Pay gap means women still earning $26k less than men

Women are still earning around $26,000 less than men with the gender pay gap stuck at 22.8 per cent according to the latest annual data released by the Workplace Gender Equality Agency (WGEA).

by | Dec 12, 2022

The world-leading annual dataset on gender equality has revealed progress has stalled meaning women earned on average $26,596 less than men in 2021–22.

The WGEA 202122 Employer Census also found that although the number of female chief executives has risen slightly from last year, still only 22 per cent of CEOs are women. Men are more likely to hold managerial positions even in female-dominated industries such as healthcare and education.

This is despite research showing that profitability and productivity increase under women’s leadership. More women in key decision-making positions also contribute to improved company performance, yet just one in five governing boards are gender-balanced, while more than one in five boards have no women at all.

Although the number of boards without women has dropped from 37 per cent to 22 per cent since 2014, 72 per cent of boards are still comprised of a significant majority (>60 per cent) of men. Less than 1 per cent of boards comprise only women.

On a more positive note, the census found more employers are offering paid primary carers leave than last year (62 per cent, compared to 60 per cent in 2021), with 92 per cent of those offering it equally to women and men.

Additionally, new voluntary reporting showed 53 per cent of employers have set some form of target for gender equality in the workplace with more than half (55 per cent) having done so to increase the number of women in leadership.

However, in a disappointing finding, the census found that fewer employers have targets to reduce the gender pay gap (38 per cent), increase the number of men taking parental leave (19 per cent), increase male take-up of flexible work arrangements (16 per cent), or boost the number of men in female-dominated roles (14 per cent).

In good news for employees who want the flexibility to choose how, when, and where they work, new voluntary reporting showed many workplaces are moving to an ‘all roles flex’ model.

Around 38 per cent of employers who responded to the new question, reported they have implemented an ‘all-roles flex’ approach, ensuring the focus is on work output and outcomes, not hours spent in the office.

Agency director, Mary Wooldridge, said the stagnant gender pay gap must be a signal to employers to pick up the pace by implementing policies and practices that evidence shows contribute to improved gender equality.

“At a time when Australia is experiencing a critical skills and labour shortage, WGEA’s annual Employer Census shows that too many employers have failed to step up on gender equality leaving many women no better off than they were 12 months ago,” Ms Wooldridge said.

“A pay gap of 22.8 per cent means women earn an average of $26,600 less than men, based on their gender. This failure to improve needs to be a clarion call for all employers.”

Ms Wooldridge said committed, leading employers are picking up the pace of change.

“Lasting change requires employers to make bold, creative choices that send a signal to all employees that gender equality is a core part of their business strategy and a priority for those in leadership and managerial roles,” Ms Wooldridge said.

“Leading employers are already putting solutions in place that address challenges like workforce shortages by tailoring factory shifts around school pick-up and drop-off times or promoting — and role-modelling — flexible hours or part-time work arrangements among managers and executives.”

Employers are encouraged to find and compare how their organisations are tracking using the Agency’s Data Explorer at www.wgea.gov.au/data-statistics/data-explorer

“This is a chance to measure how your organisation’s workforce composition and policies and strategies for recruitment, promotion and retention shape up against the competition,” Ms Wooldridge said.

“Because if you’re not making progress on these things, your employees will realise there are others who are.”

Share This