A report ahead of Equal Pay Day on 10 November estimates the current gender pay gap across sectors at 13.9%
Women in technology jobs in the UK are being offered less money than money at every level, increasing the size of the gender pay gap. According to Hired Inc, across the UK, women are paid an average of 13.9% less than their male counterparts, and while the gap is lower in the technology sector, it definitely still exists.
The report revealed that the median salary for women in technology was 9% less than it was for men, meaning that they are losing out on approximately £5,000 each year. Additionally, in comparing this number to other tech hubs around the world, women in the UK in tech are losing more than in other parts of the world. In the U.S., this was 8% less, Canada (7%) and Australia (5%).
However, whilst the gender pay gap is already visible, this research highlights the tech industry specifically - an area where women are already underrepresented. Women working in tech sales were found to be offered roles with a median salary of 5% less than their male counterparts. In software engineering the problem deepens: women are offered 9% less than their male colleagues, the equivalent of nearly five weeks’ wages.
The research also suggests that the pay gap increases as people's careers progress. It stood at 7% at entry level which grew to 10% for those with between two and six years of experience. This drastically increases to 31% once workers in the tech industry have surpassed six years.
Jessica Kirkpatrick, the Hired data scientist who prepared the report said: ”The wage gap can go away if we can have women set their wage expectations based on market data, rather than just adding a per centage to their current salary.”
Tom Castley, VP EMEA at Xactly commented: “This is a serious business problem for our sector. Businesses failing to suitably reward their staff, regardless of gender, will ultimately fail to gain the most from their employees and will be limited in their success. Eradicating the gender pay gap should be a priority for every UK business. To tackle this, the way we pay employees must fundamentally evolve with the digital age.
“As a country, we must move away from the old-fashioned salary economy to the performance economy. Rather than paying people based on their position and tenure, employees must be rewarded for their output. Empirically linking pay and performance, using data, will ensure that both women and men are being rewarded fairly for what they do. Tech is a vital sector for the UK economy, and only by moving beyond the outdated gender pay gap can we secure its success for the future.”