SEATTLE--(BUSINESS WIRE)--(NASDAQ: RDFN) -- Technology companies with more female executives pay female employees more fairly and have higher employee retention and satisfaction, according to a new study by Redfin (www.redfin.com), the next-generation real estate brokerage, and PayScale, a company that has compiled the world’s largest database of individual salary profiles.
For this study, Redfin examined the gender makeup of executive teams at 31 of the largest U.S. tech companies. Companies where women made up more than 25 percent of the executive team were considered to have a high rate of female executives, while companies with fewer than 20 percent were considered to have a low rate. Companies where women made up 21 to 24 percent of the executive team were not included. PayScale then analyzed 6,562 salary profiles of people who reported working for these companies between June 2015 and 2017.
At companies with a high rate of female executives, women earned two cents more for every dollar that men in similar roles earned. The two-cent gap might not sound like much, but for a man earning a $100,000 salary, a woman would earn $96,000 at a company with fewer women executives, compared to $98,000 at a company with more women at the top. This disparity adds up to tens of thousands of dollars over a woman’s career.
When you look at all men and women employees without controlling for whether they are in similar roles and levels, the pay gap is a whopping 14 cents. This suggests that companies with a high percentage of women executives also have more women in other highly-paid roles.
Redfin decided to start publishing its pay gap and other diversity stats in 2015 as a way to hold itself accountable and encourage other companies to be transparent with their data.
“Increased transparency is one way we can work together to close the pay gap in our industry,” says Redfin CTO Bridget Frey, who authored the blog post on the study.
The study also showed that both men and women report a higher level of job satisfaction at companies with more female leaders, and fewer of them say they are considering leaving in the next six months.
To read the full report, complete with data and charts, please visit the following link: https://www.redfin.com/blog/2017/08/gender-pay-gap-is-half-the-size-at-tech-companies-with-more-female-executives.html.
About Redfin
Redfin (www.redfin.com) is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $50 billion in home sales.
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