Last year when the first Workplace Gender Equality Agency (WGEA) Gender Pay Gap Report was released as a result of legislative changes, we asked will transparency help reduce the gender pay gap in Australia? According to the latest WGEA report released in March 2025, the short answer is yes. However, progress remains slow.
Over the last 12 months, around 56% of employers reduced the gender pay gap in Australia. Yet the overarching improvement seem marginal given the significant legislative changes targeted at reducing the gender pay gap, most notably transparent reporting standards.
To clarify, the WGEA does not report on equal pay for equal work, but rather the difference between the average or median earnings of women and men in the workforce, expressed as a percentage of men’s remuneration. This indicator is useful for numerous reasons. Firstly, it shows how women accumulate less wealth throughout their working life which has a significant impact over time. Secondly, it enables companies to see the progress of competitors and thirdly, provides clear statistics to inform consumer decision making.
We examine the WGEA’s report findings and look at strategies to reduce the gender pay gap.
Where have we seen notable changes in the gender pay gap?
Companies with an average gender pay gap of less than 5 percent in either direction are considered to have effectively eliminated their pay gap. Only 21 percent of Australian employers have achieved this.
While the most notable decrease was seen in male-dominated industries (as indicated below), this is also where the most improvement is required.
Decrease in median total remuneration employer gender pay gaps:
Source: Page 25, WGEA Employer Gender Pay Gaps Report
It must be noted that CEO salaries have been included for the first time this year, which likely to be the highest paid role in an organisation - a role disproportionately held by men.
In fact, the Report states the overrepresentation of men in the upper quartile may be responsible for up to two thirds of the gender pay gap, which shows the impact of the broken rung on the ladder for women to senior leadership. This is further exacerbated by the size of the remuneration difference between the highest and lowest-paid roles, particularly if the lower quartiles are dominated by one gender, and the upper quartiles dominated by another. This is particularly the case when performance pay, superannuation and bonuses are included, as these discretionary payments are more likely to go to the upper quartile and are often negotiated. The Report found men earn $11,204 more, on average, from superannuation and discretionary payments.
To focus on the positive, in addition to more than half of Australia organisations seeing improvements, some organisations have made significant progress. A few standouts include Metro Trains Victoria (25% to 8.6%), University of Newcastle (9.9% to 3.2%), Dyson Appliances (34.1% to 7.5%) and GSK (7.9% to 1.2%). This demonstrates what is possible for organisations.
What strategies can help to reduce the gender pay gap?
Every organisation and industry face differing challenges in reducing the gender pay gap. Yet doing nothing can result in negative outcomes, as many have discovered in the last year. However, this is not to say that all companies that have taken a step backwards are not working towards future goals - it can also be argued that a long-term approach may not yield positive results quickly.
As a specialist recruitment agency working with some of Australia’s leading employers to fill urgent needs, Bayside Group understand that recruitment can often be the scapegoat. Yet this is just one component of the whole. Recruitment strategies are more likely to contribute to the overall gender pay gap if an organisation is committed to change, collects the right data in the first place to inform decisions, and combines recruitment with effective workforce planning, investment in learning and development and transparent processes for promotion.
As previously mentioned, the gender pay gap is not about equal pay for equal work, but rather the differences in average wages for men and women. Often this starts with understanding the gaps in your own organisation. While common gaps include the following, the extent to which they impact on your organisation specifically will differ:
- Discrimination and bias related to hiring and pay
- Women working part-time
- A lack of flexibility, particularly in highly paid roles
- Women taking extended leave from the workforce (caregiving is often a significant factor)
For example, caregiving has increased the need for flexibility in a range of positions including senior leadership at the Bayside Group in recent years for both genders, as many of our long-term employees have aging parents.
Organisations will need to conduct further analysis to identify biases and any cultural or systemic barriers. For example, do you have people in senior roles that have flexible work arrangements or work part-time? If not, what is preventing this? Looking at teams with a dominant gender is also useful. If you have predominantly female administrators or male operational leaders, ask why? These are questions and concerns that many organisations face and being honest about the realities is essential to start the process of change. This can assist you in developing a strategy that addresses the specific needs of your workforce.
Committing to goals for reducing the gender pay gap and incorporating them in your overall strategy is also essential, including identification of realistic targets within specific areas of the business. What this looks like will depend on the size and preferences of an organisation. It may be a specific action plan to reduce the gender pay gap, a component of your HR strategy or integrated into your overarching strategy. Whichever way you decide to approach it, getting buy in from leaders is essential, as is measurement.
From a recruitment perspective, there are many considerations. Firstly, workforce planning can give you time to nurture potential talent rather than being reactive to immediate needs. Secondly, understanding the ins and outs of the recruitment and interview process to reduce bias will help avoid homogeneous hiring. Download our Employer Interview Guide 2025 for tools and advice from recruitment specialists. Thirdly, working with your hiring managers, recruitment team and/or external recruitment partner to achieve your strategic goals.
If you’re looking for engineering, scientific, technical, administration or education talent, contact Bayside Group today.
