Improving our gender pay gap year on year

We're pleased to report that our gender pay gap has steadily decreased over the past three years. In 2022, our median gender pay gap was 13.5%. Through focused efforts and commitment to equity, we reduced this gap to 11.8% in 2023 and most recently to 9.2% in 2024.

Gender pay gap is calculated using the Statistics New Zealand methodology by comparing the median hourly rates of men and women. Base salaries of all permanent employees, both full and part-time and on individual and collective employment agreements, are included in this calculation.

Chief people officer Sarah Phillips says that this improvement reflects our ongoing dedication to fostering a more inclusive workplace.

"To see a year-on-year reduction in gender pay gap is very encouraging and a sign that what we are doing is working. We do recognise that progress toward closing the gender pay gap requires deliberate actions and sustained commitment so there's more work to be done."

According to Phillips, while women make up a significant portion of our workforce, a smaller percentage currently hold executive or leadership positions, impacting the average and median earnings figures across the company.

"Our analysis shows that the gender pay gap stems primarily from an underrepresentation of women in senior roles.

"This is why we are continuing to build on targeted initiatives", says Phillips.

These initiatives focus on:

1. Hiring and development to support career advancement: We are committed to building a strong, diverse talent pipeline. Through structured recruitment practices, inclusive hiring policies, and development programmes, we aim to attract, retain, and support women in advancing into senior roles.

2. Annual pay equity reviews: Our annual pay reviews include an in-depth analysis to ensure fair compensation practices across all roles. These reviews help us identify and address any disparities, providing us with actionable insights to uphold pay equity.

3. Transparent reporting: As part of our commitment to transparency, we will continue to share our progress and publish our gender pay gap results annually on our website and through MindTheGap registry. We believe transparency is essential to fostering accountability and inspiring meaningful change at Watercare and across our industry.

An important point of difference, according to head of remuneration, systems and insights Arnaud Cordebar, is that we uphold the principle of equal pay at Watercare.

"The gender pay gap is not the same as unequal pay. At Watercare, our remuneration framework ensures that men and women performing the same or substantially similar work are paid equitably, with no differences based on gender. The gender pay gap, on the other hand, reflects broader workforce trends, such as differences in representation across job levels or industries."

About our gender pay gap reporting

In 2023, we voluntarily participated in the MindTheGap initiative for the first time, as one of the many actions to champion fair pay.

Some common pay terms (Source: MindTheGap)

Gender pay gap is the gap between the average or median earnings of women compared to men. MindTheGap registry reports on this metric.

Equal pay is the same pay for the same job – no differential based on gender.

Pay parity is the same pay for the same job across different employers, organisations and workplaces.

Pay equity is the same pay for work that is different but of equal value. For e.g occupations like nursing where the work is, or was, predominantly performed by women, wages have often been kept lower than occupations where the work has been performed predominantly by men.

Employment equity is when pay, conditions and experiences in the workplace and access to jobs at all levels are not affected by an employee’s ethnicity or gender.