The Black American Pay Gap: A Remnant of America’s Sordid Past

The history of free labor in America began at the inception of chattel slavery, which lasted for 246 years. The time from when slavery was abolished in 1865 to today is only 158 years—making slavery the majority of America's history. Considering that Black people have spent less time working for wages than for free, is no wonder why the Black American pay gap continues to persist.

What is the pay gap for Black Americans? 

The disparity within the workforce is first seen in the total number of employed Black Americans. Research conducted by the U.S. Office of Federal Contract Compliance Programs, has found Black Americans make up 11.43% of the workforce, while white Americans make up 62.67%. For many Black Americans employment opportunities are few and far between.

According to research conducted by McKinsey Global Institute in 2021, Black Americans in the workforce earn approximately 30% or $10,000, less than that of white workers. The report goes on to detail that an estimated $220 billion annually is the disparity amount between Black wages that would close the pay gap.

By now, we are also aware of the disparities in the gender pay gap. But what does the gender pay gap look like for the intersectional identity of a Black woman?

Black women earn 63 cents for every dollar a white man earns. In the course of a career, the total amount a Black woman earns is nearly $1 million less than what a white man earns. Even within gender pay gap disparities, Black women earn 21 cents less on the dollar than white women.

Despite sharing the same qualifications for job roles, holding the same job titles, and executing the same duties and responsibilities of a job role, Black Americans are still paid less. The expectation that Black people do the same work for much less than their white counterparts is rooted in the same biases, superiority complex held during the period of chattel slavery.

Lack of Job Advancement and Promotion Opportunities Widens the Pay Gap

Lenna Turner, Director of DE&I at Salary.com highlights another major cause for the pay gap disparities faced by Black American workers as “the lack of job advancement and promotions. Due to historic and systemic policies, processes, practices and implicit bias in the workplace, real job and thus pay advancement can be near impossible. As a result many Black workers earn the same lower salary throughout their careers.”

“Black workers, on average, are not being hired, promoted or paid according to what would signal their level of productivity based on their experience or their education,” Valerie Wilson, director of the Economic Policy Institute’s program on race, ethnicity and the economy, told CNBC.

“It absolutely impacts everything. It impacts your family’s economic security,” she added.

This is apparent in the misrepresentation of Black workers in management positions or in high-paying professions. The insurgence of diversity, equity, inclusion and belonging (DEI & B) efforts in hiring practices, has missed the mark completely when it comes to career growth through advancement and promotions for Black workers. It’s not enough to simply hire Black workers in entry level positions or diversify the pipeline.

Sadly, the idea that a Black person sits in a position of power in which they are managing others and not being managed doesn’t sit well with many people. America’s historical past tells us Black people being managed through free labor and then through low wages is what is comfortable to many

How DEI&B Closes the Black American Pay

Diversity, equity and inclusion are just the first steps in creating an inclusive work environment where pay equity exists. It’s time to add a “B” to DEI, with the “B” for belonging. There is no DE&I without the feeling and assurance of belonging. 

With daily micro- and macro-racial aggressions, Black workers are reminded time and again that they do not belong in most workplaces. Perhaps one of the biggest racial macroaggressions encountered by Black workers is pay wages. Being paid significantly less than white colleagues affects every other aspect of livelihood including but not limited to; the access to and affordability of healthcare, childcare, food, and education. An employer that continues to pay their Black employees inequitable pay wages, upholds and perpetuates the legacy of racism brought about by slavery.

The beginning of true belonging in the workplace, is receiving equitable rewards, which is not only salary but also includes equitable fringe benefits, pay bonuses and total compensation available to all other workers. What quickly follows is creating a plan of action to ensure all employees receive the same professional development, job advancement and promotion opportunities. Additionally, the formation of employee resource groups (ERGs) that give Black employees a safe space and a platform to voice concerns regarding issues is vital in creating an environment of belonging for Black workers.

Changing the Future of Black History with Pay Equity

As we celebrate Black History Month we must also acknowledge the parts of American history where implicit cruelties were inflicted onto Black people. When we acknowledge the past, we can learn from it then strive to do better. Addressing the Black American pay gap with a plan of action to close it, is where liberty and justice within the workplace is found.

At Salary.com, we are committed to providing the tools needed for employees and companies alike to succeed and achieve pay equity. When pay is fair, companies and their employees thrive.