Gender Pay Gap for Women in Tech-Related Jobs

Index

Mission and Vision of the study – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – pg. 2

Pre preparation of the study – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – pg. 4

Need of the study – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – pg. 6

Objectives of the study – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – pg. 8

Background of the study – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – pg. 10

My observations of the study – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – pg. 11

Plausible Solutions – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – pg. 13

Conclusion – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – pg. 16

Bibliography – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – pg. 17

Mission & Vision

Mission:

To analyze the difficulties women encounter due to gender bias in the workplace.
To highlight the benefits and challenges of achieving gender equality. and diversity in the tech workforce and leadership.
To raise awareness and understanding of the causes and consequences of the gender pay gap in tech-related jobs.

Vision:

To suggest actionable recommendations and the best practices for policymakers, employers, and stakeholders to address and end the gender pay gap in tech-related jobs.
To provide evidence that shows the extent and variation of the gender pay gap across various regions, roles, and levels.

Pre-Preparation

The gender pay gap in the technical / software department for women is a major issue. The software industry is dynamic and innovative but doesn’t balance out the pay for women and men. Many women face pay, status, representation, and career advancement obstacles. This report delves into the gender pay gap within the software sector, highlighting key issues and potential solutions.

Being a software engineer or developer can come with many advantages. While working in the software sector, you get the experience of participating in sensational challenges the job throws at you. There, you can apply your skills and meet new people with the same passion as you. Many companies such as Wipro or Tata Consultancy Services (TCS), have flexible work hours and family-friendly policies such as offering adoption leaves to their employees, and 3 months of paid maternity/paternity leaves, and many of their employees have left positive remarks about these policies. With dedication, women can advance in their careers, break glass ceilings, and lead impactful projects while showing the world how strong they are.

Being a software engineer has its disadvantages too. Some women face gender bias while working that questions their interest in doing technical work. Other women are not looked at and are given a lower status in the company while being shown all their flaws – performance, communication, behavior, etc. Some companies may give the women working there lesser pay even if they are the women who work up till midnight on projects and are expected to work more the next day. Even if they are in a senior position, they start to doubt themselves due to employees commenting on them. Women don’t have many mentors to help guide them through this process and get inspiration. Women also have one more responsibility – to take care of their families. The extra burden they carry causes more juggling between all the household chores and work, which can lead to stress. The surrounding work environment would become less and less comfortable to be around (or become more hostile), due to the harassment or discrimination happening during work hours, women may be discouraged from working and soon quit their jobs.

Fig A: Percentages of women who have or haven’t faced gender bias in the workplace

Need of the Study

This study aims to understand the growing issue of the gender pay gap for women and assess the challenges they encounter in the workplace. It is crucial because many companies overlook gender bias as a problem. Simply achieving success does not warrant paying men more; equitable compensation should be the standard.

According to the Women in India Inc. HR Managers Survey, approximately 34% of women leave their jobs due to work-life balance issues, while only 4% of men face the same challenge. This study highlights a significant contrast between rhetoric and action in gender diversity initiatives within corporate India. Here are some key findings:

Gender Imbalances in Hiring: Only 37% of firms actively tackle gender imbalances.
Legal Compliance Gaps: Many companies lack mandatory internal complaint committees (59%), fail to provide maternity leave benefits (37%), and offer limited childcare facilities (17.5%).
Career Breaks Impact: Taking career breaks diminishes women’s selection chances by 24%.
Gender Diversity Goals: While 55% of firms set goals for women’s advancement, only 37% address gender imbalances in hiring.
Inclusive Hiring Strategies: Most organizations (87%) employ at least two inclusive hiring strategies, such as mixed-gender interview panels and gender-neutral job descriptions.
Leadership Development: Firms are adopting mentorship programs and leadership initiatives.
Flexible Work Arrangements: Many companies offer flexibility in location (56%), work hours (73%), and workdays (67%).

Fig B: The difference in full-time earnings between men and women in selected OECD nations

Objectives and importance of the study

Many companies these days have been looking at the gender pay gap and have started to make friendly policies to help with the issue. Countries worldwide have started to bridge the gender pay gap, but it still isn’t enough.

Fig C: Gender Pay Gap in G20 countries as of 2023

Australia and Germany have made significant efforts to dismantle the bridge. Activists in Frankfurt, Germany, have conducted interviews on Equal Pay Day, highlighting the issue of inadequate wages for women. In Canberra, Australia, a Gender Pay Gap report exposed top companies to the bias of men over women. It showed that men earn 22% more than women. The 22% gap is wider at some top firms like Commonwealth Bank and Qantas. Mary Wooldridge, CEO of Workplace Gender Equality Agency said, “ When you look at every industry across the globe, the gender pay gap is in favor of men.”. The report also showed significant variation across industries, with the mid-point employer gender pay gap at 31.8% in construction while it was 1.9% at hotels and restaurants.

Fig D: This graph shows the gap in median pay between men and women in Australia

Not only Australia, but other countries also have a percentage higher than this and do not prioritize this growing concern. The primary objective is to bridge the gap between men’s and women’s earnings. Globally, women earn only 68% of what men are paid for the same work. This disparity persists across various industries and professions, even when considering factors like experience and qualifications. Closing the gender pay gap empowers women by ensuring they receive fair compensation for their work. Economic independence is crucial for women’s well-being and their ability to support themselves and their families.

Background of the study

The gender pay gap has existed for centuries. Historically, women were excluded from formal education and professional opportunities, limiting their access to higher-paying jobs. Traditional gender roles assigned women to unpaid domestic work, reinforcing the idea that their labor was less valuable than men’s.

The Equal Pay Act of 1963 in the United States was a significant milestone. It aimed to ensure equal pay for equal work. Despite legal advancements, progress has been slow. Discrimination, unconscious bias, and civil norms continue to perpetuate pay disparities.

Gender discrimination, including both prejudice and unconscious bias, contributes to the gender pay gap. Women often start their careers being paid less than men, and the gap tends to widen over time.

My observations of the study

Many companies have a process to go through regarding salaries. Software companies usually take at least 3 – 4 weeks to pay each person equally. As Women’s History Month draws to a close, it’s essential to reflect on the progress made by women in the tech industry. Despite significant strides, gender and pay disparity persist. According to Pew Research, as of 2022, women earn, on average, about 82% of what men earn, representing only a 2% increase from 2002. This wage gap is even more pronounced for women of color. While women constitute more than half of the overall workforce, they remain underrepresented in STEM fields, particularly in managerial roles, making up only 27% of the workforce in those industries combined. Companies that disclose pay gaps are more likely to address them, emphasizing the need for transparency and equity. Proxy Impact and Arjuna Capital’s recent Racial and Gender Pay Scorecard revealed that out of 68 examined companies, 13 received an “A” rating, while 25 received an “F.” In the tech/communications category, five out of 18 companies received a failing rating. To bridge the gender gap in tech, especially at the leadership level, continued efforts are necessary.

My plausible solutions

1. Support Women-Owned Businesses

Invest in and promote businesses owned by women. Economic empowerment contributes to closing the pay gap. Women entrepreneurs bring unique perspectives and innovative ideas to the market. Diverse businesses lead to more creative solutions and better products or services. By actively supporting women-owned businesses, we challenge traditional gender roles and stereotypes. It conveys that women can excel in any field, including entrepreneurship.

2. Education and Awareness

Educate employees, employers, and policymakers about the gender pay gap. Awareness drives change. When employees are informed about the gender pay gap, they become aware of the disparities in earnings between men and women. This knowledge empowers them to advocate for fair compensation and demand transparency. Employers recognizing the gender pay gap can take proactive steps to address it. They can analyze their pay practices, identify gaps, and implement corrective measures.

3. Challenge Stereotypes and Social Norms

Break down stereotypes that associate certain jobs with specific genders. Encouraging girls to explore diverse career paths will help women and girls explore their true potential and showcase their talents to everybody. Teaching girls and women about leadership qualities, negotiation skills, and decision-making would help them in the workplace. Leadership is not exclusive to any gender. Showcasing female entrepreneurs who have built successful businesses to them would build their confidence to follow their dreams. Entrepreneurship knows no gender boundaries. We should also encourage girls to take risks, innovate, and create their own ventures.

4. Eliminate Bias in Hiring and Promotions

Implementing blind recruitment processes to reduce unconscious bias. Rather, promote based on merit, skills, and performance rather than gender. Otherwise, you might find yourself with an individual who knows nothing about the job, and you would remain unaware of it. A company needs the best employees, and that includes women, who are perfectly capable of doing any job.

Conclusion

In conclusion, closing the gender pay gap in tech-related companies requires ongoing efforts to promote equality, address biases, and create inclusive environments. By valuing diversity and implementing fair compensation practices, companies can drive positive change and enhance their overall success. To address this challenge, companies must prioritize diversity, address biases, and implement fair compensation practices. By doing so, they can create inclusive environments and drive positive change in the tech industry. This study gives communities a better understanding of this issue.

Bibliography

Pros and Cons of Working as a Software Engineer – DEV Community

18 Pros and Cons of Working at Oracle

37 Pros & Cons Of Starting A Software Company (2024) – Starter Story

The gender wage gap in tech industry 2022 | Statista

New research finds gender pay gap of up to 31% in software development

The retention problem: Women are going into tech but are also being driven out

The UK tech industry’s woeful gender equality in five charts