Are we getting closer to workplace gender equality?

The gender pay gap is decreasing, but Australian workplaces still have a long way to go, according to new research

BY John Hilton 05 Oct 2018

The gender pay gap is decreasing, but Australian workplaces still have a long way to go, according to new research.

Indeed, the Financy Women’s Index (FWX) - supported by Data Digger - gained 1.4 points or 1.1% to 126 points in the three months to September, from a revised 124.6 points in June this year.

However, when compared to the FWX Progress Target of 173.3 points, the September result falls short by 37.5%.

Nicki Hutley, partner at Deloitte Access Economics, said that it was both “remarkable and unexpected” that economic gender equality is “within our grasp”.

"There are still many barriers and examples of outdated attitudes. To ensure greater equality is reached as soon as possible, we must be vigilant,” said Hutley.

She added that organisations need to continue to develop and support programs for diversity and inclusion.

Moreover, The Association of Financial Advisers (AFA) CEO, Philip Kewin said it is encouraging that the latest FWX reveals the economic wellbeing of women is improving.

“While progression is slow, it is certainly heading in the right direction,” said Kewin.

Kewin added that he is also pleased that financial services are hiring more women.

“The Finance and Insurance Services sector hired 5.1% more women over the latest quarter, which means our own industry is playing its part in improving work participation rates for women,” said Kewin.

“What we’d like to see next quarter is an improvement in the gender pay gap in our industry.”

Among the major drivers of economic progress for the September quarter were an increase in female full-time employment to over 3.16 million and a 20-year low in the average wage disparity between men and women.

Moreover, the expansion of the Women’s Index to include the ASX 200 with the help of the Australian Institution of Company Directors (AICD) positively impacted progress - women now occupy 28.5% of ASX 200 board positions.

There also needs to be continued discussions on issues like inclusion and gender balance around board room tables and management, and an increase of activity around these matters, according to OneVue managing director Connie McKeage.

“Every step forward we take as organisations that care, no matter how small those steps may seem at the time, can contribute to creating a better more balanced future.”

Moreover, education data suggests that wages and graduate salaries could be having an impact on the types of courses that women study after high school.

Female engineering graduates are also earning more than male graduates, and are enrolling in this field at more than three-times the pace of more traditional female-dominated courses like education.

However, the average female graduate is still paid less than male graduates across all course areas.

Meanwhile, mining and information media and telecommunications, which are among the highest paying sectors, stood out as having links to the fastest growing education pathways for women.

Additionally, improved wages and job outcomes helped the national gender pay gap fall to 14.6% in May, as reported in the September quarter, down from 15.2% in November 2017.

Health care and social assistance recorded the biggest gender pay gap increase of any sector, up 9.6% to 25% in May compared to 22.8% in November.

HRD also recently reported on a study released by Korn Ferry and the Australian Institute of Company Directors (AICD) entitled Australian Women CEOs Speak.

It found that nine of the 21 women interviewed were given a 'hospital pass'—handed power when the risk of injury to their personal career was high.

Experience in international markets was found to be a key feature of CEO women’s careers in Australia, as 70% of those interviewed described significant global and multicultural experience.