Mecca's Gender Pay Gap Driven by Workforce Imbalance

Mecca Brands is facing scrutiny over a 30% gender pay gap, ranking as the fifth-largest among major Australian employers. The beauty retailer has a predominantly female workforce but reports a significant disparity in average remuneration, largely due to differences in roles between men and women across the company.

The Workplace Gender Equality Agency (WGEA) data shows Mecca's median gender pay gap has improved to 5.1%, down from 10.3% last year. However, its average pay gap remains more than double the national midpoint of 12.1%. The report highlights that while the company has policies promoting equal remuneration, it does not publicly disclose salary bands or set formal targets to reduce pay disparity.

Compared to businesses of similar size, Mecca's average gender pay gap is among the highest, trailing only behind major players like Virgin (41.7%), Qantas (39.2%), and Mercy Hospitals (34.4%). Competitor Sephora reports a significantly lower gap of 14.4%. The discrepancy at Mecca is attributed to a workforce where 94% of employees are women, primarily in retail roles, while men are concentrated in higher-paying technology positions at company headquarters.

The company acknowledges the impact of its workforce structure on pay equity results. With 97% of store employees being female and tech roles primarily held by men, salary averages skew in favour of male employees. Mecca has stated that increasing female representation in technical roles and encouraging more men into retail positions are key strategies to bridge this gap.

This issue highlights a broader trend across industries where role distribution heavily influences pay disparities. As Mecca continues to expand, including the launch of a new flagship store in Melbourne, addressing structural imbalances may be crucial to improving its pay equity standing.

Source: The Australian, Mecca