Study Finds Pay Gap For Millennial Women Narrower Than Ever — What That Means For You

wage gapGuest Contribution by Sandra Mills

A new Pew Research report released some interesting findings regarding gender and the workplace. After surveying 2,002 adults (including 810 millennials) and examining census data from 2012, researchers found that women are more educated, more active in the work force, and more likely to hold high-paying positions than ever. This applies especially young women: Women ages 18 to 32 are a few slim percentage points away from wage parity. In 2012, hourly wages for millennial women were 93% of what their male peers made. This is 9% more than the average 84% for women of all ages.

For comparison, women earned 64% of what men did in 1980. The reason for this progress is women’s education. The research reveals, “Among older millennials today (those ages 25 to 32), 38% of women have a bachelor’s degree, compared with 31% of men. And among younger millennials (those ages 18 to 24), women are more likely than men to be enrolled in college (45% vs. 38% in 2012).” However, these numbers come with a caveat: The gap is also narrowing as male wages decline. “Overall, the median hourly wage for men decreased 4% from 1980-2012,” the study says, with wages for younger men dropping by a whopping 20 percent.

However, the researchers also discovered that these advances haven’t really been registered psychologically among millennial women. “In spite of the dramatic gains women have made in educational attainment and labor force participation in recent decades, young women view this as a man’s world,” the Pew team stated. They reported that 51% of millennial women and 55% of female boomers believe that it’s easier to be a man than a woman. While this perspective on gender inequality certainly holds true for boomers, young women seem to adapt this impression via projection, assuming a future for themselves that has yet to happen: Their role models — the women in the cohorts directly ahead of them – are still experiencing these obstacles.

“There is no guarantee that today’s young women will sustain their near parity with men in earnings in the years to come,” the Pew team points out. According to the report, recent cohorts of young women have fallen further behind their same-aged male counterparts as they have aged and dealt with the responsibilities of parenthood and family. More than half of mothers believe their off-the-clock responsibilities have compromised their careers, compared to only 16 percent of fathers. It should come as no surprise that 63 percent of millennial women likewise expect to lose some job opportunities when they have children. For women, marriage and motherhood are associated with less time spent on paid work-related activities. What’s more, the onset of family responsibilities has a reverse effect on men’s career.

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Encouraging Women’s Empowerment in the US & Japan: A Japan Society Forum

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japan.JPGBy Jarod Cerf

Although Japan and the U.S. occupy somewhat different rankings in The World Economic Forum’s Global Gender Gap Report, both Yoriko Kawaguchi, Japan’s former Minister for Foreign Affairs (’02-‘04) and Environment (’00-’02), and Ruth Porat, Executive Vice President and CFO of Morgan Stanley, are confident that a call to empower women was essential to any country’s “core growth strategy”—as Japanese Prime Minister Shinzo Abe refers to his 2012 initiative.

Government Policy as an Agent of Empowerment
“There are three critical components driving Abe’s proposal,” Kawaguchi explained at the Japan Society’s forum on policy, culture, and business practice as a means for providing greater opportunities. “The first is a declining birth rate and the resulting reductions in our future labor force; the second is the need for greater diversity in skills, background, and expertise—which is where women, both foreign and Japanese, can serve as a catalyst for growth.”

Though traditionally Japan has held to a promise of promotion, described by Kawaguchi as “seniority assistance” or “lifetime employment”, women who leave the workforce to raise and tend to their families often find it difficult to return to the same company or at the same level as their peers who remained employed.

To counter this, the Japanese government is funding a series of public day care and educational facilities near transportation hubs, investing in training programs for women and the companies who employ them, and providing assistance for those who seek to develop their own businesses.

“The last component,” as Kawaguchi noted, “is the evolving notion, in Japan, of gender equality as a means of ensuring our human rights; that we can no longer afford to do without the contributions of women in our effort to create a more just society.”

Changing Culture through the Practices We Employ
According to Porat, though, such a change or shift in culture is often subject to gradual progress and unusual proponents. “When the U.S. Congress passed the Civil Rights Act of 1964,” she explained, “there were, allegedly, certain Congress members who supported the inclusion of women’s rights under the belief that the modified bill would be seen as too outrageous to pass.”

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Voice of Experience: Eu-Lin Fang, Partner, PwC Singapore

Eu-Lin FangWelcome to The Glass Hammer’s Celebration of Asian Heritage Month! All month long we will be profiling successful women here in the US who have Asian heritage as well as spotlighting some amazing women in Asia and discussing what it means to work there.

According to Eu-Lin Fang, a Partner at PwC Singapore, the professional world can be demanding, and in order to persevere, you cannot lose sight of you who are at the core. “It is important to continue to ask yourself, ‘Who am I, how do I live my life purposefully?’” Fang said.

“A rewarding career can consume your time, but it is good to devote some time for yourself to regroup and spend time on areas that bring balance to your life,” noted Fang.

Career Path

With a degree in accounting and finance, Fang naturally decided to pursue a career in accounting. Fang was drawn to the firm because of its reputation for being one of the best and biggest global accounting firms. “I came to PwC because I wanted to qualify as an accountant,” recalled Fang, “like others, I was fortunate to be given opportunities by the Firm to develop myself professionally”

An auditor by training, Fang was able to work on several bank audits and regional audits, as well as audits in the oil and gas, property and retail amongst others. “In my earlier years as an auditor, one was able to cover a few industries, but now given the complexities within each industry including increased regulation in those industries, there is inevitably more specialization”

Before she made manager, Fang had the opportunity to be seconded to the PwC London office in 2005 until 2007. “It was a different business environment,” said Fang, “and I had a very steep learning curve which I overcame quickly.” When she returned to Singapore, Fang observed many positive changes as a result of the demand for more specialization occurring in the profession. Soon after returned from London she joined PwC’s Financial Services Industry Practice (“FSIP”) to specialize in financial services and made partner in FSIP.

“Making partner was a surreal experience and something that I am proud of,” remarked Fang. “It drives me and motivates me to keep going forward in my career.”

Currently, Fang continues to serve as a financial services auditor specializing in banking, and she also is part of the Risk Assurance department which offers risk advisory services for clients. “Our team is very solutions based,” said Fang, “which results in a very collaborative work environment. We work on so many different engagements, and yet I observe that there is rarely conflict or disagreement. This aspect of teamwork is something I greatly appreciate about working for PwC.”

“It’s been quite a journey,” said Fang, who has been with PwC for her entire career.

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Six Things to Know When Going on an International Business Trip to China and Southeast Asia

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iStock_000018538581XSmallBy Mai Browne

If you’re doing business in China and an associate asks you how much money you earn, don’t be offended; he or she is probably just seeking a way to find common ground. Marie Seton O’Brien, a forensic due diligence consultant, learned this lesson while working in Beijing a few years ago for New York Global Group, a global strategic advisory, venture capital and private equity firm.

“In addition to salary, lots of people asked about my age and marital status,” said O’Brien. “At first I was taken aback, but then I realized that these questions were just a jumping-off point for building a relationship.”

When working in a foreign country, gaining an understanding of cross-cultural differences – and how they impact communication, teamwork, management and business development – is critical to your success.

Here are 5 things to think about when you travel to Asia for business:

1) Don’t expect everyone to brainstorm in the meeting.

When conducting meetings between Westerners and the Chinese (or other cultures concerned with “losing face”), make sure to invite those who are quiet to speak, and let them know in advance what topics on which you will ask for their input.

One example came to light this year in a HBR Blog Network article written by cross cultural change expert Erin Meyer, Professor at INSEAD Business School in France. Meyer describes a big lesson she learned around expecting people from other cultures to automatically follow her modus operandi. Meyer conducted the session with a colleague named Bo Chen, a journalist and the Chinese country expert in attendance at a French car manufacturers meeting.

Chen’s role was to present two concrete business examples to illustrate each cultural issue Meyer would be covering, but he stayed silent throughout until finally invited to speak. Chen explained his reluctance to jump in,

“We Chinese often feel Americans are not good listeners because they are always jumping in on top of one another to make their points. I would have liked to make one of my points if an appropriate length of pause had arisen. But Erin was always talking, so I just kept waiting patiently. My mother left it deeply engrained in me: You have two eyes, two ears, but only one mouth. You should use them accordingly.”

In the US, speaking up when you have an idea is culturally expected and extroverts are often promoted into leadership positions in part because of that trait. Furthermore, it is traditionally believed that the loudest person with the most executive presence is the authority on the topic at hand. Laura Liswood’s book, The Loudest Duck, is a fabulous resource to take along with you on these trips as she explains cultural nuances around how we are programmed to believe such expressions as “the squeaky wheel gets the grease” in the West. Liswood refers to these idioms as what our Grandma taught us and, as demonstrated in the example above, Mr. Chen’s Grandma and Ms. Meyer’s Grandma weren’t on the same page.

2) Understand the hierarchy and power and authority dynamics at play.

In the above example, when Meyer asked Chen why he hadn’t spoken earlier, he turned to their clients and said:

“In this room, Erin is the chairman of the meeting. As she is the senior person in the room, I wait for her to call on me. And, while I am waiting, I should show I am a good listener by keeping both my voice and my body quiet.”

In the Asian business culture, there are expectations around who is supposed to talk and who is supposed to listen that Westerners tend not to share.

3) Get cross-cultural training.

Meyer’s example is a powerful illustration of the critical need to develop multicultural competency in our increasingly global economy. Many large global companies provide some training, but if your company doesn’t, see if it will reimburse you if you take an outside course on the subject.

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Breaking Down the Gender Paradox on Wall Street

iStock_000009318986XSmallBy Michelle Hendelman

Americans are ready for a new style of leadership according to the latest report from Pershing, which was released in conjunction with International Women’s Day in March. 78 percent of the general public prefer leaders who “listen, consult and ask questions” compared to only 22 percent who enjoy the more traditional “command and control” type of leader. What’s even more telling is that the majority of those surveyed associated the preferred collaborative leadership style to women.

For the third year in a row, Pershing has delivered important research around women in financial services beginning with “Women Are Not a Niche Market,” which was followed by “The 30% Solution: Growing Your Business by Winning and Keeping Women Advisors.” These previous reports uncovered a significant imbalance between the female consumer market and the percentage of female financial advisors represented in the industry.

Now, in their latest report, “Americans Crave a New Kind of Leader – And Women Are Ready to Deliver,” Pershing is drawing attention to the implicit bias that is still driving leadership in financial services said Kim Dellarocca, Global Head of Segment Marketing and Practice Management for Pershing.

Catalyzing the Wall Street Effect
“As a society, we have done a pretty good job of eliminating explicit bias, but now we have to focus on the unconscious bias that could be affecting women’s career advancement,” said Dellarocca, “And one of the best ways to overcome this type of bias is through models.”

She indicated that one example of how models impact women in traditionally male work environments is seen through the “CSI Effect,” which creates a counter stereotype. For example, women now comprise 78 percent of forensic science students. This is largely attributed to the fact that television shows often depict women being successful in that particular career. “What we lack in our industry is a Wall Street Effect, where the pop culture depiction of Wall Street and the reality do not support a counter stereotype suggesting that women will thrive,” noted Dellarocca.

“Can we start a Wall Street Effect?” asked Dellarocca, by helping companies restate the value of diversity and inclusion and encouraging them to establish the models necessary to inspire women to pursue careers on Wall Street.

“We have done all of the right things to increase diversity on Wall Street, but we haven’t see the movement in the numbers that we would have hoped for by now,” acknowledged Dellarocca. “There is a lot of talk, and subsequently a lot of action, but we are not seeing a tick in the right direction.”

To that end, Dellarocca identified three ways in which we can catalyze the
Wall Street Effect.

Open Doors for Women
According to Dellarocca, one of the best ways to kick start the Wall Street Effect is to put women in the roles and give them the support to succeed. “Managers and leaders need to help high potential women bridge the gap between what they believe is possible for them and the opportunities available to them,” she remarked.

Women bring diversity to the table, and not just because of their gender, said Dellarocca. They provide a whole different perspective and can present an entirely new way to approach situations and develop solutions that goes way beyond gender. In essence, creating more diversity within the highest levels of an organization can contribute to breaking down groupthink and increasing investor trust going forward.

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Voice of Experience: Marissa Thomas, Partner, PricewaterhouseCoopers

women working mentoringEven after 20 years in the industry, PwC’s head of private equity, Marissa Thomas, says she still loves what initially drew her to the field: the adrenaline rush of a fast-paced industry rife with deadlines and tight-knit teams.

Thomas has spent the entirety of her career with PwC. She started in the regional corporate tax business, moved into the M&A tax business and even spending a three-year stint in Switzerland, where she was second in command with a team from all over the globe. Ten years after joining the firm, she was named partner – a great achievement given that the average time it takes to make partner is seventeen years.

“My role has changed a lot, shifting from client services to focus more on private equity,” Thomas said. “Two years ago I took over private equity, which is 10 percent of our revenue in the UK and I’m very proud to lead that business. When I started leading the business the industry dynamics were changing, and with that came a challenge to encourage our private equity teams to be more innovative about how they add value to clients. It was hard work but rewarding when people in the business and more importantly our clients responded positively to our approach.”

Plenty To Be Proud Of

Thomas can add being the first women to head private equity in the UK firm, a division notoriously run by men, to her long list of noteworthy achievements.

“It’s a big achievement and recognition of your hard work. I’m equally proud when clients ask me to take on big roles outside of my specialty, as it that they’re willing to put their faith in me and they trust I’ll do a good job,” Marissa said.

Thomas says she doesn’t wish to change anything about her career or the way she’s approached it. Part of the reason, she says, is that hers is an industry that changes rapidly.

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