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EOWA Business Case for Pay Equity
Align your organisation with customers and shareholders
(increase market share)
The gender pay gap has obvious impact on women’s life choices, including
purchasing power and potential investment decisions. Women are a significant
consumer base whose disposable income and buying power is growing. Many
studies have shown that women are the decision-makers for 90 per cent of
household purchases and financial decisions, including motor vehicles,
household goods and financial services.
Australian Bureau of Statistics figures indicate that:
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In January 2005, there were 4.7 million
women in the workforce, comprising 45 per cent of Australia's entire
labour force1.
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Women make up 51 per cent of all
professionals in Australia, outnumbering men by 20,0002.
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Australian women are outstripping
men in education, comprising 56 per cent of all university graduates3.
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Women represent 33 per cent
(528,600) of all small business operators (1,591,500) in Australia4, and
are the majority or part-owners of nearly one-half (46 per cent) of all
small businesses5.
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Women investors comprise 45 per
cent of all Australian shareholders6.
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Companies with women on their
senior management teams achieve better financial results, including
improved gross sales revenue, greater market share and overall higher net
operating profits7.
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By 2016, the number of women in
the Australian labour force will have increased by 867,600 to 4.9 million,
a growth rate almost double that of men8
These figures illustrate the significant role of women as customers,
business owners and investors. Pay inequity impacts on the amount women have
to spend and/or invest, while also impacting on their decisions in regard to
which organisations to do business with. If women do not receive pay equity
within organisations, they will not only leave those workplaces as employees
but will also be less likely to conduct business with or invest in that
organisation. They will take their business to organisations that do offer
equity.
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1ABS Australian Labour
market Statistics 6202.0 January 2005 (August statistics).
2ABS Australian Labour market Statistics 6105.0 August 2003
(August statistics).
3Figures applies to 2002 graduate numbers. Department of
Education, Science &
Training, Students 2003 (First Half Year): Selected Higher Education
Statistics.
4ABS Characteristics of Small Business Cat. No. 8127.0 2003,
April 2004.
5ABS, Characteristics of Small Business, Cat. No. 8127.0, June
2001.
6ASX 2002 Share Owner Survey, February 2003.
7Study by the American Management Association (AMA), 1998. See
also 2004
Catalyst research with similar findings.
8ABS, Australia Now 2002, Labour Force, Australia, 6203.0 - Oct
1999, Special
Article - Labour force projections: 1999-2016 (Oct, 1999). |
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