Negotiation tips for women to achieve pay equity
By Jason Blackmore | 24 August 2020
By Jason Blackmore | 24 August 2020
Kiwis might pride themselves on our reputation for fair play, but when it comes to pay equity we've still got some work to do.
The gender pay gap still sits at around 14% – that means women are being paid 86 cents in the male dollar – with females in some major positions, such as accounting and engineering, earning up to 22% less than their male counterparts.
In Australia, the national gender pay gap is currently 16% and has hovered between 15% and 19% for the past two decades.
The gender pay gap is influenced by a number of interrelated work, family and societal factors, including stereotypes about the work women and men 'should' do, and the way women and men 'should' engage in the workforce. Other factors that contribute to the gender pay gap include:
The YWCA is leading the change debate in New Zealand for equal pay, through awareness campaigns and its annual Equal Pay Awards, which recognise companies and organisations trying to close the gender gap. But how can women in the workforce help themselves to get paid what they're worth?
Jason Blackmore, former Head of Reward at Coca-Cola Amatil NZ (CCANZ) and recently appointed Senior Manager in the People Advisory Services team at EY, shares six top tips for attaining pay equity:
When applying for a new position, take the time to research the company, Blackmore says. Find out their track record on gender pay equity and their policies on diversity and inclusivity. See if they have won accolades in events such as the YWCA Equal Pay Awards or other 'best employer' programmes. "Google News will give you an insight into how some of these organisations operate," Blackmore says. "There are also sites like Glassdoor which can be very information, although a lot of the reviews tend to be people who have left the company, so you need to take them with a grain of salt, a bit like TripAdvisor."
If an organisation is actively trying to narrow the pay gap, they are likely to be promoting that fact. Also, look at the gender balance on the board and executive team and in the pipeline of leadership below that.
Take the opportunity during the interview process to ask about the organisation's gender and diversity policies. The recruitment process today is as much about a potential employee finding out if they're a fit for the employer than vice versa, says Blackmore. "For me, if someone's asking about those sorts of policies, they're the kind of questions I like," he says.
Choose your words carefully, though, Blackmore adds – "talk about the diversity culture rather than saying: 'Does your organisation have a gender pay gap?'. If you ask and the organisation does have a focus on it, they're going to happily tell you all about it."
"Negotiation often works best when you are changing roles," Blackmore says. "You also need to understand what the organisation is going through at that time. It's not a good time to be negotiating a raise if people are being laid off or the company is not making targets." Try to time salary discussions around the release of positive financial results or when remuneration rates are being reviewed and budgets set.
Blackmore also says your direct manager might not be the best person to talk to about gender pay equity; sometimes working through the human resources department might be a better option. They can investigate the situation and feed back to your manager.
"Your frame of mind when negotiating is very important," Blackmore says. If you think there is a gender pay gap or discrepancy, then don't go in with a passive approach. You're not asking for a favour, or saying 'I hate to bother you, but would you mind paying me the same as X'. You need to take the emotion out of it. Take some time to assess your own worth, evaluating what the market is paying for your role and considering your qualifications, years of experience and your unique skills you bring to the table.
If applicable, speak to someone in a similar role and level of experience as a salary guage. Take some time to think about your ideal salary package including salary, annual leave, sick leave, flexible working hours, professional development opportunities and additional benefits such as health insurance etc. If you are negotiating an initial salary speak to someone in the organisation to find out about the organisation's salary review process. Ask how often salary reviews are carried out and whether these are performance based. Think about your room to move in this role and potential earning power with future roles and reviews.
When it comes to negotiation, back yourself and go in confident and clear of what you are asking. Present the facts and be calm and consistent in outlining your worth and negotiating your terms. Ask if there is something you don't know about why a gender discrepancy exists. Also, Blackmore says, "It's important to have an idea of what you will do if your request is refused. Is it a deal-breaker for you and will you want to look for another job, or will you take the feedback on board and try again later?" Blackmore notes that gender pay equity is a long game, and even if your request is refused, it may raise awareness within the organisation and benefit others in the future.
"Know your facts or at least understand what it is you're asking for," Blackmore says. "If you are comparing yourself with a male employee who earns $10,000 more than you, when you started on the same salary, and if you are in the same role and have the same responsibilities, then gender might be an issue. But if you're not, or if he's gained other qualifications, for example, it might be that. Not all pay discrepancies come down to a gender-based pay gap. It's such an important argument, you want to make sure that you are picking the right battle."
Make sure your managers know what you're achieving at work. "It's about saying, 'I did that and I did a good job.' Make sure you're getting recognised for what you are doing and it will be harder for you to be discriminated against," Blackmore says. Also, take opportunities for professional development and training and prepare yourself for promotion by researching the role you're after. "Your development and your career are your own responsibility. Know where you want to go and how you're going to get there. As you climb up the ladder you will be in a much better space and no one will have a reason to say no to promotion or discriminate against you."
Source: This article has been brought to our readers by the writer in collaboration with Synergy Health.
Jason is a Senior Manager in EY's People Advisory Services team specialising in Reward. He has 20 years' experience in HR, both in New Zealand and in the UK, covering Talent, Performance, Consulting and Reward. Jason is a former committee member and Chair of The New Zealand Remuneration Network. Jason has stong commercial industry experience culminating in a Head of Reward role for one of NZ's most well-known FMCG companies.
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