The Pay Gap Starts At The… Toy Aisle?

Remember when choosing between dolls and trucks was our biggest worry? Little did we know, that was just the opening scene of the Gender Pay Gap saga.

You've likely come across startling headlines shouting, "Qantas pays men X% more than women!" or "CBA has a X% higher pay rate for men!" 

And if you're anything like me, these headlines feel very familiar.

The Gender Pay Gap is a constant issue, spanning across industries and affecting most companies. But the big question that often goes unanswered, what is the real reason this gap exists?

Is it a mere oversight, or does every company have ‘evil men’ running the show? 

Having worked closely with numerous companies, hiring both men and women, I've often questioned my own role in this (especially when dealing with returning to work mothers before I was a mother myself). 

Have I, unintentionally, been part of the problem?

Nobel Winner’s Claims

I started, not with the Australian Government - Workplace Gender Equality Agency publication, but with Claudia Goldin.

Claudia, a Harvard professor, is the third woman to have won the economics Nobel. She achieved this for advancing the world’s understanding of women’s progress in the workforce.

Her achievement wasn't just a win for her; it was a monumental step forward in understanding the progression of women in the workforce.

The 1970s marked a revolutionary era, according to Dr. Goldin, characterised by women marrying later, achieving higher levels of education, making significant strides in the labour market, and seeing an increased participation in work thanks to birth control. 

But progress has come to a standstill, essentially with women making 80 cents per $1 by men.

Whilst the Gender Pay Gap in the past could be explained by education and occupation, today Dr. Goldin proves most earnings differences are in the same jobs, and kicks in after the birth of a woman’s first child.

As a mother, this triggered me. Claudia wrote her research in the US, but does this really explain it in Australia?

This is where things get interesting.  Let’s start with some facts:

Education plays a factor, but it’s not the whole story. 

Women are definitely more educated than men, according to the below 2021 Census data.

Men close this gap later in life, but that’s primarily due to lack of education opportunities for women 65+ years ago. 

So, this should mean we should get paid more - right? 

No. Not all qualifications open up equal pay opportunities.

Below shows the most common fields both men and women study. Highlighted in red are some of the lowest paid workers. 

You’ll see a lot more red on the women’s side. 

So, are we choosing these fields because it’s our calling, or because we’re not supported in other fields as young girls? 

A question for another newsletter, and this also doesn’t explain the Gender Pay Gap between the same types of jobs. There are plenty!

Sh!t goes downhill after a woman has a baby

And not just in terms of sleep.  Turns out, pay-checks take a hit too.  Who knew storks were part of corporate payroll?

It’s fairly obvious after reviewing ABS data that a large pay discrepancy occurs when kids come along, as shown below:

Here’s the thing: after children, parents need flexibility to care for their family and on average, this falls with women.  

She will spend 64 percent of her work week performing unpaid care work (on top of paid work).  So yes, a lot of flexibility (and mental energy) is required to make life work.   

But as you may have already figured out, employers are less willing to offer increased flexibility AND more pay - they tend to trade one for the other.

We're basically negotiating like we're at a garage sale

'I'll take the job flexibility but feel free to slash my pay. Throw in a desk plant, and we have a deal!' It's high time we value our worth beyond hours at a desk. 

But sadly, and with experience coaching many women, they (and perhaps you) are willing to accept less money to allow themselves the ‘opportunity’ of flexibility.  They see it as a “gift” rather than ‘falling behind financially’, which it what it actually is.

I mean, you’re still providing great business outcomes and value.  You’re still as skilled or experienced but because you need to do school pick up, you’ll accept earning less? 

In my view, women have been moulded to think this is ok, as well as men.   

Then, as women's careers continue, we continue to earn less. As demonstrated below, the gap remains well after they’ve been mothers for 21 years.

It gets worse: Discrimination and Confidence

It’s not entirely fair to say having a child and flexibility are the sole contributors to the gap.

Discrimination is also a major factor.  Yay!

In 2022, the Australian Human Rights Commission's national survey on sexual harassment in Australian workplaces found that one-in-three workers had experienced workplace sexual harassment in the last five years.

This discrimination (and repeated discrimination) leads to a lack of confidence in women, and erodes their optimism about their future ability to get promotions, as shown by this graph. This holds us back, meaning it’s much less likely to see women in senior roles.

So what does this all mean?

Companies are focusing on the wrong areas. 

Whilst the WGEA findings highlight that 99% of companies have policies and strategies to prevent discrimination, it’s clearly not working with so many cases of discrimination still occurring. 

Additionally, many companies (70%) boast having policies covering equal remuneration between men and women, but 69% don’t even consult employees to understand gender equality issues. 

What can you do? 

A 21.7% pay gap in 2024 is unacceptable, and means you’re likely being underpaid.

PLUS, the rate of change across industries isn’t fast enough, and you shouldn’t wait for your company to change - you need to take action yourself!

Finding out if you’re underpaid is not necessarily an easy exercise, but there are things you can do to find out, and to increase your pay rate.

You can check out my previous newsletter: The key to a significant pay rise and start there.  Then join me in my Free Workshop this Thursday to land a new, higher paying job. 

If there is one thing I want you to take away from this it’s…

If you’re going to wait for others to change, you’ll miss out.   You need to take action yourself, or become a victim of this legacy (and crappy!) system.