Despite efforts, gender pay gap persists in Australia

The recent release of gender pay gap data by the Workplace Gender Equality Agency (WGEA) has shed light on persistent disparities in pay between men and women within Australian workplaces.

The report, which focuses on private sector employers with 100 or more employees, unveils a concerning reality: women, on average, earn only 78 cents for every dollar earned by men, resulting in a total remuneration average gender pay gap of 21.7%.

Perpetuating systemic inequalities

This data is a stark reminder of the ongoing challenges faced by women in the workforce, despite efforts to achieve gender equality. While some progress has been made, with 30% of employers falling within a narrow range around equality, a significant portion (50%) still exhibit gender pay gaps exceeding 9.1%. Alarmingly, 62% of these gaps favour men, perpetuating systemic inequalities.

The disparities highlighted in the report underscore the need for concerted action to address gender-based discrimination in the workplace. Organisations such as the Champions of Change Coalition have been at the forefront of advocating for gender equality and increasing female representation in leadership roles. However, the data reveals that much work remains to be done.

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Differences in progress towards pay parity

Examining the gender pay gap data for specific companies within the coalition reveals a mixed picture. While some, like the Australian Football League, have achieved gender pay parity, others, such as Energy Australia Pty Ltd, exhibit significant disparities, with women earning 36.0% less than their male counterparts.

Meanwhile, at Big Four firms, progress is steady. "At KPMG, our gender pay gap of 12.9% and year-on-year improvements from 17.1% and 15.2% in prior years is showing positive progress," writes Dorothy Hisgrove, National Managing Partner - People & Inclusion at KPMG Australia.

"However, there is more work to do and, while we have more to do to correct the legacy of gendered imbalance in leadership succession, the consistent narrowing of our gender pay gap is testament to how diverse perspectives can lead to accelerated equity outcomes."

These WGEA findings demand attention from policymakers, employers, and society. Closing the gender pay gap requires multifaceted approaches, including implementing transparent pay structures, addressing unconscious bias, and promoting diversity and inclusion in all aspects of organisational culture. Additionally, supporting women's career advancement and ensuring equal access to opportunities are crucial to achieving lasting change.

While the release of gender pay gap data serves as a valuable tool for understanding the current state of affairs, it also serves as a call to action. By acknowledging and addressing the underlying factors contributing to gender pay disparities, we can work towards building a more equitable and inclusive workforce for all Australians.

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Key takeaways for employers

Transparency is essential. Employers should prioritise transparency in pay structures and processes. Openly discussing salary ranges and criteria for advancement can help mitigate the gender pay gap by ensuring fairness and accountability.

Address unconscious bias. Recognise and address unconscious bias in hiring, promotion, and compensation decisions. Training and education on bias awareness can help managers make more equitable choices.

Promote diversity and inclusion. Foster a culture of diversity and inclusion where all employees feel valued and respected. Encourage diverse perspectives and experiences, which can lead to more equitable outcomes in pay and opportunities.

Regularly review pay practices. Conduct regular audits of pay practices to identify and address any disparities. Analyse data on gender pay gaps and take proactive measures to close them, such as adjusting salaries or implementing performance-based pay.

Support career advancement for women. Provide support and resources for women to advance in their careers. Offer mentorship programs, leadership development initiatives, and flexible work arrangements to help women overcome barriers to progression.

Set clear goals and targets. Establish clear goals and targets for reducing the gender pay gap within the organisation. Hold leaders and managers accountable for achieving these targets and regularly track progress to ensure meaningful change.

Engage in collaboration and advocacy. Collaborate with industry peers, government agencies, and advocacy groups to address systemic barriers to gender equality in the workforce. By working together, employers can amplify their impact and drive meaningful change on a broader scale.

Create a culture of fairness and equity. Foster a workplace culture that values fairness, equity, and inclusivity. Encourage open dialogue about gender pay disparities and empower employees to advocate for change.

Lead by example. As leaders within their organisations, employers are responsible for leading by example. Demonstrate a commitment to gender equality through actions, policies, and initiatives that promote equal opportunities and fair treatment for all employees.

Continuously learn and adapt. Recognise that achieving gender pay equity is an ongoing process that requires continuous learning and adaptation. Stay informed about best practices and emerging diversity, equity, and inclusion trends, and be willing to evolve strategies accordingly.

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The release of gender pay gap data by WGEA reveals the ongoing challenges in Australian workplaces towards achieving gender equality. Despite efforts to address disparities, the data reveals persistent gaps in pay between men and women, highlighting the need for continued action and vigilance.

The findings serve as a call to action for employers, policymakers, and society to redouble their efforts to promote fair and equitable treatment for all employees. Addressing the root causes of the gender pay gap requires multifaceted approaches, including transparency in pay practices, addressing unconscious bias, and fostering inclusive workplace cultures supporting women's advancement.

While progress has been made, much work is still needed to achieve true gender pay equity. By working together and prioritising initiatives that promote fairness and inclusion, we can create workplaces where all individuals have equal opportunities to succeed and thrive. Ultimately, closing the gender pay gap is a matter of economic fairness and a crucial step towards building a more just and equitable society for future generations.