Tuesday, April 24, 2018

GENDER PAY PARITY: THE GOOGLE EXPERIENCE


ABSTRACT

Gender equality/inequality is a topic that has been discussed around tables for over a century, ever since debates like women “expanding roles” from homemaker and caregiver to getting a “right” to work, “right” to vote, “right” to hold political office et cetra. Movements have spun out of these debates which have led to a push for and eventual achievement of change in these topics. A corollary of this is the gender pay equality endeavor, which pushes for the parity of pay among members of the different sexes holding the same job roles and qualifications. This gender pay issue has been pushed for by individuals, organizations, courts, governments and so on for years, with varying levels of progress in different industries and locations. The focus of this research is on gender pay equality/inequality in Google, a limited liability company and technology giant headquartered in California under a parent company called Alphabet.
To shed light on pay differences if any in the company.














OUTLINE

Abstract                                                                                        2
Introduction                                                                                 4
Legislation                                                                                    4
Background                                                                                  5
Googlers                                                                                       6
Google Accusers                                                                          6
Issues                                                                                            7
Effects
Way Forward
Reference                                                                                    10











INTRODUCTION

Gender, for the intent and purpose of this research is restricted to two, being male and female. While pay is the commiserate payment made for work done by either or both members of the gender. There have been various reports on pay disparity between male workers and their female counterparts in general, but other studies show further disparities in certain groupings for example race down to ethnic, location/region, industry, age, educational qualification and such (Hill, 2017).


LEGISLATION

With respect to legislation, gender pay parity is protected by several laws, the Title VII of the Civil Rights Act – 1964, Age Discrimination in Employment Act of 1967, The Equal Pay Act of 1963 (signed by J.F.K.), Title I of the American Act-1990. “The discriminatory-pay laws is inclusive of all monies given to workers as remuneration for employment. All forms of payments are covered, plus salary, overtime, bonus, stock options, profit sharing and bonus plans, insurance, vacation with leave pay, cleaning or gas allowances, hotel accommodations, travel expenses refund and benefits”.
 Pay difference is fine in  instances where there is earned merit, rank, quantity or quality of production and factors other than sex.” (EEOC, 2017).
Closer to home, Governor Brown signed into effect as of January 1st 2017, the California Fair Pay Act, which put into law the paying of equal renumeration to employees of different sex with substantially similar work, making it harder for employers to use a "bona fide factor other than sex" defense. (

In the U.S. according to State report on annual earnings and full time earning for workers in 2016, there is still a big lagging median gap of 20% between the female full time worker and her male counterpart, with a range from 70% for women and 100% for men in Louisiana and 89% for women and 100% for men in New York and all other 48 states fall in between: with California (Google’s headquarters) on 88% for women, as second highest in the country.

BACKGROUND

Google LLC, a company that started in 1998 as a search engine called “Backrub”
Google’s vision and mission statement is “Organizing the world's information and making it universally accessible plus useful.” (Google, 1998)
Which remains true, from her unconventional décor to the customary colorful ambience, Googles has maintained a style unique to itself, its proclamation to stakeholders and the rest of the world is that of its core beliefs which has been to emphasize an atmosphere of creativity and challenge (Page, 2004).

The organization financial value post joining NASDAQ in 2004, it is worth 770.47 billion dollars. With a staff strength of over 88,000 people in full-time roles, having hundreds of offices worldwide, Google is the most visited website in the world. In a bid to be different and continue their mission and vision, unorthodox is their norm. Google is what is referred to as a learning organization, hence the company has a large waiting list pool of people hoping to work in the place.


GOOGLERS

Despite the glowing accolades from a very diverse Google staff body, Googlers as they are called, Google has appeared over the past few years in headlines that have to do with them paying female Googlers at a different/lower rate from male Googlers. Google being a learning organization takes the lead in workplace design, organizational structure and so on.

GOOGLE’S ACCUSERS

Despite Google’s released statement that “Yearly, they perform a full and robust analysis of pay across genders  and they have found no pay gap,"  (Politi). There have been fingers pointed at the tech giant’s pay practices with regards to parity or no parity among different genders within the company.
The Department of Labor released a statement about huge disparities in pay between gender, calling it “systemic” as it is perceived to be company-wide. This is on the wake of a case against Google in January 2017 asking the court to enforce the request to see the Tech Giant’s payroll data.
All the more pressing for DOL because Google is a government contractor hence it is bound by law to submit to checks. In response, Google stated, the actions of D.O.L. are “fishing” (Politi, 2017)
 Google argued, and won, a court ruling in July2017 contending the DoL had no evidence of inequitable pay and was asking for too much data. The agency wanted 15 years worth of info and contact info on more than 25,000 employees. The judge authorized less data, including contact data for 8,000 employees” (Bort, 2017)

Natasha Lamb (activist-investor, managing partner in Arjuana) in her statement to Alphabet (Google’s parent company) shareholders, accused them of paying lip service to bridging the gender pay gap and sharing vital payroll data for external audit of its pay structure unlike other large firms like eBay, Intel, Amazon, Adobe, Microsoft, Apple, Expedia who had complied. (Baron, 2017). Worthy to note, Facebook was the only other tech giant not to comply, Lamb’s reason was concentrated voting of the above 50% of the founder (s). To which Schmidt (C.E.O. of Google) responded with an emphatic NO on behalf of shareholders who had repeatedly voted against the idea.
James Damore, a former engineer and former employee for google released a damning memo about gender bias that first circulated in-house then went viral. He claims to have written this as a reaction to things discussed at a diversity workshop organized by Google, in an interview with Stefan Molyneux, he further said Google should strive to be a “female friendly environment”.
According to Susan Wojcicki (Youtube CEO), the words of Damore, were “unfounded bias”, and that it would have had less traction or made the news had portions of the memo with the word “females” been replaced with “another group”.
Three people filed against Google in September 2017, with a pay discrimination claim which was dismissed three months later by a California court due to the non-specificity of aggrieved group of people.
January 2018, these plaintiffs added a fourth and filed a revised suit based on pay discrimination in specific job roles like “engineering, management, sales, and teaching”.
The last is “Lamar claims that of the 150 teachers employed by Google during her tenure, just three were men. Two of the men hired were paid more than all but one of the women hired, she alleges” (O’Brien, 2018).

In their response, Google representative Ms Gina Scigliano said to CNNMoney that the company disagrees with the central allegations of this amended lawsuit (O’Brien).
Most of these occurred in the wake of this retrospectively grandiose release, “At Google, we don’t just accept difference—we celebrate it, we support it, and we thrive on it for the benefit of our employees, our products, and our community. Google is proud to be an equal opportunity workplace and is an affirmative action employer.” (Google, )

ISSUES AND EFFECTS
A resultant  effect is reduced motivation to work, may lead to absenteeism in the affected group.
Higher employee turnover is the most likely corollary of the above in an organization, the people being discriminated against or even those who perceive they are being discriminated against will leave the company as employees are not loyal to employers they do not trust.
Employees will also leave if they do not see advancement prospects for example promotion, recognition, delegation and so on.
Some years back when Google observed and investigated its increased female employees’ exit from the company to other companies, they found out their maternity package was not competitive, so they adjusted it and plugged the outflow of talent they were hemorrhaging
“It is unlawful to retaliate against an individual for opposing employment practices that discriminate based on compensation or for filing a discrimination charge, testifying, or participating in any way in an investigation, proceeding, or litigation under Title VII, ADEA, ADA or the Equal Pay Act”

Gender pay gap can inhibit a company’s ability to attract and keep top talent especially when it reports a low percentage of female employees to male and even lower percentage of females in leadership roles,

WAY FORWARD

In organizations plagued with pay discrimination, there should be a change, as Shaw succinctly puts it,  “Progress is impossible without change, and those who cannot change their minds cannot change anything.” Although Shaw perfectly expresses how important change is, his quote doesn’t acknowledge how hard it is to carry out.
As with most organizational plans, carrying out anything successfully requires management input, or even spearheading, capable managers to lead the charge for a better future for all stakeholders.
With how constant change is according to Gibson et al (2012), it is the most frequently used word on the business pages of every newspaper in the world’ hence managing change is primary to the function of today’s efficient manager.
Google is no stranger to employing experts or consultants; who know the stumbling blocks to organizational change. These are employees’ lack of trust towards management, employee’s self interest (instances where change is not to employee’s advantage), difference in views if what the change is and can bring, fear (shown as impatience not as what it is, fear of not fitting into the future the change would bring) and so on.

On the part of the employee, in instances where pay disparity is due to less/lack of “aggression” as a study on the disparity between pay in male and female Uber drivers explained that, “gender-based preferences can open gender earnings gaps," the authors said. Male Uber drivers apparently like to drive fast, not necessarily to earn more, but because they are "more risk-tolerant and aggressive" on the road by nature, the study found. Men gain an extra earnings edge by working more hours on average, allowing them to learn more quickly and target the best locations to pick up passengers” (Khoreva, 2018) hence, could some Google female employees be more aggressive and outspoken in getting ahead career-wise especially in instances where the other reasons for disparity have been eliminated. YouTube C.E.O. Wojcicki, stated how, she even had to on one occasion call and talk to a Silicon Valley old timer and mentor to get a her into a conference career-wise she had earned a right to be in, but had not been invited.
It is clear, this work is not a one-man or in this case, one-company job, more has to be done on all sides to close the pay disparity gap that is albeit lower than say four decades ago but had almost ground to a halt in the amount of progress made in the immediate past.















REFERENCES

           EEOC Facts About Equal Pay and Compensation Discrimination. Retrieved from https://www.eeoc.gov/eeoc/publications/fs-epa.cfm
           California Equal Pay Act (2017, October). Retrieved from https://www.dir.ca.gov/dlse/California_Equal_Pay_Act.htm

          Page L. & Brin S. (2004) 2004 Founders’ IPO Letter Retrieved from  An Owner’s Manual” for Google’s Shareholders1 https://abc.xyz/investor/founders-letters/2004/ipo-letter.html#_ga=2.187468008.1588571426.1519364786-2123570663.1519364786

            Politi D. (2017, April 8)  Department of Labor Accuses Google of “Extreme” Gender Pay Discrimination, Accessed on http://www.slate.com/blogs/the_slatest/2017/04/08/department_of_labor_accuses_google_of_extreme_gender_pay_discrimination.html

            Baron E., (2017, June7th) Google parent Alphabet gender-pay proposal dead on arrival. Bay Area News Group. Retrieved from https://www.mercurynews.com/2017/06/07/google-parent-alphabet-shareholders-shoot-down-gender-pay-report-proposal/

           MacGregor J. (2017, August 9th). One of Google’s highest-ranking women has answered that controversial memo with a very personal essay. Washington Post. Retrieved from https://www.washingtonpost.com/news/on-leadership/wp/2017/08/09/one-of-googles-highest-ranking-women-has-answered-that-controversial-memo-with-a-very-personal-essay/?utm_term=.4ba3e0d8692a
          O’Brien A. (2018, January 3) Google hit with revised gender pay lawsuit
Accessed from
               Khoreva, V. (2011) Uber's female drivers earn less than men (but it's not what you think). Equality, Diversity and Inclusion: An International Journal; Birmingham Vol. 30, Iss. 3,  233-248 Accessed from http://link.galegroup.com/apps/doc/A526998513/HWRC?u=lirn30069&sid=HWRC&xid=5f41e828. Accessed on 2018, February 14th
             Bort, J. (2017, September 28th). An Activist Investor Praises Apple, And Slams Google, Over Equal Pay For Women Transparency. The Business Insider Accessed from http://www.businessinsider.com/arjuna-capital-slams-google-over-equal-pay-for-women-data-2017-9
              Gibson. Ivanosevch, Donnelly &  (2012) Organisation Behavior Structure and Processus 14, Pp 488-494






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