Australia's gender pay gap exposed: majority of employers still missing the mark

The Workplace Gender Equality Agency (WGEA) has released its 2023-24 gender pay gap figures, showing that while some Australian companies are making strides, the majority - including many in media and advertising - continue to lag behind on pay equity.

Just 21% of Australian employers have an average gender pay gap within the target range of +/-5%, meaning nearly four in five companies continue to have a pay gap in favour of men.

For media and advertising, the figures put the problem front and centre, with TrinityP3’s analysis showing that some of Australia’s biggest media companies and ad agency groups still have pay gaps of 10% to 27%.

While many media and advertising companies still have significant gender pay gaps, Ooh Media’s results show the company performing within or ahead of the WGEA’s recommended range.

Cathy O’Connor, CEO of Ooh Media, is one of only 22% of female CEOs in Australia, according to WGEA’s analysis. She welcomed the increased transparency in this year’s reporting.

“We remain committed to ensuring an equitable workplace and our latest WGEA results reflect that,” O’Connor said.

“Across the four key WGEA measures, oOh! sits within, or performs ahead of, the recommended gender pay gap target range. We know there is always more work to do and are continually exploring new ways that will help drive diversity and inclusion to ensure that we build and maintain a fair workplace for all.”

She also noted that greater transparency in pay gap reporting provides organisations with more data to drive meaningful change.

Adland’s ongoing pay equity gap

The advertising and media industry remains one of the key sectors facing scrutiny, with major agency holding groups and media brands still reporting double-digit pay gaps.

TrinityP3, which analysed over 30 media and advertising employers, found that some companies still report pay gaps of more than 20%, despite having had a full year to improve following last year’s WGEA data release.

While some multinational agencies and large media groups fall below the national average gender pay gap of 21.8%, TrinityP3 general manager Lydia Feely said the data shows much more work is needed.

“This is the second year where we have seen the WGEA pay gap numbers come out and clearly, some businesses have spent the past 12 months addressing pay equity issues,” Feely said.

“That being said, the numbers put the problem front and centre. Many media and adland businesses still have a significant gender pay gap and we need to do more to close it.”

Transparency rising

A key difference in this year’s WGEA reporting has been the growing number of companies publishing their own pay gap reports, alongside the mandated WGEA data.

Companies including Nine, News Corp, Domain, REA, IPG Mediabrands and Howatson+Co have issued employer statements explaining their gender pay gaps, action plans, and commitments to closing the gap. Feely said this level of transparency is crucial in demonstrating a company’s commitment to gender pay equity.

“It surprises me that, in the second year of this reporting, so many companies are still allowing these numbers to go out without making an employer statement,” she said. “Making a statement and providing context all help show that you are taking this issue seriously.”

The WGEA findings highlight that companies that conduct regular payroll analysis and benchmark against industry peers perform better than those that do not.

“We know that companies that benchmark and track their performance do better in areas such as the gender pay gap,” Feely said.

“Once you establish where you are, you also need to look at what other ‘like-for-like’ businesses are doing. If they’re doing better than you, ask yourself: what have they done that I’m not doing?”

The latest WGEA data also shows that 56% of employers improved their gender pay gap in the past year, with many increasing gender pay audits and reviewing policies to identify the root causes of inequity in their organisations.

WGEA CEO Mary Wooldridge welcomed the increase in employers working to understand what is driving their gender pay gap, beyond just unequal pay.

“Over the past year, employers have told us that publication of employer gender pay gaps is a catalyst to assess gender-based differences in all areas of their workplace,” Wooldridge said.

She said that gender equity isn’t just about equal pay, but how workplaces support career progression and work-life balance for all employees.

“For men, a more equal experience could mean their employer is providing access to paid parental leave, paying superannuation on that leave, and actively supporting a flexible return to work,” Wooldridge said.

“For women, it could mean their employer is redesigning manager roles that enable those positions to be undertaken on a part-time basis or as a job share.

“This action can create new pathways to career progression for employees with caring or other responsibilities outside of work while broadening the pipeline of talent across occupations and job roles.”

With 79% of companies still failing to meet the gender pay gap target, TrinityP3 CEO Darren Woolley said industry leaders must move beyond acknowledgement and take measurable action.

“If the industry is committed to being fair and inclusive, then closing the ongoing gender pay gap should be a high priority year round - not just the day the WGEA report lands. For real change to occur this needs to be an ongoing effort by everyone from the board, C-Suite and shareholders down,” Woolley said.