Google Internal Analysis Did Not Find Any 'Gender Pay Gap'

11 April 2017, 11:33 am EDT By Anu Passary Tech Times
Google released its own gender pay methodology to counter the allegations levied against it by the U.S. Department of Labor. Google asserted that it did not find any gender pay disparity.   ( Justin Sullivan | Getty Images )

In light of gender pay inequality accusations, Google has conducted its own internal analysis and shares that no discrimination exists in the company.

In a blog post, Google vehemently denied the accusations that it pays women less than men, which have been levied by the U.S. Department of Labor.

On April 7, the Office of Federal Contract Compliance Programs at the U.S. Department of Labor accused Google of "systemic compensation disparities" against the company's female workforce.

Janette Wipper, the Regional Director of Department of Labor, testified at a court hearing that the agency found gender pay discrimination at Google. However, Google claimed that the Department of Labor did not have any evidence to back its assertions.

Google's Stance On Pay Equity

On Tuesday, April 11, Eileen Naughton, Vice President of People Operations at Google, addressed the pay equity issue via a blog post in an attempt to clear the air.

Naughton stressed that equal pay is and has been a major issue in not just Silicon Valley-based companies, but across all industries. She asserted that Google ensures that both men and women are paid equally for the same role. This is not just at the outset of their career, but throughout their term with the company.

She also stated that to make sure that gender equality is maintained in terms of compensation of labor, Google conducts a meticulous pay analysis every year. This analysis is carried out to ensure that Google's pay packages are in line with the company's promise of equal pay practice.

"So we were quite surprised when a representative of the Office of Federal Contract Compliance Programs at the U.S. Department of Labor (OFCCP) accused us of not compensating women fairly," stated Naughton in the blogpost. Adding "We were taken aback by this assertion, which came without any supporting data or methodology."

Naughton, claims that Google's yearly study on equal pay is "extremely scientific and robust".

Google's Annual Gender Pay Data Analysis Methodology

The Department of Labor did not share the methodology it used to find gender pay disparity in Google. However, the company — possibly to set a precedent — has made public the methodology it resorts to in its payment analysis.

To determine pay equality in its workforce, Google proposes a specific amount as compensation for every employee under its payroll. This suggested amount is based on the job role they hold, the job location, their level, and performance ratings.

The payment amount includes basic salary, equity, and bonus. However, the analysts who calculate this proposed compensation amount are unaware of the sex of the employee, as they do not have access to gender data.

The managers of the employee can adjust this suggested amount, but only to a certain extent. Moreover, they can only do so if they have legitimate reasons to back their stance.

The proposed compensation is then compared with the current payment employees receive for the same job role. The payment model then analyzes existence of possible pay disparities for both men and women.

The most recent pay analysis conducted by Google was in 2016. According to Google, the study was carried out across 52 different job roles and no gender pay disparity was found.

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