Despite consecutive annual declines of 12%, corporate social responsibility remains a priority for more than 20% of Australia’s private companies, according to a newly released national report.
According to data compiled for the first time in 2023-24, a gender gap of 25% persists among chief government officials, specifically amongst chief executives, revealing an alarming disparity in representation at the highest levels of leadership.
The most striking disparity in pay exists among older workers, where women in their late 50s often earn a staggering $53,000 less annually than their male counterparts.
As the discharge of the scorecard aligns with federal authorities announcing plans to introduce legislation by the end of the week, mandating employers establish gender targets for board representation, address the pay gap, and offer flexible working hours.
Corporations with 500 or more employees will be subject to these and various other measures. Companies have implemented legislative changes that require them to disclose the scale of their gender pay gaps, a development that took effect last year.
Monitoring Australia’s gender pay hole
Each year, the gender equality organization assesses the efficiency of gender equality among all private-sector companies employing 100 or more individuals. This industry provides more than 70,000 employers and five million workers across the nation.
The company’s performance is assessed through various key metrics, including the gender makeup of its workforce, the stability of boards and governance bodies by gender, and equal pay for equal work.
A significant disparity persists between men’s and women’s average compensation packages. The calculation is applicable to all workers, including full-time, part-time, and informal employees, by converting their pay into a comprehensive annualised equivalent for full-time employees.
The hole’s size has been steadily decreasing over the past year, with the most recent measurement showing a reduction of 21.1% compared to the same period last year. The growth in this area has been significantly driven by advancements in the job prospects of the most vulnerable female employees.
In June 2023, the Truthful Work Fee instigated a 15% minimum pay increase for several aged care awards, where women occupy 80% of positions. Wage increases were specifically provided to the retail trade, hospitality, and food service industries, which are significant employers of women.
Another contributing factor to the narrowing gap was the significant 5.9% increase in remuneration for female managers between 2022 and 2023, contrasting starkly with a 4.4% rise for their male counterparts during the same period?
A yawning chasm opens between those reaping a bounty and those barely scraping by.
The growth rate was notably higher for high-income women (up 6.3%), outpacing the increase for high-income men (4.1%). Notwithstanding these disparities, men still hold a majority of administrative roles, comprising 58%.
For the first time in the 2023-24 fiscal year, the company compiled data on CEO compensation. The gap in chief executive officer (CEO) total remuneration due to gender bias was 25 percent.
While only about one in four CEOs are women, a staggering gender pay gap exists, particularly among top executives. According to data, female CEOs typically receive a salary of $158,632, significantly lower than their male counterparts’ total remuneration.
The gap in average compensation between men and women widens significantly when CEO salaries are factored in, ultimately reaching a staggering 21.8% disparity.
Women’s representation on corporate boards: a step in the right direction?
The organization recognizes the significance of increasing women’s representation on governing boards as a crucial step towards driving organizational change and promoting gender equality, closely tracking and measuring progress through a dedicated scorecard.
Despite modest efforts to increase diversity, the overall proportion of women on corporate boards remains stagnant, hovering around one-third.
Only approximately 25% of companies lack female representation on their governing boards altogether. In line with trends observed in traditionally masculine fields, a significant surge in female participation has been noted, mirroring the stark reality that only 45% of corporate boards consist of women.
Women in their late 50s experience the most significant pay gap.
According to statistics, the pay gap in Australia translates to an average annual difference of $28,425 between what women and men earn, with female employees receiving significantly lower compensation.
This gap widens even further among older employees. According to data, the pay gap between females and males widens significantly for women aged 55-59, with this demographic earning an average of $53,000 per annum, or 32.6% less than their male counterparts annually?
The significant contributors to this wage gap include long-standing gender disparities across various sectors and job types.
The company’s scorecard shows that more than half of the private sector workforce is concentrated in industries where at least 60% of employees are from one gender alone, either predominantly male or female.
Traditionally, male-dominated sectors such as manufacturing, construction, and engineering have consistently paid higher wages than female-dominated fields like education, healthcare, and social services, with a significant disparity between the two.
How supportive are employers?
The company also assesses employers’ policies promoting work-life balance and household stability by considering flexible working hours, generous paid parental leave exceeding government-mandated minimums.
The finding that an increasing number of companies are offering paid parental leave, with a notable rise from 63% to 68% over the past year, is a significant step forward in achieving work-life balance.
Men’s increased participation in caregiving has a direct impact, thereby enabling women to participate more fully in the workforce. The percentage of parents taking leave has risen significantly for men, increasing from 14% to 17%.
The proposed enhancements aim to build upon and support the federal government’s newly established regulations.
Offering a protected office
The ultimate indicator on the scorecard seems to be employer action in responding to and preventing sexual harassment and discrimination in the workplace, as mandated by new regulations.
Most employers (an overwhelming 99%) attest to having a comprehensive coverage plan in place. However, there may be room for improvement in various approaches.
Approximately 40% of employers fail to track the outcome of reported sexual harassment and discrimination claims, while a comparable proportion neglects to evaluate the effectiveness of their policies and solicit feedback from employees. Although approximately one-quarter of organizations do not integrate inclusive and respectful practices into their everyday productivity assessments.
How reporting can drive change
Marks for effort exist on all report cards.
In the past year, a staggering 75% of companies revealed that they have conducted an internal analysis to identify and address their gender pay gap, marking significant progress in promoting diversity and equality within the workplace. Compared to the previous year’s figures, this represented a significant increase of 40%.
The company cites the release of its first-ever gender pay gap report as the reason behind this development.
A staggering 45% of employers are proactively establishing goals aimed at promoting gender parity and fostering a more inclusive work environment. The organization aims to enhance diversity among administrative staff by increasing the representation of women, narrow the gender pay gap, and achieve a balanced gender composition within its governing body.
Aspirations escalate in response to proposals mandating bid requirements for presidential contract opportunities.
Modifications demonstrating the potential for incentives to drive improvements are presented here. Initiatives emerged from programs utilizing research-backed findings, data, and collaborative sessions to devise practical strategies to bridge the gap and improve conditions for women.
