A recent study by Redfin and PayScale found that companies with more female executives displayed higher amounts of employee satisfaction and lower amounts of turnover in both men and women. In addition, these companies are found to pay women more fairly.
According to an analysis from the study, “[t]he gender pay gap is half the size at tech companies with more women executives.”
Redfin the champion
This isn’t the first time Redfin has championed accountability and transparency. They previously published their pay gap and diversity statistics publicly, as a way to both hold themselves accountable and as a way to encourage other companies to do the same.
For this particular study, the gender makeup of executives at thirty-one of the largest tech companies in the U.S. was examined by Redfin and PayScale then “analyzed 6,562 salary profiles of people who reported working for these companies between June 2015 and 2017.” Part of the criteria of the study included that companies with 25% or more women on the executive team were found to have high rates where as companies with lower than 20% were considered to be low rates of female execs.
The analysis was divided in two ways: first a comparison of salaries between men and women with similar levels of experience, and then looked at a median salary for both men and women with varying levels of job experience. This is what they found:
In companies with more female execs, for every dollar that men earned, women earned $0.98.
Furthermore, at companies where there are more male execs, women earned $0.96 for every dollar that men did. The numbers may vary drastically in different businesses, but this is a powerful move as a business to show this kind of transparency and allows businesses to make adjustments as needed by analyzing internal data regarding gender pay gaps.
When Redfin examined employee satisfaction and turnover rates, they had found that in companies with high female leadership had a 73% of high satisfaction rate among males and 66% satisfaction rate among female employees.
Turnover rates were similar for both men and women with high female leadership, showing 45% turnover for men and 47% for women. Companies with low female leadership displayed 57% and 58% turnover rates among men and women, showing a distinct difference between the two.
Transparency is key
Keep in mind there are always other variables to consider when it comes to company culture and the type of business that is being run, but choosing to be transparent about a company’s inner workings is a noble effort and a step in the right direction.
I hope to see more business take a page out of their book.