The role of job architecture in advancing gender equality and pay equity
The first year of mandatory gender pay gap reporting under the Workplace Gender Equality Agency (WGEA) legislation has brought a new level of scrutiny to Australian organisations. This scrutiny is not just from external stakeholders but also internally from employees who are increasingly aware of and concerned about gender equality and pay equity. As transparency becomes the norm, organisations must ensure that their efforts go beyond reporting compliance to adopting strategic solutions that wins hearts and minds.
Snapshot
- Gender equality combines pay and career equity with equal representation across all levels of an organisation.
- Organisations need to contextualise their gender pay gap by understanding the structural drivers specific to their workforce.
- Although a gender pay gap or pay equity analysis is a crucial step, many organisations do so prior to establishing or reviewing their job architecture.
- Job architecture provides a foundation structure for defining equal or comparable work, and the relationship between roles. A robust job architecture enables meaningful enquiry into specific career levels, business units, or job families where gender disparities are prevalent, which can then lead to more effective and targeted interventions.
- Clear and consistent guidelines on pay and career progression can be supported by a well-communicated job architecture, enabling organisations to build a culture of fairness and transparency.
- Connecting a workforce skills framework to job architecture provides a clear pathway for employee development, which is crucial for supporting sustainable growth and engaging employees.
Beyond pay: diagnosing structural inequality
Understanding the underlying causes of the gender pay gap requires a deep dive into the structural aspects of an organisation. Gender equality encompasses more than just pay equity; it includes career equity and equal representation across all levels of an organisation. One of the biggest drivers of the gender pay gap in Australian organisations is the imbalance in representation, particularly at senior levels, which are typically higher-paying and underrepresented by women.
To achieve true gender equality, organisations must examine where opportunities for equalisation exist. This involves a thorough analysis of job architecture to contextualise the pay gap and identify specific areas within the organisation where gender disparities are most pronounced.
The role of job architecture in driving effective interventions
One of the foundational benefits of job architecture is the ability to define a core framework for the jobs within an organisation. It helps in identifying specific career levels, business units, or job families where gender disparities are prevalent, leading to more effective and targeted interventions. Many organisations tend to skip this foundational step and move straight to implementing policies and practices aimed at addressing gender equality. However, without a thorough diagnosis of the root causes of inequality, these efforts might not yield significant returns. For example, if an organisation identifies that the gender pay gap is driven by underrepresentation of women at the first level of management, targeted efforts to support women’s career advancement at this level will be more effective than broad-brush policies.
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The role of job architecture in enabling fairness and consistency
’The rise of transparency requires organisations to make sure that they can manage employee perceptions of fairness and build trust by clearly and consistently communicating how pay and career progression is managed. Connecting job architecture to gender neutral methods of role classification can support gender equality goals. Linking the job architecture to robust market remuneration data will help you control the narrative on external market competitiveness. . In the absence of clearly communicated guidance, employees and water cooler conversations may fill the vacuum. Providing clarity means that if you are to look internally or externally to fill a role, you’re going to the market in a more impartial, fair and transparent way.
Supporting career equity with evolved job architecture
Traditional job architectures often emphasise hierarchies and titles, which can create rigid structures that hinder flexibility and scalability. An evolved approach to job architecture integrates a focus on skills and competencies, which aligns more closely with dynamic business needs and a rapidly changing technology environment across all sectors.
A workforce skills framework maps and articulates the level of expertise and capabilities required to perform the job and drive business goals. Connecting a workforce skills framework to job architecture is an incredibly powerful combination. A skills-based approach provides a clear pathway for employee development, which is crucial for supporting sustainable growth. Employees are more likely to engage in learning and development when they understand how acquiring new skills can lead to concrete career advancement opportunities.
Source: Aon Global Pulse Surveys, 2022 and 2023
Is it time to reassess your job architecture?
The Workplace Gender Equality Agency (WGEA) legislation has elevated gender pay gap transparency to a priority for CRHO’s and CEO’s around Australia. Job architecture is much more than an HR tool—it is a strategic asset for organisations that are looking to create more equitable workplaces and address the root causes of inequality to pave the way for meaningful and lasting change.
Aon’s latest ‘job architecture 2.0’ framework lays the foundation for a nuanced, scientific and globally consistent approach to identifying unique roles, job levels, skill clusters, career paths, mobility criteria, real and relative role worth and corresponding pay value.
Talk to us to learn more about updating your job architecture and skills framework, or to learn more about pay equity and pay transparency.