The 'mirage of fairness' in tech pay equity

Tech company pay has ‘mirage of fairness’ even as unconscious bias permeates

What you already know: For an industry that preaches progress, the gender-pay gap is alive and well in tech. Women in tech earn roughly 82 cents to every dollar a man makes, according to the U.S. Census Bureau. That gap widens with seniority, with women in senior positions making 78 cents to a man’s dollar, while entry-level positions reach around 91 cents.

Why? There are a few reasons for this long-held inequity, said Kaitlyn Knopp, founder and CEO of compensation equity firm Pequity. While the pandemic brought ushered in a brief era of remote work, many major companies have mandated a return to office in recent years. This mandate — and the unconscious bias towards in-person workers — has made it difficult for mothers and caretakers to advance in their careers, said Knopp. Similarly, the lack of federally mandated maternity leave creates resume gaps that companies weigh when deciding compensation. Additionally, titles have an impact on pay, said Knopp. Even if two people are doing the same job and same amount of work, many employers use title differences as an excuse to pay people differently, creating a “mirage of fairness,” she said. “In tech, we have these very algorithmic-minded people … but in actuality, what happens is you create this greater divide between women and minorities and others.”

What it means: Finding ways to justify these pay gaps has created a larger systemic issue, said Knopp. Rationalize these pay gaps enough and they will become codified and spread across roles, organizations and industries, she said. “When we do compensation again, we go to data points, we go to surveys,” she said. “The problem becomes when I, as a company, hire someone and I pay them less, that gets submitted into a survey and aggregated into other data. If I underpay someone, it’s going to lower that median over time.”

What happens now: This is why pay gaps are often so pervasive that they’re unintentional, said Knopp. It’s also why it’s vital for hiring managers to overcome unconscious biases and algorithmic thinking through training and intentionality in diversity, equity and inclusion in hiring and pay. Having frank and honest conversations about what’s missing in your company’s hiring pipeline is the first step, she said. “People are afraid of being accused of doing something intentional,” Knopp said. “But it’s not an accusation, it’s an observation. Not looking doesn’t make it go away.”