Glassdoor’s Annual 2017 Gender Pay Analysis Checkup
We believe pay transparency is something that helps job seekers and employers alike. As part of Glassdoor’s continuing effort to put that belief into practice, today we’re releasing our annual 2017 analysis on the gender pay gap at Glassdoor and share what we found. The analysis follows all of the best practices we outlined in our recent guide: How to Analyze Your Gender Pay Gap: An Employer’s Guide.
The bottom line: We find no statistical evidence of a gender pay gap among employees at Glassdoor, once we make an apples-to-apples comparison of employees in similar roles with comparable experience and backgrounds.
A Look at the Numbers
As a first step, we gathered basic payroll information from Glassdoor’s HR department as of May 2017 for all full-time U.S. employees. Here’s a summary table showing average annual base pay, average bonus, and average total compensation for male and female employees at Glassdoor.
Overall, Glassdoor’s U.S. employees are 45 percent female and 55 percent male. As is common in many companies — and in the labor market overall in most countries — men as a group earn higher average pay than women as a group at Glassdoor. Average total pay was $141,116 for men as a group, compared to $117,601 for women as a group — a gap of $23,514 per year or approximately 20 percent (as illustrated below). That’s down slightly from last year’s overall pay gap of $29,566 or approximately 21 percent.
Why do average male and female pay differ at Glassdoor? The main reason is because men and women are differently represented in different roles throughout the company.
Economists call this “occupational sorting.” For example, Glassdoor’s marketing and HR teams are about 83 percent female, while our engineering team is only about 20 percent female. Those teams have different pay scales and very different local supply and demand in the labor market, and that affects overall average male and female pay at the company.
For this reason, we call the overall pay differences in the above table “unadjusted.” They don’t account for important difference in job function, department, job tenure, location or other factors that can explain differences between male and female pay. Just looking at average pay difference can be misleading, as it doesn’t make an apples-to-apples comparison between similar male and female workers to see if there’s really a gender pay gap once we’ve accounted for those differences.
No Adjusted Pay Gap Among Glassdoor Employees
The figure below shows the results of our analysis of the “adjusted” total pay gap at Glassdoor (for the full methodology, see our guide for employers here). The bars show the approximate percentage total pay gap between men and women at Glassdoor, before and after including controls for age, race / ethnicity, seniority level, job tenure, performance evaluations, job title, department and location. Results that are statistically significant at the 10 percent level or below are denoted with a *.
Before accounting for any difference between male and female employees, there’s about a 20 percent gender pay gap at Glassdoor; in other words, men as a group earn around 20 percent more in total compensation than women as a group. However, adding controls that compare employees with similar personal and job characteristics, the pay gap shrinks to about 8 percent (in the middle bar).
Finally, once we make our best apples-to-apples comparison of employees in similar roles, departments and locations the gender pay gap at Glassdoor shrinks to a statistical zero — less than one percent in the far right bar, which is not statistically significant.
Based on this analysis, we’re happy to report that once we’ve accounted for differences in job functions, performance evaluations, employee tenure and other factors we can observe about our employees, there’s no evidence of a gender pay gap among employees at Glassdoor. That finding remains unchanged since we conducted this analysis last year.
At Glassdoor, we take pride in being a leader in workplace transparency and in raising awareness of gender pay equity — as a social issue, an employer branding issue, and a practical HR and recruiting issue.
In this analysis, we shared the results of our own 2017 annual “checkup” on gender pay fairness in Glassdoor’s compensation program. With the publication of our employer’s guide for how to study the gender pay gap at work, our aim is to help more employers move beyond just raising awareness to actually taking action to address the gender pay gap. By doing so, we hope to encourage other employers to follow suit, and make an ongoing pledge and concrete action toward gender pay equity in the workplace.
To learn more about Glassdoor’s efforts around gender pay analysis, read the Glassdoor Blog.