Sector News

How these major companies are getting equal pay right

April 19, 2018
Diversity & Inclusion

Fifty-five years after the Equal Pay Act passed, women earn about $0.80 on the dollar to their male colleagues.

Progress on wage equality for women in the United States has been demonstrably slow in recent years — but a number of companies have taken matters into their own hands. High-profile companies like Starbucks, Apple, Salesforce, Intel and Adobe, among others, have recently reached full pay parity for women and underrepresented minorities in the United States. These companies are also taking steps toward creating a better workplace for women and minorities to thrive, advance their careers and move into more leadership roles.

“If you fundamentally believe that people are the most important asset to your company, why wouldn’t you seek to establish practices and programs, and have a principal that you should compensate fairly based on their contribution?” Donna Morris, executive vice president of customer and employee experience at Adobe, recently told Fortune.

Pay equity practices come from a combination of payroll audits, committed leadership and policies that promote equality and diversity in the workplace. In Adobe’s case, a third-party review of the company’s pay practices in 2016 found U.S.-based female employees were paid $0.99 on the dollar of their male coworkers. While not a stunning difference, it was still a wage gap, Morris said, and the company closed it by 2017.

“It’s not sufficient for companies to not address pay anomalies that exist between men and women or between ethnic groups,” Morris said. Adobe also closed the pay gap that existed for its workforce based in India earlier this year.

More recently, Starbucks announced it reached 100 percent pay equity for women, men and underrepresented minorities — ending a 10-year process to end pay differences among its employees. Back in 2015, Salesforce, a San Francisco-based cloud computing company, announced a $3 million initiative to close its gender pay gap after analyzing its payroll. After the company acquired several others, Salesforce combed through those new employees’ salaries to ensure any pay gap was entirely eliminated.

“Every CEO needs to look at if they’re paying men and women the same. That is something that every single CEO can do today.” Salesforce CEO Marc Benioff said at the World Economic Forum in January 2017. “We all have modern human resource management systems, but as a CEO are you willing to step up and say I pay men and women the same?”

In 2015 and 2016, more than 100 companies — including Salesforce, Adobe, Apple, Facebook, Intel and more — signed former President Barack Obama’s Equal Pay Pledge. The initiative required companies to review their hiring practices, create policies to ensure equal pay and conduct an annual analysis on the gender wage gap.

Recently formed companies are also taking notice of the push toward equality in the workplace. Companies like Rent the Runway, the online rental service founded and run by women, had equal pay practices from the get-go when it launched in 2009.

Movements like #MeToo and #TimesUp have also put the onus on companies to change their policies and practices to better create workplaces that value women and people of color. And equal pay, for that matter, will be expected from the future employees growing up in this era, said Jennifer Hyman, the CEO of Rent the Runway.

“Unless business leaders understand the future of their employee base is not willing to accept the unequal environment that has perpetuated in the past,” Hyman said, “they’re not going to be around in the future.”

By Jennifer Calfas

Source: Fortune

comments closed

Related News

June 22, 2024

Mind the gap: bridging the intergenerational divide at work

Diversity & Inclusion

In today’s workplace, it’s not uncommon to find employees from different generations working side by side. From Baby Boomers to Gen Z, each generation brings unique experiences, perspectives, and work styles. This diversity can be a tremendous asset, but it can also present challenges. How can organizations bridge the intergenerational divide and create a cohesive, productive work environment?

June 16, 2024

Why skills-first hiring alone may not improve diversity

Diversity & Inclusion

These efforts have potentially opened job opportunities for more than 80 million Americans without degrees, many of whom are people of color. However, hiring bias, race-based earnings disparities, and occupational segregation will not magically disappear with these new approaches to level the playing field for more candidates.

June 8, 2024

API women are only seen as workers, not leaders — and it has a huge impact on their pay

Diversity & Inclusion

For Asian professionals specifically, author Jane Hyun coined the term “bamboo ceiling” in her 2005 book, Breaking the Bamboo Ceiling: Career Strategies for Asians, to describe the racial biases that prevent qualified Asian people from breaking into leadership roles.

How can we help you?

We're easy to reach