Your gender pay gap is about to be public information

Companies with more than 100 employees are required to report their gender pay gap annually to the Workplace Gender Equality Agency (WGEA). With the passing of the Workplace Gender Equality Amendment (Closing the Gender Pay Gap) Bill 2023, the gender pay gap information from all organisations will be public information starting in 2024.

In addition to the publication of gender pay gap numbers, from 1 April 2024, employers will also be required to report on:

• employee age (year of birth)

• primary workplace location

• CEO, head of business and casual manager remuneration.

The inclusion of CEO remuneration will make a lot of companies nervous. 78% of CEOs in Australia are male. The number reported includes superannuation and bonuses. There is generally a significant pay disparity and level of pressure between the individual responsible for running an organisation and the junior ranks, such as graduates, who often are primarily a female cohort (WGEA reports that 60.4% of graduates identify as female). 

Further to this, if you have more than 500 employees, you are required to have policies or strategies for six equality indicators:

GEI 1: Gender composition of the workforce.

GEI 2: Gender composition of governing bodies.

GEI 3: Equal remuneration between women and men.

GEI 4: Availability and utility of employment terms, flexible working arrangements and support for family and caring responsibilities.

GEI 5: Consultation with employees on gender equality in the workplace. 

GEI 6: Sexual harassment, harassment on the ground of sex or discrimination. 

Addressing the gender pay gap in Australia is crucial, and it simply has not been happening quickly enough. We are ranked 43rd in the world in the Global Gender Gap Report. For context, New Zealand is 4th, South Africa 20th, UK 22nd and the USA 27th. Australia sits below nations including Mozambique, Belarus, and Guyana.

Publication of gender pay gap information has been mandatory in the UK since 2017/2018; consequently, their numbers have improved. But as we begin to navigate the publication of data, I can foresee a lot of organisations needing help to maintain a positive public image and employee morale while they work on getting the balance right. 

In a vibrant cancel culture and a trend of 'calling-out', not everyone's number will reflect an organisation's measures, goals and aspirations. These numbers don't represent apples for apples. It is an average of all your female-identifying employees' salaries and all your male-identifying employees' salaries - from CEO/Principal to the lowest ranks.  

WGEA do understand this. Their goal is not to alienate or punish; they seek gender equality, and there is an opportunity to provide an explanation for numbers and outline a plan of action. 

"We understand that external or internal factors influence the results of an employer's gender pay gap. So, while the gender pay gap is a proxy for gender equality, it may not provide a complete picture of an organisation's commitment to it." FAQ WGEA Legislative Reforms PDF

What can be done from a public relations perspective? I consider public reporting a positive public relations opportunity. If your numbers don't look good, and I assume many won't, particularly in female-dominant industries like law and banking where many participants are associate level and choose not to return to the workforce post-children, you've got a great improvement story opportunity. Illustrating closing the gender pay gap in Australia is a good news story.

If you have not stated your equal opportunity goals and don't have a policy in place to improve the number of women at a senior level, now is a good time to give this some serious consideration. 

To improve your public perception of gender wage gap, I suggest the following steps to be encompassed in a formal policy/statement:

One: Transparency and Acknowledgment

• Be transparent about the issue. Acknowledge the gender pay gap openly and communicate your commitment to addressing it.

• Clearly state your company's values and commitment to equality.

Two: Communication Strategy

• Develop a clear communication strategy to address the gender pay gap issue, including press releases and social media announcements.

• Use language that shows empathy, responsibility, and a commitment to change.

Three: Highlight Action Steps and Policy Changes

• Clearly outline the steps your company is taking to address the gender pay gap. This might include conducting a thorough pay equity analysis and implementing new policies.

• Demonstrate a commitment to change by implementing policies that promote pay equity. Take look at your current hiring practices, promote diversity and inclusion, and offering mentorship or training programs.

Four: Employee Involvement

• Involve employees in the process. Consider forming a gender pay gap task force or seeking input through surveys to understand concerns and gather ideas for improvement.

Five: Leadership Statements and positive stories 

• Have company leaders, including the CEO, make public statements about the commitment to closing the gender pay gap. This reinforces the message from the top and shows a unified front. This language should mirror what you saying in your WGEA explanation. 

• Highlight positive stories within the company related to gender equality. Showcase women in leadership roles, successful diversity initiatives, and other positive aspects of your company culture.

Six: Regular Updates

• Seeing is doing. Provide regular updates on the progress your company is making in closing the gender pay gap. This demonstrates ongoing commitment and transparency.

• Reporting is annual; you want to make sure that there is an improvement each year and potentially, this will become a great news story.

Actions speak louder than words. The key is not only to communicate your commitment but to demonstrate it through tangible and sustained efforts to address the root causes of the gender pay gap within your organisation.

Developing a plan that includes a statement about where your gender gap number is now, and what your goals are to improve is an opportunity. If you need assistance with developing a formal PR response please reach out. We are experienced in the management of public relations and building trust and have been following the WGEA plans closely.

Other sources: AICD