Gender Pay Gap is biggest in management positions

New data released by the Workplace Gender Equality Agency (WGEA) this week shows that women in management positions get paid less than their male peers.

Based on full-time total remuneration, the largest gender pay gap occurs at key management personnel (KMP) level (28.9%), followed by other executives / general managers (27.5%), then other managers (24.6%) and senior managers (23.5%).

Director of the WGEA, Helen Conway, said this data reveals for the first time how the gender pay gap exists at every level of management across the Agency’s reporting population of over 11,000 employers.

“The data clearly shows women in management aren’t accessing the same earning opportunities as men. This is partly due to the fact that women gravitate to roles the market typically assesses as being of lower value. For example, we know female KMPs are more likely to be in support roles such as human resources than line roles such as heads of finance.”

“Employers who are committed to creating equal access to opportunities for women and men need to work harder to remove barriers that inhibit women from entering these higher paying roles. A lack of quality flexible work, the legacy of workplace cultures built on the male breadwinner model and gender bias are likely to be among the barriers that need to be tackled,” Ms Conway said.

Pay inequity also persists below management ranks with pay gaps favouring men in every occupation. Even in female-dominated roles such as sales, community and personal service work, and clerical and administrative roles, there is a gender pay gap in favour of men.

Research shows women face a double bind when negotiating pay whereby attempts to assertively argue their value are viewed more harshly than when a man exhibits the same behaviour, which results in women being less likely to put forward their case for higher pay.

Ms Conway said that while gender differences in jobs performed explains some of these by-level gender pay gaps, employers need to conduct a like-for-like pay gap analysis to be sure unconscious bias or discrimination isn’t a contributing factor, and then develop an action plan for tackling the causes of pay inequity.

“The Agency’s 61 CEO Pay Equity Ambassadors will tell you gender bias can create instances of women being paid less than men for the same or comparable work unless you analyse your payroll data and take action.”

“I urge all interested individuals to search which employers that report to the Agency are taking action on pay equity on our inyourhands.org.au website and give employers who are yet to conduct a payroll analysis a nudge along by sending them our free resources,” she said.