2021 Avaya UK Pay Gap report

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At Avaya, we look for and seize opportunities tobring about positive social, environmental andeconomic change.”—Jim Chirico, Avaya President & CEO

Our people are the driving force behind our every success, and we pave the way for them to grow, develop,and win. Facing a historic pandemic and the global challenges to home and work lives, Avaya employees faced
the last 12 months together; harnessing past successes to focus on creating a strong sense of belonging andconnection. Continuing our people-first commitments, we expanded on our Diversity focus to launch our first
Diversity, Equity, Inclusion and Belonging strategy and content.
Never before has the Avaya workplace been more flexible, supportive and inclusive. We are shaping what’s
next for the future of work with our solutions that deliver game-changing business benefits – particularly for
professional women who have an ever-growing suite of tools to join in and drive the Avaya workplace.

We’re looking, listening, learning and building on those lessons. This is our 4th UK Pay Gap Report and builds on
our year over year successes. Avaya operates in an industry and sector with historic gaps in gender employmentand pay. In addition to this report, our regular internal analyses and benchmarking allow us to set goals while weevaluate the success of our efforts to reduce and improve those historic pay gaps.

Avaya UK Pay Gap Reporting1

This report includes analyses designed to assist in the ongoing identification of national gender gaps in pay.
As defined by the UK gender pay gap reporting requirements, and maintaining the consistency of our priorreports, Avaya UK provides the following data:

Our results

The following figures show themean (average) and median(mid-point) gap. These identified
gaps continue to be monitored
by Avaya and show an increaseover our prior report.

Show an increase over our priorreport partially driven by attrition
and the inclusion of drasticallydifferent roles and seniority in asingle analysis.

Count64

Gender pay gap in hourly pay2
234

Mean Hourly Pay
54.37

Median Hourly Pay
41.42

43.37

35.73

MaleFemale

Mean Gender Pay Gap

Median Gender Pay Gap

20.2%13.7%

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2While the mean hourly pay for females continues to increase, the rate and skill of attrition for males in part, led to
an increase in the measurable gaps.

Contributing factors include:
While we see an increase in the representation if females in leadership, greater than 86% of male employees haveworked for Avaya for more than 15 years; with seniority and salary increase eligibility impacting wages.
As is the case for our peers in the industry, the high percentage of males in the competitive fields of sales andtechnology further influence this metric.

As noted in prior reports, the coupling of both sales (variable, or sales-commission based) and non-sales (salaried)compensated roles contributed to the reported gap and is further impacted by the number of males in seniorleadership roles.

Specifically, when we repeat the calculations for non-sales (salaried) roles, capturing the majority of the females at
Avaya UK, we see a significant reduction in the defined gap both for the current period and year over year:

7.4%

Mean Gender PayGap

2.9%Median GenderPay Gap

Bonus Gender Pay Gap:

20.3%

81.3%

Mean Gender
Pay Gap

Median Gender
Pay Gap

Count23103

Mean Hourly Pay
30.7

24.5

Median Hourly Pay
4.6

Maleavaya.com

24.6

Female3Here again, the definition of “bonus” combines both sales (variable, or sales-commission based) and non-sales(salaried) compensated roles. The opportunity for a “bonus” for a sales employee has dependencies including
the market and customer purchases while salaried roles have access to potential incentive based on the overall
corporate performance and individual personal performance.

The percentage of females in commission-based roles has a dramatic impact on these measurements. The results
are further impacted by the inclusion of inactive employees who may not be eligible for bonus payments and thepercentage of males in senior or executive roles with additional bonus eligibility associated with their roles.
When we repeat the calculations for sales (variable, or sales-commission based) roles alone, we see:

-9.8%

Mean Gender Pay Gap

17.1%

Median Gender Pay Gap

During this reporting period, company performance had a direct impact on the amounts and eligibility forbonuses. The differentiation in bonus mean and eligibility is directly tied to the percentage of females in sales
versus non-sales roles.

Proportions of Males and Females
Receiving Bonus Payments

44%

35.9%

MaleFemale

Again, when we repeat the calculations for sales (variable, or sales-commission based) roles alone, we see:

Proportions of Males and Females
Receiving Bonus Payments

98.6%

100%

MaleFemale

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4The table below shows the distribution of males and females across the Avaya pay bands or levels. It should benoted that the majority of roles are management level. As stated earlier, there is a higher percentage of males in
the organization and a higher percentage of longer-term employees are male.
Distribution of men and women across pay quartiles:
Lower Quartile

Lower Middle
Quartile

Upper Middle
Quartile

Upper Quartile

Male

53

59

55

57Female

21

15

20

8Total

74

74

75

75

28%

72%

20%

80%

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27%

73%

11%

89%

5Additional key measures:

Review of our overall staffing changes during the reporting period revealed many
positive changes including:

31%of Avaya UK’s current female
employees were hired within thelast 5 years; clearly highlighting
Avaya’s continuing commitment
to increase female hiring.

58%of Avaya UK’s female employees
have a record of 2 or more years
of top performance in the last
5 years; 32% of Avaya “StrongPerformers” in 2020 are female.

Attrition for females is half thatof males at Avaya UK.

25%

25% of new hires to Avaya UK arefemale, an increase over prior years.

What have we learnt since our last report?
Engaging our employees and managers in a transparent
dialogue is the key to “moving the needle”. This year, in addition
to Avaya’s global communications, all leaders of UK staff
participated in specific forums to better understand this report,
the pay processes and tools available to increase equity across
job titles. Further, prior reports were reviewed during countrywide briefings available for live participation and replay.

Internal analyses again highlighted that females continue
to be consistent high performers and innovators. At Avaya,
we regularly measure and reward our high performing staff.
Employees receive regular performance feedback and an annualperformance rating in one of four possible categories.
In a continuation of the positive trends, this year we note that
58% of females achieved Avaya’s highest ratings at least 2 of thelast 5 years.
Likewise, the number of females in supervisory roles continues torise; in non-sales roles it is at its highest level in years.
Females are among the most visible members of the Avaya UK
leadership team and are regularly recognized internally andexternally for their successes.

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6How did we build on that learning?

At Avaya, we build Experiences that Matter. From our cutting-edge collaboration tools to our global forums
and employee engagement opportunities, we are building a community where inclusion and belonging spark
innovation every day.

While we know that, globally, Avaya’s representation of females in the workforce and in leadership roles is on parwith (or in some cases better than) our peers in the industry, we strive to continue to evaluate our practices andengage in meaningful action to address identified gaps. Avaya is a diverse and inclusive business operating witha global equal opportunity policy, which can be found at the following link: www.avaya.com/AvayaScripts/ga/track-pdf.html?f=/en/documents/fy19-avaya-eo-global-non-discrimination-policy.pdf

The strength of that policy is underscored by the Avaya UK programs and policies that promote equal opportunityand equal treatment including, but not limited to:▪ Flexible work arrangements▪ Regular monitoring of performance expectations,feedback, compensation and staffing▪ Rotational programs to increase training andopportunities for high-potential new hires▪ Global Reasonable Accommodation/WorkAdjustment program including lactation and religious
accommodations▪ Multiple family leave of absence options andpayment packages▪ Dedicated, independent Equal Opportunity andCompliance departments with confidential andanonymous issue reporting available to employees
globally.

▪ Remote and work from home policies▪ Employee assistance and work-life balance programs

We continue to accelerate our growth and initiatives specifically targeting gender equity and reducing identified gaps.

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As in the past, we would like to highlight a few exciting Avaya Inc. and Avaya UK initiatives in support ofour efforts this year:
Dynamic real-time learning – Avaya invested in Blue Ocean Brain to launch dynamic multi-modal
micro-learning to all employees on Diversity, Equity, Inclusion and Belonging topics including Allyship,Bridging the Gender Gap and What it’s like for Women of Color at Work.
Leading and innovating in Remote and Hybrid work – Avaya Female leaders presented global
content with our partners at The Female Quotient in a live public virtual event presenting on The
Equality Lounge: The Great Returnship to Work including topics from Hybrid Work Will Be the NewNorm for Many to How Flexibility Weighs in the Search for Talent; providing real-time content andguidance for women preparing to return to post-pandemic workplaces.
Connecting Women in Tech – Avaya UK hosted a premier event for female and ally industry peers
including a workshop delivered by She Rises on Coaching, Confidence and your Career.
Global Diversity, Equity, Inclusion and Belonging activity – This year, we hired our Head ofDiversity, Equity, Inclusion and Belonging and launched our Global Diversity, Equity, Inclusion andBelonging Council and Committee; regularly bringing together senior global leaders from across thebusiness with representatives from Diversity, Equity, Inclusion and Belonging Employee Resource Groups.

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Woman’s Initiative at Avaya (WIN@A) - a voluntary, company-sponsored and employee-led employee
resource group that serves as an inclusive forum to facilitate interaction and organize activities supporting
female empowerment and leadership. By providing a platform to engage in open dialogue and share
perspectives, Avaya strengthens the foundation for a culture of diversity and inclusion that is fundamental
to the company’s core values. Just a sampling of the WIN@A events include:▪ Avaya First! LinkedIn Live Event on ‘How Avaya is Helping Empower Women in Technology’ with CHROFaye Tylee▪ Women in Leadership Virtual Academy - 4-part series (with Leading Edge)▪ IAUG Women in Tech Podcast & Webinar▪ Healthy Mind Toolkit – Multiple Mental Health support presentations by www.Magellanascend.com▪ Partnered with the Avaya Blacks Leading Empowerment ERG, to host a Fireside Chat with
Unapologetically Ambitious author Shellye Archambeau for all employees

Avaya UK continued to lead the global Avaya community in commemorating International Women'sDay, extending the campaign to include a month-long celebration featuring forums for women andallies and a robust social media campaign celebrating the many technology advancements madeby women. This year, WIN@A members across the region joined the global #ChooseToChallenge
movement sharing how they challenge the status quo and themselves every day.

Giving and supporting women in our communities – As the impact of the pandemic spread acrossworkplaces, women were disproportionately impacted around the world and benefitted from hybrid
and virtual work-from-anywhere opportunities. Avaya stepped in to provide low and no-cost products
and solutions to support businesses and front-line workers. With our long-time partner Save theChildren, Avaya UK employees raised money and did community service to fund safety improvements
for girls’ schools in Afghanistan.
We confirm that our data has been calculated according to the requirements of the Equality Act 2010
(Gender Pay Gap Information) Regulations of 2017. Questions can be referred to HR at the following email:oconnell@avaya.com.

Ena Hunter

Legal Director, Avaya UK, Ireland, Nordics and Israel
October 2021

10/21 • MIS15721EN

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