Salary equality for women and men in the workforce is a contentious issue, and the latest figures released by the Workplace Gender Equality Agency (WGEA) draw a grim picture for women.
Full-time working women earn $262.50 less a week than men, and would have to work 64 days more on average each year to reach the equivalent annual wage of their male counterparts.
A number of factors contribute to these fluctuations, such as government policy and work choices. Yolanda Beattie, public affairs executive manager at the WGEA, says that the reason for the variation in figures is a multi-faceted issue.
“Work, family and societal factors all impact the pay gap,” says Beattie. “The complexity of the problem is part of the reason we haven’t seen greater progress – there’s no silver bullet.”
The pay gap has consistently hovered between 15-18 percent for approximately two decades, with the lowest divide being 14.9 percent recorded in November 2004. The gap is based on average weekly full-time earnings and the latest data is at 17.1 percent, down from 17.5 percent six months prior.
Prominent businesswomen, such as Westpac Group CEO Gail Kelly and Microsoft Australia Managing Director Pip Marlow, are inspiring change by pledging to shrink the gender pay divide.
Kelly has set in place plans for 2017 to not only be the year that Westpac celebrates its 200th birthday, but that its leadership positions are filled equally with women and men.
With only three percent of the ASX 200 CEO positions currently held by women in Australia, Marlow is aiming for a workforce whereby her children can achieve their full potential. She sees the success of Microsoft as being disadvantaged by restricting “to a limited workforce” of more men, therefore Marlow employs staff on merit, not on sex.
“Achieving equality in Westpac, and more broadly in Australia, is not just a matter of being fair or doing the right thing,” says Kelly.
“It also makes good business and economic sense. Increased workforce diversity, not only in gender, but across a range of areas, translates to direct economic benefits like increased productivity, engagement and performance.”
Bridging the gap
Marlow says that one factor contributing to the difference in wages comes down to men’s sense of entitlement over women’s, which is a social issue.
“While men often bargain more for a promotion because they feel ready, women feel they need to go further and be more prepared for the next step in their career before they ask for a promotion. But they don’t!” says Marlow.
“Women can’t control the glass ceiling but they can control the sticky floor by asking the question. What’s the worse thing that can happen by asking for a pay rise?”
While men negotiate more and are often used to the process, Marlow suggests that to reduce your fears about asking, it helps if you demonstrate to your employer that you’re confident and articulate the value of your workplace contribution.
Kelly reminds women to have faith in themselves because they have been given their employment opportunity because they are worthy of the role.
Similarly, Beattie says that women can successfully equip themselves for a job interview by “knowing your worth, first and foremost”. Also, be prepared by researching the current market rates for similar roles.
“Demonstrate the value you bring to the organisation,” says Beattie. “Make your case strongly and don’t apologise for negotiating. It’s uncomfortable but nobody else will do it for you.”
Marlow says that the term work/life balance is deceptive because it speaks of an even balance. “It’s actually about conscious choices and trade-offs – especially now the lines of a distinct workday are blurred by more people taking work home and working remotely.”
While Marlow says she never wants to compromise her core values, she has “had to miss out on things such as going to school events”.
Marlow has had to learn to be OK with certain choices she’s made while climbing the corporate ladder at Microsoft, such as giving away parenting responsibilities. However, she compensates for some of these choices by bringing her children to work with her after school and during school holidays.
“There is no ‘size-fits-all’ model, as everyone has individual choices to make.” Marlow says.
Beattie says that while employers don’t set out to create gender pay gaps, the WGEA’s payroll analysis tool usually uncovers pay gaps between women and men doing the same or similar work. Organisation-wide pay gaps may also be a feature, whereby women are under-represented in senior roles.
To combat the gender pay divide, Beattie says, “We encourage employers to do a payroll analysis as a first step. Then they need to look at why the gaps are occurring so they can address them.
“That includes looking at systems around promotions, recruitment and workplace recognition to make sure there are no unintended biases.”
See SEEK’s tips on negotioating your salary.
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