Economic volatility reverses DEI progress, says Hired
CALIFORNIA, UNITED STATES — The current state of the global economy is reportedly reversing efforts to address diversity, equity, and inclusion (DEI) in the workplace.
According to AI-driven marketplace for tech and sales talent Hired, 20% of surveyed organizations dialed down their DEI measures due to economic strain. Another 12% admitted that their DEI programs are at risk if economic conditions persist.
Hired’s study also emphasized the role of the “expectation gap” in maintaining wage inequality. Lower salary expectations often result in lower wages, a trend particularly noticeable among women.
The wage gap between white males and underrepresented groups is evident, with Hispanic men and women, and Black men and women earning less on the dollar compared to their white male peers.
Bias also remains in many organizations, with the gender wage gap widening with experience, and women often finding themselves disadvantaged in salary negotiations due to a lack of compensation insights.
However, the report also revealed that salary transparency laws could be instrumental in mitigating wage inequality. Regions like the San Francisco Bay Area, Los Angeles, and New York City that enforced such laws witnessed a positive shift in wage and expectation gaps.
Remarkably, in the Bay Area, the wage gap reversed from $0.95 to $1.02 after such legislation.
Hired’s CEO, Josh Brenner, implores companies to maintain DEI hiring practices and wage transparency to ensure pay equity in tech, especially during economic volatility.
Hired’s latest report contains proprietary data from the firm’s platform and survey data from 229 tech hiring leaders and 1075 tech employees and job seekers.
