Pay Equity Across Different Industries & Occupations

When organizations embrace pay equity, they offer equal pay for comparable jobs. That means, for instance, a woman of an underrepresented group can be paid the same as a white man in the same role and comparable job level. Of course, they can be! However, as statistics show us, it seems not everyone is on board with pay equity.

Women still earn 82 cents for every dollar a man earns. According to the U.S. Department of Labor, Black women with advanced degrees earn 70% of what white men with advanced degrees earn. The pandemic only made things worse. Despite many returning to work, there are still many women missing post-Covid-19. The National Women’s Law Center says there are 1.1 million fewer women in the labor force now compared to February 2020.

So why the pay inequity? How do different industries compare? Let’s look at some of the highest-paying jobs in the U.S., female-dominated industries, their compensation trends, and the companies you should follow.

Industry Gender Pay Gap Trends

Physicians, pilots, and lawyers are among the top-earning professionals in America. Of which, women comprise 43.8%, 21.8%, and 38.5% respectively. Not only do men make up the majority of these occupations, their wages are also significantly higher.

According to Narrow the Gap, based on the U.S. Bureau of Labor Statistics, these are the wage gaps in these industries:

• Women physicians made 86 cents to the dollar men earned in 2021.
• Women who worked in transportation and material moving occupations made 79 cents to the dollar men earned in 2021.
• Women lawyers made 77 cents to the dollar men earned in 2021.

What’s more disturbing is that the same trends are also visible in female-dominated industries. Despite the fact that women make up 97.6% of preschool and kindergarten teaching positions, they still earn less than their male counterparts. 94% of secretaries and administrative assistants are female, yet they earn 86 cents to the dollar men earn. Shockingly, women comprise 90.6% of medical assistants but earn 68 cents to the dollar men earn.

It's also rare to see women in leadership positions. In 2021, only 41 of the Fortune 500 businesses were run by women. Of those, only two were Black (for the first time).

Why the Gender and Racial Pay Gaps?

So why are we seeing these pay inequities? There are several reasons. There is no one answer that will fix the cultural bias and ingrained discrimination we continue to see. As with any societal issue, there are many layers to consider. We need to dig deeper.

An OECD paper categorized the reasons for the gender pay gap into “glass ceilings” and “sticky floors.”

Glass ceilings are obstacles that restrict or limit how women can advance in their careers. This can include caregiving responsibilities preventing women from taking leadership roles when they know they need flexible hours. OECD concludes that 40% of the gender pay gap is a result of glass ceilings.

Sticky floors relate to social norms or discrimination. An example is a boss choosing a male counterpart over a female due to their assumption that she will require parental leave. Women may be seen as less reliable or efficient. OECD says sticky floors account for 60% of the gender pay gap.

Imagine someone who needs more flexibility, shorter commutes, and opportunities to take leave when necessary. This person? A mother, someone with elderly caregiving responsibilities (often seen in African, Hispanic, and Asian cultures), or someone with a disability. These people are less attractive to an employer who expects overtime work and last-minute commitments. You can see how inequity plays out.

How Companies are Achieving Pay Equity

Though we’re seeing continuous pay gaps, there are some companies that have made commendable efforts in achieving pay equity.

General Motors was the first U.S. car manufacturing company to have a female CEO in 2014. Their board of directors has more women than men. GM is addressing gender equality from the top down. Their CEO Mary Barra says, “Diversity is all about the pipeline.”

Starbucks stopped asking candidates about their previous salaries.

“Prior salary can be tainted and should not dictate how we pay our partners,” says Sara Bowen, Starbuck’s former head of Inclusion, Diversity, Equity, and Accessibility. This is one way to stop the cycle of discrimination.

In 2007, L’Oréal chose to go public with a gender pay gap analysis they had the French National Demographic Research Institute conduct. They audited their pay practices and were transparent about the result. As a result of their adjustments, L’Oréal became Europe’s top gender-balanced company.

It’s Time for More Companies to Embrace Pay Equity

It’s much easier to detect workplace discrimination when pay is transparent. Compensation information should be available to your employees. New tools, such as Salary.com’s CompAnalyst, are emerging to identify gaps and address pay equity. Updated and emerging legislation is also requiring employers to cooperate.

Are you seeing the trends we’ve discussed in your industry? As an employer, are you doing enough to ensure diversity, equity, and inclusion? The National Women’s Law Center calculates that a 20-year-old woman just starting full-time, year-round work stands to lose $407,760 over a 40-year career compared to her male counterpart.

It’s our responsibility to stop the cycle, create equal opportunities, and pay people their true worth.