Does Race or Gender Matter More to Your Paycheck? How Can You And the Company Get Pay Equity? Deborah P. Ashton, Ph.D. About the Speaker Deborah Ashton, Ph.D. President | Planet Perspective 1 Experience • Headed diversity & inclusion at HarleyDavidson, Novant Health, Medtronic, Darden Restaurants and Argonne National Laboratory • Former Chief of Test Development & Validation, Commonwealth of Massachusetts 2 3 Strategist & Author | Six Pillars of Diversity and Inclusion TM . Published in Harvard Business Review, Diversity MBA, Diversity Executive, and by the Institute for Diversity in Health Management, American Hospital Association Ph.D., Clinical Psychology and Public Practice | Harvard University Deborah Ashton, Ph.D. Learning Outcomes Outcome 1 Have an approach to evaluate pay equity in your company. ▫ Develop HR metrics ▫ Develop HR processes Outcome 2 Be mindful of own and others’ unconscious bias in the workplace. Outcome 3 Make personal action plan to address pay equity for self Deborah Ashton, Ph.D. Questions 1 2 3 Question 1 What is the pay gap? Question 2 What metrics can HR use to monitor and reduce the gap? 4 Question 4 How can HR and line management address unconscious bias? 5 Question 5 How can women address the pay gap? Question 3 What processes can HR and line implement to close the gap? Deborah Ashton, Ph.D. 1 What Is The Pay Gap? The difference in the median earnings of full-time workers in one group in comparison to another group, e.g., the median earnings of women to men. Deborah Ashton, Ph.D. 6 Ashton, D. Does Race or Gender Matter More to Your Paycheck?, HBR.org, June 10, 2014 16-24 Year Olds As A Percentage of Full-Time Workers by Race/Ethnicity and Gender White NonHispanic 8.8% Black Alone 8.0% Asian Alone 6.5% Hispanic Males (all Females All Races races) (all races) 12.4% Source: Department of Labor, U.S. Bureau of Labor Statistics (January 22, 2014). Usual Weekly Earnings Of Wage And Salary Workers, Fourth Quarter 2013, News Release, USDL-14-0094. http://www.bls.gov/news.release/pdf/wkyeng.pdf 8.7% 8.7% 2013 Educational Attainment: Population 25 Years and Over, by Race, Hispanic Origin & Gender (Civilian noninstitutionalized population1) Years of School Completed White NonHispanic Black Alone Asian Hispanic Males Females (all Alone All Races (all races) races) 4% 5% 19% 5% 5% 8th Grade or less 2% Some High School 5% 11% 5% 15% 7% 7% High School Graduate/GED 30% 34% 19% 30% 30% 29% Some College 17% 20% 10% 14% 17% 17% Associate Degree Bachelor Degree/No Advanced Degree 11% 10% 7% 7% 9% 11% 22% 14% 31% 11% 20% 20% Advanced Degree 13% 8% 23% 4% 12% 11% Source: U.S. Census Bureau, Current Population Survey, 2013 Annual Social and Economic Supplement http://www.census.gov/hhes/socdemo/education/data/cps/2013/tables.html 1 Plus armed forces living off post or with their families on post. (Rounding error: total percent may be > 100%) Source: Table 9. Quartiles and selected deciles of usual weekly earnings of full-time wage and salary workers by selected characteristics, 2013 annual averages U.S. Department of Labor, U.S. Bureau of Labor Statistics (January 22, 2014). Usual Weekly Earnings Of Wage And Salary Workers, Fourth Quarter 2013, News Release, USDL-14-0094. http://www.bls.gov/news.release/ pdf/wkyeng.pdf Busting Myths • White Women Make More Than Minority Men • Companies Have To Pay More For Talented Women Of Color • Women Make Less Because of the Occupation They Choose 1 0 10/31/2012 • Novant Health: Enter Presentation Title in Footer Menu Source: SHRM, September , 2014 cover 2014 Gender Comparison of Median Weekly Salaries of Full-time Workers by Occupation Engineering Techs Physicians & Surgeons Lawyers Software Developer Computer System Analyst Men Women Personal Financial Advisors Business & Finance Financial Mgrs. HR Managers Marketing & Sales Mgrs. Chief Executive $- $500 $1,000$1,500$2,000$2,500 Source: Bureau of Labor Statistics, U.S. Department of Labor, Household Data and Annual Averages 39. Median weekly earnings of full-time wage and salary workers by detailed occupation and sex 2014 http://www.bls.gov/cps/cpsaat39.pdf Large Group Discussion • Why do you think there is a difference in pay, even after education is held constant? • What can be done to impact change? Organizational Intentional Behavior • Metrics • Processes Things to Know -- Metrics A The level of knowledge, responsibility and contribution to the organization for each job, e.g., complexity or physical hazards. B Job related variables C Promotions, assignments, performance evaluations Deborah Ashton, Ph.D. Small Group Discussion -- Metrics A 2 What Metrics Can HR Use To Monitor And Reduce The Gap? BB Take 10 minutes to generate metrics to monitors. Small group reports two examples Deborah Ashton, Ph.D. Possible Actions • Compare median pay for women & men in comparable positions • Other possible actions? • Project estimate of promotability or trajectory of careers based on equitable development of talent Deborah Ashton, Ph.D. Things to Know -- Processes A The value the position brings to the organization B The criteria and formula used to determine pay and merit increases or bonuses C Factors being considered to determine promotions D Who is accountable for pay equity and equitable development of staff. Deborah Ashton, Ph.D. Small Group Discussion - Processes 3 A Take 10 minutes to generate processes to close the pay gap. B Small group reports two examples What Processes Can HR And Line Management Implement To Close The Gap? Deborah Ashton, Ph.D. Possible Actions 3 Implementation of Processes by HR And Management Line • Have annual pay equity analysis under the auspices of the Legal Department to rectify any pay gap. • Make adjustments seamlessly, during normal pay adjustments and/or merit increases. Deborah Ashton, Ph.D. Possible Actions 3 Implementation of Processes by HR And Management Line • Discuss the distribution of employees’ pay increases in a peer group setting, facilitated by HR, • Base offers on the value the position brings to the organization and not what the candidate earned previously • Monitor promotions to ensure bias free process • Hold line management accountable for equity • Have succession plans that include women and people of color. • Require individual development plans Deborah Ashton, Ph.D. Things to Know -- Biases A Everyone has biases— conscious and unconscious B Biases are based on socialization, i.e., women tend to have the same biases/stereotypes as men regarding women. C Intersectionality amplifies biases, e.g., gender plus race— women of color. Deborah Ashton, Ph.D. Small Group Discussion -- Biases 4 How Can HR And Line Management Address Unconscious Bias? A Develop a list of as many intersectionalities as you can in 5 minutes. B Group with the most intersectionalities wins. Deborah Ashton, Ph.D. Possible Actions • Have managers discuss and defend employees’ pay increases in a peer group setting with an HR facilitator. • Have transparency in compensation, e.g., publish the salary and wage range for job titles and job groups. • Before acting on their perceptions, HR and line management need to take a mindful pause then listen and get clarification. • Tactfully challenge others’ biases with observations that counter their perceptions Deborah Ashton, Ph.D. Individual Intentional Behavior • Count Off • Rotate to a New Small Group Things To Know A Science, technology, engineering and math (STEM) occupations and MBA, JD or MD occupations pay higher salaries. B Traditionally maledominated professions pay more than traditionally femaledominated professions. C Know your worth Women need to influence what they can control. Deborah Ashton, Ph.D. Small Group Discussion – What You Can Do A 5 How Can Women Address The Pay Gap? Take 3 minutes to individually generate individual intentional behaviors. B Take 5 minutes to share with group. C Each group share 2 examples with large group. Deborah Ashton, Ph.D. Possible Actions Earn degrees in science, technology, engineering and math or earn a MBA, JD or MD Enter traditionally maledominated professions— engineers, lawyers, etc. Negotiate your salary at hire and at promotion Negotiate your title at hire and at promotion Work with your supervisor in developing your individual development plan Research salaries by position by region Deborah Ashton, Ph.D. The Path To Pay Equity & A Level ‘Paying Field’ • Organizations Correcting Underlying Systemic Processes And Metrics • Women Leveraging A Level Playing Field 2 8 Questions ? Deborah Ashton, Ph.D. Readings What HR Can Do to Fix the Gender Pay Gap, Harvard Business Review, Dec. 2, 2014, (Please click https://hbr.org/2014/12/what-hr-cando-to-fix-the-gender-pay-gap ) Does Race or Gender Matter More to Your Paycheck? Harvard Business Review, June 10, 2014, (Please click http://blogs.hbr.org/2014/06/doesrace-or-gender-matter-more-toyour-paycheck/ ) Deborah Ashton, Ph.D. Contact the Speaker Deborah P. Ashton, Ph.D. Ashton@post.harvard.edu +1 407-810-7822 https://www.linkedin.com/profile/publicprofile-settings?trk=prof-edit-editpublic_profile Deborah Ashton, Ph.D.