How the job market has changed! While “hiring top talent” has always been a priority for great places to work, only in recent years has the market for talent been so challenging that it has caused a sea change in business strategy overall. Companies that are mindful about their culture, pay policies, and employer branding have a tremendous advantage. GoDaddy provides a strong example.
In the wake of disappointing diversity numbers from tech giants, encouraging women in technology has become a movement. As employers examined their cultures, pay practices, and employer brands, many found that for a multitude of reasons their companies were not especially welcoming to women. GoDaddy was no exception. Their past male-oriented, sexy brand image from its early days had spilled over into their employer brand even after the company shifted its marketing style in 2013, potentially discouraging current female applicants. The strategic changes that were made two years ago are showing results, and now, CNN Money reports that overall, women at GoDaddy actually make slightly more money than men.
While GoDaddy is a pioneer in the practice of measuring and publishing the salary differential between women and men, tech giants like Google, Facebook, Apple, and Microsoft have committed to making their workplaces more female-friendly. They have to – they can’t afford to maintain cultures that are anything short of awesome for a demographic comprising half of the U.S. labor force.
Most hiring managers and CEOs we know would love to increase their female tech talent pools. Why, then, is salary disparity such an issue in many companies?
GoDaddy has made paying women equitably a conscious choice. Many companies, however, still continue the practice of calculating offers on the basis of what candidates made in their last positions. Since women have typically made less than men in the past, that lower pay is carried on to new salaries for females. Thus, some companies perpetuate the gender salary gap – “paying it backwards,” as GoDaddy calls it. Unlike the pleasant surprise at the Starbucks drive-through when someone pays your bill, this form of “paying it backwards” has the effect of dampening salaries for women across the board.
In a world where employees have their bags packed and stowed under their desks, it’s imperative to pay fairly, not pay it backwards. What can you do to be sure your company is on track?
- Create offers based on the market and your positions, not what candidates made in the past. Your compensation strategy should be well thought out and based on what your company needs, not what other organizations decided to pay two years ago.
- Make sure your employer brand represents you in a way that makes you stand out as a great company. If you aren’t growing your brand as a top employer, you’re falling behind with top candidates.
- Continually focus on your culture so your employees’ experiences are congruent with your employer brand. Employer brands must be genuine or they will fail.
GoDaddy is blazing a trail resulting in real change in the gender pay gap. More companies should take notice. And if you’re a job seeker, take a look at GoDaddy– learn more about their culture, benefits and open positions here.
About the Author
Lee Vikre – Hiring Jedi
A workplace culture maven, writer, and speaker, Lee Vikre has helped numerous companies develop “best company” cultures, gaining recognition at the local and national level. Lee has been called the Jedi Master of hiring because of her exceptional recruiting abilities and friendships with people who love Star Wars. Her favorite activities involve matching people with their dream jobs at award-winning best companies. Lee coaches CEOs but still hasn’t been able to train her three dogs not to bark during conference calls.