As the gender pay gap data released last week made clear, employers need more women in the higher-paying areas of leadership if they hope to close the difference in the median full-time wages of men and women – and it starts with sharing the caring.

 

To make that happen, both government and employers alike must consider the impact of the work and care divide on career progression, how they enable more men to access and take up equal paid parental leave as well as normalise work from home and flexible working.

 

Reform to bridge the work and care divide is happening and it’s long overdue.  It’s promising to see the Federal Government announcing the intention to pay superannuation on Commonwealth-funded paid parental leave, in addition to the reform to expand the payment to six months by 2026. Arguably, this change puts employers on notice to review their own provision of superannuation on paid parental leave as part of their commitment to closing their gender pay gap.

 

The fact that every industry has a gap shows that the nature of how we work and care work and how we promote and train leaders is getting in the way.

 

But rather than blaming women’s “choices” to take on work that is compatible with family and care responsibilities, and consequently limits career progression, we must consider how our workplaces limit opportunities to pursue leadership careers alongside family life.

 

Right now, gender stereotypes prevail regarding the distribution of unpaid work, which is seen through ABS data on who does what at home, as well as women taking the overwhelming bulk of paid parental leave, even when it is offered equally to men. It’s incredible to think that in 2024, men still only account for 14 per cent of those taking primary carer’s parental leave.

 

The part-time workforce continues to be dominated by women. And as previous WGEA data has revealed, employers are not rewarding part-time workers with promotions, given just 7 per cent of managers are working part-time in Australia.

 

Making workplaces more family-friendly is not the only thing that needs to happen to help close the gender pay gap, but it is an opportunity to make a significant dent.

 

Speaking to media on the morning of the launch of the pay gap data, Minister for Women Katy Gallagher shared the need for real work and career choices that include options for flexible working arrangements as well as job sharing.

 

Offering flexible work and part time work opportunities is the bare minimum of what employers can do. They must also ensure careers and promotions can develop alongside such work, normalising how managerial work can be done flexibly. Employers also need to better engage men in flexible work options, as they should also do to get more men taking paid parental leave.

 

The data clearly shows that companies with high proportions of women in management positions have lower gender pay gaps. As WGEA CEO Mary Wooldridge said after the figures were released, we need to focus on the pipeline of great female talent already available to help address the imbalance.

 

Wooldridge made it clear that progress on changing gender pay gaps is possible – with evidence seen in some of the more than 5000 employers whose gender pay gaps were revealed last week. Around one-third of companies have a neutral gender pay gap that’s close to zero, and around 8 per cent actually have a gender pay gap in favour of women. In some of the most male-dominated industries, there are employers with gender pay gaps that fall into the category of “neutral” (that being less than five per cent, according to WGEA’s analysis).

 

“Even in the highest companies and industries like construction, professional services, the financial services industries, some gender pay gaps are actually close to zero, while others may be 30, 40 and 50 per cent,” Wooldridge said. “So, it’s doable. Change is possible. It just takes that motivation and it takes that action.”

 

Employers could also learn from those that are taking actionable steps to close gaps – such as Viva Energy being the first company to introduce Superannuation on parental leave and pay super to all parental leavers returning to work until the child is 5 years old on a full time wage, even if the person returns part time. Employers can set actionable and public targets for getting women into higher-paid parts of their workforces, such as IAG announcing a push to reach 50% representation of women in senior management by June 2024 as well as a gender balance in its board of directors.

 

The gender pay gaps of more than 5000 employers are now available for everyone to see and compare.

 

Transparency on these figures is a good thing for Australia and provides a clear benchmark for progress in Australia. As Wooldridge noted, public accountability is an important part of employer performance in relation to gender pay gaps and will be “an important accelerator of change.”

 

“This is a call to action on gender equality,” she said. “Behind every piece of data, every number in terms of the gender pay gap, is an employee who is having a better experience as that gender pay gap decreases.”

 

We urge employers to see the opportunity in creating more family-friendly environments, including real flexible working choices, to better support the pipeline of women across their organisations in progressing to management and ultimately higher paid positions.

 

What are the current experiences of parents and carers at work?

 

As WGEA continues to develop more robust mechanisms around transparency and accountability of employers on gender equality, at Family Friendly Workplaces we’re curious to see how the past five years have changed things for working parents and carers.

 

When we launched the results of our 2019 survey of 6,000 families, 62 percent of respondents reported having difficulties managing their own physical and mental health as they juggle work and caring. Around half of female parents and carers, as well as one-third of men, reported that this juggle was leading to considerable stress.

 

At the time, we also found that two-thirds of respondents agreed it was more acceptable for women to use family-friendly work options than it was for men, with men reporting they faced more barriers when it came to accessing such flexibility and raising concerns about how it would impact their career reputation.

 

With all the changes from the past five years, as well as more employers introducing workplace flexibility, hybrid work options and better work-from-home options, what will we learn this year? Will we continue to see such stark gender differences?

 

You can help us find out. We are currently running the National Working Families Survey and will publish the results in May this year.

 

Employers and leaders can help by sharing the resources on the Survey website and encouraging parents and carers to take the survey.

 

You can read Family Friendly Workplaces’ free guide on transforming family-friendly policies and practices into gender equality solutions here.

 

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By Emma Walsh

First published on Women’s Agenda