Opinion: Treating Workers Fairly at Rent the Runway

From today’s New York Times:

I am ashamed to say that until recently I was part of the majority: I am the chief executive of a company that gave different benefits to different groups of employees.

Like so many companies before us, my company, Rent the Runway, had two tiers of workers. Our salaried employees — who typically came from relatively privileged, educated backgrounds — were given generous parental leave, paid sick leave and the flexibility to work from home, or even abroad. Our hourly employees, working in Rent the Runway’s warehouse, on the customer service team and in our retail stores, had to face life events like caring for a newborn, grieving after the death of a family member or taking care of a critically ill loved one without this same level of benefits.

I had inadvertently created classes of employees — and by doing so, had done my part to contribute to America’s inequality problem.

When you’re founding a business, you take your cues on corporate culture from larger, already successful organizations. In America, some of the biggest companies have decided to handle the dual pressures of keeping costs down while retaining “corporate talent” by ramping up benefits packages. Companies like Starbucks and Walgreens compete for top-tier candidates by offering cushy policies in areas like parental leave or vacation.

But the best benefits are reserved for corporate talent, for whom the competition is considered steepest; employees who work at hourly rates are an afterthought (and that doesn’t begin to factor in companies like Uber that opt to consider the people they work with “contractors”). When I started Rent the Runway, I simply followed suit.

But over the years, I began to reflect on how the system that I and others had constructed may have been perpetuating deep-seated social problems. Last month, I equalized benefits for all of our employees at Rent the Runway. Our warehouse, customer service and store employees now have the same bereavement, parental leave, family sick leave and sabbatical packages that corporate employees have.

We know the grim statistics, such as only 14 percent of civilian workers in the United States have access to paid family leave; one in every four new mothers go back to work just 10 days after giving birth; and people who make more than $75,000 a year are twice as likely as those who make less than $30,000 to get paid leave.

Of course, chief executives and their leadership teams have outsize salaries as well as outsize benefits. C.E.O.s at the 350 largest companies make 271 times the earnings of the typical worker. The people with the most means have the most flexibility in their lives, not only because they have the ability to throw money at their problems but also because their companies grant them this flexibility to keep them happy.

Read the complete article here.

Icelandic Companies Required By Law to Show They Pay Men, Women Fairly

From today’s National Public Radio:

Starting this week, companies in Iceland are required to demonstrate that they pay male and female employees fairly — without gender discrimination. Failing to do so can result in daily fines.

The law, which was passed last year and went into effect on Monday, is believed to be the first of its kind in the world and covers both the private and public sectors.

Proposals Aim To Combat Discrimination Based On Salary History

Some headlines have claimed that the new law makes it illegal to pay men more than women. That is not exactly what happened. In Iceland — as in many countries, including the U.S. — it was already illegal to pay men and women differently on the basis of their gender. (And, to be clear, it was and is legal to pay a man more than a woman, or vice versa, provided there is a valid reason.)

What is remarkable about the new law in Iceland is how it enforces equal pay standards. It does not rely on an employee to prove she was discriminated against. Instead, the burden is on companies to prove that their pay practices are fair.

The policy change comes after years of discussion and pilot testing, based on frustration with the fact that several gender-equity laws were not budging the actual pay gap.

Iceland has the best track record on gender equality in the world, according to the World Economic Forum. But the country still had a persistent pay gap just over 16 percent as of last year. The gap exists across all occupational groups. According to the Nordic Labour Journal, figures from 2010 showed about 8 percent of that year’s gap remained “unexplained” after factoring in possible justifications.

Iceland’s new law applies to companies with 25 employees or more. Every three years, the companies will need to confirm that they are paying men and women equally for jobs of equal value. If they aren’t certified, a daily fine will stack up.

Read the complete article here.

The Maddeningly Simple Way Tech Companies Can Employ More Women

From the New York Times, August 15, 2017 by Katherine Zaleski:

I am the co-founder of a company that helps clients find ways to diversify their work force. We recently set up an interview at a major company for a senior African-American woman software engineer. After meeting with the hiring panel, she withdrew her application, telling us she felt demeaned by the all-white male group that failed to ask her any questions about her coding skills. She described how one of the men had made it clear to her that she wasn’t a cultural fit and that therefore they didn’t need to proceed with technical questions.

I hear stories like this regularly, as I work with companies in Silicon Valley and beyond who want to bring more women onto their tech teams. Higher-ups declare their intention to hire more women. But the actual hiring is still all too rare.

There’s a continuing debate about the reasons for the lack of diversity in the tech sector, including candidate pools that are mostly male, and stubborn, superficial notions of what it means to be a “cultural fit” for an organization — the template for which is often based on young white men. But at least one small component of this problem is immediately solvable: Many companies are alienating the qualified women who want to work for them, and who they want to hire, during the interview process itself.

While Silicon Valley companies are enthusiastically putting money into STEM programs in schools and nonprofits focused on diversity, with the goal of creating a richer pipeline of talent in 10 years, they’re missing opportunities to make simple, immediate improvements by changing how they communicate with women who are sitting across the table from them now.

Read the entire article here.