The issue of pay parity

Pay parity across genders is an issue which is proving very 'stubborn' to shift in our societies - our progress in Aotearoa New Zealand is glacially slow, having moved something like 2 percentage points in a decade from 89% parity in 2011, to 91% today (Statistics New Zealand, 2021).

Let's look at a professional example: accounting. Historically all accounting firms in New Zealand and internationally have worked with the exact same career progression stages and pay band. Typically, an accountant starts with a low-paying graduate role, and then slowly moves up the ranks until they are at the top. This type of career progression fits with Levinson's season theory (1978) where individuals pass through a series of predictable and sequential stages in their career development (Inkson et al., 2015). 

However, Levinson's theory (1978) may not account for the experiences of women who take time off for childcare or parental leave. A survey completed in 2021 by the Chartered Accountant’s Association in Australia and New Zealand (CA ANZ) found that women make more career sacrifices for their families, with almost 50% of women taking career breaks for parental care or care for others, compared to just 20% of men. Women - on average - take only two years off work, but find this has a significant impact on their career progression (CA ANZ 2021b).

Accounting profession gender biases appear to be an issue in both New Zealand and Australia, as more women than men enter the profession, yet a significant gender pay gap remains. In Australia, female accountants earn 27% less than their male peers, while in New Zealand the gender differential is a shocking 34% less (CA ANZ 2021b). This differential is attributed to 'care' duties. The survey highlights that within the profession, the dual burden which women have - caring and career - does not appear to be acknowledged (CA ANZ 2021b).

Since the survey, an report highlighting these systemic inequalities has been published, recommending that employers provide a supportive and inclusive work (CA ANZ, 2021a). What I find even more interesting is how many men 'see' that there is a pay gap - 30% - compared to women: 70% (CA ANZ, 2021a, p. 5; image illustrating this post). Those in power are unable to see that there is actually a problem.

The career breaks we take to have our families - which are so societally important - really come with a sting in the tail, pay-wise. It is clear that we understand the barriers. It is now a matter of getting those who have decision-making power to enact them.

Eman & Sam

References:

CA ANZ. (2021a). Narrowing Your Gender Pay Gap: An Agenda for Action for the Accounting Profession [report]. Chartered Accountant’s Association in Australia and New Zealand. https://www.charteredaccountantsanz.com/-/media/68d8813f25cf45aba9a8cc2967503797.ashx

CA ANZ. (2 June 2021b). Survey reveals widening gender pay gap for chartered accountants. https://www.charteredaccountantsanz.com/news-and-analysis/media-centre/press-releases/survey-reveals-widening-gender-pay-gap-for-chartered-accountants

Inkson, K., Dries, N., & Arnold, J. (2015). Understanding Careers (2nd ed.). SAGE Publications Ltd.

Levinson, D. J. with Darrow, C., Klein, E., Levinson, M. & McKee, B. (1978). The Seasons of a Mans Life. Knopf.

Statistics New Zealand. (2021). Gender pay gap unchanged. https://www.stats.govt.nz/news/gender-pay-gap-unchanged

* Eman Ghadour kindly prepared much of the material for this post