Gender pay gap widens, expert says companies must investigate their own pay structures

Government efforts to reduce the widening pay gap between men and women should be aimed at helping companies to conduct their own pay audits and confront any disparities in the way men and women are paid.

Dr Diann Rodgers-Healey, executive director of the Australian Centre for Leadership for Women, says new figures showing the gap between what males and females are paid has hit the highest point in 23 years shows that broad policy measures are not enough to tackle the problem.

Wage data from the Australian Bureau of Statistics released yesterday showed male wages outstripped female wages by $12,870 in the 12 months to May. The female wage is 82.5% of the male wage – the smallest proportion in 23 years.

“The widening gap is disappointing because it reflects the disadvantages women face systematically,” Rodgers-Healey says.

“It also reflects the fact that there are still a very small number of females in leadership position.”

She says because pay gaps are so different from industry to industry and company to company, the Government should provide resources to help businesses investigate internal pay disparities between men and women.

“For the gap to be reduced more companies need to get pay audits or learn how to do a pay audit so they can learn where the gaps are.”

She believes more resources should be provided to the Equal Opportunity for Women in the Workplace Agency to allow them to expand their programs that help companies audit and report on efforts to eliminate discrimination in workplaces.

“It doesn’t need a one-for-all approach, it needs a very tailored approach,” Rodgers-Healey says.

“When companies can see where the gaps are they are not likely to turn a blind eye but they do need the necessary resources and skills to go into those area. I think companies don’t really know where to look right now.”

The ABS data shows wages rose by 1.2% in the three months to May after a 1.1% lift in the previous three months.

Wages rose sharply over the 12 months to the end of May in the wholesale trade sector (up 9.3%), electricity, gas, water and waste services (up 7.2%), transport postal and warehousing (up 6.6%), and arts and recreation services (up 5.9%).

Wages fell most sharply in administrative and support services (down 3.5%), rental hiring and real estate services (down 1.9%), and retail trade (down 1.2%).