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Home / New Zealand

Pay equity at work requires understanding and commitment to fairness

By Su Duffey - GM human resources Westpac
NZ Herald·
12 Sep, 2014 05:00 PM2 mins to read

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Photo / Thinkstock

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Pay equity has been in the news a bit recently. The topic can feel a little counterintuitive to some when women are graduating university in greater numbers than men, are equally represented in the workforce and are excelling more than ever before.

But it's undeniable that on average women are paid less than men. This isn't just due to a skew towards women in some lower-paid, unskilled professions. Even in a like-for-like situation, statistics show a woman will, on average, be earning 13 per cent less than a man in the same role with the same experience and capabilities*.

The problem with statistics is they are everywhere, and no one knows quite what to do to make things better.

But there are crusaders out there. YWCA Auckland is doing a great job of raising awareness of this issue and highlighting organisations making progress in addressing these gaps, through the YWCA Equal Pay Awards.

The great thing about working in NZ, even in our largest companies, is the opportunity to stretch, to give things a go. If you're good enough, you'll be well rewarded - and part of that should mean being paid what you're worth, but this isn't the reality.

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If our economy is to sustainably prosper we need diverse workforces that leverage all talent pools. This requires a fully inclusive work place, and that needs equity.

So what can businesses do to make a difference? The first step is to understand if you have a problem.

In general, women negotiate salary very differently from men (men are more likely to ask for more money), women are less likely to push for a promotion, and many people believe offering their employees flexibility will mean more effort and it's just easier to hire someone just like them. Learn to recognise these unconscious biases.

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The second thing you can do is make sure your managers treat everyone fairly. Be clear about what the business expects and put reporting in place to understand if you are living up to these.

You must ask yourself if you believe in equality and inclusiveness enough to actually do something. If the answer is no, you have work to do. If it's yes, congratulations, you are already contributing to a great New Zealand.

*New Zealand Annual Income Survey, October 2013

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