Gender pay gap reporting: Why it must be on everyone’s radar

The recent release of company gender pay gaps is a milestone for equality, not just in Australia but across the world. This initiative has the potential to be a massive enabler of change and should be on every employer’s radar.

The power of transparency should not be understated. Naming and shaming leave employers accountable and could be the driver of real change.

“The recent release of new gender pay gap data by the WGEA (Workplace Gender Equality Agency) is a significant step forward for equity in the Australian workforce as startling figures reveal that across all employers, 50 per cent have a gender pay gap of over 9.1 per cent. Data is crucial when it comes to aligning pay systems with DEI goals. When the data clearly speaks to the fact that there is still such disparity between genders in the workplace, that is a symptom of a biased system,” commented Sarah Liu, founder and director of TDC Global.

“Transparency is a powerful catalyst for change. When we move from assumptions to facts, we pave the way for open discussions and informed decisions. This isn’t just about exposing pay gaps; it’s about understanding why they exist and how we can transition away from accepted norms about remuneration. People are beginning to understand the main causes of the gender pay gap that exists today. Women are typically expected to make greater career sacrifices to have children and frequently find themselves in industries that society tends to undervalue monetarily compared to those predominantly occupied by men.”

While the reporting is important to keep an eye on to protect company image, Women Rising chief executive and founder Megan Dalla-Camina noted that it’s also the right thing to do.

“Achieving a neutral gender pay gap should be on the radar of every employer, not just because it is the right thing to do but because it also makes very good business sense. Diverse teams consistently report higher productivity and growth,” explained Dalla-Camina.

“The release of the gender pay gap report provides a level of transparency that we haven’t seen before. Organisations now have a good metric and will be able to visualise what work they need to do to move forward and close the gender pay gap. Now is the perfect opportunity to reset traditional career conversations and reframe pay expectations across the board.”

While the gender pay gap reporting serves as a foundation, employers still need to build upon it for any real change to occur. This is where establishing a plan can be beneficial in mapping out clear objectives.

Liu continued: “While WGEA data reveals that 30 per cent of employers don’t have a policy for equal remuneration, this figure needs to be lower. Employers need to have a clear roadmap for increasing females in leadership positions within their corporate structures.”

“The idea that workplaces have reached a point where gender inequality is an issue of the past is a corporate myth fuelled by the reluctance to dig deeper and explore the complexities of it. Some business leaders feel nervous about pay transparency; however, with proper preparation, these discussions can actually resolve conflicts and improve internal workplace communication and accountability.”

“Companies should see this as a way to move forward and go beyond accepting the current status quo. Through increased measurement, the flaws in making allowances for the remuneration and make-up for certain teams in the business are brought to light and offer a chance to break these ‘norms’,” commented Liu.

“‘Gender’ is not going away. It continues to be a differentiating factor in the workplace. Organisations must be committed to systemic change to focus on what the mass majority can do to move the needle and how they can shift policies and culture to be inclusive. An equitable and inclusive workforce is a productive one that can drive better business performance. From this moment forward, it is important we hold companies with large pay gaps accountable to ensure the issue of pay equity isn’t swept under the rug.”

For those who may be unaware of how they can enact change, Dalla-Camina outlined the top considerations for supporting women at work and moving closer towards pay gap neutrality:

1. Review company data and metrics regularly to track progress and hold leaders accountable for creating a more equitable workplace. In doing so, organisations can readjust their hiring, promotion, and pay practices.
2. Establish clear and transparent promotion and compensation policies to ensure women have equal opportunities for advancement and pay.
3. Provide opportunities for career development and growth, such as job rotations, leadership training, and mentoring.
4. Sponsor women to attend external workshops and training programs … to help them gain clarity on their career goals, identify what may be holding them back, build confidence, and reach their potential.
5. Encourage men to be allies to women by providing resources and education on how to support women in the workplace.