Q: I want to start with a simple question about the principle of equal pay for work of equal value. How is that, or is that practiced in your organization?

Yes, I think that is a key principle of compensation benefits administration here at AIIB. And it has been a principle for all of the organizations with which I have been associated for the last 20 years.

Q: Well, does that also form part of the management dialog in your organization?

In my current organization, the Bank has repeatedly articulated its commitment to equity, and obviously, as a grounding principle in our compensation and benefits program. It is something that we discuss and that we keep in mind. It is the foundation upon which all our HR practices rest.

Q: Is it well understood by the staff and management that those are the base principles that govern HR in your organization?

Certainly, I’ve been with the institution for three years now. And, in my work and in the projects and the initiatives that I have led over the last three years, we have sensitized staff and managers to this as a core principle and trying to help them to understand what it what it means and how it impacts all of the work that we do in HR and had it permeate the organization in general.

Q: How do you use job evaluation to kind of backstop or support the concept of equal pay for equal work?

For the past 13 months, we’ve been engaged in a job evaluation exercise, grounded in the belief that jobs are the foundation for everything else. By accurately valuing roles and creating a synchronized, equitable job-worth hierarchy, we ensure that all subsequent decisions reflect the principle of equal pay for equal work. We’re also pursuing Edge recertification, which includes annual reviews of gender equity and pay to uphold these values.

Q: How is your organization doing with regard to that?

Very well. We are far below the accepted standard of a 3% gap. With every assessment, our performance improves. Therefore, we are satisfied with our efforts to eliminate anomalies in pay gap analysis and gender-based pay differentiation.

Q: Do you find that your grading structure serves you well in terms of helping support career pathing and clarity around roles and so on?

The Bank is at a pivotal inflection point as it approaches its 10th anniversary early next year. Since its inception, the current structure has largely remained the same, with only a few additional grades introduced since 2016 to support career growth. While this structure has served us well, looking ahead to 2030 and our projected growth, it’s time to revalidate and adjust it to ensure it remains fit for purpose.

Q: The Bank is growing. You’ve doubled in size in the last couple of years, and you want to double again. So, your workforce becomes bigger and more multidisciplinary. Is the current structure still fit to support that purpose?

Well, I’ll let you know at the end of our exercise. But for now, we believe the current structure can accommodate both existing and projected roles. The key focus is ensuring clarity and consistency in how we evaluate and position those roles within the structure. So, while the framework itself is sound, we’re reassessing how we apply and sustain it moving forward.

Q: I understand the Bank is planning to go forward with more hub office locations like the one you have in Abu Dhabi. As you move away from the current models, which focus on international recruitment and international staffing, do you anticipate creating a complementary category of nationally recruited staff?

No, we do not. I can say that confidently.

Q: Last year, we had the pleasure of supporting your market assessment, helping define where the Bank aims to position itself within the international compensation landscape. As this remains an evolving process, how well do you feel the current methodology is serving your goals, particularly in attracting and retaining the talent you need?

The methodology continues to serve us well in maintaining our desired market position. As a global employer, we strive to remain competitive. Unlike some other MDBs, we’re not limited to recruiting from member countries—we draw talent from around the world. Today, our workforce represents over 70 economies, and this inclusive approach has supported our competitiveness and aligned well with our overall philosophy.

Q: Ultimately, the real test of any pay system is whether it enables you to reach the talent markets you’re targeting. It’s always a delicate story, especially given the volatility of the current economic climate. Do you feel the methodology you’re using is robust enough to navigate these challenges and maintain your reach?

We’re confident that our market posture and total rewards philosophy have been robust in getting us to this point. That said, we’re always evolving—continuously monitoring and assessing the market to make timely adjustments. Following our most recent exercise, we believe the updates we’ve made will help us stay competitive in attracting the global talent we’re aiming for.

Q: There’s an ongoing debate within the MDB community around compensation for front-office versus back-office roles. Some organizations support pay differentials within the same grade, while others prioritize a strict equal pay approach to maintain team cohesion. How is AIIB navigating this issue—does the Bank lean toward differentiated compensation or a unified, equal pay for equal work model?

At AIIB, we’ve remained firmly committed to the principle of equal pay for equal work, as workplace harmony is a key priority for us. Our pay ranges are designed to reflect and accommodate role differences, such as front-office versus back-office, without introducing hard distinctions. This approach allows us to fairly manage professional differences within a unified and equitable framework, unlike some organizations that have opted for more segmented compensation models.

Q: Each salary grade at AIIB has a defined range of pay. How does this range allow you to recognize differences in experience and knowledge within a particular grade? Do you feel it adequately acknowledges these factors as it should?

Over the past 12 years, I’ve been fortunate to work with organizations where pay ranges were broad enough to reflect differences in skills and job value, and AIIB is no different. Our ranges are sufficiently wide to accommodate staff along the continuum, allowing us to recognize and reward differentiated skills and the value each individual brings to the table.

Q: Are you seeking to be a career organization where the current structures can support people staying and measuring their development, and the candidates can anticipate building a career here?

Yes, the Bank is in its 10th year, and my colleagues in Learning and Organization Effectiveness are working diligently on building career ladders and defining opportunities. Over the past three years, we’ve promoted more than 40% of our staff, which is notably higher than most MDBs. Our goal is to ensure that staff understand the career opportunities available and know they can have a long, fulfilling career at AIIB.

Q: When providing career opportunities through learning and development programs, do staff perceive the Bank’s approach as equitable in how these opportunities are offered?

From my perspective, particularly with the annual promotion program I oversee, we’ve worked hard over the past four cycles to communicate the criteria for advancement. We’ve set clear thresholds, emphasizing both performance and readiness for the next level. While any organization goes through a period of growth and evolution, staff have become more comfortable with the process, though some still seek further clarity. We strive to consistently communicate the criteria and hold managers accountable for adhering to them when making promotion nominations.

Q: When it comes to recognition and reward, some organizations distinguish between skills growth (recognition) and performance (reward). Does AIIB differentiate between these two, or are they combined into a single assessment?

At AIIB, recognition and reward are closely linked, though we have distinct programs for each. For example, our Applause platform facilitates both peer-to-peer and manager-to-staff recognition for going above and beyond daily expectations. We also have financial reward programs, including high-performer awards and promotions based on performance. While recognition and reward overlap, we maintain separate initiatives, but both are integral to our approach.

Q: When recruiting new staff, do you have effective mechanisms in place to assess candidates’ experience and differentiate them in terms of recruitment ranking or starting salary positioning?

While I’m not directly involved in recruitment, the principles we follow align closely with those in many organizations I’ve worked with, including my experience in executive recruitment. When hiring, we consider efficiency, skill, and experience, particularly in the development space. We recruit from organizations with which we’re familiar, and our ability to attract talent is influenced by external market pressures, our location, and internal pay relativity. These factors guide how we position candidates and make offers.

Q: Given the challenge of forming an international workforce from diverse domestic markets with varying conditions, how do you ensure equity in positioning individuals, especially when salary history may not be a relevant factor?

For us, pay history doesn’t drive our offers. We’ve established grade levels and salary ranges for jobs, and we focus on the skills and value an individual brings to the table. An individual’s nationality or country of origin is not a factor in determining pay; it’s based solely on their proficiency and contribution.

Q: When managing a workforce through their career growth, how closely are the approaches for pay movement, learning and development, and promotion aligned or integrated?

To answer your question, AIIB is still growing and evolving, particularly compared to other multilateral development institutions. One of the strategic decisions that stood out to me when I joined was how the Bank integrated performance and reward into a single portfolio. Unlike many organizations that separate performance management from compensation and benefits, AIIB brings them together, signaling their close interconnection. As a result, our efforts to recognize growth, reward staff, and promote individuals are well integrated, and these factors play a key role in decisions around career advancement and pay increases. So, yes, they are closely linked.

Q: While you have solid frameworks in place, different occupations offer varying opportunities, which can sometimes be seen as an equity issue. How much counseling do you provide staff about realistic expectations, especially since some roles are core to the Bank’s function, while others may be more contingent? Are staff well-informed about what to expect in these areas?

AIIB is still an evolving organization, and many discussions are happening at both individual and departmental levels. Last year, we implemented a strong HRBP function, which is still relatively new. Our HRBPs have been working hard to provide counseling and coaching to both managers and staff. While I’m not involved in all these conversations, I’m available to clarify policies, intentions, and technical details. Ultimately, our HRBPs are on the front line and leading these discussions.

Q: As the Bank has grown and welcomed more members, how do you see its reputation and culture evolving, particularly in terms of fairness and workplace policies? How important is it for both staff and members that AIIB is perceived as a fair and equal place to work?

It’s incredibly important to us. In every interaction with our members and board, we emphasize and demonstrate, with data and insight, that fairness and equality are ideals we’re actively striving to achieve. This focus is at the forefront of all our workforce management efforts and will remain our guiding principle as we move forward.

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