A woman holds a signat a pay equity rally. File photo. Photo / RNZ
Opinion:
In the modern, interconnected world of today, transparency is key to trust, collaboration and progress. One area where this principle is particularly vital but often overlooked is in the realm of pay. Pay transparency, the practice of disclosing employees’ compensation details, is an essential tool to mitigate pay gaps, promote equity, and foster a healthy workplace culture.
As an advocate for Pasifika leadership frameworks within my consultancy business Hybridges, my work aims to transform the way Pasifika employees are led, remunerated, and engaged across Aotearoa. It is a task that requires us to reassess not just our cultural practices but our economic ones as well, and pay transparency sits at the heart of this mission.
In New Zealand, the ethnic pay gap is a reality we must confront. Pasifika employees are disproportionately affected, with stark pay gaps when compared to their Pākehā counterparts. This disparity is even more pronounced when we consider gender and age, with Pasifika women and younger employees often at the bottom rung of the pay ladder.
Pay transparency can play a significant role in addressing these disparities. Openness about pay empowers employees by providing them with the information they need to negotiate fair compensation. It allows us to identify, address, and remedy systemic pay disparities.
More than just an economic issue, pay transparency is a matter of social justice. It aligns with Pasifika cultural values that prioritise community wellbeing and equity. Pay transparency can be a tool for upholding these values within the workplace, creating an environment where the dignity and worth of each individual are recognised and respected.
However, pay transparency should not be viewed as a panacea. It is a step, albeit a significant one, towards a larger goal: the inclusion and fair treatment of Pasifika employees in Aotearoa.
To achieve this, organisations need to adopt a more holistic approach that includes Pasifika leadership frameworks. Such frameworks can enrich the organisational culture by integrating Pasifika values such as respect, reciprocity, relationships, and responsibility. In doing so, they can help to create a workplace environment that respects diversity, encourages dialogue, and fosters inclusivity.
Furthermore, organisations need to recognise that pay equity for Pasifika employees is not just a matter of fairness but also a matter of business sense. Numerous studies have shown that diversity and inclusion lead to better decision-making, increased innovation, and improved financial performance.
On August 11. 2023, the Government announced it would require large employers (with over 250 employees) to publicly report gender pay gaps. The government also said it would explore the inclusion of ethnicity in pay gap reporting. While I welcome this announcement, ethnic pay gap reporting should not be an afterthought. Reporting pay gaps on ethnicity is a crucial step to developing a more equitable employment landscape and needs to be included in any new legislation.
As we navigate our way forward, let us remember that pay transparency is not an end in itself, but a means to a more equitable and inclusive society. It is a call to action for all organisations in Aotearoa to step up, take responsibility, and lead the way in creating a work environment where every employee - regardless of ethnicity, gender, or age - is valued, respected, and fairly remunerated.
The time for change is now. Let us embrace pay transparency and the Pasifika leadership frameworks as essential components of a fairer, more inclusive, and more prosperous Aotearoa.
Lynette Reed is a former head of Diversity, Equity and Inclusion (DE&I) at Auckland Transport, pioneering the first Pasifika Strategy, as well as overseeing the crucial Future of Work. She was also founding member, chair and host of the Viaduct Village and is currently head of DE&I at Te Kaunihera o Tamaki Makaurau Auckland Council, and founder of corporate consultancy – Hybridges.