Google recently revealed that it has spent $270,000 to close the gender and race pay gap and correct “any of the minor pay discrepancies that arose” among 89 percent of its workers for 2017.
Gender pay gaps are omnipresent in corporate world – regardless of the firm, country or whatever it is that matters; and it is becoming a serious problem. A recent disclosure by Google shows how even huge and powerful multinational companies face the same issue – however, at least they are trying to resolve it. Google recently announced that it had spent a total of $270,000 correcting any of the minor pay discrepancies that arose among genders. Google said that the amount was spent on employees who were receiving a “statistically significant” smaller amount of money than other workers.
Google also claims that besides those 228 employees, it has no “significant” gender or racial pay gap among 89 percent of its global workforce. This seems to be good news because it means, Google is that company others look up on, which is incredibly exceptional pays with no gender gaps, whatsoever. But some people, particularly some of Google’s activist investors, aren’t buying it. Because, Google did not include 11 percent of its employees in the analysis because the small size or imbalanced nature of the job groups meant the data lacked “statistical rigor.”
So the 11% was simply ignored because they belonged to groups that Google said were too small to analyse – the group included executives at the senior vice president level and above. Equal pay without gender gaps for all? Not so much, Google. However, Google says “Today’s announcement represents a serious first step toward ensuring gender pay equity at Google. Still, we find ourselves uncomfortable with its lack of breadth.” So appreciate Google’s baby steps.