The gender pay gap is real – any way you slice it. Do you know where your company stands? If not it’s time to ask.
Earlier this year, Glassdoor Economic Research released a study, Demystifying the Gender Pay Gap, that analyzed more than 534,000 salary surveys from workers at more than 68,000 employers. In the U.S., Glassdoor data revealed a 24 percent pay gap, meaning women earn, on average, $0.76 for every dollar a man earns.
Glassdoor collects salary data anonymously down to the job title and company level, and we were able to take the analysis further than the raw average to control for age, education, years of experience, location, job title and company. With these statistical controls in place, the U.S. pay gap compresses to an average 5.4 percent “adjusted pay gap” although some occupations are much higher, such as computer programmer with a 28 percent adjusted percent gap. And, Glassdoor data reveals the adjusted gender pay gap widens with age, starting at 2.2 percent for those 18-24 and growing to 10.5 percent for those 44-54.
While two-thirds of the adjusted gap can be explained through the sorting of men and women into different occupations with varying levels of compensation, one-third of the adjusted gap cannot be explained and is likely some form of intended or unintended bias that needs to be addressed. And, keep in mind that just because the differences might be explained, it certainly doesn’t mean it is justified. We can all do more to empower girls and young women to pursue any career they choose, including those in STEM fields.
Nearly nine in 10 American workers believe people should be paid equally for equal work and experience. However, most U.S workers remain in the dark – nearly seven in 10 wish they had a better understanding of fair market compensation for their job and skill set at their company and local job market.
How are we to know what’s fair, really? The truth is, it’s really hard. Most employers do not have transparent pay practices.
Imagine if sharing pay wasn’t taboo in our society and every worker knew exactly where they stacked up related to compensation in their company and market? Imagine if pay gaps couldn’t hide in departmental crevices and go unaddressed for years or even decades?
The time is now. The good news is anyone can anonymously share their pay on Glassdoor and help empower other workers with information. The video above highlights workers who stepped outside anonymity to share their own pay, and help spark conversations. We invite every worker everywhere to join the #ShareYourPay movement. We can all help turn the lights on and increase pay transparency.
When pay gaps are illuminated, employers can take positive steps to close them. Glassdoor is proud to be one of the 28 employers to take the White House Pay Equality Pledge as part of the United State of Women Summit held June 14. We have committed to review our compensation annually, and we decided not to stop at analysis – we will be completely transparent about our results. And, we challenge other employers to do the same. We know it isn’t as easy as it sounds, but it is worth the time and effort to ensure women are being paid fairly.
And, equitable pay practices will increasingly set employers apart. More than 60 percent of U.S. workers say they will not apply to a company where a pay gap exists. More than 2,000 employers have already pledged equitable pay practices on their company profiles on Glassdoor, candidates are taking notice, and we invite you to do the same.
If you don’t know where your company stands, it’s time to ask. It’s time to turn the lights on and illuminate gaps – whether intended or unintended – and keep them from being hidden in secrecy and darkness. The time is now.
Dawn Lyon is the vice president of corporate affairs at Glassdoor.