| |
pay equity factsheet
ensure your staff are being equally
remunerated
quick facts - key pay equity statistics
|
Pay equity is about
achieving equal remuneration outcomes in your workplace. It is
about eliminating sex discrimination from the wage-setting
system by ensuring that employers use gender-neutral and
gender-inclusive criteria to determine the value of job components such as skill, responsibility, qualifications and
working conditions.
In 2008, EOWA released the 2006 Census of
ASX200 Companies: Gender Distribution of Income for Top Earners.
The report featured data collected in the 2006 Australian
Census of Women in Leadership which
examined
the remuneration of the five most highly paid executives, known
as Top Earners, across the ASX200. Some of
the findings included: |
-
Women hold just 7% of the Top Earner
positions (80 positions out of a total of 1,136).
-
A female CEO earns two-thirds the salary of
her male counterpart.
-
In Human Resources, where women are more
commonly found as Top Earners, the pay gap is still 43%.
-
In 90% of industry sectors, the median salary
for women was less than that for men. There was no industry
in which women were more likely than men to be top earners.
-
60% of female Top Earners work in the bottom
100 ASX200 companies by market capitalisation.
-
A higher percentage of Top Earners are female
in ASX200 companies with more women on the Board.
These findings are supported by statistics
released by the Australian Bureau of Statistics, which revealed
that as at May 2007, women's average weekly earnings were
just 83.6% of men's average weekly earnings, constituting a gender
pay gap of 16.4%.
(Average Weekly Earnings, 2007, ABS Cat. No. 6302.0.
Canberra: Australian Bureau of Statistics)
Click here to download the EOWA 2006 Census of ASX200
Companies: Gender Distribution of Income for Top Earners.
|
the business case: why your organisation
should address gender pay inequity
Employers that ensure they remunerate staff equally are signalling
their commitment to their employees. This typically translates into
increased job satisfaction, greater employee productivity and improved
employee loyalty.
Leading practice organisations know the value to their business
bottom-line of an important retention strategy such as pay equity and regard it as a core to a suite of flexible workplace practices.
Ensuring your organisation has a fair and equitable remuneration system
is not just the right thing to do; it will also benefit your
organisation in numerous ways:
-
In light of the current skills shortage, your organisation
will be more attractive to both female and male job seekers.
-
Staff morale will be improved and your employees will be
more likely to remain loyal and stay motivated within your
organisation.
-
Your organisation will be better positioned to retain
existing staff, reducing recruitment costs and the
instability caused by high staff turnover.
-
Your organisation will be less likely to be exposed to
costly, time-consuming and damaging discrimination
complaints as a result of unequal remuneration.
|
benchmarking: eowa employer of choice
for women citation
Since 2001, the
EOWA Employer of Choice for Women citation
(EOCFW) has been recognising
organisations as ‘leading practice organisations’ in removing barriers
to advancing women in the workplace. EOWA is committed to raising the
bar, improving the workplace for women and strengthening the EOCFW brand
for recipient organisations.
Following a review of the criteria and initial consultation with
recipient organisations in 2006, it was proposed that in addition to the
existing criteria, six new pre-requisites be met by organisations before
being able to apply for the EOCFW citation in the future. The addition
of the pre-requisites addresses key areas that are recognised as
barriers to women’s equal opportunity and advancement within business.
One of these new pre-requisites is a Pay Equity Gap of less than
17%. According to ABS statistics, this was the national pay gap
average as at March 2007. Each year, EOWA will adjust the pay equity gap
requirement for the EOCFW citation according to the latest ABS
statistics available as at 31 March.
case studies
In 2006,
National Australia Bank (NAB)
in collaboration with the Finance Sector Union (FSU), conducted a pay
equity audit using EOWA’s Pay Equity Tool as part of the development
process of an enterprise agreement that included a formal commitment to
reducing the gender pay gap.
Churches of Christ Homes
and Community Services Inc
recognised that while its rates of pay were similar to other Aged Care
providers, they were not competitive with other industries. The
organisation’s Senior Executive wanted to recognise the skills and
experience of their employees beyond the Aged Care industry, and
externally commissioned a management consultancy to benchmark its
salaried positions against similar positions across all industries. From
this process, all positions were banded and new remuneration rates were
recommended, delivering significant salary increases to their mainly
female workforce.
See page 11 of the
2007 EOWA Leading Edge Initiatives
publication.
quotes
|
"I have always thought a real test of success is the question:
'Is this an organisation that you would be happy for your
children to work for?' I have a son and daughter who have
recently entered the workforce and, like any parent, my
aspirations are that they be allowed to reach their full
potential in a work environment that rewards merit and is free
of harassment and discrimination."
Wayne Osborn, Managing Director, Alcoa World Alumina
Australia(Source:
CEOs Unplugged)
"Women are a vital
component of the workforce...I was determined when I took the
reins at Hollywood that I was going to..promote a culture that
provided a fair and equitable environment for all staff."
Kevin
Cass-Ryall, Executive Director, Hollywood Private Hospital
(Source:
CEOs Unplugged)
|
useful links
EOWA Pay Equity Tool
EOWA's Pay Equity Tool is an extremely useful analysis tool
that will assist you to identify pay inequities within your
organisation.
NSW Office of Industrial Relations Pay Equity
Factsheet
WA Department of Consumer and Employment
Protection's Developing pay equity
strategies
URCOT Research Report for Industrial Relations
Vicotira, Pay Equity: How to Address the
Gender Pay Gap
US
National Committee on Pay Equity
|
