Introduction
VMware International Unlimited Company is required to annually review and publish its gender pay gap information under the Employment Equality Act 1998 (section 20A) (Gender Pay Gap Information) Regulations 2022. We welcome this legislation that encourages increased transparency around gender pay gaps and are committed to taking long-term action to reduce our gender pay gaps. We are also pleased to report on some improvements this year. Below, we detail our progress, our gender pay gap results for 2023, factors contributing to our pay gaps and measures we will take to help further reduce these.

Gender pay gaps versus equal pay
The gender pay gap shows the difference between the average (mean and median) earnings of men and women employees and is always expressed as a percentage of men employees’ earnings. It does not make allowances for differences in job role or seniority and aims to show demographic imbalance in a workforce. Equal pay on the other hand, requires men and women doing the same or similar work to be paid the same. Equal pay in employment has long been a legal requirement in Ireland and is required across our global business.

VMware's findings for 2023

We are pleased to report that various categories of our gender pay gap analysis have shown improvement. Underrepresentation of women in our Ireland business remains the primary factor contributing to our gender pay gaps, although we are pleased to have achieved a hiring increase of women engineering new hires into our talent pipeline (particularly in our Professional 1 and Professional 2 Product Engineering roles).
Below are the results of our 2023 gender pay gap analysis:

  1. The difference between the meanhourly remuneration of men and women employees: 6.7%
  2. The difference between the mean hourly remuneration of part-time men and women employees: -47.2%
  3. The difference between the mean hourly remuneration of men and women employees on fixed-term employment contracts: 19.1%
  4. The difference between the median hourly remuneration of men and women employees: 12.9%
  5. The difference between the median hourly remuneration of part-time men and women employees: -50.0%
  6. The difference between the median hourly remuneration of men and women employees on fixed-term employment contracts: -32.4%
  7. The difference between the mean bonus remuneration of men and women employees: 0.1%
  8. The difference between the median bonus remuneration of men and women employees: 14.2%
  9. The % of all men and women employees who were paid a bonus: 97% and 96% respectively
  10. The % of all men and women employees who received benefits in kind: 93% and 92% respectively
  11. The % of all men and women employees who fall into each of the following remuneration quartile bands:
    • Lower quartile: 45% women; 55% men
    • Lower middle quartile: 38% women; 62% men
    • Upper middle quartile: 32% women; 68% men
    • Upper quartile: 31% women; 69% men

Identified Gender Pay Gaps
We are encouraged that this year’s findings show various reduced mean and median gender pay gaps, particularly for our full-time, indefinite term employees. However, we acknowledge that gender pay gaps still exist in our Ireland business and that there’s more work to be done. Our analysis of the data suggests that the following factors have materially contributed to this year’s identified pay gaps.

  1. Job Levels:

    1. VMware’s Individual Contributor job level comprises most of the Ireland employee workforce and includes a broad range of roles from interns to senior technical staff. Pay gaps continue to be driven by lower representation of women in the highest paying Individual Contributor roles.
    2. Individual Contributor roles are comprised of 35% women in comparison to management roles, which encouragingly comprise of 45% women employees. Typically, strong representation of women in management roles would result in a small or negative gender pay gap (i.e., a finding that women’s average remuneration is higher than men’s remuneration), but it doesn’t in VMware’s case because our Individual Contributor level comprises most of our roles in Ireland.
    3. We’ve assessed that our mean pay gaps are reduced in part due to having more women employees than men employees in our most senior level roles in Ireland. However, VMware acknowledges that there is still further progress to be made to increase representation of women employees across our leadership teams and notably in Ireland, across our Individual Contributor level where there are more women employees in the less senior roles.

  2. Job Families:

    Our Customer Management job family in Ireland continues to have disproportionately more men employees than women employees, whereas Business Planning, Finance and HR job families continue to have more women employees. We also found underrepresentation of women employees in our Ireland Product Engineering job family, which is a trend we still see across the Tech industry.

What measures is VMware taking to address its Gender Pay Gap?
The factors contributing to VMware’s pay gaps in Ireland indicate that measures are needed to help increase representation of women employees across all levels and departments in our Ireland workforce. Below, we have included details of measures that VMware is taking in Ireland to address its identified gender pay gaps.

  1. VMware’s goal to hire more women to improve representation of women employees in Ireland and globally:

    To better champion women representation in our Ireland workforce, as well as globally, our ongoing aim is that over 1 in 3 hires (37%) will identify as a woman. To help achieve this:

    1. all VMware leaders, including those in Ireland, at Senior Director level and above, have had Diversity Equity and Inclusion (“DEI”) goals as part of their management objectives, which have been linked to their bonus objectives. Some of these DEI goals have been focused on increasing representation of women in VMware’s hiring processes by using consistent, objective, inclusive and sex/gender-neutral candidate interview slates;
    2. all VMware global job requisitions have at least one candidate on the interview slate who identifies as a woman, or the hiring manager will be required to engage in a review process with the relevant VP or above on why it was not possible to meet the candidate interview slate on their requisition. The VP or above is expected to use this review to coach their team member on the ways they can meet this candidate interview slate requirement on future requisitions;
    3. reports are run to see how many requisitions are in "Guided by Outcomes” (“GO HIRING”) format, which entails a description of the performance outcomes, not the ideal characteristics or qualifications of a candidate;
    4. all interviewers are encouraged to go through the “GO HIRING” interview training and VMware’s recruitment process follows the structured “GO HIRING” interview format, which aims to be less biased and more inclusive to encourage broader and more diverse representation in our future workforce; and
    5. VMware advertises many roles as being available on a flexible or remote working basis by default, which can help to increase the number of applications by women.

  2. Our Power of Difference communities (“PODs”) to address underrepresentation of women across VMware globally, including our Ireland workforce:
    We continue to recognise that giving people a discussion space, including for issues experienced by women in our Ireland workforce and globally, could help to attract more women candidates in Ireland, and help to enhance women’s employee experience, engagement, professional growth and retention. Our Women@VMware POD continues its aims of encouraging women hired by any VMware location to discuss and share experiences and to provide ideas and suggestions on how VMware can continue promoting opportunity and positive career experience for its women employees.

  3. Our local initiatives in Ireland to address overall underrepresentation of women in our Ireland workforce:
    In Ireland, our local women’s Employee Resource Group initiatives aim to increase representation of women in our Ireland workforce, such as our ongoing return to work programme focusing on reskilling or upskilling women who have been out of the workforce for a period of time, to help them transition back to, or to start a career in Tech.This year we also ran a Women Reboot programme which enabled two women to get certifications for a Tech career. We are delighted that these two participants are now employed in the Tech sector.

  4. Increasing representation of women in Ireland’s technology industry to address underrepresentation of women in our Ireland workforce:
    We remain clear in our view that it will take time and ongoing commitment to increase representation and retention of women across all parts of our Ireland workforce, which in turn should help further reduce our pay gaps. Accordingly, VMware is continuing its measures at the grassroots level to encourage more women into Tech. In addition to our increased new hires of women in our Ireland engineering organisation, VMware has continued to sponsor iWish for the past 9 years, where it has been involved in showcasing the opportunity of STEM subjects for young women to help encourage more young women to make STEM subject choices for their higher education and beyond. VMware has also continued with its Women in Tech and VMWomen programs.

    VMware has continued to actively support CoderDojo, another fantastic organisation offering local programming hubs and classes in Cork for 5th and 6th class primary school age girls to help generate early interest and capability in coding amongst girls.

    VMware further promotes STEM subjects for women in Ireland with its annual competition for students in the local community who are studying STEM at 3rd level by offering a first and runner up prize for the best essay and interview on the theme of Tech as a “Force for Good”.

    Additionally in Ireland, VMware ran a project from 9th December 2022 with three local schools. 18 young women from these schools were selected to build an application for the benefit of their local community over a period of 12 weeks, with engagement and support from VMware’s employees. The aim was to develop these young women’s – and their peers’ – interest in STEM subjects, particularly in the field of technology engineering. Through this initiative, these young women have acquired technical knowledge and had the opportunity to compete in an App design competition.

    Our Women at VMware employee initiative also ran various courses intended to promote leadership skills such as our “Influencing with Authority”, “Keys to Succeed in Difficult Conversations” and “Learning & Development Opportunities for New & Existing VMware Leaders” courses. As more women progress in our organisation, these courses aim to help foster and develop their career progression into leadership roles.

Final thoughts
We are pleased to see progress for this reporting year with the reduction of some of our gender pay gaps across our Ireland business. However, there is still much work to be done. We remain committed to improving representation, retention and development of our women employees, as well as ensuring equal opportunities for all within our company.

Signed:
Belinda Hamilton-Crisp,
HR Business Partner UK & Ireland
On behalf of the board of VMware International Unlimited Company