15 July 2008

How much are you worth?

And how much does the other half earn?

New data shows that the equal pay debate in New Zealand remains a top equal employment opportunity priority in New Zealand.

Three sources show the need for further women’s action to close the current gender pay gap 35 years after the passing of the Equal Pay Act.

• The latest figures show that for every $1 earned by men in New Zealand today, women earn just 88 cents, according to the March Quarterly Employment Survey, 2008. In Australia women earn 84 cents.
• Pay and employment equity reviews in 39 Government departments and 21 District Health Boards show there are still significant cases of gender-based pay inequality with some women earning between 3% and 35% less than men. A significant finding was that women’s starting salaries are lower than men’s for similar jobs.
• Analysis of the 2006 Census education and training data shows the median annual income of men with a post-school qualification was $14,000 higher than for women. For people with a school qualification (about 75% of the population) the gender pay gap disadvantaged women to the tune of $10,000 and for those with no qualifications, men earned $8000 more than women.

EEO Commissioner Dr Judy McGregor says the equal pay story is grim.
“ What is shocking is that women starting work are still valued less than men despite significant women’s educational qualifications, their increased labour market participation and the fact that many women now don’t start having families and interrupted career paths until later in their working lives.

“I find it staggering that in 2008 women are not considered to be equal in terms of pay and often don’t realise that they are being paid less than men for the same job.

“The start-up gender pay gap is something that women and business can fix instantly if they have a mind to.

“Organisations should be making transparent pay scales and starting salaries so women know the going rate. Equally women should not start a job without insisting on knowing that they are being paid equally within organisations.”

Recently Women in Technology founder Carol Lee Andersen told the NZ Herald that men tended to be better than women at negotiating conditions. She urges women to be prepared when they go for pay reviews.

Many women don’t have the option of negotiating wages, including women in part time and low paid work. But for those who can, NEON provides women with top tips in negotiating an equal salary based on overseas research. While negotiation is only a tool, it is one that women must recognise and use, just as men have since work began. The tips are:

• Negotiate at starting salary time…it’s the easiest money you will ever earn, Australian professor Mara Olekalns says, “never, never accept the first offer”.
• Expectations matter, so set your sights higher rather than lower. Know what you want and don’t be afraid to go for it.
• Set goals because most women hate negotiating, so having a plan helps build confidence.
• Information matters and its your responsibility to find out about going rates, pay scales, and what men in equivalent jobs earn. Tap into formal and informal information sources. Deborah Kolb, an international expert on negotiation says, “knowing benchmarks, precedents is incredibly empowering.”
• Marshall your arguments into a defensible case to increase your legitimate claims and to arm yourself with counter claims. You are much less likely to make concessions if you really believe you have quality, definitive data and good arguments to back up it up.
• Have a Plan B which includes realistic alternatives so you are not forced into a “take it or leave it” position. Plan B might mean changing jobs, accepting what’s offered in the meantime or arguing for other conditions.
• Learn from your successes and your mistakes and bank your experiences in salary negotiations for next time.
• Practice negotiation skills such as listening, not getting emotional, being quietly assertive. Realise that everyone has a “moment of anxiety” in anticipation of negotiation but men are more likely to push past this discomfort.
• Help other women in your organisation and everywhere because the gender pay gap is systemic discrimination. Collective action by women makes a difference.

Equal pay for work of equal value is a fundamental human right. But in New Zealand we have a workforce of two halves in terms of pay packets. June 2006 figures show women earn only 84% on average compared with men. The gender pay gap has closed by less than ten percent in the past 20 years.  If this slow progress continues, it will be another 40 years before we achieve pay equity between men and women.

 

The Government is committed to a five year plan to improve the gender pay gap in health, education and the public service, and has established the Pay and Employment Equity Unit to drive change.  Read more about the Pay and Employment Equity Unit's approach to diagnosing equity issues, in the Crown Entities Advice section.

 

Click here for the Pay and Employment Equity Unit's 2005 Annual Report  The  site also has progress reports, Pay Equity tools and advice.

 

Click here for the EEO Commissioner’s comments on the Pay Equity figures.