Pay disparity affects women at all levels of the career ladder.
YWCA initiative rewards trail-blazers in addressing issue.
Two years after running the Demand Equal Pay campaign to raise awareness around equal pay, the YWCA organisation is taking that campaign one step further with a business-friendly initiative to recognise trail-blazers in New Zealand for equal pay.
Pay disparity is still common across all sectors, affecting women at all levels of the career ladder.
"Our ambition is to showcase winners of the YWCA Equal Pay Awards as thought leaders in this space, inspiring positive change," says Susan Doughty, director of dsd Consulting and on the panel of four judges. The awards are open to businesses and organisations in public or private sectors who have joined the journey to equal pay.
"While larger organisations may have the resource and infrastructure to tackle the issue head on, we're confident there are a number of smaller, progressive businesses who have made equal pay a priority and who also have a great story to share," says Doughty.
But why are some New Zealand women still paid, on average, 13 per cent less than men for doing the same job, and with the same skills?
Many reasons are cited, says Doughty. Often there's a genuine lack of awareness that a gender pay gap exists. Disparity can occur from the commencement of employment. Males often are more aggressive in negotiating higher starting rates than females.
"Unconscious bias' also plays a significant role in the equal pay issue. This can occur in how we view performance, promotion and suitability for a role. Research reveals that women are often promoted on performance, while men are promoted on potential."
The impact of women wanting to work flexible hours and taking parental leave is another factor contributing to pay inequity. Women on parental leave often miss out on annual salary reviews, resulting in their pay rates being at least one step behind their male counterparts doing the same job.
Doughty refers to research by Harvard University economics professor Claudia Goldin, which highlighted a key factor contributing to pay disparity: that women have traditionally placed more value on flexibility and sought more compatible work/lifestyles. This can include not being on-call, working reduced hours and taking parental leave.
Goldin's research highlighted that pay gaps for graduates are small to begin with but widen considerably in the 30-40 year brackets as flexibility becomes a major factor.
"On ramping and off ramping" [as parental leave is called] can mean women miss out on perks and benefits during this type of leave break, such as incremental salary reviews, training and career development.
Some organisations have started to ensure that females (and males) who choose to step out of the workforce for parental leave are still awarded these benefits, so they don't re-enter their roles disadvantaged.
Fellow judge, director and strategic change consultant Galia BarHava-Monteith agrees the issue of pay parity is complex.
"Another perspective links with the work of the Productivity Commission ... which has identified quality management processes as an area where some industries fall behind in New Zealand."
She says when management and human resources processes are transparent and well-articulated, women do better, in terms of pay and advancement into senior positions.
To ensure pay parity, BarHava-Monteith says women employees need to do their homework, talk to people and extend their own networks to make sure they are well-informed about what roles are paid and for what skills. They can join networking groups and check the negotiation advice on the website of the National Advisory Council on the Employment of Women.
The YWCA has already received entries from some high-profile organisations and it hopes that by showcasing the winners as thought leaders, they will inspire positive change. And the spinoff for companies viewed as good corporate citizens is that they tend to attract and retain good staff and customers.
The awards criteria calls for entrants to demonstrate that they are planning to, or have put into action, processes, cultural intent and commitment to addressing equal pay within their organisation.
Positive steps
What employees can do:
• Research how to be a better negotiator.
• Know their worth. Research the pay/salary their skills and experience should attract.
• Have frank, open discussion with their bosses if they are considering flexible working conditions or parental leave.
• If they take parental leave, ensure they are included in annual salary processes, promotion rounds and benefits management.
For more information go to: www.ywcapayequity.org.nz