PALO ALTO, Calif., Feb. 28, 2017 (GLOBE NEWSWIRE) -- Paysa, the only platform that uses artificial intelligence (AI) to deliver personalized career and hiring recommendations plus real-world salary insights, today announced the results of a new study, revealing the 10 worst cities and companies when it comes to undercompensating their employees (according to market value) by at least 10 percent or more. The study considered base salary, equity and bonus pay.
To create this and an earlier study, revealing that more than one-third (nearly two million people) are underpaid by 10 percent or more, Paysa examined more than five million resumes of tech and engineering professionals and found that the pay gap can be significant. Considering that the average salary for a software engineer is $112,000.00, this translates into a minimum of $11,200.00, per person, per year in lost wages. Considering the total number of people underpaid by this amount, as found in the study, this translates into more than $20 billion in lost wages for employees, which these companies kept for their own profits. These lost wages represent a significant negative impact to local economies since these employees did not have this money to spend locally.
In addition, per this earlier Paysa research, within the next six months, seven percent of all tech and engineering workers across the U.S. will be due for a promotion with a salary increase of $17,756.00, on average.
Where do employees have the greatest likelihood of being undercompensated? According to this latest study, the top five cities are Seattle, Boston, San Francisco, San Jose and Los Angeles and the top five companies are Accenture, Glassdoor, Pinterest, Microsoft and Dropbox. The same study also shows that women in markets across the U.S. are 45 percent likely to be undercompensated while their male counterparts are only 38 percent likely to have the same experience.
Overall, the Paysa research shows that younger workers or those with only 0-2 years-of-experience are 42 percent likely to be underpaid, indicating that the more junior an employee is in terms of years-of-experience, the greater propensity they have to be taken advantage of in terms of not getting compensated according to market value. At the same time, those with 2-5 years of experience are 44 percent likely to be undercompensated and employees with 20 years or more under their belts are only 24 percent likely to be affected by a gap in pay.
On the flip side, the 10 companies least likely to undercompensate their tech and engineering talent include Intuit, Amazon, WalmartLabs, MZ, Capital One, Yelp, Yahoo!, Qualcomm, Bloomberg LP and Netflix.
The full study and report is now available from Paysa. Highlights from the study’s findings include the following.
The 10 cities that are most likely to undercompensate their tech and engineering pros and the likelihood of them doing so are:
- Seattle at 60 percent
- Boston at 44 percent
- San Jose at 40 percent
- San Francisco at 37 percent
- Los Angeles at 37 percent
- Austin, Texas at 37 percent
- Washington DC at 33 percent
- Pittsburgh, Penn. at 32 percent
- New York at 30 percent
- San Diego at 29 percent
The 10 companies that are most likely to pay their tech and engineering the worst and the likelihood of them doing so include:
- Accenture at 90 percent
- Glassdoor at 83 percent
- Pinterest at 80 percent
- Microsoft at 75 percent
- Dropbox at 65 percent
- Airbnb at 63 percent
- Lockheed Martin at 62 percent
- Facebook at 59 percent
- Uber at 56 percent
- IBM at 55 percent
Employees who think they might be underpaid can benefit from Paysa’s new Get A Raise Tool, which shows them how they are currently doing, in terms of getting paid according to market value and their skills, background and education. The tool also shows employees what they could be getting, available jobs that match their unique profile and offers resources for negotiating a raise with their current employer, if that is the path they want to pursue.
“The gap between actual pay and market value can be remarkable – even in top cities and at leading companies,” said Chris Bolte, CEO of Paysa. “Thankfully, the tables are now turning for tech and engineering employees across the board, giving them a level of data transparency that is long overdue in a way that was never before possible. At Paysa, we’re on a mission to make this happen with greater control for the employee.”
“Our goal is to help tech and engineering employees make sure their pay reflects what they bring to the table -- not their gender or where they work, where they are originally from or where they now live,” added Bolte. “We’re excited to share this and other research to help individuals have more productive conversations with their employers around salary and pay and, in the end, get what they deserve.”
About Paysa
Paysa offers personalized career and hiring recommendations plus real-world salary insights for maximizing opportunity, earning potential and value at all stages of an individual’s career. Using proprietary artificial intelligence technology and machine learning algorithms, Paysa analyzes millions of data points including jobs, resumes and compensation information, providing professionals with actionable tools, insights, and research. They can then see and understand their individual worth in the market today, and how to increase their value. Paysa also empowers enterprises with the knowledge they need to be competitive in today’s fierce tech hiring market. Employers can learn which skills, real-world company experience and educational background offers the greatest predictor of a candidate’s or employee’s future success at their organization.