Gender Equality Part 3: Closing the Gender Pay Gap
In this third and final article of this series, we explore various strategies and organisations attempting to close the gender pay gap. We also examine the pay gap’s effect on superannuation.
Written by Victoria Kent, Senior Investment Specialist
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Everyone has a role to play in closing the gender pay gap.
In our final instalment of this three-part series, we examine various strategies and organisations attempting to close the gender pay gap.
There are a myriad of organisations actively working to close the gender pay gap. From Champions of Change, WEPS, to the WGEA tick and even board quotas, each differs in approach but united by a common objective.
Ultimately, we all have a role to play in closing the GPG.
It’s been over 50 years since Australia’s industrial relations system endorsed the principle of “equal pay for equal work”. The call for equal pay, initially driven by increased trade unions as response to more women joining the paid workforce, has been around for a while now. And while progress has certainly been made over the years, there is still more to be done to reach pay parity.
One notable approach to address inequality is where men are key agents of change. Spearheaded by Elizabeth Broderick, Australia’s longest serving Sex Discrimination Commissioner (2007-2015), the ‘Champions of Change’ strategy activates influential men to take action on gender equality.
In the words of Elizabeth:
“one reason many initiatives fail to progress gender equality is that they focus solely on engaging and changing women — from the way women network to the way women lead…. To deliver equality for women we need to focus on men. We need men taking the message of gender equality to other men. It’s not about men speaking for women or saving women. We can take care of ourselves, thank you very much.”
This message was delivered at a speech for a Women’s Empowerment Principles (WEPS) event. The WEPS, of which Elevate Super are a signatory, is a joint initiative of UN Women and the UN Global Compact, informed by international labour and human rights standards and grounded in the recognition that businesses have a stake in, and responsibility for, gender equality and women’s empowerment.
The WEPS places gender equality at the heart of good business practices via a commitment from an organisation’s highest level. These practices include equal pay for work of equal value, gender-responsive supply chain practices and zero tolerance against sexual harassment in the workplace.
WEPs are a primary vehicle for corporate delivery on gender equality dimensions of the 2030 agenda and the United Nations Sustainable Development Goals. We strongly encourage all organisations to become a WEPS signatory and embrace the seven principles within your organisation.
In addition to WEPS, The Australian Government statutory Workplace Gender Equality Agency (WGEA) (created by the Workplace Gender Equality Act 2012) exists to promote and improve gender equality in Australian workplaces. The ‘WGEA tick’, also known as the Employer of Choice for Gender Equality (EOCGE) citation is a voluntary leading-practice recognition program designed to encourage recognise and promote organisations' active commitment to achieving gender equality in Australian workplaces.
It’s not an easy one to get; to be eligible to apply for the EOCGE citation, organisations must be compliant with the Workplace Gender Equality Act 2012 and meet all the EOCGE assessment criteria. Our hats off to the 120 organisations who have passed the mustard.
One may ask, with all the hoops to jump to get such a certification, is it worth it? But according to former Foreign Affairs minister and Minister for Women Maurice Payne, the argument is simple a win-win:
"Employees are attracted to companies that have a positive reputation for promoting gender equality and for valuing the contribution women make in the workforce. Having women in visible decision-making positions improves workplaces."
“Our data shows that when employers take action, it makes a difference. More women are getting promoted to managerial roles. More employers are offering paid parental leave to their staff. More organisations are implementing policies or strategies to support gender equality or promote flexible working, as well as measuring their pay gaps and taking action to close them.”
Interestingly, not everyone believes the government should intervene in closing the GPG, even if it could. A paper by Professor (Emeritus) of Economics at Griffith University Ross Guest argues the equal pay for equal work mantra is flawed, and it would be a mistake to coerce employers to increase pay of women relative to men. The outcome would be fewer women employed relative to men and a loss of productivity for individual businesses and the economy.
He argues the efforts by WGEA amount to price fixing in the labour market and warns “history is littered with examples of failed government attempts to regulate prices in markets. It usually brings unintended consequences that hurt the people who are meant to be helped”.
Quotas – a help or a hindrance?
Another controversial form of intervention in the GPG arena are board quotas. Some countries like France, and some states in the US, have put quotas in place, which require a certain percentage of women on for-profit boards.
You might think any fan of meritocracy would balk at the idea of board quotas. But given the system is not entirely merit-based as it currently stands, this author admits quotas are a proven approach to effectively turbo charge what should be a natural evolution over time.
Ultimately, we can only manage what we measure; if it is measured and people are held accountable, we will get to equality. Until we do so, the incentives for driving gender equality on boards aren’t there and progress will simply be too slow.
And let's remember board membership is not the whole story, as the presence of women on boards does not mean they are reaching top leadership positions. Even in countries with diverse boards, progress at the executive level is slow.
In the FTSE 100 for example, there are just 16 female CEOs and female CFOs are even rarer. Clearly, greater participation on boards is the first step to achieving equal representation in leadership positions.
Solving for women’s under-representation in workplaces is difficult, complex and takes time.
As long as there is increased participation of women in the workforce, the gender pay gap, as well as the gender super gap, will close. Organisations can all work harder to achieve more diverse and inclusive environment by providing equal opportunities for career advancement and respecting others without gender discrimination.
The WEPS, WGEA certification and organisations like Champions for Change exist to help them along the way.
Ultimately, we are all responsible, men and women alike, to have the courage to transform our businesses and communities to move us to a world where power, leadership and pay is shared equally between men and women.
