Gender Pay Gap Transparency is here. But, what if you don't like what you see? A guide for the People.

Many companies sing from the treetops about their values and commitment to gender equity, DEI, equal opportunity or [insert any other diversity, equity, inclusion or sustainability statement], but when you become aware of their gender pay gap and their remuneration and representation quartiles on Feb 27, it may change your perspective.

Gender pay gaps are out. You’ve had a look at how your company stacks up; you’ve compared them to the competition, and you’ve probably spent some time trying to glean some more insights from the remuneration quartiles. You may feel undervalued, suspect you’re underpaid, and/or question your loyalty to your company, given the size of their gender pay gap. So, what do you do?

Gender pay gap data – what will be published and how?

Let’s talk about the gender pay gap that will be published. For this year, you will see the organisation’s overall median gender pay gap, with the CEO’s remuneration excluded.

The median is the figure in the middle of your organisation’s dataset. Identifying the middle of the dataset assists in accounting for outliers, which can occur with executive remuneration.

The median will be calculated on both the base salary and total remuneration (base salary + super + bonuses + any additional payments) gender pay gaps. To ensure comparability, part-time and casual salaries will be converted to full-time equivalent earnings. There will no doubt be many ways of viewing the facts once they are published.

All companies will also be able to submit an Employer Response statement, which will also be published. Companies that publish a statement will be able to provide further colour and context and, more importantly, highlight steps that they are taking to reduce and eliminate their gender pay gap.

We’ll spend some time in this edition unpacking what this could mean for you and provide some practical guidance for navigating through different scenarios.

What if I suspect I’m being underpaid for my role?

If, by looking at the published data, you suspect you're being underpaid, it’s important to understand that the data being published by the WGEA can’t solely be relied on to draw such a conclusion.

Organisations all have different philosophies when it comes to salary and pay practices, and not many openly communicate how it all works and ties together. Some companies use individual benchmarks; others use job grades, bands or levels, and some companies don’t use anything to set or review pay.

There are often other dynamics at play here, too; a company may consider factors like experience, education, management responsibility, performance, salary history, etc. Some of these factors can lead to forms of bias, so it’s important to understand how these decisions are made by your company and what that means for you personally.

Each job role usually sits in its own market and can be impacted by supply and demand factors that can have an impact on pay. For example, in areas where there is a shortage of available skills and talent, that can drive a market up; in areas where there is oversupply, it can keep pay rates low or stable. For these reasons, the data sets released by the WGEA will not give enough intel to draw specific conclusions.

It should, however, encourage you to obtain some further context and to understand if your company’s gender pay gap is an indication that you're being underpaid. That context can be obtained in a number of ways. We mentioned the Employer Response statement on the WGEA website. If your employer has dedicated the time and resources to making a statement, this is a great place to start. It indicates that, at the very least, they are aware there is an issue to solve!

There are plenty of publicly available data sources where you can seek to understand a benchmark salary for someone in your role with your level of experience. Many recruitment agencies provide broad salary benchmark data. You can use this as a guide, but it’s important to note again that such information will likely not show the full picture relevant to you or your organisation.

Finally, and most importantly, where you think you are being underpaid (based on your research), we’d recommend that you seek to have an exploratory discussion with the most appropriate person e.g your manager. More on that below in our top tips.

What if I think I’m experiencing a form of gender bias or discrimination in the workplace?

The fresh and transparent data could raise concerns about gender bias or discrimination. If your organisation’s results aren’t shining a glowing light, and you have a personal experience(s) that leads you to believe you could be experiencing gender bias or discrimination, it could be a sign of a bigger issue - one you may have been dealing with for some time. If this is the case for you, you may want to approach it from the following perspectives.

Understand your company’s policies to address gender bias…and check if they educate their people accordingly.

Eradicating gender bias and discrimination starts with preventing its occurrence in the first place. Research shows that corporations that have in place clearly articulated policies to address discrimination – and incorporate regular learning sessions – are less likely to encounter gender bias or other discrimination issues.

Review your company’s policies and ensure they cover gender bias and have a clear, confidential, and transparent grievance resolution process in place. Advocating to your manager or HR team to ensure these critical systems are in place is a great way to help you and any team members.

Raise the issue and prepare to share

This is easier said than done, and there’s no denying it can be uncomfortable – but unless you raise awareness and speak up on your experience, it’s likely nothing will change. You may also find you’re not alone; other people may have had similar experiences, and by raising an issue, you help many more.

It’s important to identify the right person to talk to you, and every situation will be different due to context and circumstances. Sometimes, sharing your experience with friends and family can assist in making the initial conversation in the workplace a bit easier.  It may be HR you need to raise it with, it may be a direct manager, or it could be a one-up manager. It’s a good idea to have some notes, a timeline of events and examples. Once you raise the issue, your company should guide you through the process until it is resolved.

What if our company’s pay gap is high, and I don’t think it aligns with the company’s stated values?

Many companies will have been promoting their approach to gender equity without ever having to disclose their key data metrics as they have now. Many of these employers will be listed and recognised as top employers for gender equity, but the publication of these results may paint a different picture.

It will be a decision for you to make in terms of alignment with your values and the company’s – and potentially, there are other personal or financial decisions to consider, too. If you feel like you are in this boat, you can become an advocate too.

This could be in the form of asking the company questions; it could be seeking to understand the explanation (some of this could be in their Employer Response statement if they provided one – but it is also good to hear first-hand). Most importantly, what action are they taking as a result? That will be critical to understand, and this should be factored into any decision you may make.

The best thing about pay transparency is that the data will be refreshed annually. If you don't see an improvement in the data, or see action taken by your employer, this may be a sign that the issue isn't high on their agenda.

What if I’m applying for a job and the company’s gender pay gap is high? Should I avoid it?

The gender pay gap is complex because it’s impacted by many dynamics. It is not pay equity or equal pay for equal work, and it is possible to achieve pay equity and still have a gender pay gap. This is because the gender pay gap is a measure of diversity. If a company does have a significant gender pay gap, it is worth seeking to understand why and what the company is doing about it.

Yes, it could indicate the need for better and more robust pay practices; it could mean they do not have high enough representation of women, or even if they do, there may not be an even distribution - particularly across senior levels; it could indicate a systemic issue; it could indicate gender bias or discrimination; or it could show there is no clear strategy or plan for dealing with gender equity. It's a complex issue to unpack, so it’s always worth getting a solid understanding or explanation before putting pen to paper on an employment contract.

Ready for that salary discussion? Top tips to help you nail it.

If you’re ready to raise an issue around your salary (because of what you have learned via the WGEA published information or otherwise) and have that salary discussion, here are my top tips.

✅ Tip #1: Gather the right data

The devil is in the detail – know your numbers, know your worth.

The first step is to understand the market, the data, and where you’re currently at. If you’re going to discuss pay, be sure to have some relevant data as a reference point first. Whilst you most likely will not have access to the company’s data points, you can do some market research to help position yourself.

A number of recruitment agencies produce annual salary reports that you could use as a reference point (Hays, Robert Half, Michael Page, to name a few), or you could do some research to see what your role is paying in the market from either job ads or recruiters.

It is important to note that the company will likely have their own benchmarks, so if you use other data points, there may be a gap from the get-go. If this happens, seek to understand the company's approach to remuneration and how you fit into that. Timing will be important; most companies run an annual salary review process, and they may wish to do this as part of the annual process, so you’ll need to consider timing for the conversation, too.

✅ Tip #2: Eyes on the prize

What is your intention? Know your ask.

Many people go into salary discussions and aren’t clear on exactly what they are asking for. They know they want a pay rise but haven’t considered what it is they want. This can leave them feeling disappointed because underlying expectations were not met. Let’s say you wanted a $10k rise, but you got $2k – you may come out feeling undervalued, even though you achieved an increase. You don’t want to be in a position to have this discussion multiple times. With the proper thinking and planning, you can get the right outcome the first time.

So, before the session (and after you’ve collected your data points), write down the minimum increase that you want to achieve, then keep your eyes on the prize – these can be stressful and emotional discussions – it is, after all, a discussion of your worth and value.

✅ Tip #3: Share your success

Your success is their success; show them how you’ve added value.

It’s always a good idea to remind people of your achievements and to help them get on the same page as you. Was there a project or a specific outcome you can demonstrate the value you added? Were there examples of you going above and beyond to deliver an outcome beneficial to the business? What has your track record been? It could be worth raising your last couple of performance ratings to illustrate your points.

Did you ever receive great feedback from a colleague or someone outside the organisation you worked with to deliver a piece of work – all of this helps support your case and paint a picture that may not be known or understood. Invest your time into this; it could be the difference between landing the pay rise or not.

✅ Tip #4: Practice makes perfect

Role-play all the way - try it on first.

Before you have the discussion, it is worth trying out the discussion first with a trusted friend or mentor. Choose someone who you think will add value and not just make you feel good. It’s an important process to nail, and you want to ensure you’re prepared, feeling good about it, and confident.

This will only come from practice, and if you achieve your desired outcome, it’s well worth the investment. Think of it like this: would you run a half marathon with no training? Would you deliver a keynote speech with no test run? This could be one of the most impactful and rewarding processes you go through, so invest the time in yourself - because you're worth it.

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