THE GREAT DIVIDE
Controversy AROUND the pay gap
DEFINING GAPS IN THE WORKPLACE
Interest Mismatch: Characterized by a gap between what job seekers are looking for and what
employers are offering
Skills Mismatch: Characterized by either too few people with the required skills to meet employer
demand, or when highly skilled people are not being matched with the right jobs
Pay Mismatch: Characterized by a gap between what job seekers believe they are worth and what
employers believe they are worth or want to offer.
The Gender Pay Gap on the other hand, occurs when men and women of similar backgrounds,
working in similar companies and similar positions are paid different amounts, usually with men
taking home higher salaries compared to women in similar positions.
Source: Indeed, Uncovering the Causes of Global Jobs Mismatch, 2016
THE PAY MISMATCH
73%
36%
of employers believe their
employees are fairly paid
of these employees
feel they are fairly paid
78%
45%
of those same employers
thought their employees felt
valued at work
of those employees agreed
that they felt valued in
their day-to-day work
PayScale’s recent 2016 Salary
Report noted 90% of the top
performing companies gave
increases last year, and 94%
plan to give raises in 2016.
Open communication is the key. 82% of employees
would feel satisfied with below-market pay, as long
as their employers were transparent about the reasons
Source: payscale.com
THE GENDER PAY GAP
What Explains the Gap?
Census figures show women make up only 26 percent of highly paid chief executives, but 71 percent
of low-paid cashiers. Past research suggests this is due partly to social pressures that divert men and
women into different college majors and career tracks, or to other gender norms. For example:
women bear disproportionate responsibility for child and elderly care, which pressures women into
more flexible jobs with lower pay.
The level of education, age, and experience between men and women explain little of the gender
pay gap.
Salary Details for U.S. Male & Female Workers
Base Pay - Men
Base Pay - Women
Total Comp. - Men
Total Comp. - Women
Differences by Age
(Percentage Higher Average Male Pay)
10.5%
9.5%
9.7%
Salary
Ranges
2.2%
$59,362 | $76,692
$75,913 | $102,366
$175,000 | $323,000
$203,200 | $426,686
$50,015 | $53,895
$67,894 | $73,780
$16,560 | $17,260
<$20,000
Health Care
7.2%
Media
6.6%
Finance
6.4%
Information Technology
5.9%
Non Profit
5.7%
Business Services
3.3%
$17,600 | $18,288
Base Pay | Total Compensation
6.2%
Differences by Industry
(Percentage Higher Average Male Pay)
18-24 25-34 35-44 45-54 55-64 65+
years years years years years years
5.5%
Government
4.7%
Consumer Services
4.5%
Accounting & Legal
4.5%
Education
Biotech & Pharmaceuticals
Aerospace & Defense
3.3%
3.0%
2.5%
Base Pay
$50,000 $75,000
>$175,000
AVERAGE
The gender pay gap, on average is smaller among young workers, as
women beginning their careers today face fewer barriers than older
workers faced in previous generations. Research suggests older women
face harsher age discrimination in the labor market, amplifying
the gender pay gap for older workers.
Differences by Occupation
(Percentage Higher Average Male Pay)
Computer Programmer
28.3%
C-Suite
27.7%
Psychologist
27.2%
CAD Designer
21.5%
Game Artist
15.8%
Information Security
14.7%
Medical Technician
14.4%
The gap has remained steady, averaging between 4.0% in 2007 and 6.1% in 2011, dropping to 5.0% in 2015.
Source: Glassdoor
Demystifying the
Gender Pay Gap,
March 2016
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