Building a slide deck, pitch, or presentation? Here are the big takeaways:
- 63% of the time, men in tech are offered higher salaries than women for the same role at the same company in the US. — Hired, 2018
- 66% of the time, women in tech ask for less money than men for the same role at the same company. — Hired, 2018
The tech gender wage gap persists, but women and companies have more power to change it than they may think, according to the third annual State of Wage Inequality in the Workplace report from career marketplace Hired.
Hired compared the salary gap between candidates who interviewed for the same job at the same company to remove inconsistencies in wage reporting. About 63% of the time, men working in tech are offered higher salaries than women for performing the same role at the same company in the US, the report found. On average, these companies offer women 4% less money; however, some offered women up to 45% less.
"A number of factors contribute to the tech industry's wage inequality problem, including unconscious biases, inconsistent compensation policies, and relying on past income to inform salary offers and expectations," the report stated.
SEE: IT jobs 2018: Hiring priorities, growth areas, and strategies to fill open roles (Tech Pro Research)
The report found that 66% of the time, women ask for less money during salary negotiations—6% less on average—than their male counterparts do for the same role at the same company.
Women may be more likely to undervalue their accomplishments than men, the report noted, and don't ask for what they are worth in terms of salary. Half of the women included in the report said that they frequently experience imposter syndrome—or feeling like their earned successes are undeserved—and another 34% said that they sometimes do.
This fits with the results of a 2016 study from Harvard's Women in Computer Science Advocacy Council, which found that women with up to eight years of programming experience report the same level of confidence as men with zero to one year of programming experience.
Women are increasingly represented in the tech job candidate pool, the report found. This year, 46% of the time, companies on Hired only interviewed men for a given role—down from 53% last year. Women were underrepresented in the candidate pool 16% of the time, controlling for the fact that Hired's pool skewed more toward men.
In terms of location, San Francisco has the smallest wage gap, with women in the Bay area offered 8% less than men in similar roles. For comparison, Boston has a 9% gender wage gap, Los Angeles and New York have 10% gaps, and Seattle has an 11% gap, the report found.
When considering industry, education technology has the largest wage gap, with women in this field earning 10% less than their male counterparts. The wage gap in product management roles (4%) was half the size of that for software engineering, data science, and design, the report found.
Age and race were also a factor in salary. Women age 20-25 make $0.97 for every dollar men in similar roles earn, but by the time they're in their forties, the gap increases to $0.90 on the dollar, according to the report. White women make $0.96 for every dollar made by white men, while Asian women make $0.95, and black and Hispanic women make $0.90.
Ultimately, it is a company's responsibility to establish compensation standards and follow them, Hired stated in the report. "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," according to the report.
- The state of women in computer science: An investigative report (cover story PDF) (TechRepublic)
- Women in tech: Why Bulgaria and Romania are leading in software engineering (ZDNet)
- IT leader's guide to achieving workplace diversity (free PDF) (TechRepublic)
- Workday: Female senior execs speak out on women in technology (ZDNet)
- 6 ways to include more women of color in tech (TechRepublic)
- Solving for XX (CNET)
Alison DeNisco Rayome has nothing to disclose. She does not hold investments in the technology companies she covers.
Alison DeNisco Rayome is a Senior Editor for TechRepublic. She covers CXO, cybersecurity, and the convergence of tech and the workplace.