Tag Archive for: Equal pay

Equal PayThe first year of your job matters more if you’re a woman. How your company pays you do as an entry-level rookie either sets you up for successful pay equity or sets you back a peg relative to your male counterparts.

Envision the climb to senior leadership at your company as a ladder. That very first rung is the most unreliable for women. According to McKinsey’s Women in the Workplace, women are significantly outnumbered in entry-level management positions. They hold just 38% of manager-level positions as opposed to men who hold 62%. In other terms, for every 100 men promoted only 72 women are.

This step, known as the “broken rung”, is a woman’s biggest obstacle to senior leadership. While a lot of ink has been given to the glass ceiling and the poor representation of women in the C-Suite, the breakdown in that trajectory turns out to be not the last promotion from Vice President to President, but instead the first step in your journey: the promotion from entry-level to a managerial position.

Entry-level positions are also notoriously difficult for young people just starting out. Adjusting to the workplace, figuring out passions and career paths, and finding your professional voice comes with experience. And in an entry-level position, you might not have that experience to bolster your confidence.

This brief work record leads to what Sheryl Sandberg explains to be a bias against women and favoring men. She says, “These are all workers at the entry-level– they haven’t built long track records, they all have similar work experience, and they were all good enough to be hired in the first place. There’s no good reason why so many more men than women are being tapped for promotions, only a bad one– bias.”

Courtesy of GreatBusinessSchools.org

This bias is costly for women as once you miss that first promotion it’s an incredibly hard fight to catch up on. This broken rung leads to a domino effect resulting in fewer women in leadership positions. Additionally, the cycle continues circularly as studies have shown that men are more likely to promote another man, and women are more likely to promote a woman.

While it’s nice to dream that the corporate world will right the “broken rung”, history has proven that corporations move glacially slow when implementing social change. As women, we have to empower ourselves in entry-level positions to ensure the promotion and get past this first hurdle early in our careers.

Here are some ways to clear the rickety, old “broken rung”:

  • Find a mentor. Mentees are promoted 5 times more often than people without mentors, according to Forbes. You want to have someone in your court when it comes time to discuss promotions. Find a senior-level mentor to learn from and who will advocate for you when the time comes. You can learn how to effectively network online by reading this guide.
  • Interrupt bias. When you see bias rear its ugly head, stop it dead in its tracks. The Catalyst assembled an infographic on the double-bind dilemma, which goes into depth on how women are stereotyped in the workplace. “Damned if you do, doomed if you don’t. Too soft. Too tough. Never just right”, is the dilemma many women find themselves in at work. Instead of being categorized by these labels, speak up again bias and interrupt it whenever you see it playing out in the workplace.
  • Make yourself visible. Wave your flag loud and proud. While it’s easy to be mousey in your entry-level position, try little, but effective ways to make yourself visible. For example, if you have a hobby, talk with your HR department and try to start an internal club that you lead based on your hobby. If you like reading, start a book club. If you like collecting plants, start a succulents club. Think creatively about how to make yourself visible to the entire company.
  • Take on responsibilities early. If you want to get promoted, do the work of the position you want before receiving the title. Expel any questions of your capabilities by cementing a track record that you are up for the job.
  • Empower yourself to learn. A rising number of women are attending business school which is an encouraging indicator that the workplace landscape may change in the coming years but not guaranteed. Empower yourself to get an advanced degree or learn new skills as your expertise is one of the many things employers consider when making discussions on who to promote. As we know stereotypes are real around who makes the best leader so it is good to have as many quills to your bow as possible to counter fallacy.
  • Believe in yourself. The most important thing, but also the most undervalued. Despite bias and discrimination in the workplace, know how valuable you are. Believing in yourself will allow you to be bold, be visible, and be a leader despite whatever obstacles you face.

Usually, when discussions are had about women in the workplace, the emphasis is on the poor representation of women at the leadership level. That spotlight creates a blind spot in the actual cause of this discrepancy. Tracing the disparity back to entry-level promotions and understanding the “broken rung” is important to inform processes that company need to develop to ensure equal pay from day one. Women can support each other and how we can advocate for ourselves early on but it is the systemic elements that ultimately matter.

Progress must be made by corporations to abolish this misstep and while that is happening, men and women can empower each other to propel past the first hurdle and go on to have a successful career.

This is a contributed article and therefore the views expressed here are not necessarily those of theglasshammer.com 

Guest contributed by Susan Brennan

On April 9, a US appeals court ruled that a woman cannot be paid less than a man for the same job simply because they had a prior lower salary.

While this is certainly progress in the right direction, it will be interesting to see how companies enforce and track this in action.

Do you cringe a little when you think about salary negotiations? While negotiating your salary might feel like something you would rather avoid, deciding, whether or not, to accept a salary offering and having the confidence to negotiate for higher, is a skill that take you well beyond your life right now.

However, pay secrecy or being discouraged to discuss salary is a real thing that many people, especially women, deal with. According to a survey from the Institute of Women’s Policy Research, 51 percent of women reported, “The discussion of wage and salary information is either discouraged or prohibited.” And with women in the United States earning on average 80 cents to every dollar a man makes, the time for women to feel confident to earn what they deserve and have these conversations is now.

Here is a guide on salary negotiating from the moment you receive the offer to the moment you and your future employer agree upon a number.
  • Before the offer—and even the interview—do your homework so you have data to back up your case

Before you start talking numbers, figure out how much you need to live by doing an inventory of your fixed expenses. This is called determining your bottom line. What do you have to pay every month rain or shine; rent, child care, food, car payment? This isn’t necessarily the number you should settle for, but it will give you your bottom line—then build up. Caveat: Employers do not care what your expenses are, so don’t use this as an argument for more money.

  • Know your worth

There are a lot of resources to help you determine what the market is paying for similar positions and experience levels. Websites like Glassdoor and Payscale allow you to plug in a job title and years of experience and get a range for what the market will bear for that kind of role. The numbers will take into account geography and a number of other factors that have an impact. Across industries, pay gaps vary. For example, female doctors earn significantly less than male doctors, an average of 28 percent.

There are also some awkward situations you need to be ready for, such as:
  • On the first interview, you’re asked about your salary expectations. A good (and honest) response is to tell the interviewer that at this point, you’re focused on learning more about the role and what you will be doing before moving forward with salary. If you absolutely need to answer, never provide a single number; have a range ready based on your research so you have data to back you up. If you’re asked about salary on an online application, try to skip that question or enter a range if possible; otherwise enter the high end of your range.
  • You get the offer at a lower salary than you expected. First, express that you are excited about being offered the position and the value you can add to the company. Then add something like this (given that you’ve done your homework on fair market salary): “I did want to talk to you more about the base salary because I’ve done research around comparable roles with my background in [insert experience], and my expectation was that I would be in the range of [insert range here] and I’m wondering if there’s room to negotiate.” And make sure you also ask questions about benefits such as health coverage, retirement matching, and vacation; they can add a lot of value and should be taken into consideration.
  • You want to negotiate the salary. Should you email, meet in person, or make a phone call? The natural tendency for a difficult conversation is to email, but when it comes to salary it’s very important to have a conversation if you can. You can certainly send email to say you would like to talk more about the offer, but set up a time to talk. It will help both of you get a good read on each other, and you can get answers quickly. If the answer is “No” to negotiation, ask when you could expect to get closer to your range. “How do people in this position historically move up the range? How often will I be reviewed and see salary increases?”
  • You get the call with the job offer and salary you want. Should you accept? First and foremost, do not say “Yes” right away, as it binds you without knowing the full terms of the offer, including benefits and reviews. Pause, take a deep breath, be gracious; and buy some time. A good response: “I’m thrilled to get the offer and I will definitely take some time to think about it. Could you send an email with all of the details and we can schedule a follow up call to discuss?” This is important: Do not make verbal acceptance to an offer without reviewing all the details! It may seem counterintuitive to pause after all your work negotiating, but there are a lot of other details that are part of the offer. The contracts are typically written by a lawyer or human resources personnel and can be binding— even if you’ve only made a verbal agreement. Carefully review the agreement once you receive it.

The bottom line of successful salary negotiation especially for women: Know your budget and have data on the market range (versus a single number) to back up your worth. Don’t be afraid to ask for what you deserve; but make sure you are vision-driven—the value you will add to the company—and data-informed.

Susan Brennan is Associate Vice President of University Career Services at Bentley University and co-host of the career advice podcast Counter Offer, the podcast that helps you love Mondays. Over the past decade, she has put Bentley on the map for delivering impactful career education and outcomes, with 99% of first-year students participating in her team’s ground breaking career development course and 97% of 2017 graduates employed or attending graduate school within six months of graduation.

Disclaimer: The views and opinions of guest contributors are not necessarily those of theglasshammer

businesswomen-meetingOf all the advice women receive on how to invest in their careers, there is a fundamental principle for smart career management: make sure that your career invests back in you.

Especially for women, it’s important to manage and maximize the financial returns of your career advancement.

Return On Career Investment

There is significant data to suggest that women generally receive a lower return on their career investment than men do. Research has shown, for example, that women reap less career and financial benefits for building strong connections on Wall Street; for combining education, experience and ambition; for performing equal work; for holding top executive positions; and for leading strong company performance.

But the pay gap is one aspect of the return on career investment gap in which women may hold more power and influence than they are asserting. With smart and pro-active management, your paycheck is not the final say on your ultimate financial nest egg, especially as you advance in your career and to earn more money to optimize.

The Financial Confidence Gap

A new study from Regions Private Wealth Management identified a financial confidence gap. Among survey participants, women, especially younger women, expressed lower levels of financial confidence than men and greater uncertainty about their financial outlook.

The data showed that when it comes to making investment decisions for retirement, more women than men described their risk tolerance as “conservative.” As a result, women may be inclined to prefer financial vehicles deemed “safe,” such as savings accounts or CDs with little growth potential, rather than invest in stocks and bonds, which typically provide greater returns over the long term.

Women’s lack of confidence around investing could inhibit women from investing or investing more assertively to reach the financial goals they hope to attain with their career, and compound the impact of the gender pay gap.

Women Should Be Confident in Investing

A confidence gap is rarely a reflection of ability, as studies have shown women tend to underestimate their ability and men tend to be overconfident. The reality is women who have educated themselves regarding potential investments have reason to feel good about their ability to choose wisely.Also, women are more likely to turn to others to fill information gaps, meaning more willing to turn to financial professionals and trusted friends for guidance.

This pays off. When it comes to investing, women who do invest tend to perform as well or even out-perform men with their portfolios, showing women generally display some savvy investor strategies, even if opportunity remains.

But just as too few women negotiate their salary compared to men to maximize income growth on the front end, too few women take the opportunity to maximize their investments by considering all options.

Stepping Up to The Investment Game

Here are three tips from the advisors at Regions Private Wealth Management to step over the financial confidence gap, and get into the game of managing the assets you accumulate through career advancement:

1. Gather your financial information.

To form a complete picture of your financial situation, map out all of your savings and investments as well as any significant liabilities you may need to factor in to your overall goals, such as paying off student loan or credit card debt. If you have a spouse or significant other, discuss where all accounts are held and make sure you both are able to access them in the event of an emergency.

2. Meet with a financial advisor.

Share your financial situation with a qualified professional, who can help determine if your portfolio is aligned with your risk tolerance and structured to meet your goals. An advisor can suggest ways to diversify a portfolio to help weather market fluctuations as well as help make any necessary adjustments and introduce strategies that could provide tax or other benefits. Remember investments are different.They are not a bank deposit or insured by the FDIC, they may lose value, and they may not be insured by any federal government agency.So, don’t be afraid to ask questions. Your financial advisor should go at the pace you set and provide any background information needed.

3. Commit to reviewing your portfolio.

Check in on the performance of your accounts on a regular basis, such as once each quarter. While you may not need to make adjustments, simply seeing how your portfolio reacts to market movements can build familiarity with the investment process and build confidence in your choices across time. Meet with your financial advisor on an annual basis to ensure the portfolio remains on target or to adjust for changes in circumstances, such as an unexpected windfall.

No matter where you are in your career, stepping more confidently into the investment game, while pulling in sound financial guidance along the way, can help you maximize the financial returns of your career and ensure your career invests back in you.

 
This article was sponsored by Regions Private Wealth Management.