Pay gap crisis: Transparency works, no evidence of men’s salaries falling – Dellwyn Stuart

THREE KEY FACTS

• The gender pay gap in New Zealand has fallen from 16.3% in the late 1990s to 8.2% last year, but progress has slowed, according to the Ministry for Women.
• The gap is 4.2% when comparing only fulltime male and female workers.
• The gap is larger for older workers.

For those impacted by discriminatory pay policies and practices, the pay gap is indeed a crisis, as pointed out by Dame Theresa Gattung on November 30 – the day after which women effectively work for free for the remainder of the year.

This gap is real, and so is the way it hinders people’s ability to provide for their families and save for their retirement.

However, Bali Haque and Dr Michael Johnston suggested in their recent opinion piece (Herald, December 12) the pay gap is all down to the “motherhood penalty”, grafting a couple of international studies to support their case.

They further claim transparency can help – but may also reduce men’s salaries.

Their piece does not reflect the full picture in the way wide-ranging research done by Mind The Gap into the many different solutions at work around the world has done.

Not a single country has evidence men’s salaries fell as a result of pay transparency.

This work, now carried forward by the Pay Gap Insights Hub, continues to prove the impact of measurement and reporting, with 80% of organisations in New Zealand which have reported on their pay gaps for consecutive years showing a reduction in those gaps.

It’s clear: measurement, action plans and transparency all work.

In my work to close pay gaps over the past few years, I’ve yet to meet a business that sets out to have a pay gap. But when these companies actually do carry out the measurement, they almost always find such gaps.

In short, measurement matters.

Dellwyn Stuart says measurement and transparency is effective in efforts to close the pay gap. Photo / Doug Sherring

Yes, the causes of pay gaps are varied and some are more difficult to address than others. But businesses have many levers at their disposal and on the whole are keen to ensure their pay practices are fair for all their staff, regardless of gender or ethnicity.

Bali and Haque cite the “motherhood penalty” as some fundamental truth when it’s simply a domestic arrangement that suited the 1950s model of a man at work and a woman at home raising children.

We no longer live in these times and society is changing. Many young fathers want to participate in parenting to the same degree as mothers and are pushing to see our parental leave framework updated to reflect this.

Currently, 25% of employers on the NZ Parental Leave Register offer both parents the same leave entitlements and top-ups. By encouraging fathers to take leave, employers can help address the so-called motherhood penalty.

Numerous reputable research studies have identified that only 20% of the pay gap can be attributed to factors like type of work, education and experience.

So, yes, once you analyse and understand your pay gaps, you can start to see the specific drivers in your business – and begin to take action.

Many of our larger employers have significant pay gaps in their organisations – 20-30% (not the 8.2% national average).

And they know there are things they can change and are getting on with making this change happen.

Only someone outside the impacted groups could suggest this isn’t a crisis and then ring the bell of fear, saying – horror! – men’s salaries might fall.

I suggest Haque and Johnston need to spend some time with people who really understand these issues and are impacted by them, and to embrace the possibility we can change stubborn, out-of-date gender norms for the benefit of everyone.