[UK and US] Women of colour set lowest salary requirements

[UK and US] Women of colour set lowest salary requirements
13 Feb 2023

New data from Otta - a tech job search platform - has revealed that women of colour provide dramatically lower minimum salary requirements than white men, white women and men of colour, Forbes reports.

Sam Franklin - Otta's co-founder and CEO - said the differences appeared across the board for every role and every level of experience.

When they sign up to the platform, Otta asks job seekers to enter their work preferences, including minimum salary requirements. Dramatic differences reportedly emerged when it came to minimum salary requirements, based on data from 10,000 people who signed up for the job search site in December 2022. 

Women of colour reportedly entered 40 per cent lower minimum salary requirements than white men. Men of colour entered 30 per cent lower minimum pay and white women 25 per cent lower minimums than white men.

Otta has previously released data establishing that women choose lower minimum salaries than men, however, the new data makes it clear that the problem is dramatically worse for women of colour. 

Otta reportedly has almost one million users at present. 60 per cent of these users are women, with 25 per cent being women of colour. 17 per cent of users are men of colour. 

The data came from both UK and US users.  Mr Franklin reports that a separate analysis of data from the UK and the US showed similar findings in both countries.

For women of colour, this discrepancy in minimum salary requirements appears to be worsening with time. An analysis of new users’ data from December 2021 - the previous year - revealed that women of colour were setting an average minimum salary preference 26 per cent below that of white men. The discrepancy between the two groups is now 40 per cent. 

Mr Franklin told Forbes his perspective on the growing trend, via email, "The gap increased dramatically in the last 12 months. The market conditions are changing in opposite directions, making it harder for people to know what pay is fair. Inflation is putting upward pressure on salaries, but tech layoffs are putting downward pressure on salaries. Many people look to their network and peer groups to ask what's fair, but that information is becoming outdated. I expect this amplifies biases."

Negin Toosi - a psychology professor at California State University, East Bay and a diversity expert - says Otta's statistics are "disheartening but not surprising." "This is really about who has status in this society, whose work is valued more, and who gets to ask for a larger salary without having to deal with backlash. It's not about something inherent to women or people of color, but how they are treated," she told Forbes via email.

Regarding the minimum salary requirements, Ms Toosi explains, "I believe that for the most part, people tend to use numbers that reflect the previous experiences they've had in negotiations when they've asked for a fair amount. If they've been penalized and told they were greedy, getting above themselves, too assertive, etc., they revise downward. If they've been paid fairly by an organization that practices transparency, they tend to value their skills more."

In fact, research suggests that women can experience backlash when they negotiate too aggressively. Although it is acceptable for men to ask for high salaries in an aggressive manner, the same action is perceived as unfeminine for women. Stereotypes about people of colour only exacerbate this backlash.

Ms Toosi said, "Black women are allowed to be assertive in the 'sassy' sense, but as soon as they are assertive in the promotion and career advancement sense, other people try to push them down. Similarly, for Asian women, there are conflicting stereotypes that people hold about how they can and should behave - either submissive or fierce. But it all comes back to status. Once people try to advance, if their group is seen as low status, they encounter backlash." Once individuals have perceived the backlash, they reportedly adjust their expectations accordingly.

For prospective job candidates, Ms Toosi recommends researching typical salaries in their field and then asking for something "realistic, yet ambitious" while communicating your enthusiasm for the company. 

The onus should not solely be on those who may be mistreated. Companies must treat people with dignity and integrity and monitor pay gaps within their organisations. Mr Franklin recommends prospective employers provide salary ranges on job listings to help minimise this problem.

 

Source: Forbes

(Links and quotes via original reporting) 

New data from Otta - a tech job search platform - has revealed that women of colour provide dramatically lower minimum salary requirements than white men, white women and men of colour, Forbes reports.

Sam Franklin - Otta's co-founder and CEO - said the differences appeared across the board for every role and every level of experience.

When they sign up to the platform, Otta asks job seekers to enter their work preferences, including minimum salary requirements. Dramatic differences reportedly emerged when it came to minimum salary requirements, based on data from 10,000 people who signed up for the job search site in December 2022. 

Women of colour reportedly entered 40 per cent lower minimum salary requirements than white men. Men of colour entered 30 per cent lower minimum pay and white women 25 per cent lower minimums than white men.

Otta has previously released data establishing that women choose lower minimum salaries than men, however, the new data makes it clear that the problem is dramatically worse for women of colour. 

Otta reportedly has almost one million users at present. 60 per cent of these users are women, with 25 per cent being women of colour. 17 per cent of users are men of colour. 

The data came from both UK and US users.  Mr Franklin reports that a separate analysis of data from the UK and the US showed similar findings in both countries.

For women of colour, this discrepancy in minimum salary requirements appears to be worsening with time. An analysis of new users’ data from December 2021 - the previous year - revealed that women of colour were setting an average minimum salary preference 26 per cent below that of white men. The discrepancy between the two groups is now 40 per cent. 

Mr Franklin told Forbes his perspective on the growing trend, via email, "The gap increased dramatically in the last 12 months. The market conditions are changing in opposite directions, making it harder for people to know what pay is fair. Inflation is putting upward pressure on salaries, but tech layoffs are putting downward pressure on salaries. Many people look to their network and peer groups to ask what's fair, but that information is becoming outdated. I expect this amplifies biases."

Negin Toosi - a psychology professor at California State University, East Bay and a diversity expert - says Otta's statistics are "disheartening but not surprising." "This is really about who has status in this society, whose work is valued more, and who gets to ask for a larger salary without having to deal with backlash. It's not about something inherent to women or people of color, but how they are treated," she told Forbes via email.

Regarding the minimum salary requirements, Ms Toosi explains, "I believe that for the most part, people tend to use numbers that reflect the previous experiences they've had in negotiations when they've asked for a fair amount. If they've been penalized and told they were greedy, getting above themselves, too assertive, etc., they revise downward. If they've been paid fairly by an organization that practices transparency, they tend to value their skills more."

In fact, research suggests that women can experience backlash when they negotiate too aggressively. Although it is acceptable for men to ask for high salaries in an aggressive manner, the same action is perceived as unfeminine for women. Stereotypes about people of colour only exacerbate this backlash.

Ms Toosi said, "Black women are allowed to be assertive in the 'sassy' sense, but as soon as they are assertive in the promotion and career advancement sense, other people try to push them down. Similarly, for Asian women, there are conflicting stereotypes that people hold about how they can and should behave - either submissive or fierce. But it all comes back to status. Once people try to advance, if their group is seen as low status, they encounter backlash." Once individuals have perceived the backlash, they reportedly adjust their expectations accordingly.

For prospective job candidates, Ms Toosi recommends researching typical salaries in their field and then asking for something "realistic, yet ambitious" while communicating your enthusiasm for the company. 

The onus should not solely be on those who may be mistreated. Companies must treat people with dignity and integrity and monitor pay gaps within their organisations. Mr Franklin recommends prospective employers provide salary ranges on job listings to help minimise this problem.

 

Source: Forbes

(Links and quotes via original reporting)