While the median total remuneration for CA ANZ members has increased at a greater rate for women working full-time than for men in 2023, a substantial remuneration gap between the genders still exists in both Australia and Aotearoa New Zealand.

Findings from the 2023 CA ANZ Remuneration Survey show that while progress has been made on closing the gender pay gap for a second year in a row, particularly in Australia, there is still much opportunity to reduce the gap even further.

In Australia, the gender pay gap for CA ANZ members sits at 13%: a drop of six percentage points from 2022. In New Zealand, the progress is slower, with the gap sitting at 22% – just one percentage point down from the previous reporting period.

A scorecard on the gender pay gap for 5000 Australian companies with more than 100 employees was made public for the first time in February 2024. It shows that some organisations in the finance and construction sectors have a pay gap sitting as high as 40%.

The Workplace Gender Equality Agency (WGEA) GPG data released on 27 February 2024 reveals the median pay gap for base salaries for businesses with 100 plus employees was 14.5%. The gap jumped to 19% once bonuses, overtime and allowances were factored in.

In response to the findings, WGEA CEO Mary Woolridge said all employers should be aiming for a gender pay gap within 5%.

“This range allows for normal business fluctuations and employee movements, while signifying that an employer has a focus on identifying and addressing inequalities and is taking action to ensure there is gender equality throughout an organisation,” said Woolridge.

There was leadership from the accounting profession – including among some network practices – with Nexia, Mazars, RSM, William Buck, Bentleys (Qld) and PwC all within the best-practice 5% range. Grant Thornton recorded -8%, with BDO and Pitcher Partners at 7% and 8% median total remuneration gender pay gaps respectively.

The figures released by WGEA relate only to salaried employees and do not include equity partners. Equity partners stand to make considerable financial gains throughout their career and when they retire. CA ANZ survey respondents report that men represent 78% of equity partners in Australia and 64% of equity partners in New Zealand, pointing to significant long-term inequality.

Working towards gender equality

The gender pay gap is an internationally recognised measure of gender equality, says Amy Rogers, an expert in pay equality and positive cultural change with Elevate Consulting.

“The gender pay gap has many different societal and organisational drivers – it’s not something that’s in dispute. An organisation’s gender pay gap will depend on industry characteristics, gender composition across all levels and where organisations are at in their gender equality journey,” she says.

Despite the data available, less than half of the members surveyed by CA ANZ believe there is a gender pay gap in the accounting profession. Nearly a third of members don’t believe the pay gap exists and about a quarter are not sure. The crux is that women (67%) are more likely than men (28%) to believe the gender pay gap exists.

“However, we know the gender pay gap is often misunderstood. It is not the same as equal pay. The finance sector still has a representation problem at senior levels and the data is demonstrating that the gap widens as a woman’s career progresses – particularly after women become parents,” says Rogers.

This is reflective of the experiences of CA ANZ members. The survey reveals that the gap starts from early career, and gets wider as women take time off to start a family.

“I would say that’s consistent with every sector. It’s known as the motherhood penalty and there are very few organisations that have managed to grapple with the complexities of supporting women to take leave and then return, without it having an impact on their careers and opportunities to progress,” says Rogers.

Taking practical steps

Addressing the gender pay gap means going beyond reporting and analysis, and requires tailored actions that can make a difference, Rogers says.

“Look at the life cycle of an employee, starting with recruitment. Are you being transparent about pay in job advisements? How are starting salaries set and how much discretion do managers have in pay decisions? What do pay progression processes look like? Are you still asking about a person’s pay history? If so, you’ll likely see gender bias creep in.”

The survey shows that only around a half of members’ organisations use salary bands for all or most roles, and even less explicitly state remuneration ranges in all or most job advertisements. Pay transparency is critical, as is reporting on the pay gap.

“When we talk about pay transparency we’re talking about internal transparency, as well as external. It is about employees having information about their pay relative to their colleagues, so that they’re aware of whether they can ask questions about their pay,” Rogers says.

In Aotearoa, the Ministry for Women reports that around 200 companies already voluntarily report on their gender pay gaps, and this information is available from Mind the Gap. In August 2023, the former Labour government committed to introducing a mandatory gender pay gap reporting system for organisations with more than 250 employees, in a step towards pay transparency. CA ANZ had made a submission in support of mandatory reporting.

“Pay gap reporting can help businesses to identify their pay gaps in ways that are accurate and consistent. It encourages organisations to analyse and understand the drivers of their pay gaps, and take action to reduce them,” a ministry spokesperson says.

However, since the change in government to a National Party-led coalition, the introduction of legislation requiring gender pay gap reporting is no longer clear-cut.

Changing the culture

Normalising a culture where both men and women can access flexible working arrangements from day one and balance their caring responsibilities are key actions to take, says Rogers.

In order that practice follows policy, its important this behaviour is supported and role-modelled at senior levels in the organisation.

However, the CA ANZ survey continues to show vast differences in the career break experiences of men and women members. Of the 49% of women who took a significant career break, 80% of them took it for parental leave. By comparison, almost half of the 18% of men who took a significant career break did it so they could travel.

“There are some companies who are now offering a return-to-work bonus for people coming back from [parental] leave. They recognise that while you have been on leave, you’ve acquired skills that are quite helpful to the workplace – and there is often ground to make up in terms of remuneration,” says Rogers.

“Employers also need to look at the mental load for someone coming back to work, seeing how you can support them and recognise the value of the paid and unpaid work they perform.”

Gender pay gap resources

The CA ANZ Gender Equity Charter & Playbook is a set of 10 clear commitments, each with a comprehensive plan of analysis and action steps, to advance gender equity in firms and employing organisations. This includes Commitment 7, Close the Gap: conducting regular annual gender pay equity audits and taking action to close any identified gaps. Employers can adopt the charter or use it as a support for advancing a gender equity commitment of their own.

See also:

• Narrowing Your Gender Pay Gap Playbook (watch this space for a revised 2024 edition coming soon) and the 2023 CA ANZ Member Remuneration Survey Report.
• Australian Workplace Gender Equality Agency (WGEA): The Gender Pay Gap Calculator
• NZ Ministry for Women: What’s my gender pay gap tool

Practical ways to help reduce the gender pay gap

1. Make a clear commitment to gender equity, to drive company policies and practices

2. Reconsider your pay-setting processes:

• Advertise your pay bands
• Be transparent about parameters for negotiating pay
• Don’t ask about previous pay history
• Recognise the value and skill acquired during periods of leave
• Reduce managerial discretion in pay/performance reviews
• Be very cautious about performance-related pay (what are the criteria and are they gender-neutral?)

3. Offer flexible work from day one, rather than waiting for a request

4. Make part-time work acceptable for all genders

5. Pay superannuation during parental leave.

2023 CA ANZ Member Remuneration Survey Report