Can Not for Profits Set the Trend in Pay Equality?
25 August 2011 at 2:57 pm
This article is part of a regular series of articles by the Commonwealth Bank, who will be using their financial experts to provide news, insight and expert advice for Not for Profit organisations.
One of the best measures of wage inflation is the wage cost index which comes out quarterly and the data released last week showed wage growth remains subdued, according to the Commonwealth Bank.
And Commonwealth Bank economist, James McIntyre says Not for Profits may find average annual wage growth a useful way of comparing their own payroll increases.
McIntyre says the gap between male and female earning’s, measured by average weekly earnings, has now risen to the highest level in records going back over 28 years. On average men are earning $12,870 more per year than women.
|Flickr Image: Some rights reserved by Australian Services Union, NSW & ACT|
McIntyre considers one key reason for this to be the rising demand for labour in male dominated sectors, such as mining and construction. However he says there still remains worrying wage disparities in other sectors.
The Productivity Commission’s report into the Not for Profit sector confirms that Not for Profits are a large employer of women. In 06-07 women represented 87% of Not for Profit employees. This is considerably larger than the Australian economy as a wholes female participation rate of 58%.
Across the states and territories the Commonwealth Bank has calculated average annual wages over the past year as follows:
- NSW $68,760 up 4.2%
- Vic $65,088 up 2.5%
- QLD $66,617 up 4.3%
- SA $61,651 up 4.3%
- WA $76,554 up 8.1%
- Tas $59,904 up 5.7%
- NT $66,992 up 5.3%
- ACT $78,125 up 3.0%
These increases saw male earnings rise by 4.7% and female earnings rise by 4.1%. According to McIntyre this gives Not for Profits the chance to lead Australia.
He says many Not for Profits say they find it hard to attract employees and suffer skills shortages. Adding to this is the government’s review of FBT exempt income for NFP employee’s causing further concern to the sector’s ability to attract talent.
He says Not for Profits can use this information and take advantage of the market disparity by promoting equal pay for equal work to retain and attract staff.
Disclaimer: Important Disclosures and analyst certifications regarding subject companies are in the Disclosure and Disclaimer Appendix of this document and at www.research.commbank.com.au. This report is published, approved and distributed by Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945.