Reflecting on the state of gender equity: The year in review and the road ahead.

As we near the end of 2023, I've recently taken some time to reflect and take stock of our progress towards creating more equitable workplaces – and closing the gender pay gap.  Whilst there’s so much to be done next year and beyond, pleasingly 2023 could just be the year in which we’ve laid the foundations to accelerate the rate of change.

It’s timely that the WGEA’s latest Gender Equality Scorecard has just been released, offering a range of data points that support my view that we are on the right track. We have made progress this year. Progress in reducing Australia’s gender pay gap, progress in creating awareness of inequity, and progress in terms of driving accountability. It is the awareness and accountability aspects that give me hope that 2024 will be a year of accelerating progress.

What did we Achieve in 2023?

💎 The biggest legislative change that the country has seen to date. The introduction of the gender pay gap transparency legislationwas a significant and game-changing step forward. From early next year, the pay gaps of all organisations with over 100 people will be made public.  Further, companies with more than 500 people will be held accountable for demonstrating progress on the newly coined gender equality indicators (GEIs).

💎 We finally saw a reduction in the national gender pay gap of 1.1% - the second largest single drop since reporting to the WGEA commenced in 2013.

💎 The Women’s Economic Equality Taskforce (WEET) made a series of recommendations to the Australian Government to assist women to fully participate in the workplace. The recommendations are evidence-based, thorough, actionable and will go a long way to improving gender equity in the workplace over the next 10 years.

But there is still (significant) work to do:

➡️ The gender pay gap is still 21.7% - with men paid more than women in every occupation and industry, right across the board.

➡️ Just over half (55%) of employers analysed their pay gaps, and of those, only 60% took any action as a result.

➡️ Representation of women on boards remained stagnant at 34% and only 22% of CEOs were women (you can check out.)

➡️ On the whole, men were still more likely than women to be internally promoted. Women were more likely to be hired as an external appointment. Women were also more likely to exit an organisation. Overall, these data points suggest there is still work to be done on developing and growing the value of women in our organisations.

Source: WGEA Gender Equality Scorecard 2023

Whilst women are more likely to be appointed to new roles (externally 52% and internally 54%), when it comes to promotions, women are missing out, receiving only 47% compared to their male counterparts. We have work to do across the board, and not just at the point of hire. What is it about promoting our talent that leaves women dragging behind?

This data set led me to recall The Pew Research Centre’s most recent study on Gender and Leadership in Business in the United States, which found:

🔎 58% of respondents felt women still have to prove themselves more than men.

🔎 50% say they have experienced direct gender discrimination.

🔎 48% of respondents attribute a lack of representation in senior leadership is due to family responsibilities.

How many of these factors explain the data we are seeing here in Australia, where the data infers that it’s easier for a woman to leave or join a new organisation than be promoted within their current place of work?

At equidi, we believe that surfacing real-time and meaningful data to organisations about their promotions (and other internal movements) is critical to helping companies make better, more informed decisions. It’s also about creating pathways for women to succeed, including talent and succession plans and ensuring things like sponsorship and advocacy are available to encourage women to take the next step in their careers.

Senior Management continues to lag behind…

Back on home ground, it's disappointing to observe the extent to which women are outnumbered in key decision-making roles. A picture paints a thousand words; across our country, women are significantly underrepresented at the top table. As well as perpetuating the gender pay gap, this stifles diversity of thought and leads to inferior decision-making and employee engagement, ultimately to the detriment of the organisation.

Source: WGEA Gender Equality Scorecard 2023

Back to the future...

As we gear up to 2024 – we are arriving at the future of gender equity in the workplace and that future is transparent and it is accountable.

Based on my discussions throughout 2023, it is apparent that most businesses are not adequately prepared - or haven't fully processed the impact of publishing gender pay gaps. However, there are some, particularly those I've been working with, who are prepared and ready to embrace the new era of transparency. They will leverage their investment as a competitive advantage in their public perception and in the war for talent.

It's so much more than gender pay gaps that will be available to your customers, partners, shareholders, and employees. Gender composition by your organisation's remuneration quartiles will also be published. In conjunction with pay gaps, it brings significant consideration required for your business on a range of factors.

Below are my top tips for helping your organisation become one of those that are best placed to deal with, embrace, and champion the changes.

I end this year with a great deal of optimism. We've finally made progress, we know it can be done - and I look forward to continuing the work to close the gap throughout 2024 and beyond.

💜 If you're eager to accelerate your gender equity progress in 2024 – reach out and let's start a conversation about how equidi can help your organisation elevate to greater heights.

💜 See the change, be the change - Join our movement today!

The Gender Equity Movementis a collective of individuals, businesses and advocates committed to creating equity and reducing the gender pay gap. Sign up as a business ally, or advocate and support the cause today!