- Data & Research
- ESG / Sustainability
Glassdoor 3rd Annual Pay Audit Reveals No Gender Pay Gap Among Company’s Own Employees
Jul 18, 2018 | Glassdoor
MILL VALLEY, Calif. (July 18, 2018) — Glassdoor, one of the world’s largest job and recruiting sites, today announced the results of its third annual audit of the company’s compensation practices. The audit revealed that there is no statistically significant gender pay gap among 600 members of its U.S.-based workforce when comparing men and women employees with similar roles, levels of experience, demographics and more.(1).
Leveraging an algorithm developed by Glassdoor Chief Economist Dr. Andrew Chamberlain, Glassdoor was able to control for multiple factors, including age, seniority, performance, and all other factors we can observe about employees. This is consistent with Glassdoor’s previous two pay analyses.
Glassdoor’s U.S. employee population is made up of slightly more men (55 percent) than women (45 percent). The average total, or “unadjusted”, pay gap (including base pay and bonus pay) for Glassdoor’s workforce amounts to approximately 23 percent, or $28,572 per year. According to the analysis, women earn $111,201 total pay on average, while men earn $139,773 total pay on average (as illustrated below). This is higher than last year’s overall pay gap of $23,514, or approximately 20 percent. The unadjusted pay gap is due to the different representation of women and men in different roles in the company, known as “occupational sorting.”
However, when adjusting for these multiple factors, Glassdoor’s gap statistically disappears. An “adjusted” pay gap is the best way to make an apples-to-apples comparison. This accounts for important variances in job function, department, job tenure and location among other factors that can explain differences between male and female pay. Glassdoor’s adjusted total pay gap is a statistical zero.
“It’s not enough to acknowledge that people should be paid fairly. Standing for equal pay for equal work requires an ongoing commitment from employers to understand their own pay data and take action to ensure no gaps exist,” said Robert Hohman, Glassdoor co-founder and CEO. “By sharing the results of our own gender pay analysis, we at Glassdoor hope to encourage more employers to do the same and to have open communications with employees about their pay philosophy and practices.”
A Glassdoor Economic Research study, Demystifying the Gender Gap, revealed a significant gender pay gap exists in the United States. The unadjusted gender pay gap is 24.1 percent in the U.S., the research found. Although the gap shrinks to 5.4 percent when adjusting for factors such as age, education, years of experience, location, job title and company, it does not disappear.
Glassdoor has created a number of free resources to help companies and workers identify and work to correct potential pay gaps.
For employers: Download the free step-by-step technical guide to help analyze your company’s salary data and identify whether a gender pay gap exists and how you can address it. Join the thousands of employers who have taken the Pay Equality Pledge on Glassdoor to show your commitment to equal pay for equal work.
For job seekers and employees: The Know Your Worth tool helps those within the workforce understand their own worth, as determined by a number of factors including experience, education and location. The personal pay information provides insights to help determine whether a salary adequately reflects your worth and whether to discuss and negotiate with an employer. For tips and advice on fair pay and how to better negotiate, visit the Glassdoor Blog.
Glassdoor combines all the latest jobs with millions of reviews and insights to make it easy for people to find a job that is uniquely right for them. As a result, Glassdoor helps employers hire truly informed candidates at scale through effective recruiting solutions like job advertising and employer branding products. Launched in 2008, Glassdoor now has reviews and insights for 770,000 companies located in more than 190 countries. For more information, visit glassdoor.com.
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1.Only full-time U.S. Glassdoor employees who went through a performance review process in 2018 were included in this sample.
Click here to read the original press release.