armidale NSW and an expert in Indigenous culture and history, to present half-day training sessions. These sessions were available to all employees.

The six ERGs continue to raise awareness by hosting events related to days of celebration and significance. Functions have been held to mark events such as Lunar New Year, Eid al-Fitr, NAIDOC Week, Global Accessibility Day, International Women's Day, Wear It Purple Day and several others. Activities are promoted throughout the Bank and are well supported by employees.

External Membership

To ensure the Diversity & Inclusion Program remains current, the Bank maintains awareness of external equity, diversity and inclusion practices through membership of various organisations. These memberships provide access to information, consultation and guidance in our approach to specific issues and initiatives.

During the reporting period, the Bank renewed its membership in Pride in Diversity, a not-for-profit employer support program on LGBTI workplace inclusion, and Diversity Council Australia, a not-for-profit diversity adviser to businesses in Australia. The Bank also renewed its Silver Membership with the Australian Network on Disability, a not-for-profit organisation that aims to advance the inclusion of people with disability in all aspects of employment, and the NSW Equal Employment Opportunity Practitioners' Association.

The Bank has also renewed membership of the Australian Mathematical Sciences Institute to help improve the representation of women in Science, Technology, Engineering and Mathematics (STEM) disciplines.

Data Collection

Equity and diversity information is sought from employees when they commence employment at the Bank and refreshed during their period of employment. It is provided on a voluntary basis, and includes information on disability, indigeneity, ethnic origin and proficiency in languages other than English. The Bank's equity and diversity statistics are based primarily on these data.

For potential employees of the Bank, job application forms contain an equity and diversity questionnaire, providing the Bank with a better understanding of the applicants from a diversity perspective. The questionnaire facilitates any reasonable adjustments that might be required, both during the recruitment process and in subsequent employment.