Opinion
Why the time is ripe for women to ask for a pay rise
By Kris Grant
For women in the workforce, the time is ripe to ask for a pay rise, with wages growing above men’s, and the level of women’s workforce participation hitting record-high levels.
Jobs data released by the Australian Bureau of Statistics last month reveals more women than ever are working. The participation rate of women in the workforce struck a record high of 62.6 per cent in June, while the female unemployment rate sat at just 3.4 per cent, slightly lower than the male rate of 3.6 per cent.
For women in the workforce, the time is ripe to ask for a pay rise.Credit: Shutterstock
Notably, the number of women employed full-time has jumped over the past year, with many transitioning to full-time from part-time jobs. Female full-time employment stood at 3,875,300 in June, up strongly from 3,654,700 in June 2022, representing a rise of about 6 per cent. That compares with an increase in male full-time employment of about 2.7 per cent over the same period.
Several factors are contributing to the large gain in the number of women employed. The emergence of more flexible working arrangements in Australia has helped boost female workforce participation, while the rising cost of living is also forcing some women into the workforce.
That is putting more money than ever before in women’s pockets, increasing their spending and economic power – and importantly, as the job market tightens, their power to demand higher wages.
It is important to lean in as, unfortunately, women are generally far more reluctant than their male peers to ask for a pay rise. You’ll find many employers will be willing to renegotiate salary packages to avoid the headache of having to replace an employee, given our record-low unemployment rate.
In addition to more cash, there are other perks women could ask for to boost the value of their remuneration packages, including more learning and development opportunities. This is a key area where many employers fall short, yet women can really benefit from greater training to fast-forward their careers.
Women could also ask for paid maternity leave options beyond the legislative minimum if they want to have children. Another area is menstruation and menopause leave, or types of paid leave given to female employees who are experiencing menstrual-related health issues or symptoms of menopause.
This type of leave can help individuals manage their symptoms, which may include pain and nausea, and help women maintain their wellbeing in the workforce. However, the availability of menstrual and menopause leave can vary significantly. It is still something every employer should consider.
Greater flexibility in working hours and working from home (WFH) could also be among the things you can ask your employer for. If you’re asking for WFH to be maintained or increased, framing it in terms of the benefits it would provide to the business is essential, such as greater productivity from home than in the office.
Most workplaces now provide access to carer’s leave and permanent part-time employment, which women often need or favour, and more workplaces are providing paid maternity leave beyond minimum legislative requirements, so ask for more if you need it.
The good news is that, overall, women are benefiting from the strong jobs market. The most commonly cited gender pay gap measure – the gap in average weekly, ordinary, full-time earnings between men and women – fell to its lowest level on record, down to 13.3 per cent, over the year to November 2022 (the most recent data from the ABS).
If that trend continues, that should help close the savings gap in superannuation, as well as the wages gap.
Kris Grant is the chief executive of management consultancy, training and recruitment firm ASPL Group.
- Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.
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