There will be some awkward conversations over the next fortnight as the median gender pay gaps of more than 5000 firms are made public tomorrow, 11 days out from International Women’s Day.
Firms boasting median gender pay gaps of more than 30 and even 40 per cent are also some that are promising to “count her in”, in line with this year’s IWD theme focused on economic empowerment.
There are also firms boasting even bigger gaps and running events that follow the different, incorrect and superficial theme “inspire inclusion”, ignoring the UN theme altogether — but that’s a different story around how we’re continually duped on IWD day. (See my 2023 version here.)
Don’t be fooled into thinking that some of the companies that are most vocal and loudest on gender equity, don’t have a gender pay issue. We’ve seen an early release of the data, and many of the gender pay gaps to be revealed tomorrow will shock people.
As for the awkward conversations that result? That’s the point.
We need to know what the CEOs, boards and executives of these companies have to say on the matter and what they are going to do about it.
It’s not just media who will be applying scrutiny. It should also be suppliers, government departments procuring services, industry groups and policymakers.
But the biggest scrutiny of all will come from employees within organisations who will see the data and have plenty of questions. They are not about shaming their employer, but about rightfully questioning the inequity.
It’s time for transparency around what it really means to “count her in”. Sure, there are explanations behind why the gender pay gaps exist, but those explanations actually highlight the problem.
Employers will argue that with the headline figure being a ‘median’ pay gap, it merely reflects the fact women are increasingly less represented the higher you go up the better-paid, leadership chain. It’s an explanation, but it’s not a do-nothing excuse.
So give the explanation or explanations, then offer the plan — with key objectives and targets on how the plan will be addressed and assessed. Better yet, link the success of these initiative to the bonuses of leaders responsible for them. At least then, when we don’t close the pay gap, we don’t also see those behind the lack of response rewarded in ways that merely extend the gap further.
Bring on the heat around the gender pay gaps of employers. Bring on the scrutiny. Let there be awkward discussions ahead from those claiming to “count her in”. Where there is heat, there is typically light. In this case it’s a light that shines on an opportunity now to tangibly plan for success, and measure the progress.
From midnight tonight (February 27), you can see the median gender pay gaps of employers with more than 100 team members in Australia at the Workplace Gender Equality Agency. Check out the link here.