This memo provides a statistical analysis about salary differences between employees with minority and non-minority status. I’ve been asked to provide such analysis because there are allegations of discrimination against minority employees at Safecorp. The analysis is important because it provides evidence to determine whether the allegations are true or not. This study is based on multiple characteristics that relate to the average salary of employees with minority and non-minority status. Such characteristics are employee’s sex, number of years working for Safecorp, employee’s position at Safecorp, and highest grade completed in formal education. These characteristics must be examined for their connection to the annual salary of employees …show more content…
On average, the employees with non-minority status get an average annual salary of $14,618.74 more than employees with minority status. According to the statistical tests, the average annual salary of minority employees is $57,427.88 a year while the average annual salary of a non-minority employee is $72,046.62. This represents a 25% difference between the average annual salaries of both groups (Table 2, Appendix A). In addition, on average minorities get paid less than the total average salary at Safecorp, which equals to $68,839.14 (Table 3, Appendix A). In the next section I will provide a deeper analysis to discover how other factors influence annual …show more content…
At Safecorp there are more males than females. This is true for both employees with minority and non-minority status. Also, when looking the positions held at Safecorp, the results find that out of the total managerial positions held, only 4.8% are minorities. Out of the total clerical positions held, only 24% are minorities, while out of the total custodial positions 48.1% are employees with minority status. Additionally, the total workforce at Safecorp is composed of 21.9% minorities and 78.1% of non-minority employees. In terms of education, minorities have less average grades completed in formal education (Table 2, Appendix A). Minorities have a bigger impact on their salaries due to all these characteristics being less on average than non-minority employees. The biggest impact on salary differences is the fact that non-minorities hold more managerial positions, which is the position that pays the most on average (Table 3, Appendix A). When we consider all these factors we can see the potential reason for the salary differences amongst employees with minority and non-minority status. However, we must now test if there is discrimination when we examine an employee with minority and non-minority status that have the same sex, position, education, and years working for
The remaining explanations of gender-based wage differences fall under the umbrella category of discrimination. Employer preference discusses the ways in which employers differentiate between potential employees based on noneconomic factors such as physical appearance. Statistical discrimination uses the ways in which employers stereotype groups of people and therefore avoid hiring certain people because of their association with a typical group. This plays into the gender-based wage gap because employers tend to view women as the group they are a part of – the female popula...
Institutions in the businesses sector are swarming in racial discrimination, much of which is covert and difficult to detect and prove. Racial discrimination excludes, marginalizes and exploits those citizens who are discriminated against, ceasing any opportunity for economic progress and development. Under certain regulations some businesses are required to diversify their workplace by hiring certain amounts of people of color, but in reality these small quotas do not do much for the overall condition of the people who are being discriminated against. Businesses that fail to take action on racial discrimination tend to have lower levels of productivity. This stems from employees not being interested in working hard, or because people with exceptional talents and skills choose to shy away from certain places of employment due to the fear of racial discrimination. Employees who feel wronged also tend to switch jobs, forcing the organization to spend more time and resources on hiring and training new employees, besides coping with the low productivity of a new employee. (Nayab)The effects of racial discrimination in the American work force could be identified with funded research on the topic. With ample data employers will be able to better understand the negative affects that racial discrimination have
The reality of wage differences between men and women is that above all changes women continue to earn less than men. Countless arguments have promoted that wage inequality has changed and that everyone finally receives an equal amount of pay. “For women of color, the gap is largest of all: In 2006, black and Hispanic women earned 86 and 87 cents on the white man’s dollar, respectively,” (Mcswane 2). If a woman is lucky enough she will get an equal pay compared to a man doing the same job. But it is challenging for a woman of a minority background to achieve this. Not only are women paid less because of their sex, but also because of their race. There seems to be a mentality that because someone is a woman and a minority that they cannot do the same job as men or that women do not have the same education as the men, so employers do not have to pay them the same. “When the numbers are broken down by district, they 're pretty hard to ignore. Women in Texas are being utterly screwed financially, according to the data compiled by AAWU, with women earning anywhere from 66 percent of what men do in some districts, to the top end of things, which is about 89 percent,” (Leicht 4). The proof cannot be ignored. It i...
An increase in minority employment in healthcare organizations has increased, but there lacks an increase in positions of leadership and management. Those positions that have increases are lower level positions of the hospital such as janitors and cooks that are very well still important, but do not play a role in leadership and management. These positions do not require an educational or leadership background. The problem that healthcare management is facing is the lack of diversity in leadership there are very few minorities who have positions as chief executive officers (CEOs), health service managers, and healthcare support employees. The percentage of CEOs are 11.7%, health service managers account for 21.5%, and 43.6% of healthcare support employees are a minority. Whereas, minorities who hold maids and housekeeping cleaners positions are 62.3% which is more than any other position (Gabor 2008). To change these percentages, minorities need to become more educational involved in healthcare and leadership by receiving degr...
Diversity refers to the ways people differ from each other. These ways are significant and plentiful. Culturally, people vary in gender, age, ethnicity, race sexual orientation, educational background, religion, lifestyle, as well as veteran and/or immigrant status. Functionally, people vary in the ways we think, learn, process information, respond to authority, show respect and reach agreements (Pollar & Gonzalez, 2011.)
Women face discrimination in the workplace. Discrimination is defined as a behavioral activity is exhibited in how people treat members of other groups and in the decisions they make about others. In chapter 3 Race and Ethnicity in the United States discusses how discrimination not only effects positions in companies it also affects pay rates. Income is drastically different when it comes to men and women and only gets worse for women who are minorities. These women have broken through the glass ceiling in their corporations. “In 1991 the Glass Ceiling Commission was formed to help women and minorities, fight their derrepresentation in the workplace”. With this article and with research that is being done women are starting to break the glass ceiling that is holding them down. Women account for only 2.2% of Fortune 500 companies CEO roles. The number is shockingly low, less than 15 companies have women CEO’s in the 500 companies we look at that best fit our country’s
In relation to workplace discrimination, wages rank among the issues that affect working Asian-Americans. According to ChangHwan Kim and Author Sakamoto, Asian Americans earn 8% lower wages compared to their White counterparts. Furthermore, they also found out that education did not significantly improve the wage earning situation for Asian Americans. Asian American males with college degrees still earn a lower wage compared to a White male with a similar level of education. Although the 8% difference may not seem to be much, it is a clear indication that racial discrimination for Asian Americans still exists through wage rates (Charles and Guryan 509).
But progress has stalled in recent years” (Hill, 3). The equal pay gap percentage varies from study to study, ranging from as high as 79% to as low as 21%. But no matter the percentage, the gap is still there. Education is not a factor in the reasoning behind the pay gap, however it is not the solution either. In the modern workplace, men and women are salaried at different wages, even if both the man and the woman have the same educational background. Often times, even if the woman has more of an educational background than the man, the man is recompensed more. Although the woman has a bachelors degree, and the man only has a high school diploma. In some cases as well, the higher the education, and the higher the job, the wage gap is even larger the majority of the time. Even still, if a Hispanic women and black women have the
Sex or gender discrimination is treating individuals differently just because an individual is a female (woman) or male (man). One issue in today’s job market is gender stereotypes in the workplace and hiring. Gender plays an important role in the workplace. Gender stereotype play a large factor in the workplace. It is evident that females, when compared to males in the workplace, take more subservient roles. Gender stereotypes in the workplace stemmed from the assumption that women belong at home taking care of the children, while men work and make money to support the family. Despite reductions in blatant forms of discrimination, women continue to experience subtler forms discrimination, such as having their input in groups ignored and having their performances devalued (Ridgeway and Correll 2004; Valian 1999). Although many presumes that gender stereotypes targets women, there are just as many stereotypes geared toward men. Both men and women have legal protection against gender discrimination in the hiring process or workplace. Gender stereotypes do exist and influence perceptions of both men and women in everyday life. Sometimes gender bias in job descriptions can deter women that qualifies for the job from applying for the positions. There were many studies that proved that gender and racial biases can affect how employers evaluate potential candidates’ applications, leading employers to favor white male applicants more over equally qualifies women and people of color. The impact of gender bias in the hiring process is implausible. For example, in a double-blind study, science faculty members were asked to evaluate a fictitious student application who was randomly assigned a male or female name for a laboratory manager position. The applicants name was either John or Jennifer. Although both applicants had the same qualifications and experience, the results from the study showed that the faculty members
Decreasing the disparity among whites and people of color eventually leads to higher productivity, stronger work ethic, and better team functioning. “Diversity enhances and affects group performance in diverse teams” (Van Dijk, et. al., 2013). As stated by researchers Winfred Arthur, Jr. and Dennis Doverspike, to have a diverse and successful working environment, employers and business leaders should work on limiting the role they play in privilege and accept more applicants from minority backgrounds (2005). According to researchers at the Texas A&M University and the University of
Nowadays, most women remain unaware that their employers underpay them. Women cannot argue for higher wages if they do not know they earn less than their male equivalents. Each employee sharing their salary will allow women to detect if they are earning less than their male colleagues with little difficulty. This will give women the tools needed to argue for a higher pay rate, and will help lower the wage gap. If a female worker goes to her boss with statistical evidence that she earns less than her male associates, the chances that her boss will award her a higher salary significantly increase. The law will make it almost impossible for companies to pay their male workers more than their female workers (Glynn para. 7). Furthermore, a law requiring employees to share their salaries will bring to light other forms of wage discrimination. The wage gap not only represents gender discrimination in the workplace, it also reflects the ongoing issue of racial discrimination. While white women do typically earn less than white men, they out earn the majority of female colored workers in America. The average African American female makes only 64 cents for the white man’s dollar. Additionally, Hispanic women receive only 54 cents to their white male coworker’s dollar (Hegewisch para. 9). If women of color become aware of how little they earn compared to
The study consisted of 5000 fictitious resumes sent out to over 1300 job opportunities in Chicago and Boston. The resumes were highly diversified, some of high quality, some of low quality, some with “White-sounding” names, and some with “Black-sounding” names. The conclusion of the study was no surprise; as white-sounding names received superior results. Whether conscious or not, employers do discriminate based on ethnicity. White-sounding names are 50% more likely to receive a call back from employers than Black-sounding names, regardless of the type of occupation being pursued. High-level occupations, -the managerial and executive category- showed the lowest racial gap of only 33%! The highest racial gap of 64% occurred in low-level jobs. Oftentimes, these were “equal opportunity employers.” Furthermore, discrimination is even greater for African-American females than it is for African-American males. “The lowest scoring callback rate of black female names was 6.1 percentage points behind the lowest scoring white female name.” Many blame labor market discrimination as the cause to why African-Americans are almost twice as likely to be unemployed than White Americans. It could also be why African-Americans earn an average of 25% less than White Americans.
America is often referred to as “The Melting Pot” of the world. With this appellation, it is not wrong to assume that the U.S. has one of the most diverse cultures. Conversely, a majority percentage of people in America would disagree with this sentiment and argue that the U.S. is comprised of many subgroups. These subgroups vary based on race and skin color and are hardly “melted” together. This apparent racial divide is very common in many American corporations as well. Management researchers have found that maintaining a racially diverse workforce has been proven to have many important benefits within a corporation. For example, having a racially diverse workforce can help match the culture of the customers in the economy to build trust, provide new and differing insights, and right some of the wrongs caused by racism and sexism in our society. Facilitating diversity is not easy, and many organizations have encountered challenges from attempting to do so. Fortunately, there actions that organizations can take to overcome these challenges in order to make diversity a reality.
What exactly is workplace discrimination? (Statistic) It can be defined as a less favorable treatment towards an individual or a group of individuals at work, usually based on their nationality, skin color, sex, marital status, age, sexual orientation, or other defining attributes. It can appear as a denial of certain rights, negligent treatment, deliberate harassment or work results and achievements, and so on. A person can be discriminated by their coworkers or by the employer. Thesis: Gender inequality in the workplace is an ethically historic and significant issue which requires adequate solutions because it leads to unethical discrimination of women, minorities, and those who are members of the LGBT community. As a rule, discrimination
Discrimination in workplaces is a prevalent issue that is much discussed about all around the world. Gender biasness has become a norm in our everyday life almost in every part of the world. Even the developing countries are not spared from its occurrences but the numbers of cases are lesser as compared to those in the developing and least developed countries. There are different forms in which discrimination may be evident at workplaces. Workplace discrimination is defined as giving an unfair advantage or disadvantage to the members of the particular group in comparison to the members of other groups. This can be exemplified by the wide earning gap that is observed as a universal trend between the average monthly earnings of a men and women. A woman's average page would be consistently lower than a man's. Individuals with equal productivity receive different amount of wages and its is seen to be systematically correlated with certain non-economic characteristics like gender, which would be further discussed in the essay. Despite notable changes in work, meaningful differences in ...