Bridging disclosure and action: The role of intermediaries in gender pay gap regulation

Summary

Governments increasingly implement regulations requiring employers to disclose gender pay gaps, yet these mandates often stop short of compelling companies to take corrective action. This regulatory gap raises a critical question about the role of non-state actors in holding employers accountable for closing these disparities. The research paper, "Bridging disclosure and action: The role of intermediaries in gender pay gap regulation," addresses this by investigating the capacity of such regulatory intermediaries to translate disclosure into tangible efforts towards gender pay equality. The study employs Australia as a key case study, leveraging a government-led review of the Workplace Gender Equality Act 2012 to gain insights into the perspectives of these intermediaries. The methodology involved a qualitative analysis of 121 submissions to this legislative review, complemented by 14 in-depth qualitative interviews. This approach allowed the researchers to identify a diverse "cast" of regulatory intermediaries, understand their various means of influence, and, crucially, pinpoint the legislative features that enable them to effectively influence employer action in closing the gender pay gap. The paper contributes novel insights by moving beyond a typical two-party regulatory model (regulator and regulated entity) to incorporate the vital, often overlooked, third party—the intermediary. The findings underscore the significant role that non-state intermediaries play in strengthening GPG regulation beyond mere disclosure. These actors, ranging from unions and advocacy groups to professional bodies and even financial analysts, can exert pressure, provide expertise, facilitate implementation, and monitor compliance, thereby holding employers accountable even when formal governmental enforcement is weak or absent. The research highlights that specific legislative features are instrumental in empowering these intermediaries, suggesting that effective GPG regulation requires not only disclosure requirements but also mechanisms that support and enable these non-state actors. By understanding and reinforcing the roles of these intermediaries, policymakers can design more effective regulations that truly bridge the gap between disclosing pay disparities and achieving actual gender pay equality in the workplace.