Ravio, an HR technology company that analyses compensation and employment data from global tech companies in real time, has released a new comprehensive report on pay equality in the European workforce.
Data shows that the adjusted gender pay gap in the European tech industry is 2.5 percentthe unadjusted gender pay gap in the industry is much larger. 25 percentThere is a lack of women in senior management positions, 21 percent The percentage of women in management positions.
“Equal pay for equal work” won’t be a reality anytime soon
When we think and talk about pay equality and what it means, it can naturally be explained as “equal pay for equal work,” meaning that employees who perform work of equal value should be compensated equally for it. But that’s not always the case. Not in the tech industry.
The report reveals how the tech industry is performing when it comes to improving pay equality, and what the industry can do to close the gender pay gap once and for all.
Data shows ‘unadjusted’ gender pay gap in European tech industry is 25 percent (average earnings across all jobs, levels and countries), the “adjusted” gender pay gap (comparing the average earnings of men to the average earnings of women in similar jobs in the same country) is 2.5 percent.
While these figures suggest initial progress in pay equality, they also highlight significant representation issues that lead to disparities between the unadjusted and adjusted gender pay gaps.
Merten Wulfert, Founder and Co-CEO of Ravio, commented:
“The European tech industry seems to be moving in the right direction when it comes to equal pay for equal work. However, there is still a lot to do and challenges remain in some regions and in some job roles. But a bigger issue affecting our ecosystem is the severe under-representation of women in senior management positions. In that respect, we are far from equal. Very few companies have made this a top priority, and even fewer have truly solved the problem.”
Lack of female representation, especially at senior levels
The main problem with the gender pay gap is reflected in the fact that women are underrepresented, especially in senior management positions, resulting in a disparity between the unadjusted and adjusted gender pay gaps.
According to the report, the proportion of women 50 percent Most employees in the profession 21 percent Women are taking on executive positions. One reason for this figure is that male technical executives are staying in their roles. 46 percent longer than female executives.
Chief Human Resources Officer at Ravio Vaso Parisinou said:
“Survey results show that women often leave these roles early due to challenges such as a less supportive work environment and balancing family responsibilities. To improve retention rates, companies need to develop supportive policies and provide women with opportunities to grow.”
Women receive lower salaries than men for the same job title
As the report makes clear, pay equality issues most often start at the very beginning, or more precisely at the point of recruitment: women are offered lower salaries than men at the point of recruitment, which is evident across multiple roles and entry points.
For example, a male software engineering manager in the UK pays entry-level employees 3.3 percent Although women receive the same promotion rates and salary increases as men, this pay gap continues rather than disappears.
Merten Wolfert said:
“Pay equality can only happen if equality is introduced at the point of recruitment. To truly close the gender pay gap, businesses need to ensure fair and transparent recruitment practices, and that all employees are assessed fairly from day one.”
High representation increases unadjusted wage inequality
The unadjusted gender pay gap in the UK is 31 percentwell above the European average, but the adjusted wage gap is 1.4 percentIt is the smallest of all countries analysed in the report.
As highlighted, the UK has the highest proportion of women in senior management positions (27 percent), but the unadjusted wage gap remains one of the highest in the world.31 percent) This is in part due to the disproportionately high proportion of men in senior management positions (42 percent).
Commenting on the matter, Merten Wolfert said:
“It’s perhaps not surprising that having a family is one of the main factors that prevents women from progressing to senior roles at the same rates as men. Women still shoulder the majority of child-rearing responsibilities and often take career breaks to do so – much less so for men. There are proven measures that companies can take to create a level playing field, but very few actually implement them. For example, only 25% of UK tech companies offer men at least five weeks paid parental leave, yet research shows that this approach has clear benefits for women (and families as a whole). Much more needs to be done in this area.”
Lead image: Free Pick
