Gender Pay Gap Analysis from GlassDoor

On March 28, 2016, in HRExaminer, John Sumser, by John Sumser

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Glassdoor have just released a report on the Gender Pay Gap. Here are their highlights.

GlassDoor is trying to become an authoritative voice on a variety of workplace issues. They’ve just released a report on the Gender Pay Gap.  Here are their highlights.  Lest you think I’ve added any value to the story, this is their summary. I thought it was good enough to merit your attention.

  • The unadjusted pay gap between men and women is 24.1%, meaning women earn about $0.76 for every $1 a man earns, which is consistent with many reports.
  • However, when we control for some variables (age, education and years of experience) the gap compresses to 19.2%
  • Additional controls of occupation, industry, location, year, company and job title shrinks the adjusted gender pay gap to 5.4%, which is still a notable and significant gap for which there appears to be no explanation.
  • More than half (54%) — and by far the most notable factor — of the 24.1% unadjusted pay gap is attributed to differences in how men and women sort into different occupations and industries with different earnings potential.
  • The adjusted gap is largest in the health care, insurance, mining & metals, transportation & logistics, and media industries. The gap is smallest in the aerospace & defense, agriculture & forestry, biotech & pharmaceuticals, travel & tourism, and restaurants, bars & food service industries.
  • For occupations, the adjusted gender pay gap is largest for computer programmer, chef, dentist, C-suite professionals (e.g., chief executive officer, chief financial officer), psychologist, pharmacist and CAD designer occupations. The gap is smallest for social worker, merchandiser, research assistant, purchasing specialist, physician advisor and communications associate occupations.
  • The U.S. pay gap grows with age. Younger workers aged 18-24 face a smaller adjusted pay gap of 2.2%. By contrast, older workers aged 55-64 face a gender pay gap of 10.5%, roughly double the national average of 5.4%.

Other Market highlights:

  • United Kingdom: unadjusted pay gap of 22.9% as the male pay advantage; adjusted pay gap of 5.5%
  • Australia: unadjusted pay gap of 17.3% as the male pay advantage; adjusted pay gap of 3.9%
  • Germany: unadjusted pay gap of 22.5% as the male pay advantage; adjusted pay gap of 5.5%
  • France: unadjusted pay gap of 14.3% as the male pay advantage; adjusted pay gap of 6.3% 

Considerations for Policy Makers

  • While overt workplace bias may contribute to some of the gender pay gap, our research illustrates the importance of providing men and women equal opportunity in education and training. For example, third-party academic research suggests the occupational sorting of men and women is due partly to social pressures that divert men and women into different college majors and career tracks, and to gender norms such as women bearing disproportionate responsibility for child and elderly care, which pressures women into more flexible jobs with lower pay.
  • Policies ensuring women have more equal access to science, technology and health care training, targeted initiatives to encourage career development and pay negotiation, and programs that support care for children and the elderly can help address some of the root causes.
  • Greater workplace and pay transparency at a company level can help eliminate gender pay gaps. (see separate compilation of third-party analysis by Glassdoor Chief Economist Andrew Chamberlain)

GENDER PAY GAP SURVEY FOR 7 MARKETS
In addition to this new report, we recently conducted a survey of employed adults in 7 countries (US, Canada, UK, France, Germany, the Netherlands, and Switzerland) and summarized results in our Global Gender Pay Gap Survey Supplement.  The press release is here. A few highlights:

  • 70% of U.S. employees believe men and women are paid equally at their company, though fewer women (60%) than men (78%) believe this to be true.
  • In addition, nearly all (93%) of Americans surveyed support fair pay—agreeing men and women should be paid equally for similar work and experience levels. By comparison, 83% of employees in the Netherlands believe men and women are paid equally at their company, as do 77% in Canada, 76% in the UK, 73% in Germany and Switzerland, and 65% in France.
  • More than two-thirds (67%) of U.S. employees are not likely to apply where they believe there is a pay gap between men and women for similar work, and significantly more women (81%) than men (55%) feel this way.

Among U.S. employees who believe there is a gender pay gap at their current company:

  • 45% believe new company policies around pay and compensation will improve this issue.
  • 39% feel that government legislation requiring employers to pay all people equally for equal work and experience will improve the gender pay gap.
  • More than one-third (36%) believe clearer communication from senior leaders and human resources about how pay raises, bonuses and cost of living increases are determined will improve the gap.
  • About one-third (34%) are of the opinion that greater internal pay transparency for all roles will help close the gap.
  • Nearly one in five women (19%) believe that women should demand pay raises more frequently to make an impact in improving the wage gap, compared to just one in 10 (11%) of men.


 
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