Health check tool for the gender pay gap

Tue 16 Feb 2010

A free “quick health” check is now available for employers and their staff in monitoring pay and employment equity in New Zealand business.

The new self-assessment and monitoring tool launched today by the Human Rights Commission allows companies and organisations to work out whether they have a gender pay gap and what they can do about it. New Zealand has had a gender pay gap between men and women of about 12 per cent median hourly rates for the past decade.

“We know that fair and transparent pay and progression systems leads to better staff morale, engagement and productivity of skilled workers and allows high-turnover sectors to retain the staff they need”, says Equal Employment Opportunities Commissioner Dr Judy McGregor.

“This tool allows companies to judge for themselves whether they are being fair to all their employees. If your organisation has not undertaken a pay and employment equity review in the past this provides guidance about simple diagnosis and what adjustments may need to be made.”

Organisations such as public service departments, education and health sectors who have undertaken pay and employment equity reviews and developed response plans, can use the tool to provide key indicators to assess their implementation.

The release of the tool, Towards Pay and Employment Equity: A Self-Assessment and Monitoring Tool, comes as slow progress is being reported by the health sector in implementing pay and employment equity, says Dr McGregor.

The Commission’s annual scrutiny of how Crown Entities are reporting on their good employer obligations shows a lack of visibility given to pay equity despite a significant gender pay gap in the health sector.

The 21 DHBs, who employ around 80 per cent women, undertook pay and employment equity reviews and developed response plans with staff from January 2007 to April 2008. One DHB reported a pay gap of 31 percent on fulltime equivalent earnings.

Five undertook full reviews and 16 were involved in a verification process. However, the Commission has found no DHB reported ongoing work in relation to response plans in their last annual reports. Only half made reference to having an equitable transparent and gender neutral remuneration system.

“It is disappointing to see a slowdown in commitment to closing the gender pay gap in the health sector. We hope staff and managers will find the monitoring tool useful to pick up the pace”.

The Commission has urged the Government to set a minimum target of halving the gender pay gap by 2012 and eliminating it by 2020.