The White House announced on Tuesday that it is halting a requirement for companies to report workers’ salaries by race and gender, an expansion of the equal employment opportunity survey established by the Obama administration. While companies of 100 or more employees, as well as federal contractors of 50 or more employees, have for decades been required to report the demographic makeup of their companies by race and gender, the Obama-era initiative would have mandated reporting of salary by race and gender as well.
The provision’s aim was to shed light on pay practices, which could help close the pay gaps that exist for women and minorities in the U.S. The Trump administration argues that these reporting requirements would place an undue burden on businesses, and also cited privacy concerns.
“As employers, we don’t need a reporting mechanism to do the right thing,” said Dawn Lyon, Glassdoor’s SVP of Corporate Affairs and Chief Reputation Officer. “It is incumbent upon the employer to remain committed to equal pay regardless of who is in the White House.”
Glassdoor research has already shown that men earn about 24.1 percent more than women on average, although that gap shrinks to 5.4 percent after controlling for factors like education, years of experience, job title, location and others.
According to a U.S. Harris Poll conducted by Glassdoor, 95 percent of employees/job seekers say it is important to be thoughtful and informed about a company’s pay philosophy (e.g., how pay is determined, how pay increases are determined) prior to accepting a job offer. Furthermore, more than two-thirds (67 percent) of U.S. employees say they would not apply for jobs at employers where they believe a gender pay gap exists. Given this, it’s clear that a lack of salary transparency can be a competitive disadvantage when it comes to recruiting.
“Candidates and employees are demanding pay transparency,” Lyon said. “We as employers need to do the work on an annual basis and look at pay practices across the organization.”
Glassdoor offers a number of options for companies to analyze and improve their equitable pay practices, including a free step-by-step guide for analyzing pay, with the algorithm needed to determine whether or not a gender pay gap exists at your company. Furthermore, employees can join nearly 3,700 other companies in signing Glassdoor’s Equal Pay Pledge in order to demonstrate to candidates their commitment to equitable pay practices for equal work and experience.
“Employers have the opportunity to affect change,” says Lyon. “We’re already seeing thousands of employers taking steps to analyze their pay, and ensure that they are paying fairly.”
Demonstrate your company’s commitment to pay equality by signing Glassdoor’s Equal Pay Pledge, and check out these other helpful resources: