Three Critical Equalisers to Closing the Gender Pay Gap for Class of 2020, Accenture Research Finds
Women graduating from university in developed markets in 2020 could be the first generation to close the gender pay gap in their professional lifetimes, according to new research from Accenture (NYSE: ACN).
The report, “Getting to Equal 2017,” reveals that, within decades, the pay gap could close if women take advantage of three career equalisers and if business, government and academia provide critical support.
With these changes, the pay gap in developed markets could close by 2044, shortening the time to pay parity by 36 years. In developing markets, the changes could cut more than 100 years off the time to reach pay parity, achieving it by 2066 instead of 2168.
Accenture’s research found that, globally, a woman earns an average $100 for every $140 a man earns. Adding to this imbalance is the fact that women are much less likely than men to have paid work (50 percent and 76 percent, respectively). This contributes to a “hidden pay gap” that increases the economic inequities between men and women: for every $100 a woman earns, a man earns $258, the research shows.
“The future workforce must be an equal workforce. The gender pay gap is an economic and competitive imperative that matters to everyone, and we must all take action to create significant opportunities for women and close the gap more quickly,” said Karina Gan, Managing Director for Growth Markets, Accenture.
The report, which builds on Accenture’s 2016 research on closing the gender gap in the work place, offers three powerful career equalisers to help women close the pay gap:
- Digital fluency – the extent to which people use digital technologies to connect, learn and work
- Career strategy – the need for women to aim high, make informed choices, and manage their careers proactively
- Tech immersion – the opportunity to acquire greater technology and stronger digital skills to advance as quickly as men
Women in Malaysia are well positioned to activate the three equalisers with the country’s high digital adoption rates. Malaysians use digital substantially for shopping, banking, booking tickets besides being active on social media sites. Furthermore, up to 31% of employed Malaysians have even started their own online business and this is equally represented by men and women. However, despite 80% of Malaysians believing that acquiring digital skills is important to advancing one’s future career, less women (52%) are continuously learning new digital skills as compared to the men (62%). For women to close the gender pay gap, the research shows that their career strategy needs to start from the university level where the men are more likely to choose their course of study based on potential pay (36% vs 30%). Undergraduate men are also taking the opportunity to upskill in digital technologies (52% vs 47%) more than the women.
Applying these career equalisers, combined with support from business, government and academia, could reduce the pay gap by 35 percent by 2030, boosting women’s income $3.9 trillion worldwide.
“Gender equality is an essential element of an inclusive workplace, and this extends to pay,” said Pierre Nanterme, Accenture’s chairman and CEO. “Business, government and academia all have an important role to play in closing the gap. Collaboration among these organisations is key to providing the right opportunities, environments and role models to lead the way for change.”
Accenture surveyed more than 28,000 women and men, including undergraduates, in 29 countries. The sample included equal representation of men and women, representing three generations (Millennials, Gen X and Baby Boomers) across all workforce levels at companies of varying size. The margin of error for the total sample was approximately +/- 0.6 percent.
Survey data was analysed using econometric modelling to identify drivers of pay equality and career advancement and then combined with published data on education, employment, leadership and research from the World Bank, the OECD, World Economic Forum and the UN to then explore the potential impact of measures to improve equality. The pay gap calculations are based on Accenture’s economic model, which takes into account the lower percentage of women than men in paid work.
Countries included in the full study were Argentina, Australia, Austria, Brazil, Canada, Denmark, Finland, France, Germany, Greater China (includes Hong Kong and Taiwan), India, Ireland, Italy, Japan, Mexico, Netherlands, Norway, Singapore, South Africa, Spain, Sweden, Switzerland, United Kingdom and United States. Indonesia, Malaysia, Philippines, Saudi Arabia, and United Arab Emirates also participated in the survey.
Accenture (NYSE: ACN) is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialised skills across more than 40 industries and all business functions – underpinned by the world’s largest delivery network – Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With more than 394,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com.