$93m benefit from gender balance in roles, WGEA says

Lower staff turnover, a $93 million boost for $1 billion ASX-listed businesses, and higher retention are just some of the benefits of gender-balanced leadership, a new report has said.

The Workplace Gender Equality Agency (WGEA) and the Bankwest Curtin Economics Centre (BCEC) released the Gender Equity Insights Series 2025: The Power of Balance report – based on a dataset of 5.1 million workers – which showed that organisations that take action for gender equality experience lower staff turnover, more women in leadership and greater stakeholder value.

Findings

Based on its findings, $1 billion ASX-listed businesses can experience a boost of close to $93 million on average, and up to $120 million depending on the level of gender balance; a greater gender balance can also lead to fewer staff resignations and greater retention, stronger market value, profitability, and shareholder returns, the research found.

This research reveals that gender equity impacts both fairness and performance in company value, profitability, and resilience.

Despite these benefits, less than one in three organisations (27.3 per cent) have a gender-balanced workforce.

Gender balance requires at least 40 per cent women and 40 per cent men in a workforce, it said.

BCEC director and report author John Curtin Distinguished Professor Alan Duncan said: “Gender balance is not just a fairness issue, it’s a sound financial strategy.”

Gap impact

The report found that resignation rates remain higher for women, with women leaving key industries faster than men – this higher resignation rate for women was found to be influential for the attitudes that companies have towards a gender-balanced workforce.

It will be harder for businesses to reach a gender balance if they do not address it, the research said.

Currently, many roles are within 5 per cent of pay parity, but structural issues such as occupation segregation across roles and industries are still a key factor behind gender pay gaps.

Despite edging closer to gender parity and service industries – arts, recreation, accommodation, food, and finance – showing positive gender balance gains, only one in four (27 per cent) employers have gender-balanced leadership teams.

The report also identified the impacts of what is known as “horizontal pay gaps” – pay gaps within an organisation between women and men in roles at a similar level.

Duncan said: “Australia cannot afford complacency. Employers who take deliberate action will not only retain women and strengthen leadership pipelines, they will also secure long-term value, innovation, and competitiveness.”

WGEA chief executive Mary Wooldridge (pictured) said: “The evidence is clear that gender-balanced leadership teams don’t just support women, they also deliver stronger results by fostering better decision making, innovation and capacity to navigate challenges.”

“By digging into the data and developing an approach that’s tailored to their specific workforce needs, employers can build a strong pipeline of talented leaders and help safeguard the long-term sustainability of their organisation.”

Best foot forward

The report recommends employers take action to improve gender balance – monitoring and setting targets for gender equality outcomes – to make swifter progress towards the gender balance of their workforce.

These key actions are to:

• Set and publish gender equity targets for leadership and hold boards accountable for progress.

• Strengthen pipelines into profit-and-loss and operational leadership roles where women are under-represented.

• Track resignation patterns and address barriers driving women out of key industries.

• Remove structures that prevent part-time and flexible workers from advancing into senior roles.

• Redesign recruitment and career pathways for men and women in roles traditionally dominated by the other gender.

• Conduct regular gender pay gap analysis and act on the findings to reduce inequities in progression and reward.

• Normalise flexible leadership positions to enable both women and men to lead, while working flexibly.

• Share successful equity strategies across industries to accelerate progress.

“Organisations that invest in equity strategies not only close pay gaps, they also build stronger, more resilient workforces. By contrast, those that fail to act will continue to lose talent, eroding leadership pipelines,” Duncan said.

Carlos Tse

Carlos Tse is a graduate journalist writing for Accountants Daily, HR Leader, Lawyers Weekly.