Daily Bulletin

The Conversation

  • Written by The Conversation Contributor

Women are paid less on average than men at a senior management level and have less representation on boards, particularly among male-dominated industries, new research shows.

Among top tier managers (those reporting directly to the CEO), female managers are paid on average $100,000 less than their male counterparts and the gender pay gap widens considerably as the management level increases.

image Average annual salary by management level: base salary and total remuneration

Both women and men receive additional remuneration beyond their base salary, which can include superannuation, bonuses, share allocations, allowances, overtime and other discretionary pay. However, women working full-time are paid on average an additional 18% of their base salary in extras compared to men who get an additional 25%.

The average total remuneration for female managers was found to be equal to the base salary for male managers across all levels of management. These gaps in remuneration can result in significant difference in earnings as men and women progress through their careers.

The research also demonstrates a huge gap between the best and worst performing industries when it comes to achieving gender equity in board representation.

There are no women sitting on boards for at least half of organisations in industries such as retail, mining, manufacturing, construction and agriculture. The industries that had more women on boards were in the health, social assistance, education and training sectors.

image Proportion of women on Boards and governing bodies, by industry

The Workplace Gender Equality Act was introduced in 2012 to promote and improve gender equality in pay and employment opportunities in Australian workplaces. The Act requires organisations to report annually on a number of gender equity indicators, including remuneration and female board representation.

This research was based on unique data reported to the Workplace Gender Equality Agency, which captures 4 million employees and more than 12,000 employers and this was analysed by the Bankwest Curtin Economics Centre.

Australia is one of only a handful of countries to require such comprehensive reporting of gender equality indicators across organisations. The UK has recently initiated a similar policy, but goes one step further by requiring big companies to publicly disclose their gender pay gaps.

A number of Australian companies have also made commitments to do this, with the big four accounting firms disclosing company-wide gender pay gaps at the end of 2015.

The persistent gender pay gap in Australia is a significant economic, political and social issue. Gender pay gaps have remained a permanent feature of the Australian labour market, despite the advances women have made in both education and workforce participation and the introduction of anti-discrimination laws.

Gender pay gaps do not always signal direct discrimination, but remain problematic for a number of reasons. Pay gaps result in poorer economic security for women. They restrict the accumulation of wealth (in the form of property and superannuation); increase women’s reliance on government assistance over their lifetime; and increase the likelihood of women living in poverty at every life stage.

Pay gaps stunt economic growth and represent a lost opportunity in productivity through a person’s working life and potential.

Encouragingly, this research found that greater female representation on boards has a significant link to lower gender pay gaps, particularly among managers. Specifically, increasing the number of women on boards from zero to 50:50 is associated with a 6.3% decrease in the gender pay gap.

These findings add strength to the business case for greater female board representation. The stronger this evidence becomes, the more difficult it will be for organisations to shy away from making diversity on boards a priority.

Authors: The Conversation Contributor

Read more http://theconversation.com/female-senior-managers-paid-100-000-less-than-their-male-counterparts-study-55616

Writers Wanted

Physical Therapist Talks About This New Massage Gun On The Block - The HYDRAGUN


Too much information: the COVID work revolution has increased digital overload


Ammonite: the remarkable real science of Mary Anning and her fossils


The Conversation


Prime Minister's Remarks to Joint Party Room

PRIME MINISTER: Well, it is great to be back in the party room, the joint party room. It’s great to have everybody back here. It’s great to officially welcome Garth who joins us. Welcome, Garth...

Scott Morrison - avatar Scott Morrison

Prime Minister Interview with Ben Fordham, 2GB

BEN FORDHAM: Scott Morrison, good morning to you.    PRIME MINISTER: Good morning, Ben. How are you?    FORDHAM: Good. How many days have you got to go?   PRIME MINISTER: I've got another we...

Scott Morrison - avatar Scott Morrison

Prime Minister Interview with Kieran Gilbert, Sky News

KIERAN GILBERT: Kieran Gilbert here with you and the Prime Minister joins me. Prime Minister, thanks so much for your time.  PRIME MINISTER: G'day Kieran.  GILBERT: An assumption a vaccine is ...

Daily Bulletin - avatar Daily Bulletin

Business News

Getting Ready to Code? These Popular and Easy Programming Languages Can Get You Started

According to HOLP (History Encyclopedia of Programing Languages), there are more than 8,000 programming languages, some dating as far back as the 18th century. Although there might be as many pr...

News Co - avatar News Co

Avoid These Mistakes When Changing up Your Executive Career

Switching up industries is a valid move at any stage in your career, even if you’re an executive. Doing so at this stage can be a lot more intimidating, however, and it can be quite difficult know...

News Co - avatar News Co

4 Costly Mistake To Avoid When Subdividing Your Property

As a property developer or landowner, the first step in developing your land is subdividing it. You subdivide the property into several lots that you either rent, sell or award to shareholders. ...

News Co - avatar News Co

News Co Media Group

Content & Technology Connecting Global Audiences

More Information - Less Opinion