Ethical Leadership in Tackling Australian Pay Inequality (Part 1)

It's disheartening and frustrating that in 2024, we still need to address pay equality. Despite advancements in many areas, there are still instances where society falls short and demonstrates backwardness. We often advocate for what is right when it benefits us, yet conveniently ignore issues like equal pay that may impact our finances. This discrepancy highlights ongoing challenges in achieving fairness and equality, and it is UNETHICAL.

To put things into perspective, unequal pay as an issue is as old as ancient civilisations, including Mesopotamia, Egypt, Greece, and Rome, labour was often divided along gender lines, with men typically holding higher-paying positions and enjoying greater economic power than women.

During the Industrial Revolution in the 18th and 19th centuries, women and children were often paid significantly lower wages than men for similar work in factories and mills. This wage disparity persisted as societies evolved, with women and minority groups facing systemic discrimination and receiving lower wages compared to their male counterparts.

The fight for equal pay gained momentum during the 20th century, particularly with the rise of the women's rights movement in the mid-20th century. Legislation such as the Equal Pay Act of 1963 in the United States aimed to address gender-based wage discrimination, although disparities persist to this day, highlighting the ongoing struggle for pay equity.

However, unequal pay based on gender is illegal in Australia. The principle of equal pay for equal work is enshrined in various laws and regulations, including the Fair Work Act 2009 and the Sex Discrimination Act 1984. These laws prohibit employers from discriminating against employees on the basis of gender in relation to pay and other employment conditions. If an employee believes they are being paid unequally based on gender, they have the right to file a complaint with the Fair Work Commission or the Australian Human Rights Commission.

This said the process of complaining of unequal pay can vary in length depending on the complexity of the case and whether it is resolved through informal means or progresses to a formal hearing. Typically, the process involves several stages, including lodging the complaint, conciliation or mediation, and potentially a formal hearing if a resolution cannot be reached.

Furthermore, proving unequal pay can vary in difficulty depending on the evidence available to support the claim. Factors such as job roles, responsibilities, qualifications, and performance may all play a role in establishing whether unequal pay exists. Evidence such as employment contracts, pay records, job descriptions, and comparative data on pay rates for similar roles can help support a claim of unequal pay.

To put it plainly, it's anything but straightforward or effortless. If a woman chooses to take this route, she not only puts her current job at risk but also jeopardises future employment prospects, as she may be labelled as a "troublemaker." This highlights the inherent flaws within the system.

Once more, it's evident that the system is flawed when companies perpetuate unequal pay by withholding salary information in job advertisements. They often justify this by claiming openness to negotiation or by promoting the overall benefits package rather than focusing on salary alone.

However, this tactic effectively undermines candidates' negotiating power, particularly women, and shifts the emphasis away from fair compensation. The truth is, disclosing salary details could potentially reveal inconsistencies in pay for similar roles, causing tension among existing employees. In Australian slang, this situation is often described as "opening a can of worms."

Undoubtedly, it's akin to opening a can of worms. Yet, in this day and age of 2024, nearing 2025, the ongoing discourse on pay equity remains disheartening. Leaders within conscientious companies ought to introspect and infuse greater ethical considerations into their daily operations. Regrettably, this responsibility extends to female executives as well. Upon attaining executive roles, many if not all seem to lose sight of the challenges they once faced and overlook their ethical obligation to rectify longstanding disparities.

Expressing vocal support for pay equity is one thing, but taking concrete steps to achieve it is quite another. In Australia, many companies may claim to uphold principles of fair pay, but the critical issue lies in whether they're actively implementing strategies to ensure equitable compensation practices. It's essential to move beyond lip service and truly enact policies and initiatives that promote pay equity across all levels of the organisation.

During an interview with a prominent company, I encountered a situation where I was asked about my expected salary. In response, I inquired about the salary range for the position. When pressed for a specific figure, I indicated that my expectations fell within their budgeted range.

This exchange seemed to unsettle the HR representative, who implied that my refusal to provide a precise number reflected poorly on my application. I maintained that I had indeed answered the question, albeit in a manner that differed from their expectations. I emphasised that individuals approach situations differently, and the assumption that all candidates must conform to a particular response seemed unnecessary and irrelevant to assessing job suitability.

Their insistence that I conform to their expectations led to them characterising me as “difficult”. In turn, I asserted that their reaction revealed more about the company's culture than it did about my suitability for the role. Despite being well-qualified, I was ultimately informed that I was unsuccessful, Surprise!

While some may argue that my approach during the interview was unconventional, I acknowledge that it deviated from traditional norms. However, I firmly believe that change often begins with challenging the status quo. Despite the outcome of that particular interview, I remain committed to advocating for fair and transparent practices in recruitment and salary negotiations. As a proponent of change, I am willing to take the initiative to pave the way for more equitable and respectful interactions in the workplace.

In the upcoming segments of this series, I will delve deeper into another concerning aspect of unequal pay that I've personally encountered. I'll share a specific instance involving one of my subordinates who, despite shouldering similar responsibilities as my other four direct reports and consistently outperforming them, was paid 30% less. Additionally, I will propose actionable strategies for companies grappling with unequal pay issues, offering practical solutions to rectify this disparity and ensure fair compensation for all employees.