According to estimates from the Bureau of Labor Statistics, women were paid around 82 cents for every $1 that a man was paid. The situation for women of color is significantly worse. The agency also discovered that Hispanic women made just 64 cents for every dollar that White males made, while Black women made 68 cents.
Even though the gender pay gap has significantly narrowed over the past few decades, it remains a complex, intractable issue that puts a strain on women’s finances. It may also prove to be expensive, which will hinder women’s efforts to invest and save money.
Additionally, it has an emotional cost that statistics are unable to capture. Women who are grappling with the gender pay gap mention that they are constantly playing catch-up with their male coworkers. According to women who have succeeded in overcoming pay differences in their own professional lives, here is how you may deal with the gender pay gap and still achieve your financial goals.
1. Conduct as Much Research as You Can, and Don’t Be Afraid to Ask Coworkers About Their Decisions and How They Handled the Situation.
Long-term issues in the workforce, with the gender wage gap at the top of the list, might make one feel resigned. Women, though, are by no means surrendered to the problem.
Focus on the areas you can actually control, advises Cady North, founder, and CEO of North Financial Advisors, a company that specializes in assisting women in achieving their financial objectives. If you want to try to close the salary difference through negotiation, obtain
2. Don’t Discuss Your Salary History with Hiring Managers or Recruiters.
However, not everyone should follow the same advice about being honest, particularly when it comes to recruiters and hiring managers.
If you’ve ever had a job interview, you may recall that a recruiter ever inquired about your past earnings or salary goals. Despite the fact that experts claim this is typically a technique for recruiters to learn more about you, it could wind up feeding the loop.
3. Never Be Frightened to Change Jobs.
Although it’s typical for employees to receive raises each year, unless they’re accompanied by promotion, they tend to be pretty insignificant. According to research, employees typically earn more money when they change jobs. The gender pay disparity provided Coleen Otero, the CEO Chick founder, with the motivation to launch a company.
4. Constantly Request More
Your most effective tactic will be to negotiate. It’s what hiring managers and recruiters demand, and it’s the easiest method to guarantee that you start making more money right away.
According to a man in his twenties, North, the financial advisor, “you should always ask for a 20% rise when you switch employment.” “That really gave me permission to ask for more than I usually would have, which was incredibly helpful for me. We really need to get used to the concept of having to compromise.
5. Become Accustomed to Negotiating by Exercising
However, bargaining isn’t exactly a smooth process. Practice makes perfect. When it comes time to make a money request, think about staring in the mirror and preparing your response.
By including her friends in her goals and looking for training sessions on YouTube or LinkedIn Learning, Waters of Necessary Behavior has had remarkable success.
6. Bring Strategies to The Table to Prove Your Value.
Bring specific, measurable instances of how you helped your company improve its top line to the table at any form of review and use that as justification for a raise.
7. Do Not Be Scared to Request Additional Reviews.
Even if the negotiation doesn’t provide the outcomes you want right away, it doesn’t necessarily imply you won’t succeed in the long run.
Think about requesting more frequent reviews from your manager, say every 90 or 6 months. According to Ivette Mayo, founder, and CEO of Power On Heels Fund, an organization that helps women of color overcome pay inequities, you’ll not only learn about ways you can keep improving but also have additional opportunities to set up the next major “ask.”
8. Have a Candid Discussion Regarding the Strain of Domestic Work that Many Women Experience.
According to experts, there is no cause for the gender wage disparity, whether it is discriminatory or not. However, the burden of child care, which falls on many women, can frequently have a significant impact on one’s earnings over time, since some moms work fewer hours or leave the workforce entirely to take care of their children.
9. Give Saving and Investing a Higher Priority, but Maintain an Emergency Reserve.
Women could feel more pressure to invest because they may earn less than males, but this pressure shouldn’t come before establishing a savings account that can cover your expenditures in case of an emergency or loss of employment.
10. Comply with A Personal Financial Strategy
In the meanwhile, your work life could be affected by your confidence in your own personal finances. According to Northwestern Mutual’s Chantel Bonneau Stewart, CFP, wealth management advisor, if you reach a place where you are comfortable with money, you may find it easier to approach a manager or recruiter about it.
11. Avoid Taking Responsibility for The Gender Pay Discrepancy.
Above all, those who have personally dealt with the gender pay gap know how crucial it is to understand that your value to the organization and this tenacious issue are unrelated. Power on Heels Fund’s Mayo states, “It is not your fault; outdated mindsets and wrongly based biases continue to feed the gender pay gap beast.