By Melissa J. Anderson (New York City)
Last month the Organization for Economic Co-operation and Development (OECD) released a new study examining the causes of the wage gap in its member countries.
According to the study, working mothers make less, and having a child can cost a family significantly. The average gender pay gap between men and women without children is seven percent. But for couples with one or more child, that gap widens to 22 percent.
At its very core, the issue is still the sinister and usually unconscious notion that the primary “job” of women should be childrearing. Women in the workforce make less, in large part, because our society encourages us to see female workers as non-breadwinners, as secondary income earners doing a secondary job. And because all women are viewed as potential mothers whether they have children or not, all women are subject to the penalty in some way.
It’s easy to write this viewpoint off as a relic of times past or a trait of so-called unenlightened geographies. But to do so would be wrong. After all, the research was done in 2012 and OECD countries tend to have relatively high incomes globally – in other words, they are mainly “developed” economies like Australia, Italy, Japan, Norway, Turkey, and the United States.
Nor is the wage gap an idiosyncrasy of the lower end of the income range. In fact, the gap between men and women’s income levels is widest for the rich. According to the study, female top-earners make 21 percent less than male top-earners.
All this aside, the wage gap is nothing new. But what is new is the OECD’s suggestion that continuing to ignore the gap could deplete the global talent pool at a time when retirement rates are rapidly rising in these countries. It’s also wasting the vast amounts of money spent to increase the educational attainment of girls in recent decades. The report states:
“Gender inequality means not only foregoing the important contributions that women make to the economy, but also wasting years of investment in educating girls and young women. Making the most of the talent pool ensures that men and women have an equal chance to contribute both at home and in the workplace, thereby enhancing their well-being and that of society.”
Ultimately, the OECD study indicates, the wage gap could slow down economic growth at a time when businesses – from the smallest entrepreneurial venture to the largest multinational – cannot afford it.
Thought Leaders: Reshma Saujani, Founder of Girls Who Code
Thought Leaders“It’s about understanding what your destiny is and striving for it,” she explained. “When I ran for Congress, people said ‘it’s not your turn yet.’” Saujani’s run was ultimately unsuccessful. Yet, she explained, she learned a valuable lesson. “It’s embracing failure,” she said. “Often, we feel like we have to do the job to get the job.” By shedding fears around failure and taking big risks, more women could achieve their dreams.
She also learned about the value of sisterhood during her campaign, another theme of her book. “Women have the power to help other women. We have to create a culture where we help each other. I can’t tell you how many women leaders, when I was researching for my book, said they seek to hire women. I want to encourage women to do the same.”
“It’s in our own hands to crash through the glass ceiling,” she added.
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Diverse Mentors Offer Career Inspiration
Next Level“Have you ever wanted to sit down with the exceptional women executives that have climbed the ranks and ask them how they approach work and life?” asks a new report by the International Consortium for Executive Development Research (ICEDR). The network of top companies and business schools interviewed 60 female executives on how they managed to break through the glass ceiling.
According to Lauren Ready, Director of Talent Management Initiatives and Marketing at ICEDR and author of the report, the goal of the research was to provide a career roadmap for high potential women by asking senior women to complete the phrase, “If I knew then what I know now…”
She explained, “If young women are going to rise to the top, they need to know the secret workings of the business world. We wanted to study the pockets of excellence, the women who are the exception to the rule.”
After all, she added, only five percent of global CEOs are women. The next generation of women leaders has a lot of ground to cover if we’re going to achieve parity at the top.
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Women Continue Outperforming in Alternative Investments
Industry Leaders, LeadershipWhat’s one way to beat the market when it comes to alternative investments? According to new research by accounting firm Rothstein Kass, invest in women.
The new study, “Women in Alternative Investments: Building Momentum in 2013 and Beyond,” reports that hedge funds run by women outperformed the HFRX Global Hedge Fund Index through the third quarter of 2012, producing a net return of 8.95 percent compared to a 2.69 percent net return.
Camille Asaro, a Principal at Rothstein Kass who contributed to the report, said she wasn’t surprised by the data. “We did expect women to outperform, and that’s something that has been the case for the last five years.”
The research can only help make the case for supporting initiatives to bring more women into the industry – and interest in doing so seems to be growing, Asaro said. “I really believe there is more traction for women in the alternative investment industry. This research confirmed what we’ve been seeing first-hand, that there is currently more interest in investing in women-owned and managed funds. This interest does seem to be intensifying although not as quickly as some have anticipated.”
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Promises, Promises. Do You Keep Yours In Business?
Expert AnswersYou’re waiting, by the phone, for a scheduled business call or an exploratory communication about a new project. Fifteen, then 20 minutes pass, and no call. Not even a text message explaining the delay. It’s happened to me three times in the last week and it is plenty annoying. Or people RSVP for a seminar they’ve registered for but then never show up. This kind of behavior seems to be popping up everywhere more and more. Have you noticed it, too?
Business experts and sociologists confirm that manners in business are in decline, reflecting a general deterioration of etiquette that is a consequence of changing times, attitudes, and social media. Smartphones make it easier to navigate our social and professional lives, and if you are like me, your gadgets rule your business and personal life. Technology was supposed to make communication easier, but people hide behind e-mail or text messages to cancel appointments last minute or after the fact, or do things that feel uncomfortable to do in person or on the phone. We have all done it. And the result? The standards of what is acceptable for being late and when and how to cancel have been lowered.
There is even a new term for it called “digital flakiness.” But here’s the thing: if you believe that nobody notices that you have fallen into this category, think again. People you do business with will notice. Last week a potential client set up a free consultation with me and missed the first one. His excuse was that he thought the meeting was the following day. Then he contacted my executive assistant to confirm the second appointment only to never show up! This is not someone I want to do business with. This person is not at my professional level.
There are a lot of excuses out there, some genuine and others just ridiculous and they can accumulate and end up hurting your professional reputation.
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Women in the Boardroom: Focus on Solutions
Industry Leaders, LeadershipIn December, ION (the InterOrganization Network) released its 9th report on women on boards in the United States. ION is made up of 16 regional women’s networks, and this report used numbers from 15 of them. According to the research, the numbers haven’t moved much since the last report… or the one before that… or the one before that.
For example, larger companies tend to have more women directors than smaller companies, and there are fewer all-male boards at larger companies than smaller ones. In the Fortune 500, 16.6 percent of board seats were held by women. In the S&P 1500, 14 percent were women. In the Russell 3000, 11.7 percent were women. These numbers have shifted very little over time.
Obviously, this is frustrating – the slow pace of change here is the subject of lots of research and commentary. But instead of dwelling on the challenging numbers, ION’s leaders decided to instead focus on solutions. What are the companies that are getting it right doing? How can we convince other companies to do the same?
Sarah Meyerrose, ION’s President, explained, “I like the approach we took this year. We are focusing on the positives and saying ‘here are the companies doing a good job.’ We are well past the time when we are just talking about the numbers.”
In fact, she continued, “When we were putting the case studies together, I was pleased to see the number of companies we had to choose from that are moving the needle.”
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Career Inspiration from Trailblazing Women in Politics
Mentors and SponsorsLast week, the Financial Women’s Association of New York hosted an event featuring three prominent women in New York’s politics. Moderated by award winning journalist Marcia Kramer, the panel consisted of New York State Senator Liz Krueger, New York City Councilwoman Jessica Lappin, and New York City Council Speaker Christine C. Quinn.
The women discussed their views on leadership and power, as well as their advice for working in a male dominated environment. Throughout the evening, the panelists also shared stories of how they had been supported or inspired by one another throughout their careers, and they frequently discussed the importance of another panelist’s work.
This was one of the key takeaways from the event: we can’t do it alone. The power of women is multiplied when we work together and support one another.
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Voice of Experience: Jamie Zimmerman, Founder and CEO, Litespeed Partners
Voices of Experience“I think people starting their careers often make a common mistake – they have an idealized notion of what a career might be, but they fail to investigate the day-to-day,” began Jamie Zimmerman, Founder and CEO of Litespeed Partners, an event-driven fund specializing in distressed debt.
Zimmerman learned this the hard way – she had planned on a prestigious career in law, aspiring to be the first woman on the Supreme Court. But when it came to actually being a lawyer, she discovered she wanted a different career path.
Today, she runs her own fund, doing work she finds fascinating and engaging. “Your life is the day-to-day, and I think it’s very important that you love it, that on Monday morning you get up and you want to go to work.” She continued, “At Litespeed, we are investigative reporters with an investment overlay. Every day, we try to predict and profit from the future. It is always challenging, always interesting, and a lot of fun.”
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Life After Corporate: Leila Kanani, CEO & Founder, Intermix Legal Group
Life After CorporateDo you have an entrepreneurial idea that you just can’t shake? Leila Kanani recommends pursuing it. “Lawyers are all, as a group, very risk averse,” says Kanani. “I’m not in that group. My advice is to quit your job and go after any idea you may have. Take the risk. Your fallback is that you can always go back to your corporate job.”
Kanani speaks from experience. After spending a decade as an associate in BigLaw firms in DC and Atlanta, she now runs her own company in Chicago, Intermix Legal Group, that helps professionals achieve better balance between work and family. She left her position last March as an intellectual property attorney at Sterne, Kessler, Goldstein & Fox to launch Intermix.
Her goal in starting the company was to help attorney parents keep their skills sharp and their resumes current if they’ve opted to leave their firm to focus on family life. Kanani’s company helps match these parents with project-based work with law firms and corporate legal departments. Participants in the program work from home, choosing their own projects and hours.
“Intermix is really an answer for all those women that leave these firms and then think, ‘Now what?’” says Kanani. “Why let their hard earned skills and education go to waste just because they choose to stay at home?”
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How Parenthood and Gender Roles Increase the Wage Gap
Work-LifeLast month the Organization for Economic Co-operation and Development (OECD) released a new study examining the causes of the wage gap in its member countries.
According to the study, working mothers make less, and having a child can cost a family significantly. The average gender pay gap between men and women without children is seven percent. But for couples with one or more child, that gap widens to 22 percent.
At its very core, the issue is still the sinister and usually unconscious notion that the primary “job” of women should be childrearing. Women in the workforce make less, in large part, because our society encourages us to see female workers as non-breadwinners, as secondary income earners doing a secondary job. And because all women are viewed as potential mothers whether they have children or not, all women are subject to the penalty in some way.
It’s easy to write this viewpoint off as a relic of times past or a trait of so-called unenlightened geographies. But to do so would be wrong. After all, the research was done in 2012 and OECD countries tend to have relatively high incomes globally – in other words, they are mainly “developed” economies like Australia, Italy, Japan, Norway, Turkey, and the United States.
Nor is the wage gap an idiosyncrasy of the lower end of the income range. In fact, the gap between men and women’s income levels is widest for the rich. According to the study, female top-earners make 21 percent less than male top-earners.
All this aside, the wage gap is nothing new. But what is new is the OECD’s suggestion that continuing to ignore the gap could deplete the global talent pool at a time when retirement rates are rapidly rising in these countries. It’s also wasting the vast amounts of money spent to increase the educational attainment of girls in recent decades. The report states:
Ultimately, the OECD study indicates, the wage gap could slow down economic growth at a time when businesses – from the smallest entrepreneurial venture to the largest multinational – cannot afford it.
Read more
Does Being Happy Make You a Better Manager?
Next LevelAccording to a new study released by the UK’s Institute for Leadership and Management, positivity may be the key to unlocking superior performance.
In other words, being happy may make you a better manager.
The ILM asked 1,000 managers in the UK to rate their level of positivity, performance, their team’s happiness and performance, and other topics like stress and advancement. For anyone who’s attempted to wade into the vast pool of research on employee engagement, the results shouldn’t come as a surprise.
The study revealed that the top performers in the group were also the happiest. Not only that, but happier managers tend to have happier, better performing teams. Of course, it’s difficult to pinpoint the cause and effect here – maybe top-performing managers are happy because they are doing so well rather than vice-versa.
Nevertheless, the implication is clear: there is a link between happiness and performance. How are you going to increase your positivity and your productivity this year?
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