Is pay transparency the key to fairer pay in NZ?
Frog Recruitment
Grow your career or team with Frog Recruitment in 2025. Award-winning agency delivering expert recruitment across NZ.
New Zealand’s gender pay gap has remained relatively stable over the past decade, fluctuating between 9% and 12%. While progress has been made, the disparity persists, and discussions around pay transparency are becoming more critical. With the government considering introducing employment remuneration disclosure, businesses, employees, and policymakers are debating whether transparency could be the key to fairer pay.
Public attitudes towards discussing salaries have started to shift. A recent survey revealed that while 62% of respondents still feel uncomfortable sharing their salary with colleagues, there has been a 20% increase in openness compared to last year. This suggests that traditional taboos around discussing pay are beginning to break down. One driving force behind this change is the growing influence of younger generations in the workforce, particularly Gen Z, who prioritise transparency and fairness.
As New Zealand navigates potential policy changes, it’s crucial to examine the role that pay transparency can play in creating a more equitable job market. Could greater openness around salaries lead to fairer pay structures, particularly in addressing gender and ethnic pay gaps?
In a recent discussion, Shannon Barlow, NZ Managing Director at Frog Recruitment, and Dellwyn Stuart, Founder of Pay Gap Insights Hub, explored the challenges and benefits of pay transparency. Despite some hesitation, Stuart highlighted the positive trend of increasing openness:
"By 2030, 30% of our employee base around the world will be Gen Z. And for Gen Z, transparency is one of their top values. They expect to be able to talk about these things, to see them openly, and to know that businesses have nothing to hide."
This generational shift is prompting businesses to reconsider their approaches. Many organisations are not deliberately paying employees unfairly, but outdated practices and ingrained habits contribute to ongoing pay gaps. Encouraging salary transparency could help break these habits and create more equitable pay structures.
However, change isn’t easy. As Barlow pointed out, employment contracts in New Zealand often include clauses that discourage or outright prohibit discussing salaries. This has reinforced a culture where people feel uncomfortable talking about money. Overcoming this reluctance requires a shift in... [ Read full insights ]
The State of Employment in New Zealand: Challenges and Green Shoots
The latest employment statistics in New Zealand have presented a complex picture of the labour market. The unemployment rate has climbed to a four-year high, rising from 4.8% to 5.1% in the December quarter. While such figures typically suggest a weakening job market, an interesting contrast has emerged—employment confidence has also increased, with a 2.4-point rise in the Employment Confidence Index. This unexpected optimism could indicate that businesses and job seekers alike believe the worst has passed and that the market is on the path to recovery.
Despite this, the public sector continues to face significant job cuts, creating uncertainty in government-related employment. Private sector employment, however, appears to be stabilising, offering a glimmer of hope for those looking for opportunities. With early signs of recovery already visible in 2025, there is cautious optimism that the economy is turning a corner.
“The positive, though, is that even though it’s early days for 2025, we are already starting to see improvements and green shoots across both public and private sectors.”
During a recent live stream, Frog Recruitment NZ Managing Director Shannon Barlow shared her perspective on the latest employment trends. She acknowledged the impact of rising unemployment but emphasised the increasing confidence among job seekers. “It might seem a bit weird that as unemployment increases, we’re also feeling more confident about job availability. But I think this reflects the overall increase in business confidence and that feeling that surely we must have bottomed out.”
This sentiment is crucial, as it suggests that businesses are preparing for renewed hiring activity, even in the face of economic challenges. Barlow also pointed out that while the public sector is still going through a painful period of job losses, the private sector is showing resilience. “The positive, though, is that even though it’s early days for 2025, we are already starting to see improvements... [ Read full insights ]
Have your say on the future of work across NZ
What’s shaping the future of work in New Zealand? Have your say and help us uncover the key salary trends, talent attraction insights, and retention strategies that will define 2025. Your input is crucial in creating New Zealand’s most comprehensive employment and salary trends report, which will provide valuable data to job seekers and employers alike.
The survey is completely anonymous, and your responses will be used solely for our Employment Report. Share your insights today and help shape the future of the workforce!
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Find the job you love with Frog Recruitment
Every Friday, Frog Recruitment presents a live employment and job market update across Facebook, LinkedIn, YouTube, X, and Instagram, bringing you the latest in recruitment news. Hosted by our NZ Managing Director, Shannon Barlow, this weekly segment offers valuable insights into current trends shaping the job seeker and employment landscape.
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