The Decline in DEI Funding

The Gender Pay Gap and Economic Equality: A Report on Progress and Challenges

The recent release of the Workplace Gender Equality Agency’s private company gender pay data¹ revealed gender pay gaps at the majority of Australia’s largest private companies, which is alarming. Add to that the statistics around older women and their lack of financial independence—women over 55 make up the most rapidly growing homeless population in Australia—and it’s clear that economic equality between genders still has a long way to go.

In the midst of widespread concern and frustration over persistent gender pay gaps and the scarcity of women in senior positions, International Women’s Day emerged as a pivotal moment to celebrate women’s achievements and advocate for a future of greater gender equality.

Good Intentions Aren’t Enough

Even with the best of intentions, many corporations are struggling to maintain their commitment to diversity and inclusion in the workplace, even if they were celebrating International Women’s Day with their people this year.

In these challenging economic times, budgets are stretched thin, compelling many companies, both in Australia and globally, to cut back on their DEI investments.

This trend has raised alarms, with Forrester² forecasting an “employee experience recession,” as they predict DEI investments will plummet from 33 percent in 2022 to a mere 20 percent in 2024. Such drastic reductions threaten to derail the progress we’ve made towards equality in our workplaces.

A staggering 74 percent of women are contemplating leaving their organisations if their careers are not actively supported, and 35 percent have already switched companies in the past 18 months³.

Reducing investment in diversity, equity, and inclusion (DEI) initiatives significantly increases the risk of attrition. Companies must recognise that investing in employee development is far more cost-effective than the higher expenses incurred from replacing talent that departs due to a lack of support.

While these short-term savings might look good on paper, they risk undoing the gender equality progress already made in our workplaces.

Recognising Progress

And let’s be clear, even though it’s slow and not nearly enough, progress has been made.

While so much media reporting has focused on the negative implications of gender inequality recently, we need to recognise how far we’ve come in the last two decades, and consider the impact of undoing this positive foundational work.

In the last 20 years, we have seen a shift in the visibility of women in leadership. In 2003, just 4.1 percent of the CEOs of Australia’s ASX 200 were women⁴, in 2023, that percentage was 10.5 percent. Slow progress, but progress.

In this period we’ve also seen our first female Prime Minister (Julia Gillard, 2010-2013), and a growing trend towards female leadership—19.4 percent of CEOs across all companies are women and 32.5 percent of key management positions are held by women⁵.

Flexibility in the Workplace

In recent years, opportunities to work from home and enjoy more flexibility around work have proved beneficial for women and have been a key factor in women choosing to stay in the workforce.

This is critical for working parents. Recent data from the HILDA survey⁶ shows the proportion of mothers with children under five working at least partly from home has leapt from 31 percent to 43 percent.

So the shift towards enforcing return to office policies, coupled with the new Right To Disconnect legislation, poses additional challenges, especially for women. These mandates risk undermining the flexible working arrangements that have been critical in supporting women’s participation in the workforce.

Current data from the Diversity Council Australia shows 72 percent of women use one or more forms of flexible work options (e.g., hybrid work and job-share), compared to 57 percent of men.

A Recipe for Diversity Disaster

Reducing investment in DEI programs, paired with a reduction in flexibility in the workplace, has the potential to slow down, or even reverse, the progress being made towards a more gender-equal workforce.

The Women Rising Voice of Women at Work Report in 2023 found that when women aren’t getting what they need from work, and investment is down, there are devastating knock-on effects, with a fifth of non-retirement-aged women surveyed in our report saying they’ve seriously considered leaving the workforce altogether.

It’s crucial to remember that DEI programs are designed to correct systemic imbalances, shaping a pipeline that brings more women into leadership roles. These aren’t just nice-to-haves, they’re the bedrock of equitable progress.

If you’re in the position of having to justify costs for DEI programs, be sure to point out that these programs have long-term benefits to organisations, contributing to improvements in performance, better workplace culture, and overall profitability. There’s a clear line between more women in leadership and business success. WGEA⁷ found that female top-tier managers add 6.6 percent to the market value of ASX companies.

So, What Next? Practical Steps Forward

If your organisation is feeling pressure around budgets for DEI programs, the good news is there’s plenty you can do to maintain momentum and make a positive commitment to gender equality.

Take

SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The issues highlighted in the article are connected to SDG 5: Gender Equality and SDG 8: Decent Work and Economic Growth. The article discusses gender pay gaps, lack of financial independence for older women, and the need for economic equality between genders.

2. What specific targets under those SDGs can be identified based on the article’s content?

• Target 5.1: End all forms of discrimination against all women and girls everywhere
• Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic, and public life
• Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The article does not mention or imply any specific indicators that can be used to measure progress towards the identified targets.

SDGs, Targets, and Indicators

Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.

Source: psychologytoday.com

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