Get prepared for the next round of gender pay gap reporting

Businesses recently had gender pay gaps published. With this initiative being the first of its kind in Australia, there is room for confusion and mistakes.

The Workplace Gender Equality Agency’s (WGEA) gender pay gap reporting for the period of 1 April 2022 to 31 March 2023 was recently published.

Private sector companies with over 100 employees had gender pay gaps listed. Now, employers who fit this category will be preparing for the next round of reporting, which kicks off on 1 April, for the period 1 April 2023 to 31 March 2024.

The importance of reducing company pay gaps should not be understated. According to an ELMO Software poll, if their company had a significant gap, 35 per cent said they would consider leaving (48 per cent of women and 28 per cent of men). Meanwhile, 15 per cent said they wouldn’t try as hard (19 per cent of women and 11 per cent of men).

Joseph Lyons, ELMO Software chief executive, said: “Our research shows a significant proportion of Australian women would consider leaving their organisation if they discovered it had a large gender pay gap. While walking out may not be realistic in these tough economic times, the research showed that women are also more likely to check out.”

“Business leaders must recognise that a disenfranchised workforce is one of the hidden costs of the gender pay gap – a cost that will deliver a significant blow to the productivity and bottom line of every business.”

With the gender pay gap reporting being a new initiative, there is undoubtedly some confusion. Luckily, there are organisations working to make things easier, helping streamline the reporting process.

ELMO Software has recently announced a tool to help simplify reporting, with the company claiming it can save up to 50 per cent of the time it takes to do so. The function will reportedly collate and process data, lessening the time it takes to conduct a gender pay gap audit.

“We developed this tool in response to feedback from customers that they were really struggling to meet their gender pay gap reporting obligations in a timely and accurate manner,” explained Lyons.

“To ensure this new functionality meets their needs, we included a range of customers in a pilot of the new tool over the last six weeks, and the feedback is extremely positive, particularly relating to the time they were able to save, and the accuracy of the process.”

He continued: “Rather than an arduous once-a-year event, ELMO customers will be able to monitor their metrics throughout the year. This process of continuous feedback will help identify the initiatives that are truly moving the dial when it comes to an organisation’s gender pay gap.”

Making this important process easier should be front of mind for employers, as WGEA’s gender pay gap reporting will become an annual task for all private sector companies of over 100 employees. This could expand to a wider range of organisations in the coming years as the criteria are expanded.

“The moral argument for closing the gender pay gap is a given. We believe the debate now needs to shift to the economic imperative because not closing the gender pay gap may be costing companies more than they think,” added Lyons.