July report reveals salary differences in the United States
SAN LEANDRO, Calif. – August 13, 2014 – TriNet (NYSE: TNET), a leading cloud-based provider of HR services, today announced the findings of its July 2014 issue of TriNet SMBeat, a monthly analysis of small to medium-sized business (SMB) employment and human capital economic indicators. July’s SMBeat features an analysis of specific gender trends in salaries and workforce composition across different industries in the United States. Among other findings, the report highlights that during the first quarter of 2014, women on average earned 83 cents for every dollar a man earned.
Over the past century, the United States has enacted legislation requiring workers to be paid equal amounts for equal work, regardless of gender and race. And just this year, President Obama signed a Presidential Memorandum instructing the Secretary of Labor to establish new regulations requiring federal contractors to disclose compensation data by race and sex to the Department of Labor. It is expected this data will enable the Department of Labor to encourage compliance with equal pay laws and target enforcement more effectively. Despite these efforts, there is still a significant earnings gap between men and women in the United States.
Below are key findings of the July 2014 TriNet SMBeat Report. The data is sourced from TriNet’s over 9,000 clients and more than 258,000 worksite employees in the U.S and the Bureau of Labor Statistics:
On average, the annual salary in 2014 for workers across all industries in the United States was found to be $45,084 for men and $37,232 for women, amounting to an 83% salary gap.
When looking at the variation across executive level employees, the median base salary gap was 85%. Men in these positions made median base salaries of $175,000 while women make $148,980. Though, men held 85% of these executive jobs.
For the financial services industry specifically, men earn median base salaries of $90,964, while women earned just $50,000. However, there was a more balanced ratio of men to women in this sector, with 57% men and 43% women. The financial services sector had the largest gender salary gap for executives, with women earning 69% of men’s median base salary, or $175,000 compared to $120,000.
Breaking financial services salaries down by region, women earned 71% of what men earned in Los Angeles, $50,648 median base salary compared to $71,512 respectively. In New York and the San Francisco Bay area, the finance sector showed an even larger gap as women earned 62% of what men make.
In the tech sector, the median salary gap was 67%. Men earned a median $105,000 and women earned $70,000 in annual base salary. The tech sector executives had the most equitable base salary across all verticals. Female tech executives earned $164,008 compared to $169,173 for men.
By region, New York was the most equitable of the major cities considered in the report, with women representing 33% of the workforce with a salary gap of 70%.
In the San Francisco Bay Area, women in tech earned higher median base salaries than women in the other cities, with average wages of $84,131.
In addition to the findings on the salary gap, below are the key findings on economic employment indicators across TriNet’s clients in July:
Net job growth overall moved to 2.11%, increasing from June’s growth of 2.04%.
The technology sector saw 3.52% net growth, up from last month’s growth of 3.24%. The Atlanta Metro Area led the tech sector with 5.89% net job growth, surpassing Los Angeles, New York, Denver-Boulder, Silicon Valley and Boston area.
The financial services sector has been steadily growing this year, but July’s growth of 1.06% was slower than in previous months. The New York Metro Area led this vertical with 1.34% net job growth in July. The Dallas-Fort Worth and the Los Angeles Metro Areas also grew though not as strongly as New York, with 0.45% and 0.30%, respectively.
TriNet is a leading provider of a comprehensive human resources solution for small to medium-sized businesses, or SMBs. We enhance business productivity by enabling our clients to outsource their human resources, or HR, function to one strategic partner and allowing them to focus on operating and growing their core businesses. Our HR solution includes services such as payroll processing, human capital consulting, employment law compliance and employee benefits, including health insurance, retirement plans and workers compensation insurance. Our services are delivered by our expert team of HR professionals and enabled by our proprietary, cloud-based technology platform, which allows our clients and their employees to efficiently conduct their HR transactions anytime and anywhere. For more information, please visit http://www.trinet.com.
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