Life insurer TAL has closed the pay gap across its 1500-strong workforce by adopting a strategy to tackle gender inequality.

Female employees now earn 98% of male salaries, compared with 82% a year ago, which was then around the national average for pay inequality.

Chief People and Culture Officer Andy Moffat says a multi-pronged approach is needed, including manager education and awareness, clear guidelines when reviewing remuneration and hiring at the market rate for skills rather than increasing existing base salary.

It says direct action is needed when the gap is obviously inequitable, and there must be consistent reporting to executive management and the board.

TAL requires men and women to be represented equally on the shortlist for every job opportunity.

Although this can lead to charges of tokenism, Mr Moffat told insuranceNEWS.com.au the best person for the job is hired.

“The fact that women make up 45% of the Australian workforce suggests seeking a balance on shortlists is not only fair but good business, because to do otherwise potentially ignores almost half the talent pool available.

“Our job shortlist gender requirement is to ensure balance is achieved and to overcome any bias that may be present.”

Women comprise 47% of TAL’s employees. Mr Moffat says various initiatives are under way to get a better balance in senior roles.