How to address pay gaps

Reducing the gender pay gap starts with understanding what drives it in your organisation. This section outlines 5 practical steps organisations can take, from analysing data to building leadership accountability. Each step is backed by evidence and aligns with Australian best practice guidance. For further resources to support these actions, see the ‘Key resource’ links throughout this section.

Step 1: Collect your data

Start by collecting detailed, high-quality pay data for each employee across your organisation. Include the following, broken down by gender (WGEA 2019):

base salaries
bonuses
allowances
other benefits.

Even if base salaries appear equal, gaps often appear in the ‘extras’ that significantly affect overall earnings. Look at who receives overtime pay, bonuses, allowances, and other financial benefits. There may be gendered patterns in these ‘additional’ forms of remuneration. This could be based on factors like caring responsibilities or gender stereotypes about what work is valued or who is available.

If possible, consider additional demographic categories such as age, disability and race. This helps identify where gender inequality may compound with other forms of disadvantage to worsen inequality.

Reliable, comprehensive data is the foundation for meaningful action.

Step 2: Use your data to understand the problem

Once you have collected your data, analyse it to understand where pay gaps exist and what might drive them in your organisation (WGEA 2024b). Look at:

Like-for-like pay gaps: Compare men and women (and if possible, people of self-described gender) who are in the same or similar roles (for example, occupational group).
By-level or pay band (pay classification) pay gaps: Compare men and women (and if possible, people of self-described gender) across various levels (for example, entry level, mid-level, senior and executive) or pay bands of the organisation.
Leadership pay gaps: Compare men and women (and if possible, people of self-described gender) in leadership roles, including executives and senior management.
Organisation-wide pay gaps: Compare all men and women (and if possible, people of self-described gender) in the organisation, regardless of role.

Pay gaps often reflect broader inequalities. Look deeper by reviewing:

Recruitment and starting salaries: Track each gender group’s progression through the hiring process by applicant, those shortlisted, the selection outcome, the candidate appointed, and their starting salaries. Investigate if there are gender differences in outcomes and whether gender discrimination or unconscious bias may be playing a role.
Participation rate: Look at participation rates by full-time, part-time and casual work to explore differences between genders. While pay gaps are usually based on full-time equivalent remuneration, differences in employment type can affect career advancement (and therefore pay).
Promotions and talent pool: Find out if there are gender disparities in who is accessing training and development opportunities, performance evaluation processes, and decisions related to promotions. Also look for any gender imbalance in talent pipelines and succession plans.
Flexible work and leave entitlements: Check any gender differences in the use of flexible work, leave entitlements (for example, parental leave and carer’s leave), and changes to return to work patterns.
Employee turnover and exit interviews: Monitor who leaves the organisation, the reasons for their departure, and any patterns related to tenure or role to figure out if structural or cultural workplace factors are affecting people of different genders differently.
Staff engagement and job satisfaction: Assess the rate of employee participation in work initiatives and collect feedback from employee experience surveys and interviews to look for potential gender differences.
Gendered workforce segregation: Consider where people of different genders are concentrated across your workforce. Are men concentrated in higher paid technical roles and women in lower paid clerical and administration roles?

Where possible, analyse your data to see whether factors such as Aboriginality, disability, ethnicity or sexual orientation are compounding any gender pay inequality you find.

Key resource

WGEA (2024b) Gender pay gap analysis guide: For employers(opens in a new window), WGEA, accessed 4 March 2025.

Step 3: Communicate gender equality as a leadership priority

Visible leadership commitment is essential for meaningful change. Senior leaders need to clearly communicate that closing the gender pay gap is a strategic priority. This could include:

public statements
setting internal targets and key performance indicators
sharing progress updates with staff
addressing any resistance or backlash.

Leaders must also ensure the work is properly resourced (this is a requirement under the Gender Equality Act 2020). This means:

allocating adequate funding
appointing enough skilled staff to lead the work
giving them the authority to drive change (Creary 2020).

While equity and fairness should be the primary drivers for gender equality, if needed, you can also consider building a business case that connects gender equality with broader organisational goals such as attracting talent, improving performance and reducing risk (WGEA 2018; KPMG et al. 2022; Jackson et al. 2024; Champions for Change 2025).

Key resource

Champions for Change Coalition (2025) Closing gender pay gaps: Guide for leadership, transparency and employer action(opens in a new window), Champions for Change Coalition website, accessed 13 March 2025.

Step 4: Develop and implement actions

Use insights from your data analysis to design targeted actions that address the root causes of your gender pay gap. Consider implementing these actions:

Adjust pay where needed

Make salary corrections to eliminate unjustified differences between individuals or groups doing the same or similar work (CA ANZ 2024; WGEA 2024; Champions for Change 2025).

Review remuneration and performance policies

Assess how you set and review salaries. Apply a gender lens to identify rules or practices that may disadvantage certain groups. Ensure policies are transparent and shared with staff (CA ANZ 2024; FWC 2024; WGEA 2024; Champions for Change 2025).

Set measurable goals

Identify where gaps exist, then set clear, time-bound targets to reduce them. For example, aim to reduce your organisation-wide pay gap by a set percentage over 12 months (Fitzsimmons et al. 2020; Ghalebeigi et al. 2022; Sojo et al. 2022; Risse 2024; WGEA 2024).

Improve recruitment and selection practices by minimising bias

Be clear about how you make hiring decisions and ensure you assess all candidates against the same criteria. Offer flexible work by default. Use inclusive language in job ads, structured interviews, skill-based assessments and diverse interview panels to minimise bias (Cho and Segrave 2023; Davis 2023; Lucy et al. 2023; WGEA 2024; Champions of Change 2025; State of Victoria 2025).

Review how you define and apply merit, and challenge assumptions that may unfairly disadvantage underrepresented groups (The Behavioural Insights Team 2021; Lucy et al. 2023; Champions of Change Coalition and Chief Executive Women 2024).

Aim to increase the talent pipeline of women entering traditionally male-concentrated fields and positions. While this may temporarily inflate your reported gender pay gap, introducing more women into junior roles in these fields will help you achieve better gender balance across your workforce and can help reduce the gender pay gap over time (Khattar 2024; McKinsey & Company, the Business Council of Australia, and WGEA 2017).

Ensure equal opportunities for development

Identify and address barriers that may limit access to training and development opportunities. Provide mentorship, sponsorship and leadership development programs that are inclusive and accessible to all staff. Work with individuals to develop tailored career plans that support their goals and progression (GOV.UK 2023a; LeanIn and McKinsey 2024; WGEA 2024; Champions for Change 2025).

Promote flexible work practices and leave entitlements

Encourage and normalise the uptake of flexible work arrangements, parental leave and carer’s leave by men to help shift gendered norms around care. Monitor who is using these options to identify and address any gaps in access or uptake across different groups (FWC 2023; DCA 2024a; Deloitte 2024; Champions for Change 2025).

Listen to your workforce

Consult staff regularly, use surveys to gather feedback, and set up Employee Resource Groups or working groups to build staff buy-in and track the progress and impact of work policies and initiatives.

This demonstrates leadership commitment to gender equality, helps ensure that your actions better reflect the needs of your employees, and guides you on what is working and what might need tweaking or changing (APSC 2022; McKinsey 2022; Jackson et al. 2024; WGEA 2024; Champions for Change 2025).

Key resources

WGEA (2024) Workplace Gender Equality Action Planning Playbook: A playbook for planning effective actions for gender equality(opens in a new window), WGEA, accessed 4 March 2025.
CA ANZ (Charted Accountants Australia New Zealand) (2024) Narrowing your gender pay gap playbook(opens in a new window), CA ANZ website, accessed 14 March 2025.
Champions for Change Coalition (2025) Closing gender pay gaps: Guide for leadership, transparency and employer action(opens in a new window), Champions for Change Coalition website, accessed 13 March 2025.

Step 5: Undertake regular monitoring and internal reporting

Monitoring progress helps organisations stay accountable and adapt when things aren’t working. Review your data regularly (at least annually, if not more frequently) to track changes in pay gaps and identify emerging issues.

Check in on how you are implementing actions. Are you following policies? Are you meeting targets? Are staff seeing and feeling the impact? Use surveys, focus groups or performance reviews to gather feedback and guide adjustments.

Sharing progress transparently with staff builds trust and reinforces the organisation’s commitment to equality. Consistently reporting this information to senior leaders supports accountability. Consider existing channels for sharing information with your employees and senior leaders. These may include existing working groups or forums, executive committees or internal communications channels. Leadership accountability and buy-in are vital to drive change.