Gender progress slows
New national data shows Australia’s gender pay gap stuck at 22.8 per cent.
Progress to close the pay gap between women and men has stalled for the first time in 2022, according to the latest annual data released today by the Workplace Gender Equality Agency (WGEA).
The annual dataset shows the gender pay gap remaining at 22.8 per cent, meaning women earned, on average, $26,596 less than men in 2021-22.
The WGEA 2021-22 Employer Census finds that although the number of female CEOs has risen slightly from last year, but 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 contributes to improved company performance, yet just 1 in 5 governing boards are gender-balanced, while more than 1 in 5 boards have no women at all.
Since 2014, the number of boards without women has dropped from 37 per cent to 22 per cent, but 72 per cent of boards are still comprised of a significant majority (>60 per cent) of men. Less than one per cent of boards comprise only women.
WGEA director Mary Wooldridge says the stagnant gender pay gap should 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.
“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.”