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Remuneration’s role in fostering diversity and inclusion

Remuneration is a fundamental element of the employment transaction. While employers devise many ways to use their remuneration offers to attract top talent, is it possible to also attract and support inclusion and diversity?

It’s prudent to assess the current state of your remuneration offers. To help, ask yourself these three questions:


Do certain employees fall through the pay gaps?

Before you can determine where you are at in terms of pay inequity, it’s a good idea to gauge the overall environment. Insightful reports such as IML ANZ’s National Salary Survey and supplementary reports can assist in this matter.

Then, analyse the situation within your organisation. Do certain people or groups suffer from a significant gap in pay? Make a candid assessment as to whether this is due to factors such as age or gender. Are all employees truly being compensated based on their ability to perform tasks?


How strong is job equity in your organisation?

Are some employees being overlooked for particular roles due to age, gender or cultural background? Companies should consider evaluating gender and minority representation across various jobs and levels within the organisation. If too many of the same people are occupying similar roles or sit within the same areas of the leadership hierarchy, there may be a need to update talent development plans accordingly.

Encouraging leaders to sponsor or coach the next generation of leaders is another way to promote job equity. Is there an opportunity to train-up a team member who is a potential leader but is otherwise held back due to age, gender or culture?


Do you view remuneration holistically?

Remuneration goes beyond just pay. It also includes all the benefits employees can expect to receive. The concept of total rewards looks at other benefits such as development, rewards and opportunities for promotion. How readily available are these to your entire workforce?

Finally, to directly influence diversity and inclusion, organisations could introduce rewards that relate to promoting D&I in the workplace.


With careful planning, candid assessments and strategic actions, your organisation can enjoy a heterogeneous and fair workplace to the benefit of all.

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