Thank you for your interest in reporting your pay gaps!
Pay gap reporting is a simple business performance calculation that can improve talent utilisation, attraction and retention. It can also identify any pay equity issues an organisation may need to correct (refer Equal Pay Act 1972, amended 2020).
Publishing your pay gaps has proven effective in retaining and attracting talent and is considered a trust indicator, providing the impetus to narrow and close pay gaps.
It is the difference between the earnings of two groups of people
For example, the gender pay gap compares the median hourly earnings of women and men in full and part-time work.
So, if an organisation has a gender pay gap of 20%, this means that the [men] earned 20% higher median hourly pay than the women in the organisation.
The Māori pay gap and Pacific Peoples’ pay gap need to be reported as the link between our gender, ethnicity pay gaps and our child poverty crisis needs to be addressed with urgency. “Material hardship rates are much higher for Māori and Pacific children/ethnicities (23-28%) compared with that for European or Asian children/ethnicities (6-10%).
(Child Poverty in NZ Report prepared by Bryan Perry)
About Pay Gaps
What is a ‘Pay Gap’?
Why does measuring our pay gaps matter?
Gender and ethnicity pay gap measures show who has access to the higher-paying roles in an organisation and who works in areas that attract higher salaries.
Research shows that much of the gap can not be explained other than by conscious or unconscious bias or discrimination.
(Ref: Empirical Evidence of GPG in NZ - Gail Pacheco1*, Chao Li1 and Bill Cochrane2- March 2017)
By measuring and closing the gaps, as a country we will ensure we are utilising all of our talent, all of the time.
Paying someone less for the same job is illegal under the Pay Equity Act 1972. In calculating pay gaps it is common for employers to find pay equity issues.
New Zealand law requires “that men and women doing work requiring the same, or substantially similar, skill, effort, responsibility and working conditions are paid the same”.
New Zealand’s Equal Pay Act legislation (1972 and subsequent amendments)
In breaching this law and failing to resolve breaches with urgency, employers can face hefty fines and prison time.
Who needs to make plans to know and close their Pay Gaps?
Board Directors, Chief Executive Officers, Chief Financial Officers, all Managers, particularly People and Culture Managers, and Business Owners.
Who needs to pay close attention to, and encourage the closing of, our company Pay Gaps?
Employees, Investors, Owners, NZX, our Government, Recruitment Agencies, the Media and anyone who is ever likely to buy something….!
How to Calculate Pay Gaps
Sign up to Report
To sign up to report in Aotearoa New Zealand’s first ever Pay Gap Registry, please complete this form here.
Upon completing the form you will be contacted by email to arrange a 30-minute Zoom call to discuss where your organisation is at on your pay gap journey, and given the opportunity to ask any questions. Once you’re ready to report, send us through the link to your external website and we’ll update the Pay Gap Registry with your details. It will look like this:
More Information & Support
If you’re keen to report your pay gaps, but you’d like some assistance with the calculations, we’d be happy to connect you with our strategic partners.
Strategic Pay
Gender At Work Community
If you need more information about the campaign or would like material to support your organisation’s journey to reporting, please contact nina@mindthegap.nz.
Hear from Business Leaders
David Mclean – former CEO, Westpac New Zealand
Marc England, Chief Executive, Genesis Energy
Joe Consedine, General Manager NZ Regions at Chartered Accountants Australia New Zealand