Is the Gender Pay Gap costing your business?

Did you know the electrical industry has a lower gender pay gap than most?  But there’s still room for improvement. Here’s how to create a more equitable workplace and benefit your business.

 
In Australia, the gender pay gap is a persistent issue across many industries. The electrical trades, while boasting a smaller gap than some sectors, still reflect this disparity. As an electrical contractor, understanding the gender pay gap’s causes and impacts can help you create a more equitable, and ultimately more successful, business.
 
 

What is the Gender Pay Gap?

The Workplace Gender Equality Agency (WGEA) defines the gender pay gap as the difference between the average earnings of women and men working full-time. This gap reflects a complex interplay of factors, including:
 

Discrimination and bias:

• Direct pay discrimination: Women may receive lower starting salaries than men with the same credentials, or have smaller raises offered even with comparable performance.
• Barriers to promotions: Preconceived notions about women’s leadership abilities or their suitability for certain trade roles can block access to higher-paying positions.
• The “maternal wall”: Assumptions that women with children will be less committed to their work can lead to them being overlooked for promotions or opportunities, regardless of their actual performance.

Occupational segregation:

• Vertical segregation: Women are less likely to occupy senior or management positions within trades, perpetuating a wage gap in leadership.
• Horizontal segregation: Certain trade specialties remain heavily male-dominated (e.g., construction electrician), often due to gender stereotyping. This contributes to a clustering of women in different, sometimes lower-paying, areas of electrical work.

Unpaid care work:

• The double burden: Women often shoulder a greater portion of domestic responsibilities like childcare, eldercare, and household tasks. This can limit their availability for overtime, training, or career-focused travel.
• Reduced work hours: To accommodate caregiving, women may opt for part-time work, which often has limited advancement opportunities and lacks the full-time wage benefits.
• Interrupted career paths: Responsibilities may lead women to take breaks from the workforce entirely, hindering continuous skill development and salary growth.

The Gender Pay Gap in the Electrical Trades

The electrical industry benefits from the efforts of unions and advocacy groups working to secure fairer wages and conditions for workers. This contributes to a smaller gender pay gap overall.  Yet, a gap still exists, and bridging it holds significant rewards for your business.

Benefits of Closing the Gap

Attracting top talent: 

A reputation for equitable pay draws the best workers, regardless of gender.

• Widening the applicant pool: When women know they’ll receive fair compensation, they are far more likely to apply for roles in your company, significantly increasing your access to skilled labour.
• Beyond salary: Fair pay signals a company’s broader commitment to respect and equality, making it attractive to top performers of all genders who share those values.
• Competitive edge in a skills shortage: With the trades facing a labour shortage, companies that foster an inclusive work environment stand out and have an advantage in recruiting.

Improved morale and productivity: 

Employees who feel valued and fairly compensated are more engaged and productive.

• Motivation and investment: When employees feel their contributions are recognized fairly, they’re more likely to go the extra mile, take on complex tasks, and be invested in your company’s success.
• Reduced turnover: High levels of employee satisfaction due to fair pay practices can save significant costs in recruitment, training, and loss of productivity during transitions.
• The ripple effect: Positive morale is contagious, creating a more positive and collaborative workplace.

Enhanced reputation: 

A diverse and inclusive workplace boosts your business’s image and social responsibility.

• Client appeal: Clients increasingly prefer companies committed to diversity and equity. It can be a decisive factor in winning contracts, particularly in public tenders.
• Community support: Local communities value businesses that reflect their populations and offer fair opportunities for all. This can lead to beneficial partnerships and goodwill.
• Corporate responsibility: Demonstrating a social conscience attracts investors and builds a brand associated with integrity.

Reduced risk: 

Discrimination legal cases are costly and damaging to a company.

• Financial costs: Legal fees, potential settlements, and back-pay awards can be a significant financial drain on your business.
• Reputation damage: Negative publicity from a discrimination lawsuit can tarnish your brand, leading to lost business and difficulty attracting top talent.
• Internal disruption: Investigations, low morale, and conflict during legal proceedings can hinder productivity and overall company health.

How businesses can take action:

Conduct a pay audit: 

Analyse your payroll data to identify potential disparities.

• Beyond base salary: Examine not just hourly rates, but also bonuses, overtime pay, and opportunities for high-earning specialised work.
• Control for variables: Compare pay for individuals with similar experience, seniority, and performance evaluations to isolate potential gender-based differences.
• External assistance: Consider engaging a third-party consultant specialising in equity audits to ensure objectivity and specialised analysis.

Review hiring and promotion practices: 

Ensure processes are free from bias, and consider targeted recruitment of women.

• Formalise processes: Use written job descriptions, standardised interview questions, and objective evaluation rubrics to minimise personal bias influencing decisions.
• Blind resume reviews: Remove identifying information like names and gender-pronouns initially to focus on skills and experience.
• Targeted outreach: Partner with technical schools, pre-apprenticeship programs for women, and industry groups to expand your applicant pool.

Offer flexible work arrangements: 

Attract and retain female workers who may need flexibility for caregiving duties.

• Flexible scheduling: Allow for compressed workweeks, flextime, or job-sharing where possible to accommodate those balancing caring responsibilities.
• Remote work options: If feasible, partial remote work for administrative tasks can ease childcare burdens
• Transparent policies: Clearly communicate flexibility policies to encourage people who might need them to apply.

Provide mentorship and development: 

Actively support women’s advancement within your company.

• Formal mentorship programs: Pair female electricians with experienced mentors across various specialisations to offer guidance and share insights.
• Skills training: Invest in women’s development in high-demand areas (e.g., solar installation, automation) to increase their earning potential.
• Leadership pathways: Identify female employees with leadership potential and provide them with development opportunities and clear tracks toward advancement.

Partner with organisations promoting women in trades: 

Collaborate with unions and other groups that work to expand opportunities.

• Recruitment support: Leverage the networks and programs of women-in-trades organisations to find qualified candidates.
• Industry advocacy: Join efforts to advocate for policy changes that support women in non-traditional fields, such as childcare subsidies or apprenticeships tailored for women.
• Building a pipeline: Participate in outreach events to inspire the next generation of female electricians and support their entry into the field.

The Bottom Line

Closing the gender pay gap isn’t just the right thing to do – it’s a smart business move. By taking proactive steps to foster equitable pay and work practices, electrical contractors can create a more competitive, inclusive, and successful business for the future.