The Gender Pay Gap in the Profit for Purpose Sector: A 2024 Perspective.

In 2024, the gender pay gap remains a critical issue in many sectors, including the Profit for Purpose (PFP) sector. Despite efforts to promote equality and the introduction of Modern Awards, disparities in pay between men and women persist. Understanding the nuances and underlying causes of this gap is essential for creating more equitable workplaces.

1. Existence of the Gender Pay Gap: Research and data analysis in 2024 reveal that the gender pay gap continues to exist in the PFP sector. Women, on average, earn less than their male counterparts even when performing similar roles. This discrepancy is evident across various levels but mostly in senior positions to executive roles.

2. Impact of Modern Awards: Modern Awards have been instrumental in setting minimum pay rates and conditions for employees in various industries, including the PFP sector. While these awards aim to ensure fair pay, they have not fully eradicated the gender pay gap. Structural and systemic issues, such as occupational segregation and differences in negotiation opportunities, still contribute to wage disparities.

3. Occupational Segregation: One significant factor influencing the gender pay gap is occupational segregation. Women are often overrepresented in lower-paid roles and underrepresented in higher-paid, leadership positions. In the PFP sector, this trend is noticeable, with women predominantly occupying support and administrative roles while men are more likely to hold senior management positions.

4. Unconscious Bias and Negotiation: Unconscious bias and differences in negotiation tactics also play a role in perpetuating the gender pay gap. Studies show that men are more likely to negotiate for higher salaries and promotions, while women may face social and cultural barriers that deter them from advocating for themselves. This dynamic leads to cumulative disadvantages over time.

5. The Way Forward: Addressing the gender pay gap in the PFP sector requires a multifaceted approach. Organisations must commit to transparent pay practices and regular salary audits to identify and rectify disparities. Encouraging and supporting women to pursue leadership roles and providing negotiation training can also help bridge the gap. Additionally, fostering an inclusive workplace culture that challenges unconscious biases is crucial for long-term change.

Despite the implementation of Modern Awards, the gender pay gap persists in the Profit for Purpose sector in 2024. To create truly equitable workplaces, organisations must take proactive steps to address the underlying causes of pay disparities. By promoting transparency, supporting career advancement for women, and challenging biases, the PFP sector can move closer to closing the gender pay gap and ensuring fair compensation for all employees.

If you would like further insights into recent salary survey data, Be has worked in partnership with Pro Bono Australia to undertake a deep dive into salaries and benefits in the Not for Profit & Profit for Purpose space and can provide a 30-minute overview into the data if you are considering purchasing a copy for the full report to provide further insights.

Contact the team at Be for details: [email protected] quoting “ProBono Salary Survey Meeting”

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