14 DAY TRIAL // Google is having none of those accusations about the "systemic compensation disparities" it has been accused of by the Department of Labor. Its explanation is simple - its pay model prevents such discrimination.
After news surfaced about the US Department of Labor saying in court that Google is paying men differently than women holding the same position, Google took to the Internet to protect itself. In a new blog post, the company says it has a rigorous process in place that seeks to make sure employees are paid equitably regardless of their gender.
Back in January, Google was sued by the Department of Labor to release data regarding salaries and other documents the company had refused to provide. Then, last week, the Department of Labor said that women at Google face systemic compensation disparities, which was surprising news for the company.
Google explains its system
Google's VP for people operations Eileen Naughton says the company was quite surprised by the allegations, especially since this assertion comes without any supporting data or methodology. "The Office of Federal Contract Compliance Programs at the US Department of Labor (OFCCP) representative claimed to have reached this conclusion even as the OFCCP is seeking thousands of employee records, including contact details of our employees, in addition to the hundreds of thousands of documents we've already produced in response to 18 different document requests," Naughton writes in a blog post.
To clear things up a bit, she goes into detail about how compensation is set at Google. Every year the company suggests an amount for every employee's new compensation, consisting of base salary, bonus and equity. It's all based on role, job level, job location, as well as current and recent performance ratings.
"This suggested amount it 'blind' to gender, the analysts who calculate the suggested amounts do not have access to employees' gender data. An employee's manager has limited discretion to adjust the suggested amount, providing they cite a legitimate adjustment rationale," Naughton writes.
Google performed its most recent analysis regarding its employees in late 2016 and found no gender pay gap.