The latest figures from the Australian Bureau of Statistics confirm the pay gap between men and women not only persists but is growing. Between May 2012 and May 2013 the average earnings of a full-time male employee grew by 4.9 % compared with just 2.7 % growth for their female peers.
The same trend played out throughout the decade that ended in May 2013. On average men are earning 56% more than they did in 2003 while women are taking home 53% more. This is explained, in part, because of the tremendous economic growth in fields like mining, construction, transport and the utilities which males dominate. By way of contrast female-dominated industries including education, health and welfare experienced below average growth.
However even in those sectors where do women comprise the majority of workers, the wages of males still outgrew females. In all 18 employment sectors the ABS found that men earn more than women. Health and welfare boasts the largest gap between earnings; men take home 51% per cent more than women. The smallest gap in earnings exists in restaurants and hotels with women earning just 9% less than their males coworkers.
Yolanda Beattie, the Public Affairs executive manager at the Workforce for Gender Equality Agency, says the findings are predictable.
“The point is the pay gap has persisted at around 17% for many, many, years,” Beattie told Women’s Agenda. It is driven in part by entrenched occupational segregation. “Across the board men tend to find higher paid work more accessible while women still dominate in lower paying industries and positions,” she says.
On an organisational level Beattie says some companies are achieving promising results by adopting sophisticated policies and procedures to eradicate any pay gap on the basis of gender. “In some organisations if a hiring manager offers a salary for a particular role it has to cross-checked and confirmed by a central remuneration expert to ensure any pay gap within the company for that role, stays within an acceptable range,” she says. For example, companies might accept that a 2-3% differential between salaries is acceptable between like-for-like jobs. All new appointments therefore need to fall within that range.
“Having an overall organisation focus ensures no appointments are made that will unintentionally blow out the pay gap for a particular job band,” Beattie says. By setting specific targets and being really focused about meeting them Beattie says it’s possible for employers to shrink the gap.
While individuals alone can’t overcome the systemic factors that contribute to pay inequity Beattie says it’s important for women to recognise what they can do.
“Most organisations have some pay gap in their workplace and one of the biggest drivers we consistently see is that women tend not to be as effective at negotiating their salaries as men,” she says. “Women do tend to undervalue themselves in a way that their male peers don’t. They might be surprised what they can achieve by negotiating in a more assertive and confident manner.”
Do you work for an organisation that is serious about delivering pay equality?