In the last 20 years, our attitudes and expectations have changed drastically. For a second, remember how workplaces were portrayed in the 00-s? Rewatching “The Office” feels like a trip to a history museum.
The ineffective and sexist corporate culture of “Dunder Mifflin” feels just as old-fashioned as the microwave-sized computers on their desks. So much has changed!
And yet, so much hasn’t.
Sifted reported a record-breaking 31% gender salary gap in 2022 at UK startups, higher than the national average in 1992 — and double what it is today in the UK in other industries. For reference, The Office premiered in 2005.
Though the UK statistic is somewhat of an outlier, it fits with the general trend of questionable gender equality practices in startups worldwide.
What is the gender pay gap?
The salary benchmark startup Figures reports an unadjusted gender pay gap of 19% in European startups and 5% when adjusted.
The adjusted gender pay gap is the difference in pay between men and women holding the same role in the same location. It’s the best indicator of “pure” compensation-related issues regarding gender equality.
The unadjusted gender pay gap measures overall differences in salary between men and women. It’s a consequence of many causes and less an issue tied to compensation alone.
We must view the pay gap as more than a pure difference in salaries, thus using two metrics. Though troubling, it doesn’t consider the disparity between men and women in higher-paid jobs.
To account for the disparity between men and women in higher-paid jobs, we must view the pay gap as more than just a salary difference.
In the same report, Figures outlines that there are more women in support functions or customer support jobs, which tend to pay less, and fewer women in higher-paid tech jobs.
Why does it exist?
The gender salary gap in startups is a product of both traditional and industry-specific factors. Here, we listed some of them.
Social norms and the glass ceiling
Women are more likely to deal with child-related issues (daycare, doctor’s appointments, etc.) within a couple, so they often plan their days around these things.
Altogether, it makes women more likely to accept a lower-level position or part-time job and less likely to get promoted to a senior role.
Lack of transparency and impostor syndrome
Compared to men, women are four times less likely to negotiate a pay rise. And when they do, they typically expect 30% less. They are also likely to settle for a new job without a pay raise: 80% of women versus 29% of men, 50intech reports.
Missrepresentation in STEM subjects
Only 28% of STEM (i.e., science, technology, engineering, and mathematics) workers are women, especially in some of the industries with the highest salaries and the fastest growth, like computer science and engineering. Women are also less likely to consider it their primary career and education path.
Lack of diversity in management
According to Kienbaum and Earlybird’s 2019 survey, the adjusted gender pay gap depends on C-Level gender diversity. Start-ups with male-only boards have a 21% pay gap on the two lower top management levels versus 10% in startups with at least one female C-level executive.
And yet, only one-third of start-ups have a board with at least one woman present.
