It has been one year since we launched our inclusive growth strategy, which focused on three priorities: strengthening leadership accountability, creating opportunity for all and building a workforce that is representative of the clients and communities we serve. Together, these priorities are designed to translate inclusion into measurable business outcomes through clear governance, consistent delivery, and greater accountability.
Over the past year, we have focused on building the foundations to deliver this strategy. We have further integrated our inclusion priorities into our business through the re-launch of our Partner Diversity Council, now comprised of our 14 People Network Partner Sponsors and chaired by our Chief People Officer (CPO), Phillippa O’Connor. It is designed to embed two-way dialogue between our colleague communities and our Executive Committee (ExCo) and to ensure diverse voices are considered in leadership decision-making. We’ve also invested in improving access to opportunity by launching a firmwide sponsorship framework, progressing our work to better support parents and carers, and taking forward actions to improve the experience of colleagues with disabilities, neurodivergence, and long-term health conditions.
Additionally, this year marked the first year of our 2030 partner diversity targets. We implemented a number of reporting and accountability changes into our Lines of Services to help position us to sustainably progress against those targets year on year, including introducing a new Inclusion KPI for FY27. This quantitative measure will form part of the annual performance process for Business Unit Leaders and is designed to strengthen accountability for delivering our Inclusive Growth ambitions. The KPI brings together three measures: the diversity of senior hiring, proportionality of promotion outcomes relative to the diversity of each Business Unit, and inclusion and belonging scores. As the owners of the firm, equity Partners represent our most senior leadership population. We believe this provides a transparent and meaningful way to measure progress and hold ourselves accountable for improving representation at the highest levels of the organisation.
This year, 19% of promotions to Partner were from an ethnic minority background, up from 15% last year. However, only 26% of promotions to Partner were women, which means we will have to accelerate our progress in the next few years to achieve our goals.
Creating an inclusive culture continues to be a shared responsibility across the firm. Throughout the year, our ExCo and senior leaders actively supported our People Networks and key inclusion events, reinforcing the importance of inclusive leadership and visible sponsorship.
Our progress continues to be recognised externally. During the year, PwC was named one of The Times Top 50 Employers for Gender Equality, ranked a top 25 employer in the Social Mobility Employer Index, recognised as a Beacon Employer in the Parental Fog Index, and received recognition through the Black Excellence Awards.
While we are encouraged by the progress we have made, we recognise there is more to do. As we move into the second year of our Inclusive Growth Strategy, we remain focused on strengthening accountability, removing barriers to opportunity, and accelerating progress towards our 2030 ambitions.
We have reported our gender pay gap for more than a decade and our ethnicity pay gap for ten years. We have also voluntarily reported our disability and socio-economic background pay gaps since 2021, and our sexual orientation pay gap since 2022. We are proud of the high levels of voluntary disclosure across our workforce, enabling us to take a robust, evidence-based approach to understanding colleagues' experiences and measuring progress over time.
Our pay gaps are an indication of the representation of different demographic groups across grades. Increasing diversity at senior levels remains fundamental to closing them over time.
It is important to note that pay gaps are different from equal pay. Pay gap reporting measures the difference in average earnings between groups across the organisation and is primarily influenced by representation at different levels of seniority. Equal pay is about ensuring people receive equal pay for equal work or work of equal value. We remain committed to this principle and undertake an annual equal pay review, taking corrective action where required.
For our combined Staff and Partners population, we are pleased to report continued progress, with reductions in the mean pay gaps for gender, ethnicity, and disability. Mean pay gaps for sexual orientation and socio-economic background increased marginally by 0.6 and 1.4 percentage points respectively. Our median pay gaps also improved for gender, disability, sexual orientation and socio-economic background, with ethnicity being the only characteristic to increase slightly.
Looking at our Staff population only, the picture is broadly positive, though we recognise we still have a way to go. Mean pay gaps decreased for gender, ethnicity and sexual orientation and increased slightly for socio-economic background (0.6 percentage points), while median pay gaps improved across all five diversity characteristics. The disability mean pay gap increased by 1.6 percentage points, despite the median disability pay gap reducing by 0.7 percentage points. This indicates that while pay outcomes improved for colleagues around the middle of the organisation, lack of representation at the highest-paid levels continues to influence the overall average.
Closing diversity pay gaps requires more than action on pay alone. Pay gaps are influenced by who joins the firm, who progresses, who stays, and whether everyone has equitable access to opportunity throughout their career. This means inclusion, representation, and pay equity are intrinsically linked, and meaningful progress depends on taking a holistic approach.
Many of the actions outlined below have been embedded across PwC for a number of years and continue to support colleagues from a wide range of backgrounds and protected characteristic groups, not only women or those experiencing menopause. Together, they help create a more inclusive workplace where everyone can thrive and progress.
We have also introduced several new actions that reflect the next phase of our Inclusive Growth Strategy. These focus on strengthening accountability, increasing transparency, improving the consistency of promotion and progression processes and equipping leaders and managers to better support colleagues at key moments in their careers. While presented within our Gender Action Plan and Menopause Action Plan, these actions form part of our broader ambition to build a more inclusive workplace and improve outcomes for all.
In a period of rapid change and growing complexity, our commitment to inclusion remains unwavering. We are focused on attracting and retaining diverse talent, building teams that reflect the breadth of the clients we serve, and fostering an inclusive culture where everyone can fulfil their potential. This enables our people to build trust and help solve important challenges in society.
As part of this report, we are pleased to share our Gender Action and Menopause Action plans voluntarily this year, reflecting our commitment to transparency, accountability and continued progress. These plans set out the steps we are taking to strengthen accountability, improve experiences, and support a more inclusive workplace for women and colleagues affected by menopause, while also addressing diversity gaps across the firm. PwC’s approach is not a new or standalone initiative; it builds on a long-standing commitment to wellbeing, inclusion and enabling people to stay well, progress their careers, and perform at their best.
Offer mentoring, sponsorship and other development programmes (embedded)
We continue to provide mentoring, sponsorship and targeted development opportunities to support progression, particularly for underrepresented groups. Examples include central sponsorship guidance and toolkits, targeted support for Senior Manager and Director progression, and development programmes that help colleagues build networks, access guidance and increase visibility.
Enhance and promote flexible working and leave policies (embedded)
We continue to promote flexible working and leave policies that support colleagues to balance work with personal responsibilities. Examples include hybrid working, empowered flexibility, holiday, maternity and paternity leave, carers support and special working arrangements.
Review policies and procedures to meets the needs of employees (embedded)
Menopause support is embedded within our broader sickness absence, wellbeing, occupational health, flexible working and inclusion frameworks rather than treated as a standalone issue. We continue to review resources, guidance and support routes so they remain responsive to colleague needs and aligned with wider expectations on gender equality, wellbeing and sustainable careers.
Marco Amitrano
Alliance Senior Partner, PwC UK & Middle East
Phillippa O'Connor
Chief People Officer, PwC UK