Tuesday March 05, 2019

Google Pay Equity Analysis Results in $9.7 Million in Adjustments

In 2018, Google included 91% of Google employees in its annual pay equity analysis that covers all job groups that meet minimum n-count thresholds for statistical analysis. Google's annual compensation planning process includes modeling algorithmically each employee's compensation based on work-related inputs like the market rate for their job, their location, level and performance rating. This allows the company to equally compensate employees equitably across gender and racial lines. Any significant discrepancies are handled with a pay raise as compensation.

Google made $9.7 million in adjustments to 10,677 Google employees after the 2018 analysis. The main group that was flagged to receive adjustments were men in the Level 4 Software Engineer career. Google said men received less discretionary funds than women in that career path. 49% of total dollars spent on adjustments went to new hires. Google's next goal is to create a leveling equity analysis to assess how employees are leveled when they are hired and improve how they level. The Washington Post says Google is embroiled in a lawsuit that alleges the tech giant discriminates against women.

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Our pay equity analysis ensures that compensation is fair for employees in the same job, at the same level, location and performance. But we know that's only part of the story. Because leveling, performance ratings, and promotion impact pay, this year, we are undertaking a comprehensive review of these processes to make sure the outcomes are fair and equitable for all employees.