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Australia’s bold step toward gender pay transparency in large organisations

Jan 10, 2024


  • 2min

Australia’s bold step toward gender pay transparency in large organisations

Industry News, Legislative Changes, Talent Operations
A groundbreaking initiative to close the gender pay gap is set to take effect in Australia early this year.

Data from the Workplace Gender Equality Agency shows that as of May 2023, women in Australia earned, on average, 87 cents for every dollar men earned. Legislative changes will compel larger organisations of 100 employees or more to disclose their gender pay data, marking a crucial step in promoting transparency, accountability, and ultimately closing the gender pay gap.

Mandatory gender pay reporting will be required for organisations with workforces exceeding 100 employees starting in 2024.

Key provisions

Mandatory gender pay reporting

Starting in 2024, organisations with a workforce exceeding 100 employees will be legally required to disclose their gender pay gaps. This disclosure will encompass data illustrating the disparities in earnings between male and female employees, shedding light on any existing inequalities.

Transparency in remuneration practices

The legislation is not solely focused on revealing the pay gap but also emphasises transparency in remuneration practices. Organisations will be obligated to provide insights into their salary structures, ensuring a clear understanding of how pay decisions are made within the organisation.

Inclusion of bonuses and benefits

Unlike previous reporting mechanisms that might have excluded bonuses and benefits, the new legislation mandates a comprehensive approach. Organisations will be required to disclose not only base salaries but also additional forms of compensation, providing a more accurate representation of the total remuneration received by employees.

Sector-specific benchmarks

Recognising that pay disparities may vary across industries, the legislation allows for the establishment of sector-specific benchmarks. This tailored approach aims to facilitate more nuanced assessments and comparisons within specific sectors, fostering targeted strategies for improvement.

Expected impact 

Heightened accountability

With mandatory disclosure, organisations will face increased accountability for their gender pay practices. The transparency brought about by the legislation will empower employees, investors, and the public to hold companies accountable for fostering an equitable workplace.

Identifying and addressing disparities

The detailed data on gender pay gaps, including bonuses and benefits, will enable organisations to identify specific areas of concern. Armed with this information, organisations can implement targeted strategies to address disparities and promote a more inclusive work environment.

Catalyst for change

The legislation serves as a catalyst for cultural and systemic change within organisations. By making gender pay data publicly accessible, there is a collective push for organisations to reassess their policies, promote fairness, and work towards closing the gender pay gap.

Australia’s decision to mandate gender pay disclosure in organisations with over 100 employees from 2024 signifies a landmark move toward workplace transparency and gender equality. 

As organisations prepare for compliance, the spotlight on gender pay gaps will undoubtedly drive a renewed commitment to fair remuneration practices, creating a more inclusive and equitable workforce for the future. This legislative shift reinforces Australia’s dedication to fostering gender equality and sets a progressive example for other nations to follow.

Our team can help you create and manage your own policies and procedures. Call us on 1800 868 254 or set up a meeting to discuss how we can help you.

Get more out of Total HRM

Guides to help you uncover human resource insights, and make the right changes to improve team delight.

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Recent FW decision in a digitally connected age

Nov 28, 2023


  • 2min

Recent FW decision in a digitally connected age

Industry News, Legislative Changes, Talent Operations
A person using their work laptop for personal browsing in a digitally connected age
In today’s digitally connected era, the line between personal and professional life has become increasingly blurred. The recent case of a lawyer being unfairly terminated for personal internet browsing during work hours sheds light on the challenges employers face in addressing this crossover.

This incident highlights the importance of establishing clear guidelines and procedures to balance an employee’s personal activities and professional responsibilities.

three men sit over a work table using a laptop and a personal phone.
We are more connected than ever, our business policies need to be adaptable.

Understanding the Modern Workplace Dynamics

In the age of remote work and constant connectivity, team members often find themselves juggling personal and work-related tasks. Employers need to recognise this reality and adapt their policies to accommodate the evolving nature of the workplace. The lawyer’s case underscores the need for a nuanced approach that considers the challenges of the modern work environment.

Performance Concerns and Remote Work Issues

The lawyer’s situation included concerns about both performance and unauthorised remote work. Employers must proactively address performance issues and set expectations for remote work to avoid misunderstandings. Regular performance evaluations, open communication, and clearly defined remote work policies can help mitigate such issues.

The Dilemma of Personal Internet Browsing

The lawyer’s seven-hour personal internet browsing over four days raised questions about the acceptable boundaries of personal activities during work hours. While employers have a legitimate interest in maintaining productivity, it is crucial to establish realistic expectations and communicate them clearly to team members. Striking a balance between personal freedom and professional responsibilities is key to fostering a healthy work environment.

Procedural Deficiencies in Termination

The Fair Work Commission’s ruling emphasised the procedural deficiencies in the lawyer’s termination. Employers should ensure that any disciplinary actions, including terminations, follow a fair and transparent process. This includes notifying team members of specific concerns, providing them with an opportunity to respond, and considering the overall context of their performance.

Recommendations for Employers

Clear Communication

Clearly communicate expectations regarding personal internet usage during work hours. Establish guidelines that distinguish acceptable from unacceptable behaviour.

Regular Performance Reviews

Conduct regular performance reviews to address concerns promptly and provide constructive feedback. This allows team members to understand expectations and improve their performance.

Remote Work Policies

Clearly define remote work policies, outlining when and how team members can work remotely. Address concerns about unauthorised remote work through open communication and collaboration.

Fair Disciplinary Process

Follow a fair and transparent disciplinary process when faced with performance issues. Notify team members of specific concerns, allow them to respond, and consider the overall context of their performance.

Training and Awareness

Provide training to team members on acceptable internet usage and the company’s policies. Foster awareness of the impact personal activities can have on overall productivity.

As the digital landscape continues to shape how we work, employers must adapt their policies and procedures to address the challenges posed by personal and work internet browsing crossover. Striking a balance between personal freedom and professional responsibilities and fair and transparent processes is essential for maintaining a productive and harmonious workplace. By navigating these boundaries thoughtfully, employers can foster a positive work environment that encourages accountability and employee well-being.

Our team can help you create and manage your own policies and procedures. Call us on 1800 868 254 or set up a meeting to discuss how we can help you.

Get more out of Total HRM

Guides to help you uncover human resource insights, and make the right changes to improve team delight.

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Why salary reviews are a good idea

Jun 27, 2023


  • 2min

Why salary reviews are a good idea

Recruiter Tips, Recruiting Metrics, Talent Operations
Salary reviews are an essential part of ensuring that team members feel valued and rewarded for their work.

While the frequency of salary reviews can vary depending on the needs and circumstances of the business, there are several compelling reasons why conducting salary reviews once a year following a formal performance review can be beneficial.

Salary reviews are a great way to show your team members how they are performing.
We have set out some of the main reasons why we think salary reviews are a good idea. If you need help conducting salary reviews or performance reviews, our team of HR experts are ready to help.


Clear performance metrics: When salary reviews are conducted once a year following a formal performance review, team members are able to clearly see how their performance is being evaluated. This can help to ensure that they understand what is expected of them and what they need to do to achieve salary increases and other compensation.

Consistency and fairness: Conducting salary reviews once a year can help to ensure that team members are evaluated consistently and fairly. This can help to prevent biases and ensure that all team members are evaluated on the same criteria.

Motivation and retention: Conducting regular salary reviews can help to motivate team members and increase their sense of job satisfaction. This, in turn, can help to improve retention rates and reduce turnover.

Budget planning: Conducting salary reviews once a year can also help businesses to plan their budgets effectively. By knowing when salary reviews will take place, businesses can plan their finances accordingly and ensure that they have the necessary resources to reward high-performing team members.

Better communication: Conducting salary reviews once a year following a formal performance review can also help to facilitate better communication between team members and managers. By having a clear process in place, team members can feel more comfortable discussing their performance and compensation with their managers, leading to better relationships and a more productive work environment.

There are several reasons why conducting salary reviews once a year following a formal performance review can be beneficial for businesses. By ensuring that team members are evaluated consistently and fairly, and by providing clear performance metrics and better communication, businesses can help to motivate their team members and improve retention rates.



If you’d like to find out more about salary reviews or performance reviews, email your questions to info@totalhrm.com.au or talk to an expert.

Get more out of Total HRM

Guides to help you uncover human resource insights, and make the right changes to improve team delight.

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Office Christmas Party – How to avoid a Legal Hangover?

Sep 05, 2019


  • 3min

Office Christmas Party – How to avoid a Legal Hangover?

Recruiting Metrics, Talent Operations

Christmas parties are a great way to reward your workers at the end of a hard year.

However, there are legal implications and risks that come with too much ‘cheer’ at the party – for both employers and employees.

Employers are legally responsible

Despite its festive atmosphere, the party is legally an extension of your work-place, even if it is held offsite and outside working hours.

All Employers have a legal duty of care and must provide a safe environment for its workers as far as reasonably practicable. With consumption of alcohol, the risk of sexual harassment, discrimination, assault or other unwanted conduct increases dramatically.

As an employer you can’t stop claims being made against you, but you can take steps that will greatly reduce the risk of liability.

There are a number steps you can take to show that you took preventative actions and demonstrated a commitment to health and safety of all those involved.

Education

Before the function, remind your employees about your policies such as ‘code of conduct’, ‘sexual harassment’ and ‘social media policy’. 

How to deal with an incident

Despite your best efforts, things may still go wrong at the party. If so, DO NOT attempt to discipline employees at the party itself. Send them home if necessary and deal with the incident when you are back at the office – AND SOBER.

Alcohol consumption

You can control over-consumption by pre-organising drink vouchers (e.g. 3 per person).  Making plenty of food available early on.

Be respectful of employees who, for whatever reason, do not drink. Ensure a plentiful supply of alcohol-free alternatives and lots of water.

Catering

Be accommodating, not discriminatory. Remember that employees may be vegetarian or unable to eat certain foods. Ask about any special dietary requirements so that these can be accommodated.

Drugs

It is an offence for an employer to knowingly permit or even to ignore the use or supply of any drugs taking place on their premises or during a work function.

Social Media

With social media, the risk is that you have a much far broader audience if things go wrong. For example, party photos may appear on social media, displaying raunchy behaviour by someone or a group of people.  Some people may think the photos are funny. But it’s not at all funny when that photo or post becomes a critical piece of evidence in a sexual harassment or bullying case.

Making promises

Alcohol can make you “speak easy” so managers should avoid conversations about performance, promotion, salary or career prospects.  However, a promise made at a Christmas part is still a promise – even if the employer cannot remember the conversation.

Getting home

Consider how your employees will get home after the party. If you are serving alcohol, arrange viable and safe travel options such as a taxi,  bus or public transport at the end of the event.

The morning after

If a working day follows your event, be clear about your expectations regarding absenteeism the next day. Ensure that all staff knows the extent to which you will be lenient about coming to work late and that, if your expectations are breached, disciplinary action may be taken. Be careful – a past history of tolerance, could be used as evidence that disciplinary action against an individual is unfair or even discriminatory.

If you take some simple precautions, the Christmas party can be a fun and relaxed way for you and your team to celebrate a year of hard work.

If you require information on HR services on this area of management, please contact Total HRM on 1800 868 254.

Get more out of Total HRM

Guides to help you uncover human resource insights, and make the right changes to improve team delight.

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