Millennial women are on track to earn 70% of men’s earnings by age 45
A report found that at all ages and at all stages of their working lives, the majority of Australian women are not working full time.
As a result, women are deprived of leadership positions – which are almost exclusively full-time positions – and the higher salaries that come with those roles, according to the (WGEA) report.
The Wages and Ages: Mapping the Gender Pay Gap by Age data series is the first time that WGEA data has been disaggregated by age.
It showed that in 2021, Australian men earned more than women across all generations, peaking at ages 55-64 where men earn more than women by an average of $40,000 a year.
WGEA director Mary Wooldridge said Yahoo finance she was “shocked but also not surprised” at the overall results, but said it was remarkable that the data showed that no more than 50% of women worked full time at any given time in their lives, compared to men, even in the early years.
Wooldridge also said the discrepancy in salaries for men and women at age 30 was stark and the disparity continued and worsened over time, with little chance of catching up.
Global data suggests millennial women will be on track to earn 30% less than same-age men by age 45.
Even women who move into management and leadership positions later in life never regain lost ground in terms of compensation.
The report shows that senior executive and CEO positions held by women at age 55 will earn an average of $93,000 less per year than their male senior executive and CEO counterparts.
Wooldridge said many employers are missing out on a huge talent pool by not adopting a more flexible approach to working life as well as parental leave policies, subsidies and support for childcare and flexible work policies, which included adoption targets for men and women.
Wooldridge added that workplaces must allow for progression opportunities for part-time workers.
“With effective policies, workplaces can both allow women to work full-time – if they choose – and make higher-paying leadership positions more accessible to those working part-time,” he said. she declared.
She said the trend of the majority of senior management positions being full-time meant that many women were missing out on opportunities due to a lack of flexibility despite women being highly educated and sometimes outnumbering men. in higher education enrollment and completion.
“Not only does this mean fewer women end up in leadership positions, but they also miss out on the earning potential that comes with these roles.”
As the fallout from the pandemic and subsequent shutdowns continue to change the way many Australians work and live, Wooldridge sees these changes as a way to help resolve the current approach to work while enjoying a tight job market.
“Employees can participate in the demand for the change we need to see in this market.” she says.
“Evidence shows that companies have better productivity and value if they have a balance of men and women in their leadership.”
What employers can do:
• Encourage flexible working for men and women
• Set and monitor goals for men and women equally
• Rethinking leadership roles – offering part-time and job-sharing roles for managers
• Provide access to affordable childcare
What employees can do
• When reviewing job postings, see how workplaces compare on availability of paid parental leave, gender balance in leadership, or whether the company takes steps towards gender equality. gender equality through regular pay audits.
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