This morning I read an encouraging and thought provoking article in the San Jose Mercury news about two local companies working to address the pay gap between male and female employees in Silicon Valley. Women only earn $.84 for every dollar a man earns, which equates to $214 a month. Reddit will no longer negotiate with new hires. Men tend to negotiate better than women, which is one source of inequality. Salesforce.com is doing a study of their pay scales, and will give women raises to wipe out the pay inequality. What I particularly like is the ACTION. It is easy to talk and wring hands, and the article nitpicks a bit about the weaknesses about the approaches. However, the key is that neither approach is particularly hard, and will go a long way to making it right.
It got me to thinking – what is fair pay? “Are you paid fairly?” is not an easy question to answer
- A friend of mine wants to start a dance company, but won’t because she wants to pay her dancers. Right now there is a culture of people dancing for free. She doesn’t think this is right, and doesn’t want to perpetuate that culture.
- I work pretty much full time these days on my book, and planning an event. I don’t get paid very much for doing so. I am adamant that I won’t work for free, yet I don’t hesitate to invest this time, or to volunteer many hours at my synagogue. Many stay at home moms I know work almost full time jobs as volunteers.
- Don’t get me started on college athletes, who bring in billions of dollars to their schools and the NCAA and are not paid for it. Yes, they get a free education, but if they are hurt they lose the scholarship. Given the amount of $$ the schools are making, free tuition does not seem sufficient any more.
Don King, the shady boxing promoter, once said that you don’t get paid what you are worth, you get paid what you negotiate for. This bit of reality was his justification for taking advantage of many young boxers who didn’t know any better, or have any leverage to negotiate a better deal. Nothing about the corporate world is set up to be fair. In fact, few things in life are fair.
At the same time, it is hard for me to think it is good for business to systematically underpay a significant portion of the workforce. Doesn’t a company want to foster a shared sense of mission?
What do you think? Let me know. I answer all emails and comments promptly.
PS Special kudos to the HR person who went to the CEO asking if they could find a way to address the inequality issue at Salesforce, and kudos to Mark Benioff for pushing it forward. And kudos to Ellen Pao, acting CEO at Reddit for leading change on multiple fronts.