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Pay parity needs pay gap transparency
Closing the gender pay gap depends on knowing whether, how, and to what extent such gaps exist, according to a female executive.
Malavika Santhebennur
Speaking to Lawyers Weekly ahead of the Women in Law Forum 2022, Brooke Limmer, director of client engagement at LEAP (principal partner of the event), said that to uncover this, every industry and profession, including law, requires pay transparency.
A recent study showed that the national pay gap is estimated at $966 million per week, or almost $52 billion a year, with labour force participation rates and income considered).
To close this gap, Ms Limmer proposed introducing regulations in Australia that would require private-sector pay reporting, pay auditing, or other related measures to close the gender pay gap, similar to some OECD countries.
Indeed, a paper released by the OECD Employment, Labour, and Social Affairs Policy Briefs in November 2021 about whether pay transparency tools could close the gender pay gap said that in nine countries, companies that meet defined criteria (including firm size) are required to carry out regular gender pay audits and report disaggregated pay gaps.
These include Canada, Finland, France, Iceland, Norway, Portugal, Spain, Switzerland, and Sweden.
Currently, in Australia, companies meeting defined criteria are regularly required to only report gender-disaggregated pay information without a broader audit.
However, Ms Limmer noted that because most pay transparency policies are relatively new, there has been limited research conducted on its impacts on wage and employment outcomes.
“So far, small reductions in pay gaps have been reported,” she said.
As such, other measures, such as more transparency in pay scales within companies, could close the gender pay gap, she suggested.
“This could allow women (or men) who are doing the same jobs as a peer but paid less to petition management for more feedback so they can achieve parity,” Ms Limmer said.
In the legal profession, Ms Limmer proposed encouraging pay parity from day one through learning and development programs that is made available to every employee working in the office or remotely.
Also important is offering personalised career development that helps lawyers upskill in specific areas of law as they grow, she added.
In addition, highlighting the unique circumstances faced by women through childbirth, menopause, and other specific health considerations could also help close the gender pay gap, Ms Limmer said.
According to recent estimates by the Australian Institute of Superannuation Trustees (AIST) — peak body for the profit-to-member super sector — menopause alone costs women more than $17 billion per year in lost earnings and superannuation.
The body has called on the federal government to investigate the role it plays in contributing to the superannuation gender gap.
Sharpening soft skills such as negotiation is also critical for employees, as a recent blog by Harvard Law School pointed out that men tend to achieve better economic outcomes in negotiation than women.
It attributed this to “deeply ingrained” societal gender roles as women are encouraged and expected to be accommodating, concerned with the welfare of others, and relationship-oriented from an early age.
The blog stated that if men negotiate and receive higher starting salaries than women and continue negotiating more assertively over their careers, the gender pay gap could add up to millions of dollars over time.
Ms Limmer mused that the post-COVID-19 market had given food for thought to both lawyers and leaders, and she urged leaders to accept that every employee is different and capitalise on this diversity.
“The key message I’d like to send out to attendees at the Women in Law Forum is that lawyers can be — and often are — neurodiverse,” she said.
“They also experience different challenges at different stages of their lives — from early career uncertainty and a desire to prove themselves, to time off to figure out what they want to do next, or raising children.”
She concluded that this diversity allows lawyers to better understand the challenges and motivations of their clients and the complex environment in which they live.
“This can only help us be better lawyers, and help women in law progress and push for a more equitable profession,” Ms Limmer said.
To hear more from Brooke Limmer about the impacts of the COVID-19 pandemic on women in the workforce and the structural failures it has brought to light, come along to the Women in Law Forum 2022.
It will be held on 24 November at Grand Hyatt in Melbourne.
Click here to book your tickets and make sure you don’t miss out!
For more information, including agenda and speakers, click here.
