The Times Australia
Business and Money
The Times Real Estate

.

From this week, you’ll be able to look up individual companies’ gender pay gaps

  • Written by Natasha Bradshaw, Senior Associate, Grattan Institute
From this week, you’ll be able to look up individual companies’ gender pay gaps

There will be nervous executives all over Australia this week.

Come Tuesday, large private sector organisations will have their company’s gender pay gaps published for the first time for all to see, name, and shame.

As they brace for the fallout, let’s look at how what we will be told is changing, and what it will mean for you.

What is changing?

Every year, the Workplace Gender Equality Agency (WGEA[1]) collects information from every employer with more than 100 employees. Until now it has published only a summary of the findings on its website, including Australia’s overall gender pay gap, and the gap by industry and employment arrangement.

But for the first time legislation enacted last year also allows WGEA to publish the gender pay gaps of individual employers.

WGEA Guide for Employers[2] Tuesday’s release will include each large company’s median gender pay gap, and the share of women it employs in lower- and higher-paid jobs. Employers will have the chance to publish a statement[3] alongside their results to provide context. That means from Tuesday you will be able to look on the WGEA website[4] and find the median gender pay gap of your large private sector organisation, or of an organisation you are thinking of joining, and how it stacks up against its competitors. Why the change? Australian women, like women elsewhere, have made astounding progress in the workforce in recent decades. Women are both working and earning more than ever before. But progress has stalled, and the gender pay gap remains stubbornly persistent. The Albanese government has shown its commitment to gender equity by increasing the childcare subsidy[5] and extending paid parental leave[6]. But beyond this, the options for governments are limited. Most of the barriers to women getting better-paid jobs can only be broken by employers. The public naming and shaming that will begin on Tuesday will push accountability onto employers, holding them responsible for the conditions in their workplaces. Read more: Four big lessons from the UK's new gender pay gap reporting rules[7] Workers and bosses are going to take notice: when employer gender pay gaps were released in the UK in 2018 it was the biggest business news story of the year[8], with coverage rivalling the wedding of Prince Harry and Meghan Markle. At a time when companies are fighting for top talent, it is going to make it more difficult for employers with large pay gaps to hire talented women. Research shows that on average women are willing to accept a 5% lower salary[9] in order to avoid working for the employers with the biggest gender pay gaps. Workplace Gender Equality Agency. Let’s not rush to judge While naming and shaming[10] will help make this policy effective, we should be careful about rushing to judgement. It is possible for an employer to be making serious efforts to improve while its gap remains large. And some actions aimed at improving things, such as implementing a gender quota on entry-level positions, can worsen a company’s apparent gender pay gap in the short term by temporarily increasing the number of lowly-paid women. Also, there will be firms that have a low gender pay gap because they pay both men and women poorly. On Tuesday, we should instead look closely at whether the organisation has outlined clear steps it will take to improve, and how it compares to its competitors. In future years, we will be able to see how things have changed. What will matter is what employers do next Since the UK reforms were introduced in 2018, the gender pay gap has narrowed by one-fifth[11], with the biggest improvements coming from the worst offenders. UK companies have also become more likely to include wage information in their job ads, equalising the starting point of wage negotiations for all applicants. But for existing employees, the narrowing of the gap has been caused more by slower growth in men’s wages than faster growth in women’s wages, which isn’t good news for anyone looking for a pay rise. The full effects of the Australian reforms won’t be seen for some time. It is likely that making high-paid jobs more accessible to women will allow employers to tap into a new talent pool and encourage more highly credentialed women into the workforce, adding to productivity growth. What is clear now is that if we want to narrow the gender pay gap, we need to know what’s happening. The avalanche of data due on Tuesday will be a start. References^ WGEA (www.wgea.gov.au)^ WGEA Guide for Employers (www.wgea.gov.au)^ statement (www.wgea.gov.au)^ WGEA website (www.wgea.gov.au)^ childcare subsidy (www.servicesaustralia.gov.au)^ paid parental leave (www.servicesaustralia.gov.au)^ Four big lessons from the UK's new gender pay gap reporting rules (theconversation.com)^ biggest business news story of the year (www.genderpay.co.uk)^ 5% lower salary (papers.ssrn.com)^ naming and shaming (www.wgea.gov.au)^ one-fifth (papers.ssrn.com)Authors: Natasha Bradshaw, Senior Associate, Grattan Institute

Read more https://theconversation.com/from-this-week-youll-be-able-to-look-up-individual-companies-gender-pay-gaps-224167

SME Business News

Albanese government looking to acquire Rex Airlines if buyer can’t be found

The Albanese government will on Wednesday announce it is willing, as a last resort, to purchase the collapsed Rex Airlines, in its latest bid to prop up aviation services to regional and remo...

The Legal Battle Against IP Theft: What Businesses Need to Know

So you've formulated that million-dollar idea and you're ready to take your business to the next level. You were so excited to publicize your supposedly next big thing that you went on TikTok...

Top 20 SEO and Guest Post Services in Wyoming Helping Brands Expand Their Reach

Today’s business needs to have strong online visibility to grow and reach more customers. Guest post services and SEO services make it easier for the brand to rank higher on their search engine...

Everything You Need to Know About PLR Digital Products to Resell for Maximum Passive Income

In the ever-evolving digital product world, the concept of Private Label Rights (PLR) has emerged as a lucrative opportunity for entrepreneurs who aim to generate passive income. PLR digital prod...

The Times Features

48 Hours in Hobart: The Ultimate Weekend Itinerary

Nestled between the towering Mount Wellington and the sparkling waters of the Derwent River, Hobart is a charming city that offers an intriguing blend of natural beauty, rich histo...

Lunchtime Facelifts: Quick & Effective Procedures for Busy Professionals

Busy professionals often find themselves juggling demanding careers, family obligations, and social commitments. With such a tight schedule, it can be difficult to make time for ...

Visual Guide to Distinguishing Ants from Termites

Distinguishing ants from termites is crucial for homeowners who wish to protect their properties from structural damage. These tiny creatures, though seemingly unthreatening, can...

‘Active recovery’ after exercise is supposed to improve performance – but does it really work?

Imagine you have just finished a workout. Your legs are like jelly, your lungs are burning and you just want to collapse on the couch. But instead, you pick yourself up and ...

Plumber Rates In Canberra: What You Need To Know Before You Hire

When plumbing issues arise, most homeowners in Canberra have one major question: How much will a plumber cost? Whether it’s a leaking tap, a burst pipe, or a full bathroom renova...

Having an x-ray to diagnose knee arthritis might make you more likely to consider potentially unnecessary surgery

Osteoarthritis is a leading cause of chronic pain and disability, affecting more than two million Australians[1]. Routine x-rays aren’t recommended[2] to diagnose the condit...

Business Times

Albanese government looking to acquire Rex Airlines if buyer can’…

The Albanese government will on Wednesday announce it is willing, as a last resort, to purchase the collapsed Rex Airline...

The Legal Battle Against IP Theft: What Businesses Need to Know

So you've formulated that million-dollar idea and you're ready to take your business to the next level. You were so excit...

Top 20 SEO and Guest Post Services in Wyoming Helping Brands Expa…

Today’s business needs to have strong online visibility to grow and reach more customers. Guest post services and SEO servi...

LayBy Shopping