Glassdoor’s Annual Pay Checkup for 2020

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July 30, 2020

For the past four years, we’ve conducted an annual audit of Glassdoor’s own employee compensation as part of a continued effort to promote workplace transparency and pay equity. As Glassdoor embraces radical transparency, being transparent about pay is an important role in this process. 

We are pleased to report that in 2020 Glassdoor has no adjusted pay gap between male and female employees or by race/ethnicity between Glassdoor U.S.-based employees. This analysis looks at an apples-to-apples comparison of employees in similar roles with comparable experience and backgrounds. The findings are consistent with our past four analyses, which also found no adjusted gender pay gap for Glassdoor employees. This is our first year publicly sharing race/ethnicity pay gaps, and we have found no significant adjusted total pay gap (similar to what we found previously)(1). Each year we’ve used a similar approach to the methods described in this previous report, which outlines how any employer can analyze whether pay gaps exist within their organization.  

Below is a deeper dive into the data on how we put together these findings.

A Look at our Gender Data

To start, we collected basic payroll data from Glassdoor’s HR department as of July 2020 for all full-time U.S. Glassdoor employees (excluding C-suite positions). Of these full-time U.S. employees, 46 percent identify as female, 53 percent identify as male, and one percent chose not to identify(2). The summary table below shows the average annual base pay, average bonus and average total compensation for male and female Glassdoor employees.

Compensation (July 2020)MaleFemale
Base Pay$155,005$119,277
Bonus Pay$31,006$25,235
Total Pay$186,011$144,512
Source: Glassdoor Economic Research (Glassdoor.com/research)

The data shows that men as a group earn higher average pay than women at Glassdoor. This is common in many companies and in the labor market overall in most countries. Average total pay was $186,011 for men at Glassdoor, compared to $144,512 for women — a gap of $41,499 per year. This results in a 30 percent unadjusted gap (as illustrated below).(3) This overall unadjusted gap is higher than last year’s overall unadjusted pay gap of approximately 23 percent, which is likely due to a change in the composition of job titles and locations.

Although the table above shows a large difference between average male and female pay, it is important to note that these pay gap figures are “unadjusted”. It isn’t an apples-to-apples comparison and doesn’t account for important potential differences in job function, department, job tenure, management level, location or other factors that can explain differences between pay. In particular, the “unadjusted” pay gap between average male and female pay at Glassdoor is due to the different representation of women and men in different roles in the company, which economists call “occupational sorting.”  The best way to make an apples-to-apples comparison is to analyze the “adjusted” total pay gap. 

Finding: No Adjusted Gender Pay Gap Among Glassdoor Employees

The figure below shows the results of our analysis of the “adjusted” total gender pay gap at Glassdoor. For the full methodology, see our pay audit guide for employers. The bars show the approximate percentage of the total pay gap between men and women at Glassdoor before and after including controls for employee and job characteristics such as job title, location, job tenure,  and seniority. 

Before accounting for any differences between male and female employees, there’s about a 30 percent gender pay gap at Glassdoor; in other words, men as a group earn around 30 percent more in total compensation than women as a group. Adding controls for employee and job characteristics (such as age, seniority job tenure, and all other factors we can observe about employees) reduces the pay gap to 16 percent (the middle bar), which is still statistically significant.

While no comparison will be truly perfect, when we make our best apples-to-apples comparison of employees by adding controls for occupation, departments and city location (e.g., Ohio-based employees have a lower cost of living and are generally paid less than their California counterparts) as seen in the far right column, the gender pay gap at Glassdoor shrinks to a statistical zero — one tenth of one percent (the far right bar). This is not a statistically significant difference.

Based on this analysis, we’re happy to report that once we’ve accounted for differences in job functions, location, and other observable factors, we find no evidence of a gender pay gap among Glassdoor employees. This finding remains unchanged from the four previous audits we’ve conducted in 2019, 2018, 2017 and 2016.    

A Look at Our Race/Ethnicity Data

We also examined that same dataset for potential pay gaps amongst Glassdoor employees by race/ethnicity. Of the full-time, non-C-suite, U.S. employees included in this analysis, the employee breakdown by race/ethnicity is as follows:

  • 58 percent identify as White; 
  • 26 percent identify as Asian;
  • 5 percent did not identify;
  • 4 percent identify as Hispanic/LatinX;
  • 4  percent identify as Black; and
  • 2 percent identify as Other groups, including Two or more races and Native Hawaiian or other Pacific Islander.

The summary table below shows the average total compensation by race/ethnicity for Glassdoor employees.

Race/EthnicityAverage Total Compensation (July 2020)
White$164,013
Asian$183,570
Did Not Declare$169,090
Hispanic/LatinX$144,119
Black$127,350
Other$151,289
Source: Glassdoor Economic Research (Glassdoor.com/research)

Although the table above shows a range of average pay across race/ethnicity, these figures are “unadjusted” and don’t account for important differences in job function, department, job tenure, management level, location or other factors that can potentially explain differences between pay.

Again, the best way to make an apples-to-apples comparison is to analyze the “adjusted” total pay gap, as we did above in the gender pay gap analysis. 

Finding: No Adjusted Race/Ethnicity Pay Gap Among Glassdoor Employees

The figure below shows the results of our analysis of the “adjusted” total race/ethnicity pay gap at Glassdoor. The bars show the approximate percentage of the total pay gap between each race/ethnicity group for which we have sufficient data, before and after including controls for employee and job characteristics such as job title, location, job tenure, and seniority.

Before accounting for any differences between employees, there’s about a 26 percent pay gap between black and white employees at Glassdoor; in other words, black employees as a group earn around 26 percent less in total compensation than white employees. Before accounting for any differences, there’s about a 11 percent pay gap between Hispanic/LatinX employees and white employees at Glassdoor. Additionally, White employees as a group earn around 19 percent less than Asian employees as a group at Glassdoor.

However, when we make our best apples-to-apples comparison by adding controls for occupation, departments and city location in the right column, the race/ethnicity pay gaps for employees at Glassdoor shrink to a statistical zero — each result is not statistically significant. 

Based on this analysis, we’re happy to report that when we’ve accounted for differences in job functions, location, employee tenure and other observable factors, there’s no evidence of a race/ethnicity pay gap among Glassdoor employees. This remains unchanged from our previous internal findings. 

Conclusion

Transparency is a powerful mechanism to enable people and organizations to identify and address pay gaps and the many other forms of inequalities that exist today. Sharing our own internal pay data in tandem with Glassdoor’s inaugural Diversity & Inclusion Transparency Report is one way Glassdoor holds itself accountable as it continues to advocate for equal pay for equal work. 
We therefore are happy to report that we have found no adjusted gender or race/ethnicity pay gap for U.S.-based employees at Glassdoor in July 2020. We remain committed to furthering workplace transparency and promoting the importance of pay equity.  By publishing our own pay “check up”, we urge more companies to utilize our free employer’s guide to examine their own compensation programs. 

Footnotes
1. While this is our first year publicly releasing our internal race/ethnicity pay gap analysis, we found no gap when we did an internal analysis in 2019.
2. Given the small sample size, we do not share pay data for employees who did not declare gender in order to preserve privacy.
3. The overall gap amounts to 22.3 percent of average male pay, or 28.7 percent of average female pay. The average gap of approximately 30 percent reported here is based on our regression analysis, as detailed below.