Our Approach to Equity in the Workplace

Pay Equity and Internal Labor Market Analysis

At American Water, we are committed to providing all employees with equitable pay and fair employment practices. American Water regularly reviews pay equity to ensure that our pay decisions are based on the talents and skills of our employees, and do not reflect factors such as gender, race, or ethnicity. 

The results of our most recent and third pay equity review, completed by an independent third-party consultant, show the progress we have made. As the chart below illustrates, men and women in our nonunion workforce are currently paid within 1% of each other. When comparing the pay of our racially or ethnically diverse employee populations, we have reached pay parity for Hispanic and Asian employees compared to their white counterparts. However, we know we still have work to do. Our review also revealed that pay for our Black employees compared to their white counterparts (see chart below) rendered a difference of slightly above 1%. 

We are committed to using these results to continue to improve our employment practices and provide education and data to our people leaders to support pay decisions   made across the company every day, as we continue to make progress towards our goal of 100% pay equity across all employee groups.   

As a part of our commitment to hire, retain and develop our talent, we also engaged a third-party independent consultant to conduct an Internal Labor Market Analysis. The Internal Labor Market Analysis evaluated talent flows and impacts of hiring, promotion, performance reviews, pay and retention over a six-year period for our employee population. The analysis identified strengths we can build upon such as our proven ability to build talent within the organization and our strong representation of women at senior levels. 

We also identified improvement opportunities in our performance management and career development employment practices that impact our turnover, promotion and diversity. This information will help us address inequities and enhance processes to further promote equitable pay, development, and advancement opportunities for all employees.