Senior Partnerships Adviser
A research report released by Mercer reveals Australia’s gender pay gap runs much deeper than base pay, with men earning performance bonuses of up to 35% more than women despite receiving the same performance rating.
Mercer’s 2015 Gender Equity Report is the first significant analysis of the impact of short-term incentives and variable rewards on the fixed gender pay gap. Garry Adams, Leader of Mercer’s Talent Business in the Pacific, says the report provides the hard evidence of why pay inequality cannot be simply viewed through the lens of fixed pay.
“The gender equality landscape within Australian organisations is complex, and many employers are making progress in moving towards pay equity,” says Mr Adams.
“However, we have to put the spotlight on issues such as the massive disparities in performance-based bonuses, superannuation, and why organisations headquartered in our own backyard are often the worst performers on pay equity.”
Mr Adams says performance bonuses are often overlooked and with the Gender Equity Report showing that men receive higher payments for achieving the same performance ratings as women, organisations need to change their approach to encompass all aspects of remuneration.
The report, which draws on Mercer’s extensive remuneration data, shows how factors including family, industry, career level, organisation size and ownership, performance pay and superannuation collectively contribute to women’s pay disadvantage. It also provides guidance on policies and benefits to help organisations improve gender equity practices.
Download the 2015 Gender Equity Report now from Mercer’s website.