Despite its reputation as a “gender-balanced” sector, the financial and insurance industry in Australia continues to grapple with a significant gender pay gap, according to the latest report from the Workplace Gender Equality Agency (WGEA).
Data from the WGEA’s 2023-24 gender pay gap report reveals that only 21% of Australian employers are within the target range for gender pay equity, with a gap of -5% to +5%. Shockingly, 72% of employers across all industries still pay men more, on average, than women.
The report highlights a troubling trend in the gender pay gap across different sectors. The financial and insurance industries report a median remuneration gap of 22.2%, second only to the construction sector. Notably, 96% of employers within these sectors pay men more than women, a percentage higher than in many traditionally male-dominated fields.
Although women represent 53% of the workforce in financial and insurance services—earning the sector its “gender-balanced” label—there is a stark gender divide in pay distribution. Women dominate the lower pay quartiles, making up 67% of the lower quartile and 60% of the lower-middle quartile. However, they are underrepresented in the upper pay quartiles, comprising only 36% of the highest-paying group, despite accounting for 48% of the upper-middle quartile.
WGEA’s findings come from the analysis of 7,800 individual employers and 1,700 corporate groups. It also highlights that larger employers, particularly those with higher wages, are more likely to have significant gender pay gaps in favor of male employees.
However, there are signs of progress. Mary Wooldridge, WGEA’s Chief Executive, noted that around 15% of employers are now within the desired gender pay gap range of +/-5%. She emphasized that employers with significant gaps often have an over-representation of one gender in higher-paying roles, suggesting structural or cultural factors at play within organizations or industries.
Wooldridge encouraged employers who have not yet made progress to delve into their data to identify the causes of the disparity and to implement evidence-based solutions. “It’s time to ask why,” she said, stressing the importance of addressing the root causes of gender differences in pay.
In positive news, WGEA’s data indicates that 56% of employers have managed to reduce their gender pay gaps over the past year, with a notable increase in the number of companies analyzing their pay structures and consulting employees about gender-based discrepancies.
Wooldridge emphasized that the publication of gender pay gaps has prompted employers to reflect on gender equality in their workplaces beyond pay. For men, this could mean access to paid parental leave and flexible return-to-work options. For women, it might involve redesigning managerial roles to accommodate part-time or job-share opportunities, allowing for career progression while balancing caregiving responsibilities.
“Purposeful action is needed to break down traditional gender roles and create equal opportunities in the modern workplace,” Wooldridge concluded.
The WGEA report underscores the importance of continued efforts to address the gender pay gap, with employers urged to take actionable steps to ensure fair pay and equal opportunities for all employees, regardless of gender.
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