As the home of possibilities, at Wayfair, we are committed to embedding diversity, equity and inclusion into every aspect of our organisation —across every team and initiative.
This is shown in our compensation philosophy, which is driven by a centralised, global compensation team tasked with maintaining market competitiveness and mitigating pay bias. To achieve this, our team strives to create compensation structures that reward performance through competitive salaries and structures that include base pay, bonus and shift premiums (if applicable), and equity compensation (from a certain seniority level).
Our compensation approach is tailored differently for our corporate versus frontline employees to ensure we offer market competitive rates and retain our talent. For example, in April 2022 we introduced a tenure-based pay model for our customer service employees. This compensation model does not only help ensure employees doing the same work with the same length of service get paid equitably, but also allows us to equally reward employees for their long-term commitment to Wayfair as an employer.
UK Gender Pay Gap Results 2022/23
Gender pay gap results show the difference between the average pay of men and women across our UK-based workforce, but they do not account for all differences in role, performance, tenure, level, or other relevant metrics that drive compensation at Wayfair. Nevertheless, these results help us identify areas in which we can continue improving to ensure we are building an equitable and inclusive workforce.
Based on April 2022 data, Wayfair UK’s gender pay gap results show a mean pay gap of 5.1% and 5.9% at the median, a small improvement from last year’s results. In terms of bonus pay, however, we observe widening gaps - in favor of men for the mean gender pay gap and in favor of women for the median gender pay gap. The difference in mean and median are due to a higher percentage of our employee population being men employed in our warehouse locations, who tend to receive lower bonus pay in comparison to the rest of the employee population.
Additionally, our analysis found that around half of the average pay gaps in hourly pay are driven by equity compensation. The value of equity as included in the calculations is driven by the share price at the time of vesting. This means that the continued appreciation of our stock price in the period between April 2020 and April 2021 contributed to differences in pay for our equity-eligible employees.
At Wayfair, We Are Always Improving
Our results this year point to a persistent pay gap in favor of men, which we will continue to address. For example, we’ve identified the representation of women among leadership slightly decreased YoY from 2021 to 2022, pointing to a continued need to partner with our diverse Talent teams to identify opportunity areas to ensure we attract, hire and retain women in leadership across our organisation.
At Wayfair, we are committed to enabling an inclusive culture, where every employee, future and present, is seen, valued, and invited to contribute to a thriving global community.
