“To build future economies that are both dynamic and inclusive, we must ensure that everyone has equal opportunity. When women and girls are not integrated(,)…the global community loses out on skills, ideas, and perspectives that are critical for addressing global challenges and harnessing new opportunities.”
World Economic Forum (2017), “The Global Gender Gap Report 2018”, December 2017.
According to the World Economic Forum’s 2020 Global Gender Gap Report, Australia is ranked 70th out of 149 countries on the metric of “wage equality for similar work”. This ranking is well in countries such as New Zealand (38th), the United States (47th), Indonesia (51st), and Singapore (54th).
The gender pay gap is greatest in the “financial and insurance services” sector – also one of the most highly female-dominated sectors in Australia. According to statistics published by the Australian Workplace Gender Equality Agency (WGEA), as of May 2019, the sector’s mean pay gap was at a nation-wide high of 24.4%.
Gen Advisory’s view is that ADIs and FinTechs have both the ability and the responsibility to reduce this gap.
Latest WGEA Statistics
At a Glance
WEF Global Gender Gap Report 2020
What Is It?
The gender pay gap (GPG) is calculated as the difference between women’s and men’s average weekly full-time equivalent earnings, expressed as a percentage of men’s earnings.
ADIs and FinTechs have both the potential and the responsibility to reduce this gap.
Contributors to the gender pay gap include:
discrimination and bias
female-dominated industries and jobs attracting lower wages
women’s disproportionate share of unpaid caring and domestic work
lack of workplace flexibility
women’s greater time out of the workforce impacting career progression and opportunities.
Research shows that organisations which achieve gender pay equality enjoy greater staff retention and engagement.
Conversely, research shows that organisations with gender pay inequalities suffer from lower returns and employee retention.
How ADIs and FinTechs can close the gender pay gap
Review the ADI’s or FinTech's payroll data and conduct a “like for like” pay gap analysis.
Analyze the extent of – and underlying reasons for – any identified pay gaps.
Report results to the ADI’s and FinTech's Board and executives.
Take concrete action to close the identified gaps.
Make people accountable for actions and outcomes.
Set targets for the number of women in the ADI’s and FinTech's leadership positions
Provide greater transparency on the ADI’s and FinTech's remuneration and promotion processes.
Provide and normalize flexible working arrangements for ADI’s and FinTech's female and male employees.
Provide shared care parental leave policies.
Pay superannuation on parental leave.
“Gender equality doesn't mean being gender blind. There are positive actions that need to be taken to support people to be successful.”.
- Michael Catterall – Partner, Grant Thornton Australia,
How we can help ADIs and FinTechs close the gender pay gap
Provide strategic advice to ADI and FinTech Boards on gender pay gap issues, including recommendations on how to rectify them.
Deliver bespoke research on a specific gender/financial equality-related area of interest.
Deliver bespoke training on gender and financial equality issues, tailored to the ADI's and FinTech's needs.
- Manage and execute, on the ADI's and FinTech's behalf, a project to close the gender pay gap within their organization.
Conduct an independent review of the ADI's and FinTech's existing payment arrangements.