Gender Pay Gap in Tech: Why It Persists and How to Fix It

The tech industry thrives on innovation, yet the gender pay gap in tech remains a persistent issue, with women earning less than men across various roles. Despite strides toward inclusivity, this gap remains a stubborn barrier, limiting women’s financial security and career advancement while reducing the industry’s talent pool.

Factors like salary inequality, unconscious bias, and lack of mentorship hinder progress. Addressing these challenges is crucial to creating pay equity and fostering true gender equality in technology. This article delves into the gender pay gap in tech, its causes, impacts, and actionable solutions.

What Does the Gender Pay Gap In Tech Look Like?

The gender pay gap refers to the difference in earnings between men and women in comparable roles. In tech, the gap persists even when factors like education, experience, and job function are accounted for.

FAQs About the Gender Pay Gap in Tech

Key Statistics

The United Nations just released its latest Gender Snapshot report (worth a read!). But when it comes to tech talent specifically, software companies have these stats to digest:

While a gap of 7-8% may seem modest, it translates to significant disparities over time, particularly as compounded raises, bonuses, and equity are factored in.

Impacts of the Gender Pay Gap

Causes of the Gender Pay Gap in Tech

Several intertwined factors contribute to this disparity:

1. Unconscious Bias

Despite diversity initiatives, unconscious bias continues to shape hiring, promotion, and salary decisions. Women are less likely to be seen as leaders, resulting in fewer promotions to high-paying roles.

To learn how to fight this, read our Antibias: How the Best Tech Leaders Make Teams Inclusive, Innovative, and Effective article.

2. Negotiation Gaps

Research shows that men are more likely to negotiate salaries and ask for raises. This disparity in negotiation behavior exacerbates the pay gap.

3. Career Interruptions

Women are more likely to take career breaks for caregiving responsibilities. These interruptions can lead to slower career progression and lower lifetime earnings.

4. Underrepresentation in High-Paying Roles

Women remain underrepresented in lucrative fields like AI, machine learning, and software engineering. Without equitable access to these roles, the gap persists.

How to Close the Gender Pay Gap

Organizations and individuals can take several steps to address the gap:

1. Transparent Compensation Practices

Publishing salary bands and conducting pay audits can ensure fair compensation across the board. For instance, Salesforce has implemented annual pay equity audits, allocating over $10 million to close gaps since 2015.

2. Bias Training for Managers

Educating managers on unconscious bias helps them make fairer hiring, promotion, and salary decisions. Companies like Google use structured interviews to reduce subjectivity.

3. Mentorship and Sponsorship Programs

Programs connecting women with experienced mentors and sponsors can fast-track their career advancement. Studies show that women with mentors are more likely to hold leadership roles. (For inspiring examples, check out our profile on Grace Hopper and list of Female CTOs.)

4. Negotiation Training

Providing negotiation workshops equips women with skills to advocate for themselves effectively. Organizations like Lean In offer resources to build confidence in these conversations.

5. Support for Career Reentry

Companies can create programs for women returning to the workforce after career breaks. Initiatives like Returnships help women regain footing in high-demand roles.

Competitive Compensation in the US goes far beyond salaries.

Leveraging Technology to Bridge the Gap

Tech companies can use their own tools to tackle this issue. For instance:

• AI-Powered Pay Analysis: Platforms like Syndio analyze pay data to identify and correct disparities.
• Diversity Analytics: Tools like Diversio track demographic representation and highlight areas for improvement.
• Structured Performance Reviews: Automated systems reduce subjectivity in performance evaluations.

Success Stories: Leading the Way

Several companies have taken significant steps toward pay equity:

1. Salesforce: Annual pay audits and adjustments have closed gender pay gaps across their workforce.
2. Intel: By setting measurable diversity goals, Intel achieved full pay equity in 2019 and continues to monitor progress.
3. PwC: Transparent salary reporting and unconscious bias training have reduced disparities company-wide.

Closing the Gap Together

The gender pay gap in tech is not just a women’s issue—it’s a challenge for the entire industry. Achieving pay equity requires bold action from leaders, employees, and society at large. Transparent practices, mentorship, and technology-driven solutions can close the gap and unlock the full potential of the workforce.

Ubiminds is here to help tech companies build diverse, high-performing teams. By fostering inclusivity and equity, we empower businesses to thrive in today’s competitive landscape. Let’s work together to bridge the gap!

Scheila Farias Silveira

International Marketing Leader, specialized in tech. Proud to have built marketing and business generation structures for some of the fastest-growing SaaS companies on both sides of the Atlantic (UK, DACH, Iberia, LatAm, and NorthAm). Big fan of motherhood, world music, marketing, and backpacking. A little bit nerdy too!