Diageo’s HRD on diversity, inclusion and how they eliminated the gender wage gap
As the producer of Australia’s famous Bundaberg rum, Diageo is a global giant in the world of distilling.
The maker of well-known brands like Smirnoff, Guinness and Gordon’s gin, Diageo’s products are a drinks cabinet staple for most Australians.
But the company’s leadership team knows that with great brand power, comes great responsibility.
Diageo Australia has already eliminated its gender pay gap, as well as bringing parity to the executive team and senior leadership team.
Since 2019 the company has also had one of the most progressive parental leave packages in the world, offering 26 weeks paid leave regardless of status as primary or secondary carer.
In the same year, the company was awarded an Employer of Choice citation by the Workplace Gender Equality Agency for its market-leading advancements in gender equality.
HRD spoke to Geraldine Joanes, human resources director at Diageo ANZ, who said eliminating the pay gap was the result of sustained, committed work to change the expectations around gender.
“It has been a priority for everyone at Diageo, not just women, and we believe it benefits everyone,” she said.
“Culture isn’t what you’re writing on a deck but what people are experiencing around them and the types of leaders they have. It hasn't been easy to eliminate because change doesn't happen quickly.
“You have to be brave and help others to find meaning in the changes to be able to create that momentum.”
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Being ahead of the curve with bold, ambitious policies is central to achieving change and Joanes said the company’s parental policy is paying great dividends now.
“We've got three people at the moment who are seconded into more senior roles on our leadership team and that wouldn't have been possible before,” she said.
“But the policy is opening up more career development and cross-functional opportunities to work on things employees might not have tried before.”
It has sparked a greater rate of change which brings its own challenges for HR, but a wealth of benefits for employees and the business.
The company recently released its 2030 Spirit of Progress goals, a 10-year plan to create a more sustainable and inclusive world.
Those D&I ambitions include championing ethnic diversity among leadership, increasing representation to 45%.
Diageo has also committed to increasing the amount of supply chain businesses owned by women and minorities, as well as providing business and hospitality skills to 200,000 people through the company’s learning programs.
Joanes said these goals are at the heart of Diageo’s business strategy, rather than an HR-driven afterthought.
“Our business purpose is celebrating life, every day, everywhere - and that's what inclusion and diversity is too,” she said.
“It’s core to what our purpose is because if you celebrate life then you're celebrating all the differences and all the ups and downs that come with it.
“What that means for us in our workplace is that we’ve got a culture that we build, every day through our leadership, through the behaviours that we have, but also really importantly through the market-leading policies and practices that we put in place.”
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Importantly, Joanes says the company understands that D&I goes far beyond their employees.
As one of the biggest names in the alcohol game, Diageo has a huge amount of marketing power across Australia.
One of the key focuses now is evaluating how gender and diversity is portrayed within the company’s marketing, as well as taking a greater responsibility in supporting the agricultural communities which contribute to Diageo’s products.
“We’ve got a responsibility to the communities we work with and I think it gives people a real sense of meaning about their work,” Joanes said.
“It gives me a huge amount of energy and I’m so proud that this is the sort of work I get to do. From an HR perspective, this is the sort of stuff you dream of.”
