Speaking Out About the Gender Wage Gap In Tech

…And What Hired Is Doing to Close It

Each year individuals and organizations around the country gather to commemorate Equal Pay Day, a symbolic date when women’s earnings catch up to men’s earnings from the previous year. It’s an annual reminder of just how much work we have to do to close the gender wage gap, as well as an important opportunity to come together to find solutions to address it.

I’m very proud to share that in conjunction with Equal Pay Day 2016, Hired has launched a campaign in support of this issue. Over the last several months, a team of Hired employees has analyzed our internal job offer and salary data to better understand the wage gap in the tech industry. While there are many reports out there that highlight the size of the gap, the study we released this morning, called “Women, Work and the State of Wage Inequality” looks at how factors such as company size, male-to-female ratio and years of experience impact wage disparity.

Overall, the team found that companies offer women 3 percent less than men for the same roles, with some companies offering as low as 30 percent less. In fact, our data — which spans technology, sales and marketing roles — shows that 69 percent of the time, men receive higher salary offers than women for the same job title at the same company.

888Distribution of the Gender Wage Gap

One of the key areas the team dug into was the “expectation gap,” or the difference between the average salaries that men and women request. They found something that, to my knowledge, has never been highlighted before: as the ratio of men to women in a particular role increases, so does the expectation gap. So for example, male-dominated software engineering has double the expectation gap of design, which boasts more women.

Expectation Gap by Role

Another unique finding was that smaller companies (pre-Series A) tend to have a smaller wage gap. One hypothesis for this is that smaller companies tend to have more wage transparency, which could negate some of the gender disparity that occurs later as the company grows.

Lastly, despite the fact that there is an overall wage gap of $14k between our male and female candidates, the team did find some indications that the wage gap may be closing. Women on our platform with under two years of experience are asking for an average of 2 percent more compensation than men. And perhaps most encouragingly, they’re getting it: final salary offers for these junior women are actually 7 percent higher on average than those for junior men. So there’s reason to think that Generation Z might actually be the first generation to see equal wages.

Expectation Gap by Years of Experience

There’s plenty more insight in the report and I’d encourage you to read it and share your thoughts below: https://hired.com/gender-wage-gap. This is a topic that many of us at Hired feel very passionately about and although we’ve only just started to track this data on our own platform, we believe it’s a step in the right direction towards correcting the problem and educating the wider industry about this issue.

We’re a big believers in the idea of data-based approach to compensation that bases salaries on the market value for an individual’s particular experience and skill set as a way to avoid perpetuating gender bias. It’s an approach we’ve taken at Hired, both internally and via the Talent Advocates who help the candidates on our platform set their preferred salaries, and that we’ll continue to champion throughout the industry.

Data and transparency are just two of the ways that we can combat the wage gap. There are many others that I hope to discuss in the future. The issue of gender bias isn’t something that can be solved overnight, however, my hope is that with both sides working together, we’ll all be on a path towards a more equitable future.