The MYOB SME Wage Report surveyed 1,000 SME operators and owners and found that gender inequality was compounded by the pandemic, but that situation looks to be reversing as employers increase flexibility and wages to benefit all.
The report found that men are earning around 7.5 per cent more than women on average, down from 7.7 per cent in April 2021, and said the gap was likely exacerbated due to the impacts of COVID-19, which disproportionately affected women in the workplace.
Also revealed in the report was that more than half of small-business employers increased wages in the past year, and 84 per cent see wage rises as a priority, with 51 per cent saying they have increased employee wages in the past year.
Additionally, 15 per cent of SMEs said more women were unable to work at their usual capacity during COVID, compared to 6.4 per cent of men.
In fact, 13 per cent of SMEs said more women faced reduced job security compared to 7 per cent of men.
“The gender pay gap is a widely established concern across all sectors, with the WGEA calculating the gap, in terms of average earnings, to be 14.1 percent in favour of men,” said Helen Lea, chief employee experience officer at MYOB, citing Workplace Gender Equality Agency (WGEA) gender pay gap data.
“On top of established and systemic challenges, the pandemic exacerbated many social and economic drivers that contribute to unequal outcomes for women.
“These were particularly apparent in the industries most impacted by COVID restrictions, such as hospitality and retail.”
Despite the gap, some outcomes of the pandemic have been positive for women.
The report revealed flexible work benefited more women than men (11 per cent compared to 5 per cent), and they also achieved pay increases at a similar rate (11 per cent compared to 6 per cent).
Ms Lea said the report shows the desire for businesses to get back on track after a long period of disruption — and that they’re willing to pay more to achieve it.
“Australia’s small and medium sized businesses are looking to return to a normal operating rhythm; however, conditions remain difficult with labour shortages and cost of living putting significant pressure on businesses and employees alike,” she said.
“Despite the challenges, these findings indicate the commitment of SMEs — the country’s largest employer — to deliver wage growth to the 7.6 million Australians they employ.
“By bringing awareness to the gender pay gap, and providing ways to action discrepancies, we hope to assist the sector to deliver more equitable outcomes for Australians.”
