NZ migrants are paid unequally — here's how HR can help

Migrants from South Africa, Northern America, the United Kingdom, and the rest of Europe have a higher average hourly wage than migrants from Asia, the rest of Americas, Polynesia, Melanesia, and Micronesia, a new study from Diversity Works New Zealand has revealed.

According to Diversity NZ Chief Executive Maretha Smit, there are existing inequities based on place of birth and ethnicity, even when the data were already adjusted to compare migrants with similar levels of skills, English language ability, time spend in New Zealand, and age.

Study showed that migrants who spoke English and another language were more likely receive a lower wage than those who only spoke English. Those who are also from English-speaking, advanced countries can easily transfer their qualifications to the labour market compared to migrants from other countries. Pay gap metrics from the research also indicate the extent to which people from specific groups are able to access leadership roles. The data "suggests that this might be a significant barrier for people from non-European countries."

What contributes to this pay gap?

The research suggested that cultural and language differences, institutional barriers, structural bias, and discrimination have a role in the inequities on migrant pay.

"It could be argued, considering New Zealand's largest source countries for migrants, that migrants who spoke English and another language had a lower English language ability than those who spoke English only," the report said.

Institutional barriers also come at play, according to the research, citing that "qualifications of migrants from Asian countries may not be as easily transferrable as qualifications from European or North American countries."

Read more: NZ study blames sexism for wage gap

What could employers do?

Large pay gaps between migrant groups with the same occupation, level of education, and industry roles indicate that discrimination and bias persist despite New Zealand's legislations seeking to prevent them in the workplace, according to Diversity Workers NZ.

"Employers need to develop processes that ensure equitable and fair employment for all," it said, suggesting the development of an Equal Employment Opportunity (EEO) policy.

"An EEO policy lays out the steps an organisation will take during recruitment processes and selection criteria, training and professional development, promotion and career progression, remuneration, and work locations and processes, to ensure equitable and fair employment for all," it added. The report also noted that pay transparency has been effective in identifying and addressing wage gaps.

"Reporting the pay gaps by gender and ethnicity ensures that the existence of this issue is brought to light. Acknowledging that the problem exists and taking steps to correct it builds a climate of inclusion," it said.