In Tech, Men Are Offered Higher Salaries Than Women 63% of the Time

Updated 04/04/18
@brooketestoni

While the gender wage gap affects all industries, tech companies are notorious for practicing unequal pay. To get an accurate picture of what the wage gap looks like in light of Equal Pay Day on April 10, career marketplace Hired released an in-depth report on wage inequality in the tech industry.

"Hired has unprecedented visibility into tech workers' salaries because all Hired candidates set a preferred salary and every interview request made by companies includes compensation information," reads the report. The survey asked more than 1200 Hired candidates about their personal experience with pay inequality for this year's report. "Ultimately, we want to empower candidates to ask for what they're worth."

Unfortunately, the study found that men are offered more money than women for the same role at the same company 63% of the time. On average, companies offer women 4% less than men for the same role, with some offering women up to 45% less. This statistic has not budged since Hired's 2017 report. "Many skeptics brush off the idea of a gender wage gap because the data is self-reported or may not take years of experience into account, but by only comparing the gap between candidates who interview for the same job at the same company, our analysis removes the inconsistencies," Hired explains.

They credit unconscious biases, inconsistent compensation policies, and relying on past income to inform salary offers for contributing to this statistic.

Interestingly enough, 66% of the time, women interviewing for these positions are asking for less money than male candidates are. "Undervaluing their accomplishments may be one reason women don't ask for what they are worth. About 50% of the female survey respondents said they frequently experience imposter syndrome and 34% say they sometimes do," reads the report. One possible solution to this problem is to outlaw the ability for employers to ask applicants about their prior salary (like the state of California has done).

Employers must also give applicants a pay range for the job they are seeking (that way they can't underestimate themselves).

"It will be interesting to see whether this new law, which went into effect on January 1, 2018, will have an impact on the wage disparity," Hired concludes. "We want to empower all candidates to recognize their value, know the market rate for their skillset, and ask for the salary they deserve. Ultimately, though, it is the company's responsibility to establish a compensation philosophy, execute it consistently, and pay fairly. It is promising to see that companies are making up for a portion of the expectation gap in their salary offers, but we still have work to do."

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