Appendices

Glossary of Terms

Ethnic pay gap (EPG)

Ethnic pay gaps are calculated as the difference between the average or median nominal salary for an ethnic group and the average or median nominal salary of all those not in that ethnic group, expressed as a percentage of the average or median nominal salary of those not in the ethnic group.

Gender-ethnic pay gap (GEPG)

Gender-ethnic pay gaps are calculated as the difference between the average or median nominal salary for females of an ethnic group (e.g. wāhine Māori) and the average or median nominal salary of all males at MSD, expressed as a percentage of the average or median nominal salary of all males at MSD.

Gender pay gap (GPG)

Gender pay gap is calculated as the difference between the average or median nominal salary for females and the average or median nominal salary of all males at MSD, expressed as a percentage of the average or median nominal salary of all males at MSD.

Occupational segregation

When one demographic group is over, or underrepresented, in a certain job category. In Aotearoa New Zealand, women are more likely to be employed in a narrow range of occupations and at the bottom or middle levels of an organisation. Māori and Pacific women are more concentrated in lower paid occupations than European women or Māori or Pacific men.

NZ’s high level of occupational segregation by gender, has a significant impact on women’s pay and lifetime earnings (Pay gaps and pay equity – Te Kawa Mataaho Public Service Commission).

Intersectionality

Intersectionality refers to the interconnected relationship between demographic characteristics (such as gender, ethnicity, sexual orientation, disability, etc.) within an individual or group, and how they interact to create unique experiences of privilege or disadvantage. When someone belongs to multiple non-dominant or marginalised groups, they can face compounded inequities and an experience of disadvantage that’s distinct (Intersectionality – Diversity Works New Zealand (diversityworksnz.org.nz))

Minimum sample size

Where there are less than 20 staff within any comparator group, MSD has considered this too small for statistical comparison, and omitted any gender or ethnic pay gap calculation.

Same or similar roles

For the purposes of comparing same or similar roles, MSD has used pay groups and bands.

Appendix 1 – Papa Pounamu focus areas and progress at MSD

Addressing bias

Addressing bias is a whole-of-MSD effort. It starts with our attraction strategy, recruitment approach, and spans the employee cycle. Online training in unconscious bias is mandatory for all employees − addressing bias is woven into our leadership programmes and opportunities to learn in the moment (reflecting in the mahi (work)). MSD documentation, policies and forms are screened for bias language and tone, as are all our training programmes whether internal or external.

Our employee-led networks also play a role in raising awareness of bias through participation in a monthly D&I Steering group and by hosting cultural events and educational activities.

In our efforts to close the GEPG, we are not only looking at where and how we recruit but continuing to encourage diversity in assessment panels for a mix of views and observations. We do this by working with our HRBPs (Human Resource Business Partners) and Recruitment Partners. We also encourage discussions on appointments and salary negotiation to occur with the mixed panels to foster greater diversity and fairness. Also, we offer training on starting salary guidance and inclusive leadership training for our people leaders.

Building relationships

It is part of our MSD ethos to work collaboratively and share information. We continue to build relationships across internal business groups, the public sector, iwi, and stakeholders. We partner with Māori and Pacific through various programmes and initiatives. These are outlined in the section above titled ‘Our Continued Commitment at MSD’ and are evidenced in the work outlined below under Cultural Competence.

We have collaborated on cross-agency projects such as the Transitioning and Gender Affirmation in the New Zealand Public Service (guidelines). MSD has shared our successful mentoring programme with 14 other agencies, and we continue to participate in Te Kawa Mataaho’s community of practice meetings and provide access to various MSD programmes for other agency participants.

Cultural competence

Building our workforce’s cultural awareness and competency will lead to better outcomes for our clients and colleagues and help to reduce stigma and unconscious bias. In the past 12 months we have focused efforts within the following three areas:

Organisational Development and Learning Programmes

• Developing a programme narrative for Cultural Capability work
• Rebuilding Te Pātaka to improve accessibility of learning programs and resources
• Conducting Rangatahi Māori Emerging Leaders and Marae-based Leadership Development programs
• Developing and implementing e-learning modules (He Matapihi and Te Ara Piki)
• Launching Treaty of Waitangi Workshops
• Developing and implementing the Waiwhetū Marae Experience Learning package
• Developing Te Tiriti o Waitangi Awareness Package
• Program delivery of Te Aratiatia cohort 2 – Māori/Pacific Emerging Leaders Programme
• Procurement has begun for Te Reo Māori courses, Tikanga, and Te Tiriti o Waitangi learning.

Cultural Inclusion and Diversity

• Supporting Regional Māori hui
• Supporting Koko Talanoa, the Pacific mentoring program
• Initiatives in the Rainbow space, including Rainbow Sprint and awareness training
• Developing and publishing Gender-affirming guidance for leaders and those transitioning gender
• Raising awareness of Rainbow communities/culture through in-house training of managers at a regional level (piloted in northern region).

Stakeholder Engagement and Feedback

• Capability development is based on feedback from engagement across our stakeholders, including utilising ongoing pulse checks, our client heartbeat survey, our People Experience and Diversity and Inclusion Steering Groups, as well as including interviews with specific groups as needed
• Conducting wānanga (learning forums) with regional leads to review and package information for professional supervision.

Employee-led networks

Our employee-led networks have continued to grow in number and matured over the past 12 months. MSD now has over 30 such networks and is currently supporting the establishment of a neurodiversity network. Our networks are supported by an executive sponsor and a dedicated person from the People Experience team, with biannual funding rounds for events, collateral, training, and professional development.

MSD established a ‘community of practice’ this year as a way for our network chairs/leads to come together for peer support and to awhi (nurture) the newer employee-led networks. Our employee-led networks are also part of the Diversity and Inclusion Steering Group, which provides feedback and support to People Experience team’s projects and initiatives.

Now that we have a large number of well-established employee-led networks who represent the diversity of our workforce, our focus is on the network’s sustainability and how best to utilise the knowledge and skill within. We will also be looking at how we support strategic value to develop the capability of our employee-led network leads.

Inclusive leadership

Our leaders are recruited and supported to model inclusive leadership every day in their mahi. Our executive leaders sponsor our various employee-led networks. Throughout our leadership programmes, we provide guidance on transitioning and gender affirming, starting salaries and unconscious bias.

Through our leadership development programmes and the establishment of an MSD leadership system, we are embedding the six signature traits of inclusive leadership (Inclusive leadership – Te Kawa Mataaho Public Service Commission). These include:

• building curiosity and cognisance − we are exploring self-awareness, mental programming (encounters with people), native genius and risk-taking, reflection, being vulnerable and learning together
• growing coach-like leadership capability and activity (empathetic listening, feedback, believing that everyone has potential) – to build relationships, understanding and courage
• having varied rōpū (cohorts) of people for our programmes, taking care to mix groups, avoid ‘group think’ and help people to make connections beyond their regular circle of influence.

Appendix 2 – Foundational four-point plan to embed opportunities for Rainbow people in the Public Service

Increase visibility of and information about Rainbow people in the Public Service

We collect information about this grouping, and make sure it is visible, accessible, and used.

Data: MSD is piloting data collection of our Rainbow workforce. From 2 October 2023, MSD staff can confidentially self-identify as part of the Rainbow communities. This data will help us better understand the numbers and needs of our Rainbow employees. MSD conducted a ‘Rainbow Sprint’ in 2022/23 and interviewed several of our Rainbow employees to better understand their needs.

From our client facing Service Delivery employees, we wanted to find out how best they can support our Rainbow clients. These insights have helped shape the programmes and initiatives currently being developed.

Hub: MSD has created a Diversity and Inclusion Hub house in a central place on MSD’s intranet (Doogle). This hub contains a Rainbow section. Here you can find various resources including our Transitioning and Gender Affirming Guidelines, How to Be an ‘Active Ally’ and Glossary of Rainbow Terms, as well as links to external websites and resources.

Pledge: MSD is undertaking the Pride Pledge to build our support and response to our Rainbow employees and understand how our policies and procedures meet the pledge’s threshold of inclusivity.

Increase Rainbow presence in the Public Service at all levels

It is important to increase the number of Rainbow employees so that the Public Service reflects society in Aotearoa-New Zealand. We do this by applying a ‘Rainbow lens’ to our recruitment process − reviewing where we advertise and how we attract skilled members of our Rainbow communities.

According to the Te Taunaki Census, 9.2% of MSD’s workforce identify as Rainbow. This is slightly higher than in the overall Public Service (8.9%). Stats NZ’s 2021 household survey indicates that 1 in 20 adults in Aotearoa identify as being part of the Rainbow communities.

Our ‘Rainbow Sprint’ gave us insights on how to best support and retain our Rainbow workforce. For example, we could raise their visibility, celebrate Rainbow-specific events or provide training to our leaders’/colleagues’ capability and knowledge.

To help raise visibility and ‘normalise’ our Rainbow workforce, MSD has started to record the stories of our Rainbow kaimahi.

Identify opportunities to promote greater inclusion and remove barriers to inclusion for Rainbow public servants

MSD has an active Rainbow employee-led network, Proud@MSD, with around 150 members and a governing committee. The employee-led network has produced educational material with the support of the People Experience team. They also regularly contribute to the Diversity and Inclusion Steering Group, and has been consulted for policy development around bias and Rainbow issues.

MSD launched our own support for ‘Transitioning and Gender Affirming in the New Zealand Public Service’ in March 2023, ahead of the Cross Agency Rainbow Network (CARN) advice. MSD’s Principal Advisor, People Experience, is one of the co-chairs of CARN and led the working party on the Public Service/CARN guidelines.

MSD is reviewing the sustainability of our networks and how to ensure equitable participation for frontline staff.

Identify and close inequities (e.g. pay gaps), as measurement allows, for Rainbow public servants

MSD does not currently have enough data on our Rainbow employees to be able to identify any pay gaps. We do apply a Rainbow lens across the six areas of reporting for Kia Toipoto and acknowledge the intersection of Rainbow with many other rōpū (cohorts), such as ethnicity, neurodiversity, disability and gender.

MSD uses the Te Taunaki census info on the Rainbow communities. Once we have more data on our Rainbow workforce, such as through self-identification in the personal section of individual HRIS (Human Resource Information Systems) files or Pride Pledge information, we can better understand any gaps and how to address these.

Appendix 3 – Foundational four-point plan to embed opportunities for tāngata whaikaha Māori and disabled people in the Public Service

The key four-points of the tāngata whaikaha Māori and disabled people in the Public Service plan are:

1. The visibility of and information about tāngata whaikaha Māori and disabled people in the Public Service has increased in the two years to July 2025.
2. The number of tāngata whaikaha Māori and disabled people has increased across the Public Service.
3. Accessibility has improved for tāngata whaikaha Māori and disabled people in the Public Service.
4. Inequities (such as in pay gaps) have been identified and closed as measurement allows for tāngata whaikaha Māori and disabled people in the Public Service.

MSD, along with other key agencies, is named as a key partner in driving the outcomes of the foundational four-point plan to embed opportunities for tāngata whaikaha Māori and disabled people in the Public Service. These agencies came together as the Advisory Group to develop a plan. Currently they are meeting to determine the key deliverables and associated timeframes expected under each identified action.

MSD specifically supports Outcomes 1, 2 and 3, alongside other appropriate agencies. Key deliverables for MSD include:

• Lead Toolkit refresh
• the AOG Disabled Internship work programme
• supporting increased accessibility through our AOG Accessible Information training and education and the AOG Alternate Formats service.

MSD is also leading the development of best practice on ‘reasonable accommodation’ workplace policy. The People Experience team together with members of the Property and Facilities team have developed a set of ‘Design Principles for Accessible Workplaces’. This work is about providing our people with environments where they can work and function at their best and feel included and valued.

Appendix 4 – MSD employee-led networks

• The following employee-led networks were invited to attend GEPG workshops and drop-in sessions throughout August and September of 2023
• Representation from our employee-led networks also attend monthly D&I steering groups.

Māori employee-led networks

Pacific employee-led networks

General employee-led networks

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