Glassdoor’s Annual Gender Pay Checkup for 2019
For the past three 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. Earlier this year, we published a global gender pay study that identified and analyzed eight countries’ gender pay gaps using salary data shared on Glassdoor.
We are pleased to report that in 2019, Glassdoor has no significant pay gap between male and female 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 three analyses, which also found no adjusted gender pay gap for Glassdoor employees. Each year we’ve used a similar approach to the methods described in this previous report, which outlines how any employer can check to see if a gender pay gaps exist within their organization.
Below is a deeper dive into the data that sheds more light on how we put together these findings.
A Look at the Data
To start, we collected basic payroll data from Glassdoor’s HR department as of May 2019 for all approximately 700 full-time U.S. Glassdoor employees who went through a performance review process, excluding C-suite positions. Of these full-time U.S. employees, 46 percent are female and 54 percent are male. The summary table shows the average annual base pay, average bonus and average total compensation for male and female Glassdoor employees.
|Compensation (May 2019)||Male||Female|
Source: Glassdoor Economic Research (Glassdoor.com/research)
The data shows 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 $170,246 for men at Glassdoor, compared to $135,016 for women — a gap of $35,230 per year. This results in a 23 percent unadjusted gap (as illustrated below). This overall unadjusted gap remains similar to last year’s overall unadjusted pay gap of approximately 23 percent.
Although the table above shows a large difference between the average male and female pay, the pay gap figures are “unadjusted”. It isn’t an apples-to-apples comparison and doesn’t account for important differences in job function, department, job tenure, management level, location or other factors that can explain differences between male and female pay.
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.” For example, Glassdoor’s marketing team is about 72 percent female. Meanwhile, Glassdoor’s engineering team is only about 21 percent female, up from 16 percent in 2018. This is above the national average, which shows women currently hold about 14 percent of all engineering and architecture roles. These 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.
The best way to make an apples-to-apples comparison is to analyze the “adjusted” total pay gap.
No Adjusted Gender 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 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, performance and seniority.
Before accounting for any difference between male and female employees, there’s about a 23 percent gender pay gap at Glassdoor; in other words, men as a group earn around 23 percent more in total compensation than women as a group. Adding controls for employee and job characteristics (such as age, seniority, performance, and all other factors we can observe about employees) reduces the pay gap to 11 percent ( the middle bar), which is still statistically significant.
However, when we make our best apples-to-apples comparison of employees by adding controls for occupation, departments and city location in the far right column, the gender pay gap at Glassdoor shrinks to a statistical zero — less than one half of one percent (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. This finding remains unchanged from all three previous audits we’ve conducted in 2018, 2017 and 2016.
The gender pay gap is a reality workers face around the world, as multiple Glassdoor studies have shown. Although there are hopeful signs the pay gap is shrinking, employers must ensure they’re taking the right steps to identify where it exists within their own workplaces and to correct it. With the Glassdoor Equal Pay Pledge, more than 6,000 companies have expressed their own promise to pay employees fairly for equal work and experience. It’s important for companies who have taken this pledge to check their pay gap regularly to ensure pay equity remains as their workforce grows and evolves.
We’re both happy to report that there is no adjusted gender pay gap at Glassdoor in 2019 and remain committed to furthering workplace transparency and promoting the importance of gender pay equity. By publishing our own pay “checkup”, we hope more companies utilize our free employer’s guide to examine their own compensation programs.
To learn more about Glassdoor’s efforts around equal pay and tools to address the gender pay gap, check out Glassdoor’s Gender Pay Gap Breakdown.