tag:theconversation.com,2011:/us/topics/wgea-13676/articlesWGEA – The Conversation2024-03-20T19:02:57Ztag:theconversation.com,2011:article/2260182024-03-20T19:02:57Z2024-03-20T19:02:57ZCompanies vying for government contracts could soon have to meet gender targets. Will we finally see real progress?<figure><img src="https://images.theconversation.com/files/583045/original/file-20240320-16-fm9yug.jpg?ixlib=rb-1.1.0&rect=0%2C0%2C4624%2C2666&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/businesswoman-standing-leading-business-presentation-female-681211267">Jacob Lund/Shutterstock</a></span></figcaption></figure><p>The Australian government wants to make sure its contracts – worth almost <a href="https://www.finance.gov.au/government/procurement">A$75 billion annually</a> – don’t just deliver taxpayers value for money, but also promote gender equity.</p>
<p>Under <a href="https://www.theguardian.com/society/2024/mar/07/labor-gender-equality-targets-government-contracts-katy-gallagher-national-press-club-speech">proposed procurement policy changes</a> announced earlier this month, large companies that wish to bid for government contracts will first have to meet some gender equality conditions.</p>
<p>How exactly will these measures work across Australia’s huge private sector, and what kind of an impact could they have?</p>
<h2>Not a new idea</h2>
<p>Federal tender processes – the way we try to award government contracts to the best possible providers – currently follow a set of <a href="https://www.finance.gov.au/government/procurement/commonwealth-procurement-rules">Commonwealth procurement rules</a>. </p>
<p>They must provide value for money, encourage competition and ensure that public funds are used in an “efficient, effective, economical and ethical” way.</p>
<p>Using tenders as a lever to achieve gender equality isn’t a new idea. It’s been recommended around the world, including by the <a href="https://www.oecd-ilibrary.org/docserver/5d8f6f76-en.pdf?expires=1710753868&id=id&accname=guest&checksum=FBD77B99061A635D9246913C75E5D286">OECD</a>, the <a href="https://www.adb.org/publications/gender-responsive-procurement-asia-pacific">Asian Development Bank</a>, and the <a href="https://blogs.worldbank.org/governance/gender-and-equality-public-procurement#:%7E:text=Only%201%25%20of%20the%20%2411,and%20costliness%20of%20procurement%20processes.">World Bank Group</a>. </p>
<p>The idea is for the government to use its “<a href="https://www.theguardian.com/society/2024/mar/07/labor-gender-equality-targets-government-contracts-katy-gallagher-national-press-club-speech">purchasing power</a>” to incentivise – and in effect pressure – companies to take bolder steps toward achieving gender equality. </p>
<p>It’s a way to make sure the government’s direct efforts to <a href="https://genderequality.gov.au/">promote gender equality</a> aren’t being contradicted or undone elsewhere in the ways taxpayers’ money gets spent.</p>
<h2>Existing requirements for Australian companies</h2>
<p>In Australia, companies with at least 100 staff are already required to report to the Workplace Gender Equality Agency (WGEA) on <a href="https://www.wgea.gov.au/pay-and-gender/6-gender-equality-indicators">six gender equality indicators</a>. These indicators cover: </p>
<ul>
<li>workforce composition</li>
<li>board composition</li>
<li>the gender pay gap </li>
<li>the availability of flexible working arrangements</li>
<li>employee consultation processes</li>
<li>policies on sexual harassment.</li>
</ul>
<p>Bidding for some government contracts also requires companies to prove their compliance with the WGEA’s reporting processes. This involves <a href="https://www.wgea.gov.au/reporting-guide/ge/eligibility-compliance#:%7E:text=For%20organisations%20that%20have%20reported,Insights'%20tab%20within%20the%20Portal">downloading a certificate</a> from the agency’s website. </p>
<p>Under the <a href="https://www.theguardian.com/society/2024/mar/07/labor-gender-equality-targets-government-contracts-katy-gallagher-national-press-club-speech">proposed changes</a>, large companies with more than 500 employees will have to go beyond just reporting their numbers. If they want to remain in the running for government contracts, they will need to set and achieve measurable targets for their organisation across at least three indicators. </p>
<p>As Senator Katy Gallagher, the minister for finance, women and public service, explained while <a href="https://ministers.pmc.gov.au/gallagher/2024/national-press-club-address-working-women-national-strategy-gender-equality">announcing the measures</a>: </p>
<blockquote>
<p>We in the government believe that shining a light on what’s actually happening in workplaces will put pressure on employers to rethink how they hire, promote and remunerate their staff.</p>
</blockquote>
<h2>Concerns about implementation</h2>
<p>There are concerns around the practicality, market effects and reach of such a large-scale procurement policy. But there’s reason for us to be optimistic that Australia’s proposed design goes some way to mitigate these concerns. </p>
<p><strong>1. Companies might not know how to conduct this analysis</strong></p>
<p>Some might say there’s a risk these new requirements will be overly burdensome for companies not already conducting this kind of analysis. Such companies may lack the resources and technical knowledge to undertake extra steps.</p>
<p>It’s a fair concern. <a href="https://www.oecd-ilibrary.org/docserver/5d8f6f76-en.pdf?expires=1710848416&id=id&accname=guest&checksum=4A37780D3D8773D8E00A60BEDF27F7F7">OECD research</a> shows that a lack of clarity around “what to do” is the main challenge with gender equality procurement practices globally.</p>
<p>But a key strength of Australia’s proposal is that it leverages existing data collection processes that companies have already invested in, not adding burdensome extra demands.</p>
<p>There’s evidence for the effectiveness of this approach at a state level. In a 2022 pilot, the Western Australian government introduced a new requirement that bidders for its contracts prove their compliance with WGEA’s existing reporting procedures. An <a href="https://www.wa.gov.au/government/document-collections/gender-equality-procurement#evaluation">evaluation</a> of the program found the new criteria made a big difference in sharpening businesses’ awareness and understanding of gender equality.</p>
<p>To further mitigate this risk, the Australian government can invest in providing informational guidance to businesses on what will be required of them. Victoria’s Commission for Gender Equality in the Public Sector has already done this for <a href="https://www.genderequalitycommission.vic.gov.au/applying-gender-impact-assessment-procurement-policy">state government tenders</a>.</p>
<p><strong>2. Less competition for tenders?</strong> </p>
<p>If an extra layer of requirements squeezes out potential contenders in the business community, there’s a risk it could lessen competition for government contracts. </p>
<p>Economists have good reason to worry that weaker competition could push up the price of the products and services on offer, a loss for taxpayer value. </p>
<p>But Victoria’s <a href="https://www.buyingfor.vic.gov.au/introduction-social-procurement-framework">social procurement framework</a> helps us navigate this concern, prompting us to consider the ways “value for money” can mean more than just getting the cheapest price. </p>
<p>A broader definition of “value” would include progress toward social goals that provide significant benefit to the community – such as women’s equality. </p>
<p>Gender equity practices themselves are an often overlooked source of extra value, through the broader ideas, innovation and skill sets that diversity brings. These measures mean that a new pool of businesses can join the competitive mix.</p>
<figure class="align-center ">
<img alt="woman wearing hardhat works on an engine" src="https://images.theconversation.com/files/583053/original/file-20240320-27-i05mki.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/583053/original/file-20240320-27-i05mki.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/583053/original/file-20240320-27-i05mki.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/583053/original/file-20240320-27-i05mki.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/583053/original/file-20240320-27-i05mki.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/583053/original/file-20240320-27-i05mki.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/583053/original/file-20240320-27-i05mki.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Gender equity policies have a tangible value, enriching the workforce with new ideas and skillsets.</span>
<span class="attribution"><a class="source" href="https://www.pexels.com/photo/woman-wears-yellow-hard-hat-holding-vehicle-part-1108101/">Chevanon Photography/Pexels</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span>
</figcaption>
</figure>
<p><strong>3. Limited reach</strong> </p>
<p>For companies that don’t have to vie for government contracts, there’s a good chance these new measures won’t carry much weight. However, the government has other ways to put pressure on them. </p>
<p>Already, the WGEA has the power to publicly “<a href="https://www.wgea.gov.au/what-we-do/compliance-reporting/non-compliant-list">name and shame</a>” companies that don’t comply with legal requirements to submit their gender equality data. </p>
<p>Following the public spotlighting of companies with the biggest gender pay gaps, the “non-compliance” list calls out companies that aren’t even submitting their data at all.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/qantas-pays-women-37-less-telstra-and-bhp-20-fifty-years-after-equal-pay-laws-we-still-have-a-long-way-to-go-223870">QANTAS pays women 37% less, Telstra and BHP 20%. Fifty years after equal pay laws, we still have a long way to go</a>
</strong>
</em>
</p>
<hr>
<p>There are some widely known names on the <a href="https://www.wgea.gov.au/sites/default/files/documents/Employers-named-as-non-compliant-under-the-Workplace-Gender-Equality-Act-for-2022-2023-Gender-Equality-Reporting-March-2024.pdf">latest list</a>: General Motors, Manly Warringah Sea Eagles Club, Sofitel Sydney Wentworth, and several Melbourne-based McDonald’s stores.</p>
<p>It’s unclear just how much <a href="https://www.chathamhouse.org/sites/default/files/publications/research/Gender-smart%20Procurement%20-%2020.12.2017.pdf">being named on this list</a> – or being deemed ineligible for government contracts – matters to these companies, or to their customers and clients.</p>
<p>It’s these companies – slipping through the cracks and outside of the scope of government contracts – that we will still need to focus on.</p>
<p>Procurement is just one lever in a multi-pronged strategy to achieve gender equality. <a href="https://link.springer.com/article/10.1007/s11187-018-9997-4">Evaluations</a> suggest some procurement strategies are unlikely to boost women’s bidding success unless the <a href="https://www.tandfonline.com/doi/abs/10.1080/01446193.2019.1687923">other deeper barriers</a> that limit women’s involvement are also broken down. However, Australia’s existing investment in data collection means they could still be a powerful tool.</p><img src="https://counter.theconversation.com/content/226018/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Leonora Risse has undertaken research for WGEA and made a submission to the review of the Workplace Gender Equality Act. She serves as an Expert Panel Member on gender pay equity for the Fair Work Commission. She receives research funding from the Trawalla Foundation and the Women's Leadership Institute Australia. She is a member of the Economic Society of Australia and the Women in Economics Network.</span></em></p>Businesses with more than 500 employees will need to meet targets against at least three gender equality indicators.Leonora Risse, Associate Professor in Economics, University of CanberraLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2241672024-02-25T19:16:48Z2024-02-25T19:16:48ZNow you’re able to look up individual companies’ gender pay gaps<figure><img src="https://images.theconversation.com/files/577311/original/file-20240222-16-7id0y4.png?ixlib=rb-1.1.0&rect=163%2C293%2C1652%2C856&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>There will be nervous executives all over Australia this week. </p>
<p>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.</p>
<p>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.</p>
<h2>What is changing?</h2>
<p>Every year, the Workplace Gender Equality Agency (<a href="https://www.wgea.gov.au/">WGEA</a>) 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.</p>
<p>But for the first time legislation enacted last year also allows WGEA to publish the gender pay gaps of individual employers. </p>
<figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/577323/original/file-20240222-16-a7ibl4.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/577323/original/file-20240222-16-a7ibl4.png?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/577323/original/file-20240222-16-a7ibl4.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=889&fit=crop&dpr=1 600w, https://images.theconversation.com/files/577323/original/file-20240222-16-a7ibl4.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=889&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/577323/original/file-20240222-16-a7ibl4.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=889&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/577323/original/file-20240222-16-a7ibl4.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=1117&fit=crop&dpr=1 754w, https://images.theconversation.com/files/577323/original/file-20240222-16-a7ibl4.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=1117&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/577323/original/file-20240222-16-a7ibl4.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=1117&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption"></span>
<span class="attribution"><a class="source" href="https://www.wgea.gov.au/sites/default/files/documents/WGEA_Communications_10_Point_Guide_2024_update_0.pdf">WGEA Guide for Employers</a></span>
</figcaption>
</figure>
<p>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. </p>
<p>Employers will have the chance to publish a <a href="https://www.wgea.gov.au/data-statistics/data-explorer">statement</a> alongside their results to provide context.</p>
<p>That means from Tuesday you will be able to look on the <a href="https://www.wgea.gov.au/">WGEA website</a> 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.</p>
<h2>Why the change?</h2>
<p>Australian women, like women elsewhere, have made astounding progress in the workforce in recent decades. </p>
<p>Women are both working and earning more than ever before. But progress has stalled, and the gender pay gap remains stubbornly persistent.</p>
<p>The Albanese government has shown its commitment to gender equity by increasing the <a href="https://www.servicesaustralia.gov.au/child-care-subsidy">childcare subsidy</a> and extending <a href="https://www.servicesaustralia.gov.au/parental-leave-pay">paid parental leave</a>.</p>
<p>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.</p>
<p>The public naming and shaming that will begin on Tuesday will push accountability onto employers, holding them responsible for the conditions in their workplaces.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/four-big-lessons-from-the-uks-new-gender-pay-gap-reporting-rules-100924">Four big lessons from the UK's new gender pay gap reporting rules</a>
</strong>
</em>
</p>
<hr>
<p>Workers and bosses are going to take notice: when employer gender pay gaps were released in the UK in 2018 it was the <a href="https://www.genderpay.co.uk/wp-downloads/moving-forward-may-2018/presentations/Gender_Pay_Gap_Moving_Forward_May_2018_Studio_2_5_Nick_Bishop.pdf">biggest business news story of the year</a>, with coverage rivalling the wedding of Prince Harry and Meghan Markle.</p>
<p>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.</p>
<p>Research shows that on average women are willing to accept a <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3584259">5% lower salary</a> in order to avoid working for the employers with the biggest gender pay gaps.</p>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/vAr1Lhaw0Ao?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
<figcaption><span class="caption">Workplace Gender Equality Agency.</span></figcaption>
</figure>
<h2>Let’s not rush to judge</h2>
<p>While <a href="https://www.wgea.gov.au/about/our-legislation/publishing-employer-gender-pay-gaps">naming and shaming</a> will help make this policy effective, we should be careful about rushing to judgement.</p>
<p>It is possible for an employer to be making serious efforts to improve while its gap remains large. </p>
<p>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.</p>
<p>Also, there will be firms that have a low gender pay gap because they pay both men and women poorly.</p>
<p>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.</p>
<h2>What will matter is what employers do next</h2>
<p>Since the UK reforms were introduced in 2018, the gender pay gap has narrowed by <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3584259">one-fifth</a>, with the biggest improvements coming from the worst offenders.</p>
<p>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.</p>
<p>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.</p>
<p>The full effects of the Australian reforms won’t be seen for some time. </p>
<p>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.</p>
<p>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.</p><img src="https://counter.theconversation.com/content/224167/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The Grattan Institute began with contributions to its endowment of $15 million from each of the Federal and Victorian Governments, $4 million from BHP Billiton, and $1 million from NAB. In order to safeguard its independence, Grattan Institute’s board controls this endowment. The funds are invested and contribute to funding Grattan Institute's activities. Grattan Institute also receives funding from corporates, foundations, and individuals to support its general activities as disclosed on its website.</span></em></p>For the first time, Australians will be able to look up the gender pay gap and the proportion of women employed at every major Australian company.Natasha Bradshaw, Senior Associate, Grattan InstituteLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1858442022-06-26T19:58:55Z2022-06-26T19:58:55ZPart-time work holds women back from executive positions and accentuates gender pay gap: new data<p>Most women are not working full-time during most of their working lives, which holds them back from management positions and accentuates the pay gap with men, according to data released on Monday. </p>
<p>Men on average out-earn women across all working age groups. </p>
<p>At every age group less than 50% of women were full time in 2021, according to the <a href="https://www.wgea.gov.au/publications/wages-and-ages">Wages and Ages: Mapping the Gender Pay Gap by Age</a> data series. This has been issued by the Workplace Gender Equality Agency, a federal government body. The data comes from private sector employers with 100 or more employees. </p>
<p>The divergence in working patterns between men and women starts from age 35, when men are mainly working full time and women mainly working part time or casually. After 35 women are more than twice as likely to work part time and casually than men. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/470935/original/file-20220626-18-1ivet4.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/470935/original/file-20220626-18-1ivet4.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=586&fit=crop&dpr=1 600w, https://images.theconversation.com/files/470935/original/file-20220626-18-1ivet4.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=586&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/470935/original/file-20220626-18-1ivet4.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=586&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/470935/original/file-20220626-18-1ivet4.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=736&fit=crop&dpr=1 754w, https://images.theconversation.com/files/470935/original/file-20220626-18-1ivet4.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=736&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/470935/original/file-20220626-18-1ivet4.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=736&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption"></span>
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<p>Men over age 55 are twice as likely to be in management as women. </p>
<p>Of those women in management at the same age, two thirds are in lower ranks. </p>
<p>Men also earn more than women across each generation in the workplace, according to the data. </p>
<p>The gap is greatest at 55-64 where men out-earn women by almost one third (31.9%). This is more than $40,000 on average a year. </p>
<p>Even those women in senior executive and CEO jobs aged 55 and above face a big pay gap – they are earning about $93,000 annually less on average than male counterparts. </p>
<p>The agency says “that in 2021 at no age were more than 50% of women working full time, yet higher paid management opportunities were almost exclusively reserved for full-time workers. In all age groups, more than 90% of managers were working full-time.” </p>
<figure class="align-center ">
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<p>On average, companies with more part-time managers have more women at executive levels. </p>
<p>WGEA director Mary Wooldridge said if the trends in the data continued, millennial women now working would earn only 70% of men’s earnings by the time they were 45. </p>
<p>“Millennial women in the workforce 35 and under are currently reaching management at equal rates as men,” Wooldridge said. “We have a generation of Australian women who are highly educated, and over the last decade have been outnumbering men in higher education enrolments and completion. </p>
<p>"If organisations want to unlock the potential that these women can provide after the age of 35, there needs to be a shift in workplace structures surrounding them. Creative workplaces will reap the talent rewards today and in the future.” </p>
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<img alt="" src="https://images.theconversation.com/files/470937/original/file-20220626-15-7ry6h1.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/470937/original/file-20220626-15-7ry6h1.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=591&fit=crop&dpr=1 600w, https://images.theconversation.com/files/470937/original/file-20220626-15-7ry6h1.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=591&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/470937/original/file-20220626-15-7ry6h1.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=591&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/470937/original/file-20220626-15-7ry6h1.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=743&fit=crop&dpr=1 754w, https://images.theconversation.com/files/470937/original/file-20220626-15-7ry6h1.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=743&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/470937/original/file-20220626-15-7ry6h1.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=743&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<p>She said “too many employers are missing a huge talent pool by not encouraging and enabling women to work additional hours or in the managerial ranks”.</p>
<p>She highlighted the importance of gender-neutral parental leave. childcare subsidies and support, and flexible work policies. </p>
<p>“Leading employers are creating or redesigning roles to support part-time management and job-sharing structures,” Wooldridge said.</p><img src="https://counter.theconversation.com/content/185844/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Michelle Grattan does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Most women are not working full-time during most of their working lives, which holds them back from management positions and accentuates the pay gap with men, according to data released on Monday.Michelle Grattan, Professorial Fellow, University of CanberraLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/379192015-02-27T04:52:48Z2015-02-27T04:52:48ZDefending the indefensible: myths about the gender pay gap<figure><img src="https://images.theconversation.com/files/73279/original/image-20150227-16169-hqa0n4.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Myths about women and pay abound. </span> <span class="attribution"><a class="source" href="https://www.flickr.com/photos/boynumber1/473739183/in/photolist-HS39X-7TzXby-7TwHkM-2buEBT-ituWR-8PPVbu-8PM1ha-9KZt85-7qMQdu-6fbztb-7MyLbr-64A7sz-6NtJTN-ErkQ6-jeazSW-hfKRqR-21C4ov-cWvJ8u-ejZp83-9zHgrj-98VN36-8PLNQK-8ic2q-T3FqA-98W16H-98Z7mo-98Z5HU-98Wfja-98VTxv-98ZfAu-98YU13-98VXvZ-98ZjWd-8PPVY7-fZ8nwf-gfrgXk-bmLeme-p4gURp-KJoMf-98VRCR-o65eA-o65gw-o65fs-hQtUmM-G6kG1-a9Kxxj-fCxFWb-dAmFTN-5LPmAC-dB4YCg">Flickr/Carlo</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span></figcaption></figure><p>Recently released earnings data from the Workplace Gender Equality Agency (WGEA) indicated a gender pay <a href="https://www.wgea.gov.au/media-releases/gender-pay-gap-biggest-manager-ranks">gap</a> as high as 45% among managers. Yet basic myths continue to obstruct informed debate about why the gap exists. </p>
<p><strong>Myth 1: Women are less qualified due to interrupted careers.</strong> </p>
<p>This myth has been debunked by a wide range of labour market studies which investigate whether women receive the same labour market rewards as men with similar qualifications, experience and personal characteristics. Both in Australia and internationally, such studies consistently show that only a <a href="https://www.fwc.gov.au/creating-fair-workplaces/research/pay-equity-research">small</a> proportion of the earnings differences between women and men can be explained by differences in education and work experience or other productivity-related characteristics. </p>
<p>While it has been assumed that women’s poorer earnings relate to their lower levels of education and qualifications, recent data demonstrates clearly that the earnings gap has persisted despite women’s increased entry into higher education. Today a higher proportion of women (26%) than men (22%) hold a bachelor degree or higher qualification, while a higher <a href="http://www.abs.gov.au/AUSSTATS/abs@.nsf/Latestproducts/6227.0Main%20Features2May%202014?opendocument&tabname=Summary&prodno=6227.0&issue=May%202014&num=&view=">proportion</a> of women (42%) than men (36%) are engaged in undergraduate education. </p>
<p>Grading earnings data indicates also that the gender earnings gap cannot be simply equated to women choosing to have children. Relevant here is the evidence of a persistent gender pay gap among <a href="http://www.abs.gov.au/AUSSTATS/abs@.nsf/Latestproducts/6227.0Main%20Features2May%202014?opendocument&tabname=Summary&prodno=6227.0&issue=May%202014&num=&view=">graduates</a> in their 20s, a period that predates career interruptions due to child care. </p>
<p><strong>Myth 2: The statistics are wrong. Organisations treat all employees equally and pay them fairly.</strong></p>
<p>The statistics are not wrong. The WGEA data is derived from the data organisations have provided to the agency. The strong story to come out of this evidence is of ongoing gender pay inequity and its cumulative impact on women’s current and lifelong earnings. Even allowing for the different labour economics paradigms used to investigate the gender pay gap, a significant proportion of the earnings gap remains unaccounted for by what economists term “measurable characteristics”. </p>
<p>The determinants of the gender earnings gap cannot be easily reduced to a single factor. Contributing factors to the gap include the undervaluation of feminised work and skills, differences in the types of jobs held by men and women and the method of setting pay for those jobs, and structures and workplace practices which restrict the employment prospects of workers with family responsibilities. </p>
<p>Looking at management and leadership positions within organisations, a number of key barriers to the earnings recognition of women in leadership positions and their progression within leadership structures have been identified. These include negative <a href="http://www.governanceinstitute.edu.au/events/celebrating-the-contribution-of-women-to-public-sector-excellence/not-yet-5050-barriers-to-the-progress-of-senior-women-in-the-australian-public-service-report">perceptions</a> about competing work-life priorities and women’s ability to lead. </p>
<p>These perceptions not only rest with individuals within an organisation but are embedded in organisational structure and practices. Within organisational settings, unconscious <a href="http://www.ceda.com.au/research-and-policy/research/2013/06/6/wil2013">biases</a> specifically related to or informed by expectations about what is appropriate behaviour for men and women, including masculinised models of leadership, do have a systematic and sustained negative impact on women. </p>
<p><strong>Myth 3: Women don’t ask for pay rises and don’t make their case well. Women lack competitive drive and this has an impact on their performance and their pay.</strong></p>
<p>These myths blame women, linking the gender pay gap to women’s capacity to bargain rather than to institutional and workplace practices that fail to organise and value work and performance fairly. These practices include the assessment of the value of a job and performance including recruitment processes and selection criteria, as well as benchmarks used to assess promotion.</p>
<p>On the issue of negotiation, research has highlighted differences in negotiation styles, behaviour and outcomes between women and men. Such <a href="https://www.fwc.gov.au/creating-fair-workplaces/research/pay-equity-research">differences</a> may contribute to gender differences in earnings, noting also that there is a larger gender pay gap among top income earners. Studies also suggest that these differences are not innate and can be shaped by the organisational environment, which includes cultural stereotypes about gender and negotiation styles. </p>
<p><strong>Myth 4: Women have broader personal goals and benchmarks for success so they don’t care as much about their income.</strong></p>
<p>This myth conflates a number of key factors. The disproportionately high burden of caring work that falls to women does shape the labour market choices made by women, including women in senior positions. Yet such choices are clearly constrained ones and are impacted by a range of factors including the impact of effectively high marginal tax rates (on the income of couple households), the availability of child care and gender norms about what constitutes good parenting.</p>
<p>Within workplaces, opportunities for women, particularly those who have caring responsibilities, can be enhanced or restricted by the availability and quality of flexible work practices that support rather than impede career progression. These factors are also linked with gendered constructions of what constitutes “leadership”. Hannah Piterman has noted that it is the <a href="http://www.ceda.com.au/research-and-policy/research/2013/06/6/wil2013">fragility</a> in the link between women and authority and between men and family responsibilities that continues to marginalise women’s position in the workforce. </p>
<p>The inequities in the distribution of unpaid domestic work do not mean that women in leadership lack interest in their career or the conditions that attach to it. Rather than a lack of interest, much of what shapes women’s aspirations to leadership lies in factors such as insufficient career development, promotion pathways and mentoring provision and the cost of child care.</p>
<p>Progress to gender pay equity is not assisted by myth-making. What is required is support for effective and sustained institutional and cultural reform capable of addressing the factors that shape the earnings gap.</p><img src="https://counter.theconversation.com/content/37919/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>In 2013 Meg Smith received funding from the Fair Work Commission to prepare a report to help parties engage in productive discussions with one another, and to inform them about the matters they might be required to address and the type of evidence that might be required in an equal remuneration proceeding. </span></em></p>“The statistics are wrong.” “Women are less ambitious.” “Women aren’t as qualified.” These are all justifications used to pay women less. And they are all wrong.Meg Smith, Director of Academic Programs (HR & Management), School of Business, Western Sydney UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/338342014-11-24T23:51:04Z2014-11-24T23:51:04ZDiversity fatigue: why business still struggles to close the gender gap<figure><img src="https://images.theconversation.com/files/65176/original/image-20141121-4490-1l31p5j.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Diversity is listed at the bottom of priorities for human resources professionals in large firms yet many mangers still feel threatened by diversity policies</span> <span class="attribution"><span class="source">www.shutterstock.com</span></span></figcaption></figure><p>Many large organisations are now on their second or third wave of diversity and inclusion programs. A good number of them are still struggling to identify obvious improvements in the metrics they hoped to see changes in. Yet, ironically, increasing numbers of people are beginning to express “diversity fatigue”.</p>
<p>The statistics on corporate diversity in Australia still paint a frustratingly dismal picture. </p>
<p>Today’s <a href="https://www.wgea.gov.au/media-releases/game-changing-gender-data-launched">report</a> from the Workplace Gender Equality Agency (WGEA) finds women comprise 39.8% of “other managers”, but their representation falls to 26.1% of key management personnel and just 17.3% of CEOs. At a board level, women hold only 23.7% of directorships and just 12% of chairs. </p>
<p>In the non-ASX-listed and medium-sized company landscape, diversity and inclusion fare even worse. In these companies, diversity hardly rates a mention on the agenda of many chief executives.</p>
<p>Despite this lack of success, there is a growing notion that men will become an endangered species in the ranks of leadership. How is it that on one hand organisations are struggling to make substantial progress, while on the other it is perceived that the pendulum has swung too far in favour of women and minority groups? </p>
<p>Men are expressing fears that decision-making is no longer merit-based and that the women they manage increasingly expect a “free pass” to leadership. They also feel they are forced to promote under-qualified women because of the company’s diversity targets.</p>
<p>Diversity fatigue can most readily be heard on the part of committed practitioners and advocates. Many have become literally exhausted at the constant battle to get diversity and inclusion on the agenda, and then get it funded well enough to achieve tangible gains. Not surprisingly, a 2012 McKinsey <a href="http://executiveinsight.typepad.com/executive_insight/2012/11/the-state-of-human-capital.html">report</a> revealed that diversity sits very close to the bottom of the agenda for the majority of human resources professionals in large firms. </p>
<p>Another type of diversity fatigue can be seen in the training rooms of the corporate world. Over-stretched, mostly male senior executives are hauled in to workshops on unconscious bias and exhorted to add yet another aspiration to a crowded list of key performance indicators. </p>
<p>At the same time, many of these men believe women’s gains will be at their expense. It is increasingly common to hear male executives worry they will have to compete harder for promotion with more qualified senior women. The concern is this undermines women’s merit-based promotions.</p>
<h2>Where does “diversity fatigue” stem from?</h2>
<p>One of the most fundamental causes of diversity fatigue is that neither academics nor practitioners have yet identified a comprehensive, programmatic solution to increasing diversity across organisations. As a result, many initiatives are introduced that fail to yield tangible outcomes. Without being part of a broader strategy, they are then promptly forgotten. This undoubtedly contributes to the misconception that, given the amount of “diversity talk”, men may soon be in danger of disappearing from leadership. The rhetoric of diversity has outpaced the action and people have become tired of hearing about it, despite the lack of substantial progress. </p>
<p>The WGEA report shows around half of employers have policies on the known enablers of gender equality, but few are developing strategies in these areas. Nearly half (47.7%) of employers have policies on flexible working but only 13.6% have a strategy for flexible working. Similarly, 45.2% have a policy for supporting employees with family and caring responsibilities but only 13.2% have a strategy in this area.</p>
<p>The 2012 McKinsey report also highlights some of the more general challenges to human resources functions in large organisations. These challenges present significant obstacles to achieving diversity and inclusion. </p>
<p>First, the “support function” mindset of many human resources professionals means a strategic approach and a budget sufficient to enable execution are often lacking. Many organisations still see diversity policies as a special interest issue, rather than a business performance imperative. </p>
<p>Second, many organisations struggle to articulate a compelling relationship between diversity and return on investment. As a result, diversity is underfunded and seen as a “non-core” activity. This attitude persists despite a fast-growing body of <a href="http://www.catalyst.org/knowledge/why-diversity-matters">research</a> cataloguing the financial performance advantages of diversity. </p>
<p>Third, even large organisations often do not have particularly high levels of capability when it comes to diversity and inclusion. Many human resources professionals combine this accountability with other roles. Even where there are dedicated diversity resources, such as diversity officers or councils, the depth of expertise is often lacking, their authorities and level of accountability is unclear, and the role is often a detour from a career path headed elsewhere. </p>
<h2>Why does diversity within organisations matter?</h2>
<p>Perhaps in response to diversity fatigue, many practitioners are starting to broaden the perspective on why diversity should matter to organisations. It is now quite common to hear about the performance advantages of “diversity of thinking” and the business performance benefits bestowed by a workforce of diverse, flexible, adaptive thinkers. </p>
<p>An increasing body of research supports the notion that socio-demographically diverse people who think and problem-solve in diverse ways, tend to outperform groups of homogeneous experts. We now know that demographic diversity through culture, gender and age can trigger these performance-enhancing effects. They signal the need to consider a broad range of perspectives and promote more rigorous development and communication of ideas. </p>
<p>Taken this way, diversity is positioned as a means to a commercial end. The goal is to maximise the value of collective intellectual capital. It is this end-game that provides a more compelling business case for diversity to many senior leaders. </p>
<p>Recent <a href="http://www.catalyst.org/knowledge/why-diversity-matters">research</a> provides a wealth of evidence illustrating the broad range of tangible benefits of diverse, inclusive organisational cultures. These include: higher returns on equity and investment, better financial performance, improved corporate governance and increased innovation, creativity and competitiveness. Other well-known benefits include higher retention, engagement and well-being of employees. </p>
<p>This “intellectual capital” approach provides a rationale for positioning diversity within the core organisational agenda. It makes the argument for funding this goal well enough to enable dedicated specialist roles to drive a strategic program of work with a greater likelihood of real, sustainable outcomes. </p>
<p>Importantly, the broader business performance outcomes of the intellectual capital approach appeal much more to the hip-pocket concerns of executive teams. </p>
<p>Cynics may say this approach short-changes those who are committed to diversity on the grounds of values and social justice. However, any way that diversity and inclusion become an integral part of corporate Australia should be embraced.</p><img src="https://counter.theconversation.com/content/33834/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Jennifer Whelan is the Managing Director of Psynapse Pty Ltd, a diversity and inclusion consultancy. </span></em></p>Many large organisations are now on their second or third wave of diversity and inclusion programs. A good number of them are still struggling to identify obvious improvements in the metrics they hoped…Jennifer Whelan, Research Fellow, Asia Pacific Social Impact Leadership Centre, Melbourne Business SchoolLicensed as Creative Commons – attribution, no derivatives.