Yesterday, some of the biggest employers in the country have revealed for the first time what their male and female average pay is.
The data is staggering; it shows substantial gaps in pay for the genders across the likes of airlines, breweries, banks and mines, which are among almost 5,000 private companies who have turned their pockets inside out. All in all, it paints a sobering picture.
What is the gender pay gap?
WGEA, which collates the information, describes it like this: “Gender pay gaps show the difference between the average or median pay of women and men across organisations, industries and the workforce as a whole.”
It’s important to note that gender pay is not a new issue. For decades, women have been fighting to be paid equally to men for the equal work undertaken. And it’s worth knowing that any employer who pays unequally for the same role is breaking the law.
How do we measure the gender pay gap?
The Australian Bureau of Statistics stipulates that “the gender pay gap describes the difference between the “average earnings” of men and women. It is not a measure of gender pay equality or equal pay – these are concepts that reflect the extent to which men and women are paid the same for performing the same or comparable work. Unequal pay is only one factor which may influence the gender pay gap.”
It isn’t a simple concept to measure, because some industries are more male dominated (historically aviation, mining, politics, for example) while others are more female-heavy (teaching, nursing etc). Consequently the data will be skewed in these instances. Women are more likely to have time out of the workforce to raise children or care for ageing family members, too. And more likely as a result to make up part-time positions as they juggle home and family life. All of which can be difficult when you’re working out averages.
What is the national gender pay gap currently in Australia?
As of late last year, the national gender pay gap was at about 19%.
Which companies had substantial gender pay gaps?
In perhaps the most astonishing news, some companies who have women as their core focus – Forever New, Pandora and Lorna Jane, to name a few – were the worst examples when it came to the gender pay gap, with the figures showing up to a 50% disparity.
Generally supermarket chains performed better.
What’s the good news?
In mildly positive – sort of – news the pay gap is closing. The reason for saying ‘sort of’ is that based on global data, with a roughly 68% gender gap across the world, it’ll take 131 years to reach equality. So no, not great. It needs to quicken up, and we all need to be aware and have open and transparent conversations in the workplace.
Closer to home, Australia has made some progress, although we are still behind countries such as New Zealand and Rwanda. Again, if we keep moving at this rate, it will take centuries to close the gap.
It’s worth noting though, that the release of this company data is good one. The Minister for Women, Senator Katy Gallagher, said “the release of employer gender pay gaps marks a historic step towards transparency and accountability in addressing gender inequality.”
“The gender pay gap is a persistent and complex problem that costs the Australian economy $51.8 billion every year,” Minister Gallagher said.
What can people do on the ground to close the gender pay gap?
We spoke with Friska Wirya, MBA-qualified Top 50 Global Change Management Thought Leader, on her top four tips to tackle the pervasive problem:
1. Ask for transparent pay practices and audits
As an employee, speak with your company about establishing clear and consistent pay structures and ask about salary ranges for each role when applying internally, and also when you’re in your annual review. Also ask about pay audits and how often they’re conducted (audits should be regular, not a one-off). Transparency fosters empowerment – so let’s ask and speak up.
2. Suggest and partake in diversity training and feedback questionnaires
Unconscious bias is common in the workforce, and the best way to combat this is to actively learn and undertake awareness programs. Don’t shrug off questionnaires that might seem like an imposition; use it as a time to not only reflect on yourself, but also how you can give constructive feedback to your company if you feel they’re not hitting the mark.
3. Prepare and be ready when it comes to negotiating
As the time draws closer to sign the dotted line, do your research and be ready to share what your expectations are. Research shows women are less likely than men to negotiate their salaries, which can perpetuate pay disparities. If you can, seek out negotiation training at your workplace, and if that’s not an option, speak with friends and family to prepare yourself for the harder conversations.
4. Start as you mean to go on
If disparity and inequality are the primary problems in the workforce, then engage in inclusive and welcoming behaviour in the workplace. After all, if we exemplify what we’re after – a workplace where employees feel valued, respected and empowered – it puts people on a level playing field where true equity thrives. Positive atmospheres breed positive atmospheres.
Final take away: It’s time to prioritise pay equity as a fundamental aspect to individual, organisational and societal progress.
