For Dice’s “Women in Tech Week” this year, we dug back into the survey data collected for our latest Tech Salary Report and explored the different responses from people who identify as men and women in tech. One stat stood out over the rest. While the average annual salary for men in tech sits at roughly $114,000, women in tech earn an average of $99,000 — an average disparity of $15,000.
But this pay gap only tells part of the story. Let's delve deeper and explore the underlying factors shaping it.
The Leaky Pipeline: Tech’s Retention Problem
We found that men in tech are more likely to hold full-time positions (86% vs. 80% for women). They also tend to stay put for longer. Specifically, 31% of men surveyed have spent over five years in their current role, compared to only 22% of women. Also, 80% of our respondents who identify as men have been in tech for over five years, while only 66% of women say the same.
As longer tenure often correlates with higher salaries and leadership roles, this data raises questions: Are women leaving their roles or the tech field at a faster rate than men, or are they entering later in their careers?
It’s likely a bit of both. In the article, “Viewpoint: Why Many Women Are Quitting Technology Sector Jobs,” Vandana Singh of SHRM attributes this retention problem to toxic workplaces. “Women's negative experiences [at work] range from minor to severe harassment, sexism, discrimination and misogyny to explicit death threats,” Shingh reports. When women face such negative experiences, there is a chain reaction that hurts everyone. Not least among those impacts, it discourages other women from joining, which means the whole community has fewer women involved. In short, toxic workplaces make it harder for women to join, and stay in, tech.
Rewards Systems in Tech are Failing Women
When we delve into survey responses regarding raises and bonuses, a concerning pattern emerges, highlighting a broken rewards system that disadvantages women.
Fewer women report receiving raises compared to men (52% vs. 56%).
Even when raises are awarded, women are less likely (37%) to cite merit as the reason, compared to 42% of men.
Significantly fewer women received bonuses that boosted their annual income (40% vs. 53% for men).
These findings expose critical weaknesses in how companies reward their tech employees. Addressing these issues requires a multipronged approach. Implementing clear promotion criteria, conducting regular salary audits and unconscious bias training for managers are all crucial steps toward building a fairer and more rewarding work environment for all genders.
Job Security and Compensation Satisfaction
It is important to keep in mind that the gender pay gap in tech isn't just a financial disparity; it impacts how women feel about their careers. While raw salary numbers are important, unequal compensation translates to reduced job satisfaction and concerns regarding job security.
Dissatisfaction with Pay:
Our data shows a concerning gap in compensation satisfaction. Thirty-nine percent of women in tech report being unhappy with their current pay compared to 34% of men. This suggests that many women sense they are underpaid relative to their skills and experience.
Job Security Concerns:
The financial uncertainty of the pay gap can also impact job security perception. Thirty-five percent of women in tech feel less secure in their roles compared to 40% of men. This might be due to a lack of confidence in their earning potential compared to male colleagues, leading them to question their long-term career viability within the company.
These findings highlight the need for a multifaceted approach to closing the gender pay gap. It's not just about equal pay for equal work; it's about creating a work environment where women feel valued, secure, empowered to negotiate for their worth and stick around longer.
The Path Forward: Transparency and Opportunity
The good news? Our data reveals a clear path forward for attracting and retaining talented women to your tech team. Here's what we found:
Pay Equity Analysis is Valued: Women in tech are much more receptive to companies conducting pay equity analysis (41% of women compared to 18% of men). In other words, women are hungry for proof of fairness — and transparency.
DEI Initiatives Ring True: Women prioritize clear paths for professional growth. By outlining concrete development opportunities, mentorship programs and leadership training specifically targeted for women, companies can demonstrate a genuine investment in their long-term success.
Transparency and Opportunity are Your Next Steps
By implementing these strategies, you can create a more attractive environment for women in tech. Open communication about salaries fosters trust and reduces the perception of undervaluing. Defined career paths signal a commitment to their growth and potential.
This isn't just about fairness; it's about attracting and retaining the best talent. A diverse and inclusive tech workforce fosters innovation and success. By actively bridging the pay gap and creating a culture of opportunity, companies can unlock the full potential of their greatest asset: their people.