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The upcoming gender pay gap legislation will affect how workplaces operate. With 82 per cent of employees saying that they’d think negatively of their organisation if there was a significant discrepancy, these reforms could change how employees view the company they work for.
The Workplace Gender Equality Amendment (Closing the Gender Pay Gap) Bill 2023 passed Federal Parliament earlier this year. The changes will require businesses of over 100 employees to disclose their gender pay gap to the Workplace Gender Equality Agency (WGEA) from 2024.
This added transparency will reportedly affect around 40 per cent of the workforce in Australia. Employees have now expressed their own opinions towards the reforms in ELMO Software’s Employee Sentiment Index for Q2 2023, highlighting that businesses that don’t adopt a gender balance policy run the risk of falling behind.
The report revealed that 82 per cent of employees would think negatively of an organisation if there was a significant gender pay gap. This could affect attraction too, as 77 per cent would consider looking elsewhere for a job if the pay gap was significant.
In the current talent market, where attraction and retention are crucial, businesses may need to be careful with how they approach these upcoming reforms. If gender pay gaps are not addressed in the company, people could move elsewhere, and talent shortages could become even more severe.
Women were twice as likely as men to be upset, outraged, and less confident if there were significant gender pay gaps in the workplace. Women were also four times more likely to feel unappreciated. Meanwhile, 70 per cent of women would be disappointed compared to just 46 per cent of men.
These feelings towards gender pay gaps were more intense with younger workers. Just 3 per cent of Baby Boomers said they would put in less effort at work if there were significant gender pay gaps. Meanwhile, 23 per cent of Gen Z said the same. Similarly, Gen Zers are more than twice as likely to look for another job than Baby Boomers if pay gaps persist.
Organisations may be reaching into their pockets more in the coming year as priorities shift. With inflationary worries continuing, 44 per cent of workers believe the economy isn’t secure. This means money is on the mind, with 59 per cent of employees expecting a pay rise within the next year.
This has been the sentiment of employees for some time, as remuneration, bonuses, payments, and incentives have been the top priorities since Q2 2022. Since Q1 2023, these feelings have ramped up even further, with Gen Z workers seeing a 13-percentage point increase in demand.
If gender pay gaps are significant, more money may be needed to address issues if organisations don’t want to lag behind.
However, even with these overwhelming figures, employees are still uncomfortable discussing salaries with their HR department. Just 38 per cent feel comfortable discussing this with HR, while 66 per cent said the same about this discussion with their partner.
Jack Campbell
Jack is the editor at HR Leader.
