ROSELAND, N.J., Sept. 26, 2018 /PRNewswire/ -- According to
findings from the Rethinking Gender Pay Inequity in a More
Transparent World study released by the ADP Research
Institute® today, a larger proportion of women begin
their career at a lower wage compared to men. By following
the career paths of male and female exempt new hires who stayed
with the same company from the third quarter of 2010 until the end
of 2016, the ADP Research Institute found that women, on average,
are paid 17 percent ($15,000) less in
base salary than men. However, when factoring in the gender
pay gap for incentive pay (69 percent), the total earnings pay gap
widens to 19 percent ($18,500).
"We're looking at pay equity in a very unique manner," said Ahu
Yildirmaz, co-head of the ADP Research Institute. "By
studying both salary and bonus pay between genders at the time of
hire and after six years of tenure within the same firms, we found
that the overall pay gap between men and women worsens due to
disparity in bonuses. Additionally, while it has been
believed part of the wage disparity is due to women assuming the
role of family caregiver and therefore prompted to leave the
workforce, the findings show there is minimal evidence women are
more likely to quit their job compared to men."
Differing Gaps Exist Across Age Groups:
When categorizing new hires by age and income, women ages 20 to
30 with a low starting salary had near-equal base pay of men;
however, the base salary gap worsened for females after six years.
Additionally, when bonus is factored in, young women fared
the worst with a 21 percent less bonus-to-base ratio compared to
their male counterparts.
However, for the 40-50 age group, men and women started their
careers with almost no base salary gap for all income groups, and
women did well keeping up with men in base salary growth for the
next six years. In fact, in most groups, they closed the base
salary gap. The disparity here is with incentive pay,
especially with the lower income group. In the $40,000 to $60,000
income range, female workers received an average bonus of 8.5
percent, whereas men received 11.4 percent—a gap of 74 percent.
Pay Gaps Fluctuate Across Industries:
When looking across industries, incentive pay made some very
distinct impacts. Women working in the Information sector
make 7 percent more in bonus to base ratio than men, which lessened
their overall gap in total earnings. In contrast, women in
the Finance and Real Estate industry are earning 21 percent less in
their bonus to base ratio compared to men. The industry has
the largest pay gap for women with and without incentive
pay.
The average bonus amount for women was less than two-thirds of
the amount paid to men who had equivalent base pay, age, and
tenure. This incentive pay disparity was observed across all
age, salary, and industry groups from moment of hire and persisted
throughout the six-year study window.
About the Rethinking Gender Pay Inequity in a More
Transparent World Report
The
Rethinking Gender Pay Inequity in a More Transparent World
study gives an unprecedented look at gender pay inequity to
determine the relative contributions of recruiting, base pay, and
incentive pay to an overall gender pay disparity across the U.S.
workforce. The study took an anonymous sample of men and
women—newly hired into exempt salaried positions, in the third
quarter of 2010—and tracked their base pay, incentive pay, and
average total income through December
2016. The study examined disparities in base pay and
incentive pay between genders both at time of hire and after six
years of tenure within the same organization. For more
information about the report, please visit
https://www.adp.com/tools-and-resources/adp-research-institute/insights/insight-item-detail.aspx?id=980AB372-B3B7-4AB4-A054-D0CED95059B0.
About ADP (NASDAQ-ADP)
Powerful technology plus a human touch. Companies of
all types and sizes around the world rely on ADP cloud software and
expert insights to help unlock the potential of their people.
HR. Talent. Benefits. Payroll.
Compliance. Working together to build a better
workforce. For more information, visit ADP.com.
ADP, the ADP logo, ADP A more human resource and ADP Research
Institute are registered trademarks of ADP, LLC. All
other marks are the property of their respective
owners.
Copyright © 2018 ADP, LLC.
ADP - Media
View original content to download
multimedia:http://www.prnewswire.com/news-releases/widening-the-gap-adp-data-shows-wage-inequality-worsens-for-women-when-bonus-pay-is-considered-300718734.html
SOURCE ADP, LLC