Introduction
Executive Summary
At Te Manatū Whakahiato Ora, Ministry of Social Development (MSD), we are committed to creating an inclusive and diverse environment for our people. One where they feel valued for their contribution, and confident in bringing their best self to work. As an organisation, we benefit greatly from the passion our people bring and the impact they have on our clients’ lives around the motu.
I am proud to be part of such diverse and inclusive organisation with a leadership team that reflects both the communities we serve and our people including ethnicity, gender and those with a disability. Over 70 percent of MSD employees are female, and Māori, Pacific and Asian representation in MSD is higher than across the New Zealand Public Service as a whole. The diversity of our workforce is a real strength when it comes to meeting the needs of our clients, but it does create challenges when it comes to pay gaps as we have higher proportions of women and ethnic minorities in our lower paid roles.
Since 2017, MSD has been committed to closing gender and ethnic pay gaps, this has been through role reviews, living wage adjustments and introducing new pay-and-progression approaches. Despite a slight increase in 2023 we have continued to close the gender and ethnic pay gaps, and increased our representation at different levels, throughout the organisation. There are generally no gender pay gaps within the same or similar roles or across most pay bands. However, there are some areas in senior levels where minor, but relevant, pay gaps between genders or ethnicities undertaking like-for-like work have been identified. These are being addressed by targeted efforts to increase the pay of lower-paid employees through role reviews and the introduction of a new pay and progression framework for Manager and Senior Specialist employees.
In 2023, after year-on-year downward shifts in both our gender, and ethnic pay gaps, we saw a small lift with our gender pay gap from 9.6 percent to 10 percent. In October 2023, after a further pay round adjustment, our gender pay gap dropped back to 9.8 percent. When we started tracking our Ethnic Pay Gaps in 2018 they sat between 8.7% and 17.4%. As of June 2023 they sit between 4.6% and 10.4%. As a large and complex organisation, with over 9,000 employees, we regularly see fluctuations with our pay gap figures. We still have more work to do and we are confident that with the actions we are committing to in this plan, we will continue make sustainable progress in this space.
We are committed to addressing occupational segregation, and in 2022/23 our focus was on the three key areas of Recruitment, Remuneration, and Leadership development and representation. As you will see in this report, MSD has already made significant progress across these focus areas. We will continue to progress existing work in these spaces and we have a busy and varied programme of actions to deliver this year. I am confident all of these will help MSD to build an inclusive workplace free from inequalities, where everyone feels valued, respected, and supported to reach their full potential and bring their best selves to work.
Nadine Kilmister
Deputy Chief Executive, People and Capability
Papa Pounamu
In 2020, Papa Pounamu determined five priorities for public service agencies. These key focus areas were aimed to support chief executives to focus on enhancing diversity and inclusion, based on mandated requirements within the Public Service Act 2020. Agencies that work to close the gender and ethnic pay gap are not only following the action plan and principles but also aligning with Papa Pounamu priorities and expectations.
Papa Pounamu priority areas:
- Te Urupare i te Mariu | Addressing Bias
- Te whakawhanaungatanga | Building relationships
- Te āheinga ā-ahurea | Cultural competence
- Ngā tūhononga e kōkiritia ana e ngā kaimahi | Employee-led networks
- Hautūtanga Ngākau Tuwhera | Inclusive leadership
In addition, this year working with various agencies Te Kawa Mataaho (the Public Service Commission) has created two four-point action plans, that focus on the following communities.
- The first plan will embed opportunities for tāngata whaikaha (people with disabilities) Māori and disabled people in the Public Service (See Appendix 1).
- The second will embed opportunities for Rainbow people in the Public Service, by increasing their visibility and the amount of information about them (See Appendix 2).
Kia Toipoto 2021/24
In 2021, the Public Service launched the ‘Gender and Ethnic Pay Gap Framework’ called Kia Toipoto. This is the overarching guidance for 2021/24, with key actions for each year.
MSD had already begun reporting and consciously addressing its gender and ethnic pay gaps before Kia Toipoto launched. It will continue to create, improve, and review its processes and next steps, actions, and efforts to close these.
The strategic focus areas take an intersectional approach. This is inclusive of gender, tāngata whaikaha, disabled people and members of Rainbow communities – it recognises intersectionality and the divergence of identities.
Collectively, all the above initiatives seek to create fairer and more equitable workplaces for all.
Kia Toipoto priority areas:
- Te Pono | Transparency
- Ngā hua tōkeke mō te Utu | Equitable pay outcomes
- Te whai kanohi i ngā taumata katoa | Leadership and representation
- Te whakawhanaketanga i te aramahi | Effective career and leadership development
- Te whakakore i te katoa o ngā momo whakatoihara, haukume anō hoki | Eliminating all forms of bias and discrimination
- Te taunoa o te mahi pīngore | Flexible work by default
