Job-seekers asking about pay gaps, not salaries

A year ago candidates might've taken what they were handed, but now they’re beginning to probe about a firm’s approach to diversity and gender wage parity.

Employers should expect to be questioned on their gender representation and what they’re doing to plug their pay gaps, as recruiters say job-seekers are starting to rate company culture and diversity higher among their priorities.

Frog Recruitment managing director Shannon Barlow says a recent poll of job-seekers found 70 percent are rating diversity, inclusion, and company culture as a very important value to them.

“This is a massive shift from the first year of the pandemic, when things like job security, development opportunities, and salaries were important,” she says.

Barlow says candidates are now doing research on companies, looking at social media, websites, or employee reviews to gauge whether they would like the culture.

Earlier this month, about 50 New Zealand companies revealed their pay gaps for women, Māori, and Pasifika in a voluntary register established by MindTheGap.

There’s a push for more companies to front up on their shortcomings. According to Statistics NZ, women still earn about 9 percent less than men, while Pasifika women earn, on average, 27 percent less than Pākehā males.

Shifting power dynamics
Shannon Barlow says job seekers are starting to care about shocking statistics like this. Even a year ago, candidates might take what they were handed, but now they’re beginning to probe about a firm’s diversity and ask for information on what they’re doing to ensure pay parity.

“[Job-seekers] are starting to directly ask those questions, like how is [the company] going in reducing the gender pay gap, or looking at different policies that create that diversity and opportunities for women as well.”

Barlow thinks this will place more pressure on employers to smarten up their act.

“That power dynamic has changed and candidates have more options,” she says. “It’s up to employers to be able to showcase what they have to offer, and to be able to sell the opportunity, getting the candidate to pick the company instead of the other way around.”

One way companies might do this is by getting the, quite literal, tick of approval.

“Companies can insist there are as many women on the shortlist as there are men, or insist that there are as many Māori on the shortlist as there are Pākehā. Those are quite simple things you can do in your recruitment process,” – Dellwyn Stuart, YWCA

Dellywn Stuart, chief executive of YWCA Auckland, says there’s been a rush of companies seeking to get the organisation’s GenderTick certification, a programme that shows a workplace’s commitment to gender equity in the workplace.

Ten companies are currently working through the certification process, and will join the other 30 or so companies on the list.

She encourages both companies and candidates to ask the hard questions during the recruitment process.

For example, job-seekers can ask what a firm’s pay gaps for women, Māori, Pasifika, and people with a disability are.

“Companies can insist there are as many women on the shortlist as there are men, or insist that there are as many Māori on the shortlist as there are Pākehā. Those are quite simple things you can do in your recruitment process,” she says.

Recruiters have role to play

Stuart isn’t the only one focused on improving diversity in the workplace.

It’s also on the mind of David Hammond. He’s a former chief executive turned recruitment consultant, currently the head of leadership search at Tribe Recruit.

Hammond is a big believer in the benefits of a diverse workplace. He points to a McKinsey report which looked at 1000 companies across 15 countries.

The study found those companies with more than 30 percent women executives were more likely to outperform those with less, while more ethnically diverse companies were 36 percent more profitable than those that weren’t.

Hammond says he prioritises offering candidate lists to companies that are diverse but also have the right level of skill and talent for the job. He makes a point of asking companies about diversity, and says most companies don’t consider this until he prompts them.

“It's more than just the diversity aspect, employees are actually looking for a culture that's enabling, innovative and a whole lot of other factors. They express that a lot broader in terms of values and things that are important to them," David Hammond, Tribe Recruit

“You play a role in advising on the market and skill sets, but also a role in advising on diversity and benefits that it can provide to the workplace or to the board,” he says.

“I don’t think it’s all on the clients themselves, I think it's also on the recruitment agency.

“It's more than just the diversity aspect, employees are actually looking for a culture that's enabling, innovative and a whole lot of other factors. They express that a lot broader in terms of values and things that are important to them.”

He’s seeing more recruitment of women in all levels of company structure - up to a certain point. This seems to hit a stumbling block at the board and senior leadership level, where it appears women are having a harder time inching into roles.

Hammond thinks this will change, eventually. He thinks it's a matter of time before women make their way up the ladder to sit at the leadership table.



“There’s no doubt it is changing and going through some sectors and boards faster than others. It is happening, but this is coming from bottom up more than from top down.”