Closing the gender pay gap
Firms are taking action on pay parity, writes Joanna Mathers
It’s 2017 and the gender pay gap is still with us. According to the most recent government statistics, women in New Zealand earn 12 per cent less than men — for every dollar earned by a man, a woman earns 88 cents.
Additionally, as of last December only 13 per cent of New Zealand companies had female directors — down five per cent from 2015.
The stats are pretty disheartening for people trying to achieve equity in the world of work, but a recent survey undertaken by human resources (HR) firm Robert Half reveals that most Kiwi businesses are committed to doing something about it.
Independent research commissioned by the firm has revealed that 82 per cent of New Zealand HR managers acknowledge there is a gender gap in their organisation. Ninety-seven per cent of HR managers in the 100 companies surveyed have processes in place to actively close the gender pay gap.
Megan Alexander, the general manager of Robert Half in New Zealand, says that companies cannot afford to miss out on the benefits of a diverse workforce.
She says that gender pay disparity is something employers are right to be concerned about.
“Women in New Zealand are more ambitious than ever and are competing in the employment market on the same level as men. Pay disparities should be concerning to any company.”
Alexander says that one of the best ways to attract top female talent to the workforce is by offering competitive salary packages that reflect the experience and skills of the candidates, not their gender.
“An individual’s work ethic and ambition, regardless of their gender, needs to be rewarded with a competitive salary to match the results and value the professional brings to their respective company.”
Companies are taking a range of measures to address gender pay parity. According to the Robert Half research, 30 per cent of the 100 companies surveyed had implemented a pay transparency system.
“Examples include employees having a better understanding of their company’s compensation practices, how the employment market affects high-demand positions and what salary data companies use to determine pay level,” says Alexander.
The same number had implemented a system where promotions where linked to fixed pay rises.
Other measures include salary audits, monitoring promotion and pay rises, and the elimination of salary negotiations when jobs are starting. Only 3 per cent of companies questioned said they had no measures in place.
Alexander says though it’s disheartening the pay gap still exists, it is being chipped away, albeit slowly. “According to government statistics, the gender pay gap in New Zealand has been steadily reducing, which is encouraging for female professionals everywhere,” she says.
“In 1998, the pay difference was 16.3 per cent. In 2016 it was down to 12 per cent, which is an encouraging figure for the future of women in the workplace. But there’s still a lot of work to do before women reach pay equality.”
She says closing the gender salary gap not only promotes ethical business practices, but can also lead to higher productivity, as competitive and fair remuneration policies tend to lead to higher-performing staff.
By offering attractive salaries based on skills and experience, businesses are able to land and retain top talent — male or female.
Alexander says companies who take measures to close pay discrepancies, such as implementing transparency, are well-placed to promote themselves as an attractive place to work.
A company’s brand — the face they show the world — is increasingly important in a competitive employment market. A commitment to diversity — of gender, racial or sexual — is a key company selling point for many skilled job hunters.
Alexander says some women are still quite hesitant to ask for pay rises in case it leads to an awkward situation with their employer. Research indicates men tend to be more assertive around pay, but Alexander explains the current competitive employment climate should encourage top performing women to be more confident when bargaining.
But it’s ultimately the responsibility of the companies employing these women to take the initiative when it comes to ensuring they are paid the same as their male counterparts.
“The companies need to ensure their employees are being paid fairly and accurately for the work they do and contribution they make, regardless of their gender,” she says.