Three critical accelerators to closing the gender pay gap for class of 2020 in Singapore, Accenture research finds
Women graduating in 2020 could see pay parity with the help of three career equalisers.
SINGAPORE; 06 April, 2017 – 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). In Singapore, female graduates can expect pay parity by 2041.
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. Women in Singapore could shorten the time needed to close the pay gap by 31 years if they embrace the three strategies outlined in the report.
“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 Teo Lay Lim, senior managing director, Accenture ASEAN and country managing director, Accenture Singapore.
Accenture’s research found that, in Singapore, a woman earns an average US$100 for every US$130 a man earns, lower than the global average of US$140. 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 US$100 a woman earns, a man earns US$168, the research shows.
The research also identifies several critical factors that affect a woman’s ability to achieve equal pay as early as university. Female undergraduates in Singapore are currently less likely than their male counterparts to choose an area of study that they believe offers high earning potential (36 percent vs. 47 percent), have a mentor (46 percent vs. 70 percent) or aspire to senior leadership positions (45 percent vs. 56 percent). Additionally, young women lag in adopting new technologies quickly (44 percent vs. 77 percent) and in taking coding and computing courses (71 percent vs. 84 percent). Graduating with less digital experience and lower career aspirations may impact women’s pay and advancement.
The report, which builds on Accenture’s 2016 research on closing the gender gap in the work place, offers three powerful accelerators 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 choice, and manage their careers proactively
Tech immersion – the opportunity to acquire greater technology and stronger digital skills to advance as quickly as men
Applying these career accelerators, combined with support from business, government and academia, could reduce the pay gap by 15 percent by 2030, boosting women’s income by US$15.9 billion in Singapore alone.
“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.”
“At Accenture, we continue to bring excellence though our diversity efforts,” added Teo Lay Lim. “Women currently make up 41.2 percent if our workforce in Accenture ASEAN, highlighting our efforts to attract, retain and groom women for the industry. Through meaningful investments in improving women’s digital fluency, guiding them towards an informed career strategy and providing adequate tech environment, we continually advance the progress of women at every career stage.”
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 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 specialized 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 approximately 401,000 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.
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Hui Luen Lien
+65 6410 8790
Burson-Marsteller for Accenture
+65 6671 3231