September 24, 2023
Salaries and hourly wages are determined by many factors. These include: industry, location, function, experience, education, scope and complexity of job, performance, potential, and the financial strength of the organization. Please note that gender and race are not on the list.
Many companies have pay/salary bands and wage classifications. These are used for hiring and progressions and work well. But the aforementioned factors play the dominate role. You never want to work for an organization where everyone is paid the same. Just ask teachers. Many teachers have complained to me that strict adherence to pay bands leads to demoralization. Art teachers and gym teachers make the same pay as English teachers and math teachers, but do not have the homework and often tests to grade.
Equal pay for equal work is a myth. With the exception of the lower skilled hourly jobs, there is no such thing as equal work. Two accountants hired on the same day might begin work with roughly the same pay, but over time their pay will differ based on performance, job complexity, potential. etc.
Some studies have shown that men are paid slightly higher than women. But those studies do not reveal the reasons for that pay difference. Here are those reasons:
Men often work in the more dangerous and physically demanding industries like logging, energy, mining, construction, heavy manufacturing, steel, road and bridge construction, trucking, HVAC tech, etc.
Typically, men have been working longer. A male warehouse supervisor with 25 years experience should make more than a women with 5 years experience.
Many men have education in STEM and those jobs pay more. However, that divide between men and women has narrowed to almost nil.
Large numbers of women typically work in education, childcare, clerical roles, retailing, medical records, etc.
Women typically leave the work force for family reasons. Childcare, medical care, etc. When this happens, women get behind in pay because their experience and perhaps skills are lessened.
lastly, large numbers of women are single parents. These women have childcare duties and thus, often work part-time.
High Truths and Low Lies 