3.4.2.1 Acceptable Employment Quantification Method

Under the Pehta Framework, the Economic Participation method is recognized as the standard for quantifying Indigenous employment. This approach calculates Indigenous employment by comparing the total compensation paid to Indigenous workers against the total compensation paid to all workers, expressing the result as a percentage. This method not only measures the presence of Indigenous employees but also emphasizes their effort and relative value. By focusing on compensation, this metric aligns with the expectations of Indigenous communities for equitable workforce representation, ensuring that employment translates into tangible economic benefits for communities.

Example: In a company with 1,000 employees, where 200 identify as Indigenous, the total annual compensation for all employees is $71,875,000, and the compensation paid to the Indigenous employees totals $5,500,000. The Economic Participation method calculates this as $5,500,000 (compensation paid to Indigenous workers) divided into $71,875,000 (total compensation paid to all workers), resulting in 7.7% Indigenous employment. This figure represents the employer's investment in Indigenous employment, demonstrating the company's commitment to supporting equitable Indigenous representation and economic empowerment in Indigenous communities.