Equal Pay Day 2023: Addressing the gender pay gaps in your business before your stats are published.
Imagine if variables beyond your control – like where and when you were born, or your gender – dictated your value. For the average working woman, this isn’t just hypothetical: this is the reality.
The gender pay gap in Australia.
The Workplace Gender Equality Agency (WGEA) announced Friday 25 August as Equal Pay Day for 2023, marking the 56 extra days women have to work (after the end of every financial year...) to make up the difference caused by the gender pay gap.
According to the Australian Bureau of Statistics (ABS), on average, women in Australia still earn 13% less than men. In May 2023, ABS average weekly earnings data showed that, on average, women earn 87 cents for every $1 earned by men. This sets women back $252 every week or $13,119 every year – approximately eight extra weeks of work to earn the same yearly salary as their male colleagues.
These figures don’t include bonuses, superannuation or overtime – which men are statistically more likely to earn. It also excludes the salaries of Australians working part-time - it comes as no surprise that women are more likely to work part-time (42.9% vs. 18.8%) and also over-index in lower-paid occupations (Status of Women Report 2023). Critically, this is amplified if you are a woman of colour, parent, come from a linguistically-diverse background, or experience a disability.
So, what’s with the gender gap in pay?
In Australia, women achieved the right to equal pay for equal work way back in 1969, so what’s gender got to do with it?
According to the Australian Government’s 2023 Status of Women Report Card, pay disparities emerge as early as graduation, with full-time salaries starting at $69,000 for men and $67,000 for women.
The gap only grows wider over time, when you consider systemic issues around gender bias (especially in progression and promotion), a lack of accessible childcare and flexible work, and that women still take on more unpaid home, carer and child-rearing responsibilities than men (up to 9 hours more per week) – even when they’re the breadwinner.
While Australia is making progress, there’s still plenty to do in the workplace.
Why pay parity matters.
For some people, the gender pay gap is hard to understand, difficult to acknowledge or isn't seen as relevant to their situation. But, this gap doesn’t just affect women, it costs the Australian economy $51.8 billion every year.
Closing the gender pay gap would mean more of us would have the ability, opportunity and agency to participate in the workforce. Workplace pay parity helps us get there, because it establishes a more equal and fair society for us all.
This year, we've called on businesses to use Equal Pay Day as an opportunity to investigate and improve their own pay parity. It's an opportunity that as a society we must seize.
What is the urgency for my business?
Large organisations (500 or more employees) will also be required to have policies or strategies in place for each of the six of the WGEA's gender equality indicators.
Those that haven't taken this issue seriously run the risk of being publicly called out - potentially damaging reputations with customers, stakeholders, current and potential employees.
There are actions to close the gender pay gap in your business:
There are plenty of ways to enact change within your company and help reduce the gender pay gaps across your business:
💎 Get on the front foot
Prioritise gender equity in your organisation, ahead of the WGEA’s published reporting dates. Get in touch and we can help you develop a compelling business case to present to the ELT, board or C-suite – plus, a strategy and comms plan for rollout.
💎 Tap into our tools and resources
Partner with equidi to proactively assess and understand where your business sits within the broader gender pay gap conversation. Our data-driven platform and advisory services are designed to help you identify opportunities for improvement.
💎 Join the movement driving gender equity forward.
The Gender Equity Movement (GEM) is a collective of businesses, advocates and individuals who are committed to reducing the gender pay gap.
Sign up for free as a business, partner or individual and pledge your commitment to backing our vision of creating a more equitable and inclusive future - one we can all look forward to.
