Only 10% of companies report gender pay equity metrics to Executives and Boards

Human Resources: In a report analysing gender equality strategies within Australian businesses, valuable insights have been unveiled, shedding light on effective actions employers can take to narrow gender pay gaps.

The eighth instalment of the Gender Equity Insights series, jointly presented by the Workplace Gender Equality Agency (WGEA) and Bankwest Curtin Economics Centre (BCEC), delves into the strategies of nearly 4,800 Australian employers to identify the factors propelling change and reducing gender pay disparities.

Employers committed to deliberate, long-term actions within their workplaces witnessed tangible results. The leading Australian companies, exemplifying robust strategies, recorded a noteworthy 5.3 percentage point decrease in gender pay gaps over the past three years. Overall, 28% of businesses improved their approach to gender equity over the past three years by raising their maturity by at least one level.

Nevertheless, a profound disparity emerges within industry sectors, distinguishing the frontrunners in reducing gender pay gaps from the laggards. Sectors such as the professional, scientific, and technical services sector, mining, manufacturing, retail trade exhibit substantial variations in their progress toward gender pay equality.

The report’s author and Bankwest Curtin Economics Centre Director, Professor Alan Duncan, emphasised the introduction of a ‘maturity framework.’ This framework enables organisations to pinpoint, measure, and implement practical policies and actions, driving improved gender equality outcomes in the workplace.

Women continue to be under-represented among the top 20% of earners in most industry sectors. Professor Duncan remarked, “While progress is being made, the reality is that closing the gender pay gap is still many years off for a large share of Australian businesses.”

The report compared the policies and actions of companies at varying stages of their gender equality journey, shaping a comprehensive roadmap to inform employer action. This analysis benchmarks organisations based on their approach to pay equity strategies, recruitment and retention, and other pivotal policies, such as parental leave, family and caregiving support, and addressing sexual harassment.

Highlighting the impact of higher maturity levels in gender equality approaches, Professor Duncan highlighted the necessity for consistent, long-term efforts in implementing policies and strategies, following gender pay audits. This sustained commitment is fundamental to maintaining the highest levels of maturity in workplace gender equity.

Mary Wooldridge, WGEA Chief Executive Officer, stressed that meaningful, sustained change is achievable when employers pursue a deliberate strategy for gender pay gap reduction.

“Employers who do more, achieve more,” she stated.

While around 50% of businesses conducted a pay gap analysis in the past year, only 10% reported pay equity metrics to Executives and Boards. Ms Wooldridge underscored the significance of legislative reforms passed by the Parliament in March this year, aiming to enhance transparency and accountability. These reforms require companies to publish their gender pay gaps and provide WGEA reports to their Boards, aiming to accelerate progress.

Associate Professor Astghik Mavisakalyan, a co-author of the report, stressed the importance of consultation and continuous improvement in gender equality policies. She urged business leaders to ensure that progress in gender equality is inclusive and not confined to specific employee groups, highlighting the essential role of gender diversity in decision-making and on corporate Boards.

The report concluded with a call to action, signalling a substantial opportunity to expedite change in achieving gender equality within Australian workplaces. Despite growing public awareness and government prioritisation of gender equality issues, the report provides a vital roadmap for organisations to sustain progress and avoid derailing women’s economic equality in Australia.

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