Intel has achieved gender pay equity across its worldwide workforce, the company announced on Tuesday–a major milestone in the tech industry, where the gender pay gap is perceived to be the largest of any sector.
“Our commitment to achieving gender pay equity is central to making Intel a truly inclusive workplace, which we believe is a key factor in employee performance, productivity and engagement,” Julie Ann Overcash, vice president of HR and director of compensation and benefits at Intel Corporation, wrote in a Tuesday editorial. “A diverse workforce and inclusive culture are essential to our evolution and growth.”
SEE: Hiring kit: Chief diversity officer (Tech Pro Research)
Intel employs about 107,000 people in more than 50 countries. The company examined total compensation for each employee, including base pay, bonus, and stock grants–the latter being a new addition to the analysis. The company defines pay equity as closing the gap in the average pay between employees of different genders or races and ethnicities in the same or similar roles, after accounting for business factors that can explain differences, such as performance and tenure.
The company’s legal and HR teams worked with an external vendor to use statistical modeling to identify countries where a gender pay gap existed, Overcash wrote in the post. Individual employees in those areas who were identified as having a pay gap received a salary adjustment.
Intel had announced that it closed the gender and racial pay gap for US workers back in 2017. When it performed a new analysis globally, it found a 2.6% pay gap due to gender in nine of the 54 countries where it has employees, Fortune reported. US workers who were found to have been underpaid through stock compensation received an average adjustment equal to 1.5% of their total compensation.
The company also announced that it had reached full representation of women and underrepresented minorities available in the US skilled labor market in October 2018–two years ahead of its 2020 goal.
Companies including SAP, Atlassian, and IBM have also seen success in implementing diversity initiatives in recent years.
Business leaders can address gender pay gaps at their company by taking the following steps, according to a report from Visier Insights:
1. Gain a high-level understanding of the state of gender equity at your organization
2. Compare pay for men and women
3. Measure performance ratings by gender
4. Measure promotions by gender, and also the nature of the promotions
5. Take steps to correct gender inequity, starting with your processes for hiring