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While the gender pay gap slightly decreased in 2022–23, it may not be enough if we’re to see true equity.
As it stands, the mean gender pay gap is at 12.3 per cent, 0.5 per cent lower than the year before, according to a recent report by XpertHR. Similarly, the mean gender bonus gap sits at 31.2 per cent, 0.5 per cent lower.
While we’ve witnessed a slight decrease in inequality, XpertHR argued it isn’t enough as the majority of organisations are still favouring males with their pay gap. According to the data, nine out of 10 companies reported a mean pay gap in favour of males.
But it’s not all bad news. The proportion of top pay quartile workers who are female has increased, rising 0.7 per cent to 39.5 per cent, which XpertHR flagged could highlight a change in attitude towards female leadership.
Some industries performed better than others in their efforts. Engineering and metals saw the biggest decrease, with their mean gender pay gap dropping 2 per cent. Information and communication, and finance followed, dropping 1.4 per cent each.
Other industries saw an increase, with agriculture and forestry seeing the sharpest increase to the mean gender pay gap, rising 2.2 per cent. Paper and printing also saw its pay gap widen by 1.3 per cent.
XpertHR’s belief that more can be done correlates with the Workplace Gender Equality Agency’s (WGEA) Scorecard 2022, which revealed that Australia’s gender pay gap was the same in 2022 as it was in 2021.
According to WGEA, every industry in the country has a pay gap that favours men, and on average, women are paid $26.6k less than men a year.
Further supporting this theme is UN Women, which discussed how more can be done in its 2022 gender snapshot.
“Fewer working hours, lower pay and unfair burdens of unpaid care all stall women’s prospects in labour markets,” said UN Women.
“Women are disproportionately affected, accounting for only 21 per cent of projected employment gains during 2019–2022 despite comprising 39.4 per cent of total employment in 2019.”
According to UN Women, the gender pay gap is expected to widen in 114 countries and areas. Playing a significant impact in this is the unequal distribution of unpaid care work and limited access to maternity benefits, childcare, and parental leave.
So, what can be done to turn this data around?
WGEA gave some tips on how organisations can do their part in reducing the gap:
- Conducting an audit to understand the size of the gender pay gap
- Reporting the findings to management and employees
- Setting KPIs for leadership to reduce the gender pay gap
- Taking action to increase the number of women in leadership positions
- Encouraging men to access flexible work arrangements and leave entitlements
Jack Campbell
Jack is the editor at HR Leader.
