Where does the $128 Billion Gender Pay Gap number come from?
It’s not just a guess! But based on research…👇
As a senior leader, it’s in your DNA to be comfortable with numbers, understand causal factors, distil insights, and act.Let’s unpack insights from the Women’s Economic Equality Taskforce’s 2023 report to the Australian Government, showing how we could add $128 billion annually to the economy by removing barriers to women’s participation.Economists have modelled scenarios where:
📈 Workforce Participation Increases: Raising women’s participation rates to match men’s unlocks a larger talent pool. (As of 2023, women’s participation stands at 62% versus men’s 70%, with women performing 81% more unpaid care work.)
💵 Pay Gaps Are Eliminated: Addressing wage disparities boosts spending power and economic activity. (Women earn, on average, 14% less than men—a gap unchanged for a decade.)
🌟 Productivity Improves: Diverse teams enhance innovation and decision-making. (Women hold only 22% of CEO positions in Australia’s top companies.)
What Drives the Gap?
Research highlights these key drivers of the gap:
🚸 Systemic Barriers: Limited access to affordable childcare and flexible work arrangements.
🏢 Occupational Segregation: Women are overrepresented in lower-paying industries like care and education.
🤔 Unconscious Bias: Stereotypes affecting hiring, promotion, and pay decisions.
⏸️ Career Interruptions: Maternity leave and caregiving responsibilities reduce lifetime earnings and superannuation savings.As an astute business leader, you focus on creating value and eliminating waste—leaving $128 billion on the table is simply not an option!The business case for closing the gap is equally compelling:
💡 Enhanced Innovation: Diverse teams foster creativity and problem-solving.
📊 Market Growth: Companies that reflect their customer base anticipate market needs better.
🤝 Talent Retention: Inclusive workplaces attract and retain top talent, reducing costly turnover.
💸 Financial Performance: Businesses with gender-diverse leadership are 25% more likely to achieve above-average profitability.
🔒 Improved Risk Management: Diverse leadership teams excel at assessing risks and making balanced decisions.
This is a complex societal issue, and we all have a role in addressing it.
📩 Message me today for a copy of my whitepaper and how-to guide: Closing the Gender Pay Gap and Accelerating Women into Leadership Positions.