The gender pay gap will be one of 2024’s critical corporate communications
By Jacqueline (Jaci) Burns, Managing Director, Market Expertise | IABC NSW Board Director
On 27 February 2024, the Workplace Gender Equality Agency (WGEA) will publish the first set of private sector employer gender pay gaps. Around 5,000 large employers will be named or shamed as the best or worst gender equality performers. Those that are not in control of their narrative will either miss an opportunity – or pay the price.
Under the Workplace Gender Equality Amendment (Closing the Gender Pay Gap) Act 2023, employers with 100 or more staff must submit workforce composition, annual base salary, total remuneration, and other related data each year.
Until now, employers have only been privy to their own scorecard and how it compares with their sector’s average and that of other industries.
For that reason, there will be intense interest in the WGEA list.
These could be the most important communications a company issues in 2024. If employers are not on the front foot, they risk damaging their employer brand, could face an exodus of talent, and will be called into question by their internal and external stakeholders.
Workers will confuse the gender pay gap with equal pay
Many workers will not recognise the difference between equal pay and the gender pay gap. That confusion may lead to misunderstanding and the spread of misinformation which could destabilise a workforce, negatively impact productivity, and damage a company’s employer brand.
The gender pay gap is the difference between the average earnings for men and women, expressed as a percentage of men’s average earnings.
If employers don’t help workers to understand how the gender pay gap is calculated, why it is what it is, and what they are doing to address it, their employees may draw the wrong conclusion and form a negative opinion about their employer.
In what is still a tight labour market, staff will walk and rivals will be quick to poach high performers.
A company could have an exceptional record of paying men and women equally for the same, or a comparable, role but score dismally on the gender pay gap because of the composition of its workforce and other factors.
What do you have to hide?
According to WGEA, 90% of employers with more than 100 staff comply with the legislation, equating to almost 5,000 organisations and representing close to five million workers.
The 500 or so non-compliant employers will be weeded out by their absence on the WGEA list and will have some explaining to do.
In addition to these organisations probably being in breach of the legislation, their employees, customers, suppliers, and other stakeholders will question why they have not submitted data. Many will assume the company has something to hide.
The moment of truth
As the clock ticks down to 27 February, corporate communicators must prepare their internal and external communications, including an Employer Statement for posting on the WGEA website, so they are not scrambling when the WGEA list goes live.
Perhaps with humility, companies will need to acknowledge their gender pay gap.
Their understanding of the historic and present-day drivers of the gender pay gap in their organisation will be tested.
Some companies will be challenged to explain why their gender pay gap is so much worse than that of their competitors.
And all will be faced with the task of detailing the steps that they are taking to narrow their gender pay gap.
Gender pay gap communications checklist
As corporate communicators prepare their gender pay gap communications, they would be wise to address seven points:
What is our company’s stance on gender equity?
What is the gender pay gap and how is it different to equal pay?
What is our gender pay gap and how do we compare to the Australian average (21.7%)?
How do we compare to other employers in our sector?
To what do we attribute our gender pay gap (and any significant difference to others in our sector)?
What are we doing to narrow our gender pay gap?
How will we report and provide updates on our progress to demonstrate our commitment to gender equity?