Closing the gender super gap: 8 ways employers can help
Australia's super system is designed to provide retirement income to members. Despite this, on average, Australian women retire with a staggering $53,000 less in their super balances compared to men.*
In this article, we’ll shed light on the gender super gap and offer guidance to employers on how you can support women in their workplaces and reduce the gender super gap.
How employers can help
It's not just policymakers who can solve this problem. Employers have a crucial role to play in reducing the gender super gap. Here are eight things you can do:
1. Make salaries fair
Commit to pay equity by completing regular pay audits and ensuring that everyone gets equal pay for equal work. Transparent salary structures and policies can help identify and fix any disparities.
2. Embrace flexibility
Offer flexible work arrangements like remote work, flexible hours, or part-time options. This gives employees the power to balance their work and personal responsibilities, which reduces career interruptions and supports continuous employment.
3. Support return-to-work programs
Implement initiatives that support employees returning from career breaks. These programs help women get back on track professionally, access development opportunities, and rebuild their super savings.
4. Improve parental leave policies
Offer longer parental leave periods, pay super on parental leave, encourage fathers to take paternity leave, and have policies that make it easier for people to transition back to work after parental leave.
5. Provide financial education and support
Offer financial education programs to help employees manage their finances better, including retirement planning and investment strategies. This empowers women to make informed decisions about their super and long-term savings. We can help with this! Book a seminar today for your workforce.
6. Create mentorship and sponsorship programs
Establish programs within the organisation that provide guidance, support, and networking opportunities for women. These initiatives help women advance in their careers, bridge any skill gaps, and access senior leadership positions, which ultimately increases their earning potential and retirement savings.
7. Foster an inclusive culture
Strive to have equal representation of women at all levels in the organisation. Building an inclusive culture that values diversity and gender equality creates an environment where women can thrive, succeed, and earn.
8. Partner with a super fund that cares about gender equality
At CareSuper, we offer educational resources and events for women to help them achieve better financial outcomes. As a top-performing Industry SuperFund we also offer gender-based insurance rates (among other criteria), allow members to waive insurance fees during parental leave, and we foster gender diversity on our board and staff.
What policy changes are needed
To close the gender super gap, we need policy changes. The Association of Superannuation Funds of Australia (ASFA) suggests the Federal Government paying super on government funded parental leave and introducing a ‘super baby bonus’ of $5,000 would eliminate the gap by 2050.^
Other ideas from the super industry include ensuring there are no more delays to increasing the Superannuation Guarantee (SG) to 12%, creating fair tax benefits in the super system, and expanding the purpose of super to include eliminating the gender super gap.
In a positive move, reforms to Workplace Gender Equality laws passed in early 2023 allow the Workplace Gender Equality Agency (WGEA), to publish gender pay gap reports received from organisations with more than 100 employees on the WGEA website. This legislation is designed to drive transparency and action towards closing the gender pay gap and improving economic outcomes for women. It will give potential employees the opportunity to make informed choices about where they work and would serve as an incentive for businesses to make positive changes.
Together let’s make a difference
Closing the gender super gap requires effort from super funds, employers, policymakers, and society as a whole. Employers, in particular, have a crucial role in creating workplaces that provide equal opportunities for women's career growth and financial advancement. By taking these steps, employers can make significant progress in reducing the gender super gap. Not only will it benefit individual employees, but it will also contribute to a more inclusive and prosperous work environment.
Partner with a fund that cares
To hear more about how CareSuper can help your business, contact your client partnership manager. If you are not yet a CareSuper Partner and would like to find out more, request a call back here.
*ASFA Pre-Budget Submission for the 2024-25 Budget
^ASFA Pre-Budget Submission for the 2022-23 Budget
Past performance is not a reliable indicator of future performance and you should consider other factors before choosing a fund or changing your investments.
This information is general advice only and does not take into account your particular financial needs, circumstances or objectives. You should consider your own investment objectives, financial situation and needs and read the appropriate Product Disclosure Statement and Target Market Determination before making an investment decision. You may also wish to consult a licensed financial adviser.