About the episode
In this episode, we delve into upcoming changes to Australia’s gender pay gap reporting, including new 2025 requirements for greater transparency, CEO salary disclosure, and median and average pay gap data.
Discover how these updates will affect your company’s public gender pay gap and learn to craft a clear action plan to address gaps.
Read podcast transcript
Speaker One: Welcome back for another deep dive.
Speaker Two: Yeah, always happy to be here.
Speaker One: Today we’re looking at something really important. This guide from WORK180. It’s called Why Your Public Gender Pay Gap will be bigger in 2025 and what to do about it.
Speaker Two: Catchy title.
Speaker One: It is, right. First up, the big news for 2025 is that companies with over 100 employees, they’re going to have to answer a lot more questions in a lot more detail about their gender pay gaps. It’s not just about like reporting the numbers anymore. They’ll be digging into their policies, their practices. And get this, CEO salaries are now going to be included in the calculations.
Speaker Two: Big one.
Speaker One: Yeah, it actually has a big impact. 70% of employers could see their reported pay gaps actually increase in 2025.
Speaker Two: And we’re not talking about small changes here either. Like for some it could mean their reported gap jumps from, say, 10% to 15%.
Speaker One: Wow. So, what’s the deal here?
Speaker Two: Well, it’s not that the actual pay gap is getting worse necessarily. Okay.
Speaker One: It’s more about how it’s being measured. It’s about painting a clearer picture of what’s actually happening within companies.
Speaker Two: I like that.
Speaker One: Yeah. Now, to really understand how these CEO salaries are going to impact those reported numbers,
Speaker Two: Yeah.
Speaker One: we need to talk about how we actually measure the pay gap.
Speaker Two: Okay.
Speaker One: Now, up until now, the WGA has only been publishing the median gender pay gap.
Speaker Two: The Workplace Gender Equality Agency,
Speaker One: right? Just as a quick reminder.
Speaker Two: Yeah.
Speaker One: What does median actually mean in this context?
Speaker Two: So the median is the middle value.
Speaker One: Okay.
Speaker Two: When you line up all the salaries from lowest to highest, right?
Speaker One: So it gives you a sense of what the typical employee is earning regardless of any really high or really low earners.
Speaker Two: Okay. So outliers like those huge CEO salaries wouldn’t really affect the median as much.
Speaker One: Exactly. But starting in 2025,
Speaker Two: yeah,
Speaker One: they’re going to be publishing both the median and the average gender pay gap. So the average or the mean,
Speaker Two: yeah,
Speaker One: is calculated by adding up all the salaries,
Speaker Two: okay,
Speaker One: and then dividing by the number of employees,
Speaker Two: so it’s much more sensitive to those really high earners at the top.
Speaker One: Okay. So the median gives us a sense of what most people are experiencing,
Speaker Two: right?
Speaker One: But the average might be pulled up
Speaker Two: exactly
Speaker One: by a few people earning a lot more.
Speaker Two: Yeah.
Speaker One: Looking at both the median and the average will give us a much fuller picture.
Speaker Two: Absolutely. The median might show that things are relatively equal,
Speaker One: okay,
Speaker Two: for most employees,
Speaker One: but the average could reveal a huge gap at the top,
Speaker Two: right?
Speaker One: Which might suggest a lack of women in leadership positions.
Speaker Two: So, you’ll be able to tell if that gap is widespread or if it’s mostly at the top,
Speaker One: right? You get the whole picture.
Speaker Two: Okay. Now, here’s something else that I found really interesting.
Speaker One: Work 180’s research found that more than half the women they surveyed,
Speaker Two: okay,
Speaker One: would still consider working for a company with a large pay gap.
Speaker Two: Yeah.
Speaker One: You’d think that a big pay gap would be a dealbreaker for a lot of women.
Speaker Two: Well, there’s a catch.
Speaker One: Okay.
Speaker Two: They said they’d only consider it if they saw that the company was actively trying to fix it.
Speaker One: Oh, so it’s not just about the numbers themselves.
Speaker Two: It’s about seeing that the company is committed to making things better.
Speaker One: And Work 180 specifically calls out the employer statement as a really powerful tool for this.
Speaker Two: Remind me what an employer statement is.
Speaker One: So, basically, it’s the chance for companies to provide some context and commentary. Okay.
Speaker Two: Alongside their raw pay gap data.
Speaker One: Okay. So, it’s not just about the numbers, right?
Speaker Two: It’s about telling the story behind the numbers.
Speaker One: Exactly.
Speaker Two: Okay. Got it. Unfortunately, though, the WGA found that only 20% of employers actually bothered to submit an employer statement with their report last year.
Speaker One: Wow. Only 20%?
Speaker Two: Yeah, it’s kind of shocking.
Speaker One: That seems like a big missed opportunity.
Speaker Two: It really is.
Speaker One: So, it’s not about making excuses for a big pay gap. It’s about explaining the reasons behind it.
Speaker Two: Yes.
Speaker One: And showing what you’re doing to make things better.
Speaker Two: Exactly. It’s about being proactive.
Speaker One: Nobody expects a company to fix a big gap overnight.
Speaker Two: No, of course not.
Speaker One: But they want to see a real plan.
Speaker Two: Yeah.
Speaker One: A genuine commitment to change.
Speaker Two: Absolutely.
Speaker One: And that brings us to the next big question.
Speaker Two: What can companies actually do to address these gaps?
Speaker One: Well, work 180 suggests a three-step approach.
Speaker Two: Okay, I’m all ears.
Speaker One: Which we can definitely dig into.
Speaker Two: Yeah. Do it. All right, let’s dive into those three steps.
Speaker One: Yeah, let’s break it down.
Speaker Two: So, what’s the first thing companies need to do?
Speaker One: First, analyze the data.
Speaker Two: Okay, but what does that actually look like?
Speaker One: Well, don’t just glance at the overall numbers, right?
Speaker Two: Really dig deep and try to understand what’s driving the gap in your specific company.
Speaker One: So, are we talking about things like looking at the percentage of women in leadership positions versus men?
Speaker Two: Exactly.
Speaker One: Or maybe seeing if men and women are concentrated in different types of jobs that have different pay scales.
Speaker Two: Yeah. You’re on the right track.
Speaker One: Okay.
Speaker Two: You need to understand the root causes before you can actually fix anything.
Speaker One: It’s like figuring out why the engine’s making that weird noise before you can fix it.
Speaker Two: Exactly. Is it a pipeline issue?
Speaker One: A promotion issue?
Speaker Two: Okay.
Speaker One: Or something else entirely.
Speaker Two: Right. Get to the heart of the problem.
Speaker One: Right.
Speaker Two: Okay. So, step one is analyze the data.
Speaker One: Mhm.
Speaker Two: What’s step two?
Speaker One: Step two is to create an action plan.
Speaker Two: Okay. So, once you know what’s causing the gap,
Speaker One: Yeah.
Speaker Two: then you got to figure out how to close it.
Speaker One: Exactly. But this is more than just saying, “We’ll do better,” right?
Speaker Two: Oh, yeah. Absolutely.
Speaker One: We’re talking about a real plan with specific goals,
Speaker Two: timelines, measurable outcomes.
Speaker One: You got it.
Speaker Two: That kind of thing.
Speaker One: And it’s important to share this plan with your employees and stakeholders.
Speaker Two: Oh, interesting. Why is that so important?
Speaker One: It’s all about transparency and building trust.
Speaker Two: Okay.
Speaker One: When people can see that you’re taking concrete steps to fix a problem,
Speaker Two: Yeah.
Speaker One: they’re much more likely to support those changes.
Speaker Two: It shows that you’re serious about it,
Speaker One: not just trying to sweep it under the rug.
Speaker Two: Exactly.
Speaker One: Okay, so we’ve got analyze the data, create an action plan.
Speaker Two: What’s the final step?
Speaker One: Step three is to communicate transparently.
Speaker Two: Okay, that ties into the action plan we were just talking about.
Speaker One: Yeah.
Speaker Two: But what does it actually mean to communicate transparently?
Speaker One: It means taking ownership of your data.
Speaker Two: Okay.
Speaker One: And using it to drive real change.
Speaker Two: I like that.
Speaker One: You mentioned earlier how demonstrating that commitment to gender equity can be a big draw for talent. Can you talk a bit more about that?
Speaker Two: Yeah, absolutely.
Speaker One: In today’s job market, talented people, especially women, are really looking for companies that share their values.
Speaker Two: Right. It’s not just about the paycheck anymore.
Speaker One: No, not at all.
Speaker Two: It’s about finding a company that aligns with your beliefs.
Speaker One: Exactly. They want to work for organizations that are committed to fairness.
Speaker Two: Yeah.
Speaker One: Diversity.
Speaker Two: Uh-huh.
Speaker One: And creating a positive and inclusive environment.
Speaker Two: It’s becoming a dealbreaker for a lot of people.
Speaker One: Yeah. It’s a key factor in their decision-making process.
Speaker Two: Absolutely.
Speaker One: And it’s not just about attracting new talent either.
Speaker Two: No, it’s about keeping the talent you already have.
Speaker One: Yeah. It plays a big role in retention.
Speaker Two: Exactly.
Speaker One: So, to wrap up this deep dive, what are the key takeaways you want our listeners to remember?
Speaker Two: Well, first and foremost, gender pay gap reporting in Australia is changing. And these changes are designed to give everyone a much clearer and more transparent picture of what’s happening inside companies.
Speaker One: Right? It’s all about shining a light on those gender equity issues.
Speaker Two: Exactly.
Speaker One: And while those changes might lead to some bigger pay gaps on paper, at least for some companies,
Speaker Two: yeah,
Speaker One: that’s not necessarily a bad thing.
Speaker Two: No, it’s an opportunity to see the problem clearly,
Speaker One: right? And start taking action.
Speaker Two: And speaking of seeing the problem clearly, it’s super important to understand the difference between those median and average pay gaps.
Speaker One: Yes, that was a great explanation.
Speaker Two: Thanks.
Speaker One: Don’t just focus on one number,
Speaker Two: right? Look at the whole story.
Speaker One: And I think the most important takeaway is that taking action to address the gender pay gap is not just the right thing to do ethically. It’s also just good business sense.
Speaker Two: Absolutely. It can lead to a happier workforce, a better reputation, and ultimately a more equitable society.
Speaker One: Couldn’t have said it better myself.
Speaker Two: And for anyone out there who’s looking for a new job,
Speaker One: yeah,
Speaker Two: don’t be afraid to ask potential employers about their gender pay gap data and what they’re doing to fix it.
Speaker One: It’s your right to know.
Speaker Two: It is. And if they’re not willing to talk about it, that might be a red flag.
Speaker One: Yeah, actions speak louder than words.
Speaker Two: Absolutely.
Speaker One: And if you want to learn more about all of this, Work 180’s website is a fantastic resource.
Speaker Two: They have so much great information on there for both employees and employers.
Speaker One: So, be sure to check it out.
Speaker Two: Yeah, definitely worth a look.
Speaker One: And that concludes our deep dive. Thanks for joining us.
Speaker Two: It’s been a pleasure.
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