- Kirstin Hunter is the CEO of Future Super, a superannuation fund focusing on sustainability and equality.
- Future Super is using its investments to demonstrate that more diverse and equitable companies are not just good ethics, but good economics.
- Because of her work, Insider named Hunter to our annual list of the 10 leaders transforming investing in Asia.
- Visit Insider’s Transforming Business homepage for more stories.
There’s a lot of talk about gender inequality in Australia. The glass ceiling. Women earning 79 cents for every dollar. Men holding 67% exec roles and 71% board roles. Old ladies retiring with 47% less super than old men.
Gender inequality means all of these things.
Despite all the column inches given to gender inequality, and the “inclusive workplace policies” purporting to address it, when we look beyond words to actions the reality is that change is moving at a glacial pace. At the rate we’re going, it will be another 202 years before gender pay equity is achieved in the Australian workforce.
I don’t know about you, but I can’t wait that long, and neither can the members of the superannuation fund at Future Super.
Transforming business for equality
Business leaders can and should be leading the charge for gender equality. This leadership must start with an honest and data-driven conversation within your own organization.
The great news for business leaders is that you can do this regardless of how big or small your business is, and once you start, change can happen very quickly.
At Future Super, we began by analyzing our own gender pay data (both overall and by seniority), setting board-level targets, and sharing our progress against these targets with our team. This approach has allowed us to transform our business: in four years we’ve improved our gender representation across the team (from 30% to parity) and in the leadership team (from 20% to parity), while also reducing our gender pay gap from ~25% to within our target of +/- 5%.
But we didn’t stop there.
We also reflected on the trends in our own industry, where women retire with 47% less super than men. The reasons for this retirement gap are known: women are less likely to make the senior ranks, are more likely to take time off for caring duties, and more likely to return part-time. As a small business we may not be able to fix the system, but what can we do to make sure that our own staff don’t suffer that same fate? We introduced three policies to address these drivers of inequality. Today at Future Super, all staff earning less than $80k are paid a higher rate of superannuation, all staff taking time out of work for parental leave are paid super contributions for up to 12 months, and all staff who are working part-time due to caring responsibilities are paid super at the full time rate.
But it’s not enough for us to think only of our own team. As a superannuation fund we must also act with our members’ retirement outcomes in mind.
Investing for gender equity
When Future Super makes investment decisions on behalf of our members we need to consider a company’s long-term economic prospects. When it comes to gender, the data has shown time and time again that diverse teams perform better.
If diverse teams perform better, it stands to reason that teams lacking diversity will perform worse.
What that says to me is that a business that fails to build a diverse team is a bad investment: these businesses are willing to ignore the data and leave money on the table to protect the status quo. That’s why we stopped investing in companies that have all-male boards.
Advocating for gender equality for our members
When systemic factors make it more likely that our female members will retire with less than our male members, it becomes our responsibility to challenge that system.
In the 2020 Equality is Everyone’s Business report into gender inequality, we found that one of the most effective actions that businesses can take to improve gender pay equity within their organization is to improve transparency on actions and performance on gender pay equity. Despite this also being one of the most simple actions businesses can take, our research found that more than 50% of companies in the ASX100 are still refusing to do this.
Gender equality is not just good ethics, it’s good economics. Gender equality is everyone’s business: it’s up to all business leaders to be part of the change, to promote and improve workplace gender equality. Your employees and your investors will thank you.