How to communicate your internal equity strategy

'Staff are more reassured about pay-related issues if they know there is a systematic process in place'

BY Dexter Tilo 20 Mar 2024

Having a solid structure to facilitate internal equity isn't enough - it's also important to communicate it with employees.

This is according to a new white paper from Strategic Pay, which looked at how internal equity has been disrupted by economic upheaval in New Zealand and how employers can address it.

"We have found that staff are more settled and reassured about pay-related issues if they simply know that there is a systematic process in place to set pay," the paper read.

Clear communication is important to reduce staff distress with relation to internal equity, according to the paper, noting that not communicating how pay is set would risk staff making up their version of the truth.

"Regular communication and reinforcement of the robust and credible system in place will promote greater staff acceptance around internal equity," said the white paper.

"It also provides reassurance that you can address any potential issues, like historically under-valued roles, gender pay issues, and functional bias, among others."

New Zealand's gender pay gap is at 8.6%, according to the latest data from Stats NZ.

The government is currently facing pressure to introduce mandatory pay gap reporting for employers, following Australia's similar measure to close the gender pay gap.