1996 Salary Survey

by Dirk Dusharme, Neville Samuels and Alexander Karolyi

A sizable gap still exists between men's and women's salaries in the
quality profession. But discrimination may not be the issue.
It may be closely related to women's rapid climb up the corporate ladder.

This year, we introduce our annual salary survey with a discussion of the gender gap for salaries in the quality field and perhaps some insight as to why it exists in a field that focuses as much on human relations and team spirit as it does on statistics. To validate our numbers, we have pulled in salary statistics from the American Society for Quality Control and from the U.S. Bureau of Labor Statistics.

The problem
It's no secret-the glass ceiling is just as prevalent in the quality field as it is for U.S. business as a whole. The numbers from this year's salary survey show that the average salary for women executives and managers in the quality field lags 6 percent to 19 percent behind their male counterparts with the same amount of experience. In general, women in quality earn $45,472, which is 19 percent less than the men's average salary of $56,292. That percentage corresponds to the 1995 BLS statistics that show an 11-percent to 16-percent gap for women working as inspectors and compliance officers or as personnel, training and labor relations specialists-BLS categories we felt most closely fit our respondents. The 1994 ASQC salary survey shows a 17-percent gap for women in quality.

Why does this gap exist? The knee-jerk answer is discrimination. While 20 or 30 years ago that answer may have been obvious and accurate, the magnitude of gender discrimination in today's workplace is hard to nail down, according to the U.S. Department of Labor, Women's Bureau. Rather, the bureau quotes statistical studies which suggest that some of the gender gap can be explained on the basis of education or job experience. For instance, there is a correlation between the rapid increase in women's salaries in the 1980s and an increase in both education and experience for women during that same time period, says the bureau.

But education and experience don't tell the whole story. In our survey and those conducted by the ASQC, even if you examine salary survey data as a function of years' experience, you still see a gap­p;6 percent to 19 percent in our survey. Additionally, looking at the salary gap as a function of education, we still see anywhere from an 8-percent gap at the masters' level to a 31-percent gap at the vocational/technical level. The gaps for other levels are 13 percent for a two-year degree, 20 percent for a four-year degree and 19 percent for a doctoral degree.

If the gap is not caused by education, years' experience or outright discrimination, then what? In a recent interview with Quality Digest, ASQC President Deborah Hopen gave us her perspective.

Hopen suggests that the gender gap in quality, at least at the executive level, may be linked to the quality industry's shift from a strictly statistical approach to quality to one that includes human resource elements. Women who entered the quality field 20 years ago often came armed with skills from human resource-related fields. As quality made the shift from numbers to people and organizational skills, these newly valued talents may have pushed them up the corporate ladder faster than their salary levels would accommodate.

"Part of the problem was timing," says Hopen. "Women got into the profession later, but with the capabilities that they brought in, frequently from other disciplines and with the sense of organization that's important to get diverse points of view, they moved up the ladder a little faster. But they didn't have the years of building salaries that comes with years of time at the same level. There is a limit to what companies will give you [in a salary increase] at the time of a promotion."

In the same vein, Hopen points out that the salary gap is much more pronounced in older women than in younger. She theorizes that since older women started work at a time when women were deliberately paid less, they were at a disadvantage when promotions and salary increases started to equalize-that since they started lower, they stayed lower.

The surveys tend to bear this out. Our survey shows only a 7-percent gap for men and women less than 30 years old, increasing to 12 percent for the 30- to 39-year-old bracket, 10 percent for the 40- to 49-year-old bracket and topping out at a 25-percent gap for 50- to 60-year-olds. Although the age categories are different, a similar study by the ASQC shows a range of 6 percent to 22 percent. In fact, that survey shows that women under 25 years old earned 9 percent more than their male counterparts.

"My sense is that in the old days, when these women started work, there intentionally was a gap," says Hopen. "And they never caught up. They started low and then never gained on it. We do know from our survey that now women are starting the same as men. It would be interesting to talk about this 10 years from now and see if it levels out."

On a hopeful note, the disparity in the quality profession is less than in most other industries. The BLS reports that the average U.S. woman's salary is 25 percent less than a man's. The reason could be that the quality field, probably more than most, emphasizes such human relations essentials as teamwork, positive feedback, group dynamics, employee involvement and organizational learning.

Hopen agrees.

"I feel strongly that quality is not just an engineering science," she says. "It's a science of human resources, performance management and organizational involvement. Therefore, [this smaller gap] is a sign that we're practicing what we preach."

As with most problems, the root cause for gender disparities in salary is complex. Education, experience, industry changes, traditional salary level structures and outright discrimination all play a part. Some of these issues (education, for instance) must be addressed by the individual, but most must be tackled by employers. Hopefully, armed with the facts, employers will make inequality a quality issue and spend as much time addressing gender disparities as they do product conformity.

Other data and trends
More women are joining the executive ranks, according to our survey. The ratio of men holding executive positions (director, vice president, president/CEO) compared to women in the same position was 5-to-1 this year. In 1993, the ratio was 10-to-1, decreasing to 7-to-1 in 1995. Interestingly, the ratio for all management positions (manager and higher) has remained the same in all three surveys- 6-to-1. The male/female ratio for all respondents this year was 5-to-1.

As we have seen in the past, employees in the Western and Northeastern sections of the country have higher average salaries-$56,000 and $56,500 respectively-than those in other parts of the country. The average salary for the North Central quality employee was $51,404 compared to $54,270 for those in the South.

Looking at salary data as a function of education provides no surprises-the higher the education, the higher the salary. Initially we were concerned that these figures might be reflecting increased experience as well as education; many people pursue degrees while working. However, when we stratified the data according to years' experience and recalculated the salary averages by educational level, we saw the same upward trend. Overall, those employees with master's degrees earned 28 percent more than those with no high school diploma and 20 percent more than those holding a vocational/technical degree. We found that nearly 75 percent of managers and executives have at least a four-year degree.

Methodology
The Quality Digest 1996 salary survey questionnaire appeared in our April 1996 issue. To speed data entry, respondents were asked to supply their answers on a computer-scanned form. This allowed us to enter the data directly into our spreadsheet for data analysis.

We asked readers to supply data on their current salary, job description, job location, age, sex and the number of years' employment and experience. Respondents returned the questionnaires by postage-paid mail.

Of the more than 1,300 questionnaires we received, 120 came in too late to be included in the results and about 100 contained invalid responses and were excluded. Seventy percent of all respondents were quality professionals.

Breakdown by job title:
Managers 42%
Executives 22%
Technical 18%
Supervisors 7%

Breakdown by industry:

Manufacturing 75%
Service/consulting 11%
Government 8%
Health care 4%
Education 2%