Twice the bonus for women: Rocket Lab defends recruitment referral programme

Rocket Lab has come under fire for offering a referral bonus to staff that pays twice as much if the company hires a woman rather than a man.

But the space company says the scheme is designed to attract more women to the male-dominated industry.

A woman – whose name was supplied but withheld for privacy reasons – approached the Herald to say a male acquaintance who worked for Rocket Lab had given her the inside word on the Kiwi-American company’s referral programme.

Rocket Lab principal manufacturing engineer Janelle Keeble. The firm says it needs proactive affirmative action measures, like the $4000 referral bonus, to move the industry's global average of 80% male staff. Photo / Jason Oxenham

“He informed me that Rocket Lab has a programme for employees who bring someone to work for Rocket Lab as well. If the person stays at Rocket Lab for at least three months, the employee who brought them gets a bonus of $1000.

“Where it gets unsettling is that if the person brought to work at Rocket Lab is a woman, the employee who brought them gets $5000.

“When I was told about this I was appalled and I felt sick. Being a woman myself if I found out that I had been encouraged to work somewhere so that an employee could get a larger bonus because I’m a woman, I would feel completely objectified and violated.

“While it is important for women in Stem [science, technology, engineering and maths fields] to be empowered and supported, this is just putting a price on women. Rocket Lab has created its own way of objectifying women.”

Rocket Lab responds

Morgan Connaughton, Rocket Lab’s Auckland-based vice-president, marketing and communications, confirmed the programme, with slightly moderated amounts.

The Rocket Lab referral bonus is $2000 and is paid after the new team member completes three months of employment. This bonus could be boosted by up to $4000 for referring women or gender minority candidates for technician and senior-level roles, Connaughton said.

“Only around one in five space-industry workers are women,” she added, quoting a United Nations survey of the sector.

“And Rocket Lab’s gender split typically aligns with this.”

Dawn Aerospace chief executive Stefan Powell says research reveals men will apply even if they're only partially qualified for a role but “women and other marginalised groups tend to apply only when they tick every box”. Photo / Chris Keall

That is to say, 80% of its staff are blokes.

“Space is something that affects the lives of everyone, so having a diverse group of people contribute to the development and growth of the industry is important,” Connaughton said.

“Engineering is a traditionally male-dominated field, so the referral bonus is just one way we can encourage our team members to think beyond the default and consider women in their network who they may not have initially realised have applicable skills for the space industry.”

“Engineering is a traditionally male-dominated field, so the referral bonus is just one way we can encourage our team members to think beyond the default and consider women in their network,” says Rocket Lab vice-president Morgan Connaughton.

Massey University HR expert Jarrod Haar called the move “a really smart human resource management strategy: Get people to shoulder-tap their connections to join Rocket Lab and get a pile of cash for the suggestion”.

Haar said it was a savvy, economic alternative to paying a recruitment firm to tap a hard-to-reach group as Rocket Lab sought to boost its diversity.

“It’s pretty exciting for Rocket Lab and exciting for New Zealand. I hope it works.”

Massey University human resources expert Jarrod Haar called the $4000 referral payments "a really smart human resource management strategy".

Rocket Lab’s policy also got tacit backing from Women in Space Aotearoa NZ.

“The UN reports that women make up only 20% of the global space sector workforce, with even fewer women in technical roles. This representation has remained unchanged for over 30 years. Aotearoa New Zealand’s space sector does not buck the global trend,” a spokeswoman for the non-profit said.

The group says the sector follows the recommendations of the UN’s “Gender Mainstreaming Toolkit for the Space Sector”, which include “using affirmative action in recruitment as a corrective measure for gender imbalance”.

“Innovation relies on diverse thought; a diverse workforce is therefore essential to innovation,” the spokeswoman said.

Rocket Lab isn’t the only tech company to offer referral bonuses.

Xero does as well but it doesn’t offer a premium for referring a female candidate. But it is a lot closer to having a gender-balanced workforce than Rocket Lab (Xero’s 2024 annual report recorded 56% male staff, 43% female and 1% gender-neutral or non-binary.)

Professional networking group Women in Space was co-founded by Kate Breach, a Canterbury University mechanical engineering grad who went on to engineering roles with the Air Force before becoming a technical adviser to various aerospace firms. Photo / Women in Space

Men apply for roles regardless of skills match

Stefan Powell, chief executive of New Zealand’s second-largest aerospace player, Dawn Aerospace, said research showed that men would apply for a job even if they only had around 60% of the requisite skills but “women and other marginalised groups tend to apply only when they tick every box”.

He said that’s why his firm’s careers page leads with a message encouraging people to apply, even if they’re not sure they meet all of a job’s criteria.

AI drives return to people networking

Ironically, the rise of artificial intelligence and other digital tools has spurred a revival in “who you know” networking, according to a Wall Street Journal feature last month.

A proliferation of digital tools for automating the process of creating a CV and applying for jobs means recruiters are often swamped with lookalike resumes.

“Software promised to democratise hiring by reducing human biases, but wider talent pipelines have overwhelmed some employers to the point where they’re reaching for what’s worked in the past,” the Journal said. Referral programmes are back in fashion.

Rocket Lab’s Connaughton said it made sense to tap employees’ networks.

“Our people are world leaders in what they do. We find that people who are at the top of their game generally know other people who are exceptional in their fields, so a referral programme helps us tap into the network of talented and driven people that our team members know in NZ and around the world.”

Same scrutiny for all candidates

She added: “Regardless of whether they have been referred or not, all candidates undergo the same rigorous interview, testing, and reference process to ensure they possess the relevant skills at the right level and are best suited to the position.”

Connaughton said Rocket Lab had several other initiatives to increase its diversity, including:

• The Rocket Lab Women’s Scholarship, which supports an outstanding student identifying as a woman or gender minority to pursue a qualification relevant to the aerospace industry with $10,000 toward study fees over up to four years.
• Networking and mentoring events.
• A target of 50% female representation in its internship programme.
• Being a host institution for the Brooke Owen’s Fellowship.

Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.