It has been over 100 years since the first International Women’s Day (IWD) was held in 1909, and though Australia has come a long way in creating a more gender equal workplaces, there is still a way to go.

Data from the ABS shows the gap between men and women in full-time weekly earnings has hovered between 14 percent and 20 percent over the last 20 years. According to the She’s Price(d)less report, conducted by KPMG in partnership with Diversity Council Australia and the Workplace Gender Equality Agency (WGEA), this discrepancy occurs due to numerous factors, including discrimination and bias during hiring and pay decisions, lack of workplace flexibility when it comes to women’s caring responsibilities, and women generally spending more time out of the workforce, which hinders career progression.

2020 was a turbulent year for many businesses. Employers were faced with challenges brought on by the pandemic, seeing some forced to downsize or even stand down their workforce. During such times it can be easy to slip into “survival” mode and, upon closer inspection, some organisations may find their gender diversity initiatives may have unintentionally fallen by the wayside.

March 8 is International Women’s Day, a timely reminder for employers and organisations to assess their own gender strategy and whether or not they are setting measurable actions that aid in progress. This year’s theme is “#choosetochallenge”, a concept that encourages actively challenging and calling out gender bias and inequalities.

Every organisation is capable of choosing to challenge and call out gender bias and inequality in the workplace. Here are some ways in which employers can improve outcomes for female employees and develop a stronger gender equality strategy.

Address industry segregation

One of the key findings within the She’s Price(d)less: The Economics of the Gender Pay Gap was that industry segregation continues to be a significant contributing factor to the gender pay gap and women’s opportunities within the workforce.

According to data from the WGEA, more than 80 percent of employees in the healthcare and social assistance sector are women, while 84 percent of employees in the construction and mining industries are men. This segregation starts early, with graduates overwhelmingly entering fields dominated by their own gender, in part due to gender stereotypes about the types of subjects boys and girls should study and the types of jobs men and women should do.

It is male-dominated industries and occupations that continue to attract higher rates of pay than those dominated by females. In addition, female-dominated industries also pay the lowest proportion of superannuation, bonuses and other discretionary pay when compared to other industries.

Research indicates that this is not coincidence, but rather is entrenched within our society. A study conducted by sociologists Asaf Levanon, Paula England, and Paul Allison, found that the higher the percentage of women in an industry the lower its perceived ‘prestige’, which resulted in lower pay. It found that, when women enter an occupation in large numbers, that job begins to pay less, even after controlling for a range of factors like skill, race and geography.

For organisations looking to improve their gender diversity and ensure equal opportunity is being offered, it is important to address industrial segregation at the hiring level. In this way, it can be useful to engage a third-party recruitment company to assist in your hiring process. Recruitment consultants can conduct blind screenings on an employer’s behalf, to ensure that factors such as gender don’t impact on the hiring decision. Instead, candidates are selected based on sound diversity strategies that take merit, experience and values into account.

Consider flexible working arrangements

Another major contributor to pay inequality between man and women is what is known as the ‘Motherhood Penalty’. This refers to the combination of years spent not working due to interruptions, part-time employment and unpaid care and work, which accounts for 39 percent of the gender pay gap.

Employers need to be made aware of the way in which these responsibilities have previously and still to this day impact on women’s ability to reach the same professional sitting as their male counterparts. Following this, it may be important for organisations to review their flexible working arrangements and policies, to assist women in continued work or returning to work in a way that supports, rather than hinders, their career progression and professional opportunities. Research has shown that successfully implemented flexible workplace policies and employer-funded paid parental leave schemes are integral to retaining female staff members during and after pregnancy. Indeed for Australian engineering consultancy Stantec, HR Manager Paul Broad told the Bayside Group Work Conversation podcast that after implementing such strategic changes throughout the business, the number of female employees returning from parental leave increased to over 90 percent.

Align organisational culture with gender diversity goals

For women working in male-dominated industries, it can even be the culture that hinders their opportunities for career progression. Oftentimes, it is through networking that an employee can be exposed to career opportunities, but for women working in a male-dominated industry, networking can prove to be a lot harder. The DCA says that women still often miss out on important networking opportunities in alcohol-based, after-hours sporting and social events because they are either not invited or feel uncomfortable attending.

There is ample opportunity here for employers to consider how colleagues and managers interact with one another, and to implement changes that provide an even playing field for all. It might be appropriate to hold inclusive company-wide networking events, or else encourage managers to do the same within their teams, ensuring that everyone is comfortable with the setting. Furthermore, this is a good time to assess how promotions and recognition are made. Ask yourself if such opportunities and decisions are based on merit, are fair and reviewed by multiple senior staff.

Career progression and women in leadership

Women are underrepresented at leadership and management levels in Australian workplaces, despite females making up 50.5 percent of the private sector workforce. According to WGEA data, women make up 32.5 percent of key management positions, 28.1 percent of directors, 18.3 percent of CEOs and just 14.6 percent of board chairs.

The Gender Equity Insights series undertaken by the Bankwest Curtin Economics Centre discovered that female representation in senior leadership roles not only reduces the gender pay gap but improves company profitability and productivity. In 2020, this research demonstrated that increasing the representation of women across each of the key leadership roles in an organisation added market value of between $52 million and $70 million per year for an average sized organisation.

For organisations to be able to reap the benefits from greater female representation in leadership, they will need to establish clear targets or quotas to achieve these. Targets are defined by WGEA as being “specific measurable objectives, generally set by an organisation at their own discretion, with discrete timeframes in which they are to be achieved.” Quotas, on the other hand, are “usually set externally by a body with authority to impose them on organisations… and usually includes setting penalties for failing to meet them.”

Melbourne University Business School’s Centre for Ethical Leadership released a report which showed that setting assigned targets where managers are held accountable and rewarded for achievement are effective. This is something which is important to consider when establishing leadership equality targets within your own organisation.

Gaining leadership commitment

Creating change within an organisation can be difficult without the support of the leadership team, which is why their commitment and ownership will be crucial for developing greater gender equality. Once goals and targets have been set, leaders at all levels – from the board, the CEO and senior leaders – will need to commit to the strategy and actively engage employees in the vision.

Leadership support is also important in enabling adequate resourcing of time and investment in rolling out actions that will aid in better organisational gender equality, such as training programs, professional development opportunities or business events.

If your organisation requires assistance in creating a sound gender equality strategy through recruitment and workforce planning, contact the Bayside Group today.