Not too long ago, for the primary time in Australia, the Office Gender Equality Company (WGEA) revealed the gender pay gaps of almost 5,000 particular person non-public sector employers in Australia. The WGEA has used that information to publish its Employer Gender Pay Gaps Snapshot.

The information, which covers the Gender Equality Reporting interval from 1 April 2022 – 31 March 2023 might be accessed by way of the WGEA Information Explorer, the place customers can overview reporting outcomes by {industry} and particular person employer.

The transfer to publish particular person employer’s pay gaps is geared toward driving transparency and accountability in addressing gender inequality, with Minister for Ladies, Senator Katy Gallagher, stating:

“By shining a lightweight on gender pay gaps at an employer degree, we’re arming people and organisations with the proof they should take significant motion to speed up closing the gender pay hole in Australian workplaces”.^[1]

The outcomes embrace various important nationwide and {industry} traits. The headline being, the median whole remuneration gender pay hole for the related reporting interval sits at 19%, and workplaces with ladies in management positions usually tend to report impartial gender pay gaps of between -5% and +5%.

One of many factors of curiosity is the power for stakeholders to distinction and evaluate particular person employers towards various major measures. That is according to the above acknowledged intention to drive elevated transparency, and can probably impression the way in which during which employers have interaction with their stakeholders in respect of their gender pay hole.

Background

The WGEA was created by the Office Gender Equality Act 2012 (WGE Act) to advertise and enhance gender equality in Australian workplaces. Underneath the WGE Act, “related employers” are required to report back to the WGEA yearly towards the next six Gender Equality Indicators:

1. Gender composition of the workforce
2. Gender composition of governing our bodies of related employers
3. Equal remuneration between ladies and men
4. Availability and utility of employment phrases, circumstances and practices regarding versatile working preparations for employers and to working preparations supporting staff with household or caring obligations
5. Session with staff on points regarding gender equality within the office
6. Sexual harassment, harassment on the bottom of intercourse or discrimination

Beforehand, the WGEA has used the data gathered in these annual reviews to report on gender inequality at an {industry} particular degree. Nevertheless, in response to a 2021 overview of the WGE Act,^[2] the Federal Authorities handed the Office Gender Equality Modification (Closing the Gender Pay Hole) Act 2023 in March 2023, enabling, amongst different issues, the WGEA to publicly report on its web site the gender pay gaps on the particular person employer degree, and never simply the {industry} degree.

What employer data has been revealed?

The information revealed by the WGEA covers the Gender Equality Reporting interval from 1 April 2022 – 31 March 2023 for all related non-public sector employers underneath the WGE Act – that’s, employers with 100 or extra staff in Australia.

The information is revealed on the WGEA Information Explorer, with a transparent concentrate on making the outcomes accessible, displaying the majority of the data in pictorial type and utilising interactive graphs and charts. Of explicit significance is the “Examine Information” operate, which permits customers to simply create and print comparative tables setting out the efficiency of particular person employers in relation to various major measures towards the nationwide and industry-based outcomes. The operate, which additionally permits customers so as to add and take away different particular person employers from the comparative tables, offers a mechanism for the easy aggregation and comparability of knowledge.

The revealed data units out:

• the person employer’s base wage and whole remuneration median gender pay gaps, that are expressed as the proportion distinction between ladies’s and males’s earnings on the organisation, and
• the gender composition at every organisation per pay quartile.

For this yr, the WGEA is reporting solely the median, and never the typical, gender pay hole. As we deal with under, that’s not the place transferring ahead. The median pay hole is set by calculating the distinction between the center values of male remuneration and feminine remuneration, such that it’s not skewed by the intense values at both finish.

A more in-depth have a look at the outcomes

Whereas the WGEA reviews a median whole remuneration gender pay hole of 19%, the hole falls to 14.5% when trying solely at median base salaries. This means that further funds akin to bonuses, time beyond regulation, and gross sales incentives, are bigger and extra widespread in male-dominated industries.^[3]

Each {industry} categorised within the information reported a median gender pay hole in favour of males, with building exhibiting the most important whole remuneration gender pay hole at 31.8% and Lodging and Meals Companies reflecting the bottom at 1.9%.^[4]

Outcomes present that employers in male-dominated industries usually tend to have bigger gender pay gaps, whereas these in female-dominated industries usually tend to have a decrease gender pay hole.^[5]

The WGEA reporting additionally signifies that there’s a clear hyperlink between ladies in management and a decrease gender pay hole, with employers whose boards are comprised of a better proportion of girls extra prone to have gender pay gaps throughout the impartial vary (-5% — +5%).^[6] These outcomes are additionally mirrored for employers with extra ladies in key administration positions.^[7]

What subsequent?

Shifting ahead, the WGEA will yearly publish figures in relation to the Gender Equality Reporting interval for the previous yr. For instance, from subsequent yr, the WGEA will likely be required to publish figures for the reporting interval from 1 April 2023 – 31 March 2024.

The revealed figures for that reporting interval, and all subsequent reporting durations, will embrace not solely the median employer gender pay gaps, but additionally the typical employer gender pay gaps. The common pay hole will likely be decided by calculating the distinction between the entire male remuneration, divided by the variety of males within the organisation, and the entire feminine remuneration, divided by the variety of females within the organisation.

The justification for ready till subsequent yr to report common employer gender pay gaps is that this determine will mirror the significant impression of govt remuneration on the pay hole, however that will likely be extra precisely calculated as soon as the legislative modifications requiring employers to report CEO, Head of Enterprise and Informal Supervisor remuneration is mirrored within the Gender Equality Reporting information.^[8] At this stage, CEO remuneration doesn’t embrace remuneration for Companions in a partnership construction as a result of the WGEA dataset solely captures staff. Nevertheless, the WGEA has reported that it’s working with the Federal Authorities to think about the right way to embrace Companions in its information assortment, noting that was an categorical advice of the 2021 overview.

Whereas the employer particular figures provide a snapshot evaluation of gender equality in that specific office, employers are additionally capable of present an optionally available Employer Assertion to be revealed on the WGEA web site alongside their outcomes. These statements give employers a chance to elucidate any related context to their gender pay hole end result, and to stipulate actions being taken to deal with it.  Employers have had a chance to grasp their organisational gender pay hole prematurely of publication in an effort to have a chance to develop an Employer Assertion. Nevertheless, it’s value noting that employers can nonetheless add or replace the hyperlink to an Employer Assertion following the WGEA’s publication of the gender pay hole information.^[9] 

Whereas the current reporting is proscribed to information from the non-public sector, the WGEA is anticipated to publish the primary set of public sector employer gender pay gaps in late 2024 / early 2025.

Takeaways

When the WGEA really helpful that it have the ability to publish gender pay gaps at an organisational degree, it argued that such reporting would trigger employers to ‘assess techniques and processes for pay, job analysis and efficiency’, and will ‘… generate stakeholder engagement and stress and inform funding selections’.^[10]

Given the extent of the gender pay gaps recognized by the info and WGEA Information Explorer’s accessible presentation of that information, together with the features permitting for simple comparisons of particular person employers towards various major measures, employers can anticipate elevated stakeholder engagement aligned with the WGEA’s declare above.

Particularly, worker engagement with these points is prone to develop into extra sturdy, and employers could expertise stress from unions, in addition to different stakeholders, motivated to leverage the gender pay hole outcomes by way of negotiations or public relations methods.

The publication of the current figures, together with the numerous related media protection in almost all company flagship media shops, signifies the urge for food within the non-public sector for transparency in addressing gender inequality. We anticipate it’ll additional inspire employers to think about how they’ll deal with the gender pay hole inside their respective organisations, and to make sure they aren’t lagging behind {industry} requirements.

This text was ready by Rachel Dawson, Associate, and Hugh McLaurin, Solicitor.

[1] WGEA, ‘Employer Gender Pay Gaps Printed First Time’ (Media Launch, 27 February 2024) [6].
[2] Division of Prime Minister and Cupboard, ‘WGEA Assessment Report – Assessment of the Office Gender Equality Act 2012’ (December 2021).
[3] WGEA, ‘Employer Gender Pay Gaps Snapshot’ (27 February 2024) 3.
[4] Ibid, 4.
[5] Ibid, 7-8.
[6] Ibid, 13.
[7] Ibid, 14.
[8] WGEA, ‘Publishing Employer Gender Pay Gaps FAQ’.https://www.wgea.gov.au/about/our-legislation/publishing-employer-gender-pay-gaps.
[9] WGEA, ‘Publishing Employer Gender Pay Gaps FAQ’.https://www.wgea.gov.au/about/our-legislation/publishing-employer-gender-pay-gaps.
[10] Explanatory Memorandum, Office Gender Equality Modification (Closing the Gender Pay Hole) Invoice 2023, 13.