Exploring the Gender Pay Gap and its Impact on Employee Wellbeing

Written by
Ryan McGrory
August 4, 2022

The release of the WGEA Employer Gender Pay Gaps Snapshot this year has once again brought the issue of gender pay disparity to the forefront of discussions surrounding workplace equality and fairness. As organisations grapple with the findings of the report, it's essential to consider not only the financial implications but also the broader impact on employee wellbeing. At exsona, our research has uncovered a strong correlation between organisational justice, fairness, and employee wellbeing, shedding light on the intricate relationship between pay equity and mental health in the workplace.

The Gender Pay Gap: A Persistent Challenge

The Gender Pay Gap refers to the disparity in earnings between men and women, often resulting from systemic biases and discriminatory practices within organisations. Despite increased awareness and efforts to address gender inequality, the gap persists across various industries and sectors. The WGEA report serves as a sobering reminder of the ongoing challenges faced by women in the workforce, highlighting the need for proactive measures to achieve pay parity and promote gender equity.

The Link Between Fairness and Wellbeing

Our research at exsona, where we have surveyed over 3,000 employees, has revealed a compelling connection between perceptions of organisational justice and employee wellbeing. Employees who perceive their workplace as fair and just tend to report higher levels of overall wellbeing, including greater job satisfaction, lower stress levels, and improved mental health. Conversely, when fairness is lacking, employees may experience feelings of injustice, resentment, and disengagement, negatively impacting their wellbeing and productivity.

Implications for Employee Wellbeing

The Gender Pay Gap not only reflects systemic inequalities but also has tangible implications for employee wellbeing. Women who are less fairly compensated for their work may experience heightened stress, anxiety, and job dissatisfaction, leading to reduced morale and motivation. Additionally, the perception of inequality can erode trust in leadership and organisational values, further exacerbating feelings of injustice and discontent among employees. Addressing the Gender Pay Gap is not only a matter of financial equity but also a critical step towards fostering a workplace culture that prioritises fairness, respect, and employee wellbeing.

Moving Towards Equity and Inclusion

As organisations grapple with the findings of the WGEA report, it's imperative to take proactive steps towards achieving pay equity and promoting a culture of inclusion and diversity. This includes implementing transparent pay practices, conducting regular pay audits, and actively addressing systemic biases and barriers to advancement. By prioritising fairness and equity in the workplace, organisations can create an environment where all employees feel valued, respected, and empowered to thrive.

The Gender Pay Gap remains a persistent challenge that demands urgent attention and action from organisations across Australia. As we reflect on the implications of the WGEA report, it's crucial to recognise the profound impact of pay disparity on employee wellbeing and organisational culture. By championing fairness, equity, and inclusion, we can create workplaces where everyone has the opportunity to succeed and thrive, ultimately fostering greater employee satisfaction, engagement, and overall wellbeing.

If you're looking to studying your environment, and learn how your culture is impacted by psychosocial hazards, then get in touch for a free consultation!