gender equity

How You Can Take Steps to Close the Gender Pay Gap in Your Company

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Research indicates that pay transparency does result in smaller pay gaps. At the very least, if employees are aware of pay discrepancies in the company, women and people of color can confidently negotiate for higher salaries than those offered. But most companies keep salary information secret and are not transparent. That is why the step taken by employees at Google is so important—they took matters into their own hands to create transparency. Daisuke Wakabayashi of the New York Times reports that in 2015, a female engineer at Google created a self-reported salary spreadsheet that employees are still using. In 2017, twelve hundred United States Google employees posted their salary and bonus information to this spreadsheet, which shows that female employees are paid less than male staff members in comparable jobs at most levels. The spreadsheet does not cover all levels and is admittedly incomplete. Nonetheless, since Google’s board voted against making pay transparent for women’s and men’s salaries, and Google is in a court battle with the United States Department of Labor because it is refusing to hand over data as part of a routine audit of its pay practices, the self-reported data is the only source of transparency for Google employees. Without the spreadsheet, Google would not be held accountable at all. Now, more than ever, employees need to self-organize to collect salary data and make it transparent to expose pay gaps. Why? Because, as Claire Cain Miller of the New York Times reports, the Trump administration just reversed a regulation that the Obama administration put into place to address the pay gap. Miller explains that the Obama administration regulation, which was about to take effect, would have “required companies to report how much they paid people, along with their sex and race.” Europe and Britain require companies to report this information, but now, under the Trump administration, we do not. Without this pressure from the Federal government, companies have no incentive to close the pay gaps and will continue to keep salary information secret and, accordingly, to hide discrimination and avoid accountability. Miller reports that, according to an analysis of the Bureau of Labor Statistics data by the Pew Research Center, we know the following general statistics about the pay gap in the United States:

  • White women’s median hourly earnings are 82 percent of those of white men
  • Asian women earn 87 percent of what white men earn
  • Black women earn 65 percent of what white men earn
  • Hispanic women earn 58 percent of what white men earn
  • Black and Hispanic men earn less than white men, while Asian men outearn them
An example of the importance of transparency recently occurred in Britain at the BBC. Britain only recently implemented a new regulation requiring that companies report salary data. Steven Erlanger of the New York Times explains that when the government forced the BBC to publish the salary ranges of its highest paid employees, the resulting report showed significant disparities. An open letter signed by forty-two employees stated that the report confirmed a long-held suspicion that “women at the BBC are being paid less than men for the same work.” Until the data was made public, no confirmation of those suspicions was possible. Employees and the government are now pressuring the BBC to close this gender pay gap. If your company does not make salary data public, you could consider following the example of the Google employees and organizing a way for employees to self-report so that people have some information available to them when it is time for them to negotiate for salary increases. I recommend that a group of people, including both women and men, get together to organize this collection of information. If the company finds out and is unhappy, a group is at less risk than an individual when taking steps that the company may find threatening. The gender and race pay gaps will never close if we don’t take some steps to bring disparities to light. Let us know if you have been successful at creating pay transparency in your company. Photo courtesy of businessforward (CC by 2.0)]]>

Insights from New Research on the Gender Wage Gap

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My niece just had a baby and is worried about being paid less than her male peers. She is an engineer with solid work experience on her resume, and she intends to return to work full time. She wants answers from me about how to avoid becoming a victim of the gender wage gap. Unfortunately, new research reported by Claire Cain Miller of the New York Times reinforces that, as a new mother in her late twenties with a college degree and a professional career, she is poised to become a wage gap statistic. I don’t know what to tell her about how to avoid this. Because most companies keep salary data secret, she will probably only be able to suspect unfair treatment but will not be able to prove it. The odds, and statistics, are stacked against her. Miller reports on two new studies on the gender wage gap that sharpen our understanding of what is happening to women’s pay, when it’s happening, and why. The studies, conducted by Sari Kerr of Wellesley College in collaboration with several female colleagues at other universities, combine two databases from the Census Bureau on private sector companies that reveal fresh nuances in the gender wage gap picture:

  • The gender wage gap is wider for college-educated women than for those with no college degree and occurs between the ages of twenty-four and forty-five.
  • College-educated women make 90 percent as much as men their age at twenty-five, but only 55 percent as much by the age of forty-five.
  • Men with college degrees get significant pay increases when they change jobs during those years. When married women change jobs, they are less likely to get big pay increases.
  • Miller cites Kerr as explaining that the bulk of the pay gap, accounting for fully 73 percent of the gap, is from “women not getting raises and promotions at the same rate as men within companies. Seniority and experience seem to pay off much more for men than women.”
  • The wage gap is not as wide for women without college degrees. The gap for this group is 28 percent instead of 55 percent because there are fewer high paying jobs available for men without college degrees to create the larger gap.
Why does the wage gap happen? Miller cites Kerr’s report to explain:
  • High-paying jobs requiring college degrees place more value on long, inflexible hours and face time. Because studies show that the division of labor at home is still unequal, even when both spouses work full time, women’s careers tend to suffer.
  • Women are more likely to give up job opportunities in favor of their husband’s job.
  • Even when women continue to work full time after having children, employers pay them less because they assume women are less committed.
  • When mothers cut back on their hours, their pay is disproportionately cut.
What can be done to achieve pay equity? Miller suggests some workplace and policy changes needed to break the wage gap cycle:
  • Companies can put less priority on long hours and face time in the office and reward results instead.
  • Government-subsidized child care can make it possible for both parents to balance the demands of career and family.
  • Companies should offer moderate-length parental leave for both women and men. (While my niece received a three-month maternity leave, her husband’s company allowed only three days for paternity leave.)
  • Companies need to be transparent about salary data.
I wish I had specific guidance to offer my niece, but I don’t. We are all going to have to continue to push for policy changes that will make equity possible. In the meantime, I hope she keeps fighting for fairness and does not get discouraged. What suggestions do you have for young women who want pay equity? Photo courtesy of Skeddy in NYC. CC by 2.0  ]]>

A Road Map to Gender Equity: Women in the Workplace 2016 Report

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A new study by LeanIn.Org and McKinsey finds little progress in advancement for women in the largest companies. This study of 132 companies employing 4.6 million people includes a review of the pipeline data of the companies, a survey of HR practices, and surveys of 34,000 employees about attitudes on gender, job satisfaction, ambition, and work-life issues.

Key Findings: The Current State

First, let’s take a look at key findings from the study:
  • Women remain underrepresented at every level. For every 100 women promoted to manager, 130 men are promoted. This disparity begins early and grows larger with only 20 percent of SVP roles held by women, which results in very few women in line to become CEO.
  • Women of color face many more challenges with access to opportunity, including sponsorship, than do white women.
  • Women negotiate for promotions and raises as often as men but receive more negative feedback than men when they do.
  • Women ask for feedback as often as men but are less likely to receive it and get less access to senior leaders and sponsorship.

A Road Map to Gender Equity

The LeanIn.Org/McKinsey report offers a practical road map for how leaders can speed the rate of progress in achieving gender equity and inclusion:
  1. Communicate a compelling business case using data and stories about why gender diversity is good for the company. Senior leaders need to talk openly about the value of gender diversity and model their commitment to gender equity. Transparency through disclosure of gender metrics to employees will also demonstrate leadership’s seriousness about the issue.
  2. Ensure that hiring, promotions, and reviews are fair. This is challenging because of unconscious bias. Numerous studies show that women receive harsher and more personal judgments in reviews than men. Practices such as requiring diverse slates of candidates for internal and external hires, conducting blind resume reviews, applying clear and consistent criteria for performance reviews, and carrying out third party reviews of performance feedback to ensure fairness are all actions that can increase gender (and other) diversity.
  3. Invest in management and employee training in awareness of implicit bias for hiring and performance reviews. Managers also need training in recognizing and challenging inappropriate gender-based language and behavior and recognizing and offsetting the double-binds that women often face in the workplace—such as receiving negative feedback when asking for raises or promotions.
  4. Focus on accountability and results. I have often seen companies espouse a commitment to valuing gender diversity but refuse to hold senior leaders accountable for performance against gender metrics. Almost without fail, no change occurs when there is no accountability for senior leaders. It is also important to track salary differences by gender and to set targets so that progress can be measured.
Numerous studies show the benefits of gender diversity, but statistics from studies or one-time training sessions won’t bring about change unless the leaders of organizations invest in changing the cultures—including changes in attitudes, awareness of implicit bias, and changes in policies and procedures—of their organizations. The road map above shows the way forward for leaders. What successes have you seen and what worked? Please share your stories.   Photo Credit: Image courtesy of imagerymajestic at FreeDigitalPhotos.net  ]]>

Good News for Gender Equity: It Can Happen! Two Success Stories and Lessons Learned

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Two recent stories about efforts to achieve gender equity provide encouragement about what’s possible and some useful lessons about how to get there. Here are the two cases, one from science and the other from technology. The Microbiologists Women have been underrepresented as speakers and presenters at scholarly meetings for many years, but one group, the American Society for Microbiology, found a way to achieve gender parity in three short years. Between 2012 and 2015, the percentage of presentations by female scholars went from 25.9 percent to 48.5 percent—almost parity. Why is it important that women scientists have equal visibility at professional meetings?

  • Women now constitute a majority of the students and postdocs in microbiology and represent the future of the field. A message of “no glass ceiling” is important to keep them engaged and to ensure their talents are fully recognized and utilized.
  • Being a speaker or presenter at a professional meeting impacts career advancement. Invitations to speak at major professional meetings are used by faculty promotion and tenure committees as evidence of external recognition and are critical to advancement decisions.
How did they do it? Several valuable lessons for other organizations can be learned from the steps taken by the American Society of Microbiologists to achieve gender equity. To begin with, the women scientists who were members of the Society rejected the conventional wisdom that there were not enough qualified women to be speakers and that it would take a generation for parity to be achieved. They insisted that steps be taken to correct the imbalance. Specifically, three steps were taken that led to parity in three years:
  • The program committee studied historical data to learn about the gender gap among speakers.
  • More women were recruited as conveners, or organizers, of presentation panels. These panels usually include several presenters who take turns giving talks on related topics. The female conveners invited more women to present research papers than had occurred in the past.
  • Conveners were urged to avoid creating all-male panels. This was not an absolute requirement, but the intention to include more women resulted in a drop to 4.1 percent of the panels being all-male in 2015, down from 35.7 percent in 2011.
The Technology Company The next case comes from Salesforce.com, a Silicon Valley technology company. The story begins when, one day, the CEO noticed that his meetings with managers only included men. He was aware of all the talk about a lack of gender diversity in Silicon Valley and realized that his company had that problem, too. He was concerned and took the following steps:
  • He set goals to achieve 100 percent gender equality for pay and promotion in his company.
  • He started what he called Women’s Surge in 2013 where he asked managers across the company to identify their top executives for advanced leadership training. If they sent him lists that were mostly men, he sent the lists back and asked for more diverse lists. Promotions of women started to climb.
  • Two of the women promoted during the “surge” decided to leverage their new positions to help other women. They went together to the CEO and told him they felt certain that women were being paid less than men for the same work in the company. He was shocked but commissioned a salary review that proved them right. Salary adjustments have begun.
This company still has a long way to go to reach gender equality. Only 29 percent of the employees are female, including only five of twenty-one executive team members and two of eleven board members—but they are on the right track. What are the lessons from these two cases that other organizations can learn from?
  • Women need to join forces and push for change.
  • The gender pay gap is usually invisible, which helps perpetuate the gap. Organizations need to regularly conduct salary reviews and make adjustments. Scrutiny and transparency about salaries are critical to closing the gaps.
  • Efforts to promote equality must be intentional and consistent:
    1. Set goals (not quotas).
    2. Hold managers and conveners accountable for promoting and including women in visible roles.
All of these lessons learned also apply to achieving equity for all dimensions of diversity, including race, sexual orientation, and gender identity. What other suggestions do you have?   Image courtesy imagerymajestic at FreeDigitalPhotos.net]]>