Gender pay gap data – what it means for your business
Over the past two years, a series of legislative changes and regulations have reshaped the landscape of gender equality in the workplace.
As businesses adapt to these transformations, it becomes crucial to comprehend the implications of the upcoming gender pay gap reporting reforms and understand what they mean for your organisation.
On December 12, 2022, the Anti-Discrimination and Human Rights Legislation Amendment (Respect at Work) Act 2022 came into effect. Enacted to provide enhanced protection against sexual harassment and sex discrimination, this legislation imposes new obligations on employers.
Noteworthy aspects include making workplace environments free from sex-based hostility and introducing a positive duty on employers to eliminate discriminatory conduct.
Workplace Gender Equality Act 2012:
In 2012, the Workplace Gender Equality Act (Act) marked a fundamental shift in addressing gender equality in the workplace.
It established the Workplace Gender Equality Agency (Agency) and introduced a standardized reporting framework.
Private sector employers with 100 or more employees are required to report against six Gender Equality Indicators (GEIs), enabling comparative analysis across employers:
- GEI 1 – gender composition of the workforce
- GEI 2 – gender composition of governing bodies of relevant employers
- GEI 3 – equal remuneration between women and men
- GEI 4 – availability and utility of employment terms, conditions and practices relating to flexible working arrangements for employees and to working arrangements supporting employees with family or caring responsibilities
- GEI 5 – consultation with employees on issues concerning gender equality in the workplace
- GEI 6 – sexual harassment, harassment on the ground of sex or discrimination.
Understanding and implementing the intricacies of new regulations can be daunting. Our Leadership and transformation services are designed to help organisations throughout this journey. Learn more here.
Upcoming Regulatory Changes
February 2024
The Workplace Gender Equality Agency (WGEA) will publish the first set of private sector employer gender pay gaps on February 27, 2024, covering reporting from April 1, 2022, to March 31, 2023.
This release will include median gender pay gaps and data on gender composition and average remuneration per pay quartile.
April 1, 2024
Employers reporting to WGEA must answer new mandatory questions and provide CEO, Head of Business, and Casual Manager remuneration. Employers with 500 or more staff will need a policy or strategy for each of the six gender equality indicators.
Late 2024/Early 2025
WGEA will publish the first set of public sector employer gender pay gaps and the second year of private sector gender pay gaps by average and median, along with gender composition and average remuneration per pay quartile.
These changes are not hurdles but stepping stones toward a workplace where diversity isn't just celebrated on paper but embedded in an organisation's DNA. It's time to see these reforms not as obligations to meet but as opportunities to lead, setting the stage for a more inclusive and equitable future.
Key Changes for Employers
Existing gaps in the WGEA dataset mean the true state of gender inequality across Australian workplaces is not being measured. The reforms work to close these gaps.
Collection of More Detailed Information:
From 1 April 2024, employers will be required to report workforce data on:
- employee age (year of birth)
- primary workplace location
- CEO, Head of Business and Casual Manager remuneration.
Reporting on Sexual Harassment, Harassment, or Discrimination:
These reforms expand reporting requirements on prevention and response to sexual harassment, harassment on the ground of sex or discrimination in the workplace.
These questions were voluntary in 2023 but will be mandatory from 2024:
Detailed questions on policy/strategy provisions, training, disclosure processes, leadership statements, sexual harassment risk management, and available supports for staff.
The provisions set out in any policy/strategy, including accountabilities for:
- preventing and responding
- the provision of training, its frequency, and content
- the disclosure processes and management of disclosures
- leadership statements or communication to demonstrate commitment to prevention and response
- information about sexual harassment risk management
- information about the prevalence data organisations currently collect
- supports available for staff.
Mandatory Sharing of Reports:
- Employers required to provide WGEA Executive Summary and Industry Benchmark Report to their Board.
Gender Equality Indicator Policies:
- From 2024, large organisations (500 or more employees) will be required to have policies or strategies for each of the six gender equality indicators. (GEI 1 – GEI 6).
These reforms emerged as a response to the stagnant progress in achieving gender equality within Australian workplaces. Despite initial advancements, recent years have witnessed a slowdown.
How to Prepare
Explore WGEA's Legislative Reforms FAQ and utilise the Gender Pay Gap Employer Statement Guide for guidance.
These reforms signify a critical juncture for businesses to reassess their approach to gender equality and proactively address the evolving regulatory landscape.
Stay informed, adapt, and embrace the changes to foster a more equitable and inclusive workplace.
Beyond compliance, we're dedicated to helping you foster a workplace where diversity and inclusion are more than buzzwords—instead they become integral to your organisational ethos. Contact us today.
