Diversity, equity, and inclusion (DEI) matter. By now, it is common knowledge that integrating DEI into your culture and policies bolsters workplace productivity and employees’ sense of belonging. Despite this, many companies struggle to achieve equal representation and compensation for all.
Given the ongoing demands for racial justice, the call for pay equality is more urgent than ever. And the tech industry is well poised to lead the way into a fully equitable workforce.
We’ve seen leaders from Twitter, Starbucks, Asana, and others share their company’s demographic data. Companies’ willingness to share their data (and attach DEI goals to executive compensation) demonstrates their commitment to addressing DEI issues. It’s a powerful way to take accountability for existing gaps and plan for future progress.
But before companies can share their plans for progress, they need to know where they stand. Unfortunately, most companies don’t have the tools they need to collect and analyze their data. ChartHop is here to fix that.
ChartHop delivers real-time insights for companies eager to own their people data and make strategic business decisions that affect everything from compensation reviews to location-based salaries. And DEI informs this work at every step of the way.
You can’t change what you don’t know
Manual DEI data collection and analysis takes up valuable time and resources. Even in today’s digital world, employee data is often dispersed across many different tools. This results in fragmented data sets and an uncoordinated people strategy.
Further, many HRIS systems don’t track important aspects of people’s identities. Outdated systems are unable to capture important information, such as gender for Non-binary people. This makes it impossible to truly understand where you have gaps, and make a plan to address them.
ChartHop’s platform centralizes your people data with seamless integrations. This means that your data can move out of spreadsheets and into visually rich charts that makes analyzing DEI metrics efficient and easy. The goal is to automate busy work so HR and People teams can spend their time on what matters most, their people.
If you can measure it, you can manage it
ChartHop just shared its first annual Charting Better Workplaces report that shows data in action. The report is the first of its kind to look at both salary and equity across department, level, and gender. This comprehensive analysis delivers key insights into where the roots of pay inequities lie.
This report found that within the last two years, the gender wage gap has decreased from 30% to 22%. While this is promising, women are still taking home a wage that is disproportionate to their representation in the industry. And salary doesn’t tell the full story.
To understand what continues to drive the wage gap in the tech industry, we need to look at equity. On average, men have 63% more ownership in a company than women and while women make up 40% of owners they only own 21% of the shares. How does equity distribution at your company impact overall earnings?
To really improve diversity metrics, companies need to track demographic factors like gender, race, and sexual orientation across leadership, compensation (both salary and equity), performance reviews, and department/level. ChartHop makes this easy with people analytics. This granular level of detail paints a full picture of the people who make up the team in real time. Leaders can know within seconds if members of any particular demographic group are among the lowest paid and lowest ranking in the org. And then make a plan to fix it.
To understand the impact data can have, take a look at engineering teams. As a field dominated by men, engineering has historically lacked gender representation. This led to industry leaders demanding change — and it worked. In the report, ChartHop found that engineering departments made the biggest improvement in closing the gender wage gap over the last couple of years. The average man in engineering makes 7% more than women, compared to 22% across the tech industry as a whole.
Public sentiment, awareness, and dedicated action are driving these positive trends. For this progress to last, companies need robust data tracking that shows a visually rich and transparent picture of their orgs. Data helps define success and set measurable, tangible goals.
Measure twice, cut once
Lack of robust planning tools perpetuates the wage gap. Among the report’s more shocking findings is that the wage gap between White and BIPOC (Black, Indigenous, and People of Color) employees increased over the last year. The gap went up by 6% to a total of 24% in 2020. Knowing this, goals need to be set to achieve equal pay.
Good data practices won’t just help fix mistakes that have already been made, but can help prevent them before they take place. Armed with visually rich data, hiring managers can identify immediately if a proposed salary offer to a Person of Color is lower than the average White employee at the same level. Those real-time insights provide opportunities to make updates with equality front of mind.
Make informed decisions on salaries, bonuses, and promotions with ChartHop’s compensation planning tool. Instead of waiting for an annual audit, users can chart out salary changes alongside a candidate’s performance reviews and set guardrails to reduce bias. ChartHop takes the guesswork out of compensation planning and delivers strategic insights for your business and your people.
Achieving equal pay
Accessible and transparent data could be the missing link that helps HR and People leaders build diverse and inclusive teams. Here are some ways ChartHop can help company address wage gaps:
- ChartHop’s DEI reporting can help track employee data across multiple dimensions such as race, gender, department, and title.
- With ChartHop’s compensation planning tools leaders can build guardrails around compensation and promotion reviews — and understand the impact of proposed changes before they go into effect.
- Using ChartHop’s people planning tools, managers can build clear pathways to management for BIPOC, women, and gender Non-binary people.
Data can be a valuable tool that helps uncover biases in hiring and compensation decisions. Beyond that, data can provide insights that help companies build concrete steps towards addressing pay gaps. It’s time to work together to build the workplace of tomorrow.