src=”https://buffer.com/resources/content/images/2022/03/bannon-morrissy-RmMZUh0Q4MA-unsplash.jpg” alt=”2022 Pay Analysis: Our Unadjusted Gender Pay Gap is Below 1%”>
Our unadjusted gender gap in Buffer’s pay is now below one percent for the first time since we began to analyze the gender pay gap. This number is likely to fluctuate due to team changes but we are proud of this achievement.
Unadjusted is the same as unadjusted. This means we compare all salaries across Buffer. Adjusted refers to comparing two people in the exact same job. We don’t have an adjusted salary gap because we use a salary formula for determining compensation.
Here’s a closer view of our 2022 pay analysis and some elements that we believe have influenced this number.
Buffer’s 2022 Pay Analyse
The number of Buffer teammates has remained roughly the same for the past 12 months. We now have 83. 37 of them identify as women and 46 as men.
The average female salary is $136,850, while the average male salary is $137,418, which results in a unadjusted gap of 0.4%.
Buffer team: 83 persons
Average Salary for Women: $136,850
Average Salary for Men: $137,418
Unadjusted percentage gap 0.41%
*Note: Data from people on our team that don’t identify themselves as men or women cannot be shared because it’s not representative of the population. We’ve decided to exclude it from this report. However, it could change in future reports depending on how we gather data internally.
This is how our unadjusted gender hap percentage looked in 2018:
Our gap grew before it got better in 2019. We have reflected upon this over the years and believe that this is due to the fact that we are a smaller company and each departure and new hire moves our number. In 2019, we hired more women with lower experience levels. We increased our gender pay gap but also improved our overall gender ratio. This was a good decision that we feel has long-term benefits.
Here’s an overview of the gender split in the Buffer team for the past five years.
There is also a lot fluctuation between these pay analyses due to new hires or departures.
It is evident that each month has been very different over the past 12 months.
We have been striving to close the Buffer unadjusted female pay gap for many years. This is a cause for celebration. This goal didn’t seem possible at first, given that Joel, our cofounder and CEO is also our highest-paid employee, and a man. This is possible due to many factors. In the past, we’ve discussed diversifying our workforce and creating a career structure. We believe these changes would have had an impact on the hiring process.
What has changed in the past year?
Buffer is made of several teammates
Every year, the unadjusted gender wage disparity is impacted by departures and hiring.
We hired 24 new colleagues, 11 women and 13 men, starting March 1, 2021.
Departures: We had 25 departures starting March 1, 2021, 15 for women and 10 for men.
Our analysis revealed that 52 percent were more than the average salary across the company, while 33 percent were hired at a higher average salary.
Our executive team is composed of 80% women
Our executive team is the most highly paid members of Buffer and they play a significant role in calculating the unadjusted Gender Wage Gap by comparing all salaries across all Buffer teams.
Our executive team has seen a slight shift in the ratio of women to men over the years. Our executive team now includes all women, except Joel, who is our CEO.
We have adjusted our cost-of-living bands
Buffer uses a salary formula for determining every salary. In April 2020, we made a major change to this formula. We went from having four cost-of-living bands to just two. Joel wrote in his blog post about the vision for location independent salaries that the change resulted was a salary increase for 55 of 85 team members with an average salary increase of $10,265
This is a significant number of Buffer colleagues and a large portion of the team that was affected. The changes were entirely dependent on where you live. Every teammate in the two lowest cost bands was made to move up to the new Global cost-of-living band, while their colleagues in High cost of life remained the same. Overall, 46% of the people whose salaries were increased were women, and 54% were men. However, we had more women in our Low cost of living band than men. This means that their average salary went up more because of this change.
We could have missed other shifts that had an impact on this number but these are the main themes. This number will be affected by every new hire or departure over time. We’ll keep track of this and provide reports as needed.
This pay analysis is published every year because we believe it is the best way for our industry to move towards positive change. We hope others will benefit from our sharing of this journey.
All of our pay analyses from the past are available here: 2021-2020, 2019, 2018, 2017, 2018
Send us your thoughts about equal pay and this pay analysis anytime!
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