In Australia in 2024, a woman earn 78c for every $1 earned by a man. Over the course of a year, that difference adds up to $26,393.

We know this because the Workplace Gender Equality Agency, a government body, publishes an annual Employer Census. And the census happens because the Workplace Gender Equality Act of 2012 requires all Australian employers with 100 or more employees to report their gender equality data to WGEA every year.

There are many countries in the world where we don’t have access to data like this. But we do know that:

• The gender pay gap is a persistent global issue. The United Nations says the global gender pay gap is estimated to be around 20%, with women earning 77 cents for every dollar earned by men. This disparity has severe consequences for women’s economic empowerment, career advancement, and overall well-being.

• Causes of the gender pay gap: Women are often overrepresented in low-paying, informal sectors and bear a disproportionate burden of unpaid care work. Other contributing factors include gender stereotypes, discriminatory hiring and promotion practices, and the “motherhood penalty”, where working mothers experience lower wages, particularly with more children. We explore this in depth in a special global report that we prepared for International Women’s Day (8 March 2024). Read our insights in “International Women’s Day 2024 : Unlocking the USD 172 trillion gender dividend”

The United Nations says addressing the gender pay gap is crucial for achieving gender equality and promoting sustainable development. International Equal Pay Day, observed annually on September 18th, highlights ongoing efforts toward achieving pay equity.

The word “equity” is key to understanding this issue. KPMG Australia, which makes its pay gap data public, says equality in the workplace typically means treating everyone the same, regardless of their individual needs or circumstances. Equity, on the other hand, acknowledges that individuals have different starting points and face different barriers. Providing fair and impartial opportunities entails taking those differences into account to ensure equal outcomes – and that approach extends to hiring, promotion, performance reviews, and retention.

Sonal Agrawal, Global Chair of AltoPartners, and managing partner of Accord India / AltoPartners India says the first step towards equity is leadership knowledge. “Pay is often presented in aggregated form. Leadership should ask questions and may require a pay gap audit. The role of the board / CEO is paramount in setting the agenda and the tone for the rest of the organisation. The commitment to equity needs to be from the top, and vocal and visible,” she says.

For AltoPartners the focus on equity needs to be given attention all year round. We are committed to working with clients and candidates to create equitable and inclusive work environments and have globally have signed the Association of Executive Search and Leadership Consultants (AESC) Global Diversity Pledge. And we are active participants in the AESC IDEA Council, which addresses diversity and inclusion in the industry to actively drive best practice.