Gender Equality in the Workplace: How to Improve It
Learn how to improve gender equality in the workplace to lift morale, attract talent, and drive better results.

Written by Lena Hanna—Trusted CPA Guidance on Accounting and Tax. Read Lena's full bio
Published Thursday 19 March 2026
Table of contents
Key takeaways
- Review your pay data regularly to identify and close gender gaps by calculating the percentage difference between average male and female earnings in comparable positions, then set realistic improvement targets like reducing your pay gap by 2% annually.
- Implement structured hiring and promotion processes that minimise unconscious bias by using the same interview questions for all candidates, removing identifying details from CVs during initial screening, and including diverse panel members in decision-making.
- Track key gender equality metrics quarterly including representation by level, hiring ratios, promotion rates, and turnover by gender to measure progress and demonstrate improvement over time.
- Establish mentoring programs that connect women with experienced guides to build career confidence, develop skills, and expand professional networks, particularly valuable for those moving into male-dominated roles or seeking leadership positions.
What is gender equality in the workplace?
Gender equality in the workplace means everyone has the same opportunities, pay, and respect, regardless of their gender. It involves creating a fair environment where all employees can succeed based on their skills and performance, not on outdated stereotypes.
Why gender equality matters
Gender equality benefits your business by helping you attract top talent, improve team performance, and stay compliant with the law. When you treat all employees fairly, you get access to the full range of skills in your workforce.
Outdated beliefs about gender roles hold women back and limit men too. This affects career choices, salaries, and progression for everyone.
Here's why gender equality matters for your business:
- Better talent pool: Hire from the full range of qualified candidates
- Improved performance: Build diverse teams that often outperform homogeneous ones
- Legal compliance: Avoid penalties for sexual discrimination, which is illegal in Australia
- Stronger reputation: Attract and retain better employees with fair workplace practices
Common examples of gender inequality
Gender inequality shows up in many forms across Australian workplaces. Recognising these patterns is the first step to addressing them.
Common examples include:
- Pay gaps: Women earn less than men for the same work or similar roles
- Promotion barriers: Fewer women reach senior leadership despite equal qualifications. Some organisations are tackling this challenge by creating committees focused on improving gender diversity and setting representation goals, as outlined in ASIC's gender pay gap employer statement
- Hiring bias: Assume certain roles suit one gender better than another
- Role stereotyping: Expect women to handle admin tasks or men to lead meetings
- Unequal work allocation: Assign high-profile projects based on gender rather than skill
When you assume one employee suits a role better than another based on gender, you risk missing out on your best talent. Base decisions on skills, experience, and performance instead.
Know your legal obligations
Australian law prohibits gender discrimination in the workplace under the Sex Discrimination Act 1984 and the Fair Work Act 2009. Businesses that break these rules face significant penalties.
The Workplace Gender Equality Agency (WGEA) oversees compliance and reporting requirements in Australia.
Key legal obligations include:
- Non-discrimination: You cannot treat employees differently based on gender in hiring, pay, promotion, or conditions
- Equal pay: Men and women must receive equal pay for work of equal or comparable value
- WGEA reporting: Businesses with 100 or more employees must submit annual reports on gender equality indicators
- Pay gap transparency: From 2024, employer gender pay gaps are published publicly for businesses with 100 or more employees, a measure outlined in the Workplace Gender Equality Agency's gender pay gap publication roadmap
Compliance should not be your only motivation for gender equality. But understanding your legal obligations helps you avoid penalties and build fairer workplace practices.
Understanding the gender pay gap
The gender pay gap is the difference between the average earnings of men and women in the workforce. In Australia, the national gender pay gap is 21.8% as of November 2024, according to Workplace Gender Equality Agency (WGEA) data. This means women earn, on average, $28,425 less per year than men.
The pay gap exists across nearly all industries and occupations, though it varies significantly:
- Construction: One of the largest gaps at over 30%
- Financial services: Consistently high gaps despite equal qualifications
- Healthcare: Gaps persist even in female-dominated sectors
The gender pay gap is calculated by comparing the average full-time earnings of men and women across an organisation or industry. It differs from equal pay, which compares pay for the same or similar roles.
Several factors contribute to the gap:
- Occupational segregation: Women concentrated in lower-paying industries
- Career breaks: Time out for caring responsibilities affects progression
- Part-time work: Women are more likely to work part-time, limiting advancement. In fact, women from age 35 are twice as likely as men to be in part-time or casual roles
- Negotiation patterns: Research shows women are less likely to negotiate salaries. Recent legislation like the Secure Jobs, Better Pay Act aims to increase transparency by prohibiting pay secrecy clauses in employment contracts, as detailed in the Treasury's gender equality roadmap
- Unconscious bias: Assumptions about performance and potential based on gender
Offer equal pay for equal work
Pay levels are still unequal for women and men. That's especially true in roles that have traditionally been male-dominated.
For example, here are some 2019 figures from the Institute for Women's Policy Research. Women's median earnings were lower than men's in each of the most common 20 occupations for men that employ enough women to calculate their earnings. Recently the Institute forecast it will take until 2059 to reach full pay equity between all women and men who work full-time, year-round, if progress continues at the same rate as since 1985, according to their gender pay gap forecast report.
In the UK, women in information technology and telecommunications occupations earned 8.6% less than men in the same field, up from 4.3% less in 2019, according to the ONS gender pay gap report.
Pay gaps exist in other areas of business too. Business owners can help redress the balance. Offer equal pay for equal jobs, including those that you might believe are 'male' jobs.
Recognising unconscious bias in hiring and promotion
Unconscious bias is the automatic assumptions you make about people based on their gender, without realising it. These biases affect hiring decisions, employee evaluations, and promotion choices, often disadvantaging women.
Common types of bias in the workplace include:
- Affinity bias: Favour candidates who remind you of yourself
- Attribution bias: Credit men's success to skill but women's to luck
- Maternal bias: Assume mothers are less committed to their careers
- Performance bias: Judge women on past performance but men on future potential
To minimise bias in your hiring and promotion decisions:
- Use structured interviews with the same questions for all candidates
- Remove names and identifying details from CVs during initial screening
- Set clear, objective criteria for roles before reviewing candidates
- Include diverse panel members in interview and promotion decisions
- Review your decisions for patterns that might indicate bias
Challenge your own assumptions regularly. If you believe certain roles suit one gender better, ask yourself whether evidence supports that view.
Measuring gender equality in your business
Tracking your progress helps you identify problems, set targets, and demonstrate improvement over time. Without measurement, you cannot know whether your efforts are working.
Key metrics to track include:
- Gender pay gap: Calculate the percentage difference between average male and female earnings
- Representation by level: Track the proportion of women at each seniority level
- Hiring ratios: Monitor the gender split of applicants, interviewees, and hires
- Promotion rates: Compare how often men and women advance
- Turnover by gender: Measure whether women leave at higher rates than men
To conduct a basic workplace audit:
- Pull pay data from your payroll system broken down by gender and role
- Calculate the average pay for men and women in comparable positions
- Review your organisational chart for gender distribution at each level
- Analyse hiring and promotion decisions from the past 12 months
- Compare turnover rates between male and female employees
Set benchmarks based on your current position and industry averages. WGEA publishes industry data you can use for comparison. Then set realistic improvement targets, such as reducing your pay gap by 2% annually or achieving gender balance in management within three years.
Review your metrics quarterly and adjust your approach based on what the data shows.
Encourage the use of mentors
Mentoring programs help employees build confidence and advance their careers by connecting them with experienced guides. For gender equality, mentoring is particularly valuable for women moving into male-dominated roles or seeking leadership positions.
Effective mentoring delivers several benefits:
- Career confidence: Gain support navigating workplace challenges
- Skill development: Transfer knowledge from experienced professionals
- Network expansion: Access contacts and opportunities
- Retention: Retain employees who have mentors
To set up mentoring in your business:
- Identify staff with coaching skills and willingness to mentor
- Match mentors and mentees based on career goals and experience
- Set clear expectations for meeting frequency and objectives
- Provide training for mentors on effective coaching techniques
- Review progress regularly and adjust pairings if needed
If you lack internal mentors, look externally. Industry associations, chambers of commerce, and business networks often run mentoring programs. Encourage employees to seek mentors who can offer perspectives your business cannot provide.
Resources and support for gender equality
Several organisations offer free tools and guidance to help Australian businesses improve gender equality.
Government and agency resources:
These organisations provide free guidance and tools for Australian businesses.
- WGEA: Provides benchmarking data, reporting tools, and employer guides at wgea.gov.au
- Fair Work Ombudsman: Offers guidance on equal pay and discrimination law
- Australian Human Rights Commission: Publishes workplace guidelines and complaint processes
Industry support:
Industry groups offer networking and development opportunities.
- Industry associations: Offer mentoring programs and best practice guides
- Chambers of commerce: Provide networking and training opportunities
- Business advisors: Help analyse pay data and develop policies through accountants and HR consultants
Tools for tracking and compliance:
Software tools can help you monitor pay equity and meet reporting requirements.
Payroll software helps you analyse pay data by gender, identify gaps, and generate compliance reports. Look for systems that let you:
- Filter pay reports by gender and role
- Compare earnings across similar positions
- Track changes over time
- Export data for WGEA reporting if required
Your accountant or bookkeeper can help you interpret pay data and identify areas for improvement. They can also advise on WGEA reporting requirements if your business is approaching the 100-employee threshold.
Creating lasting change in your workplace
Improving gender equality requires sustained commitment, not one-off initiatives. The businesses that succeed treat equality as an ongoing practice built into everyday decisions.
Focus on these key actions:
- Hire based on ability: Evaluate candidates on skills and experience, not gender
- Pay fairly: Review your pay data regularly to identify and close gaps
- Promote transparently: Use clear criteria for advancement decisions
- Track progress: Measure your gender equality metrics and set improvement targets
- Build inclusive culture: Create an environment where all employees can thrive
The benefits extend beyond compliance. Diverse teams drive creativity and better decision-making. Fair workplaces attract and retain top talent. And businesses known for equality build stronger reputations with customers and partners.
Once you've improved equality in your own business, you can lead by example and support broader change in your industry and community.
Get one month free to start tracking pay equity and meeting your gender equality goals.
FAQs on gender equality in the workplace
Common questions about improving gender equality in your business.
What is an example of gender equality in the workplace?
Gender equality in the workplace means paying men and women the same salary for equal work, promoting based on merit rather than gender, and providing equal access to training and development opportunities for all employees.
Do small businesses need to report to WGEA?
Only businesses with 100 or more employees must report to WGEA. However, small businesses still have legal obligations under the Sex Discrimination Act and Fair Work Act to provide equal pay and avoid gender discrimination.
How can payroll software help track gender equality?
Payroll software lets you analyse pay data by gender, identify gaps between male and female employees in similar roles, and generate reports showing pay distribution across your workforce. This helps you spot issues and measure improvement over time.
What's the first step to improve gender equality in my workplace?
Start by reviewing your current pay data to identify any gaps between male and female employees. This gives you a baseline to measure progress and highlights areas needing immediate attention.
How long does it take to see results from gender equality initiatives?
Most businesses see measurable improvements within 12 to 24 months of implementing consistent practices. However, closing significant pay gaps or changing workplace culture often takes three to five years of sustained effort.
Disclaimer
Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.
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