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career
How You Can Fight for Equal Pay
Equal Pay Day is tomorrow, April 4th. Equal Pay Day is the symbolic day when the average American woman’s earnings “catches up” to white men’s earnings from the previous year. Isn’t it crazy to think that it takes women (on average) an extra three months to earn as much as a man did last year, for the same work? I want to use this day to show you how you can work to close the wage gap in your own life.
Isn’t it crazy to think that it takes women (on average) an extra three months to earn as much as a man did last year, for the same work?
Last year, I was in a salary negotiation workshop given by AAUW and that is when I decided to pursue my business as a financial coach. I went on to be trained as a facilitator for that same workshop, and I am still passionate about empowering women to negotiate their pay.
Before going into negotiation details, I want to give you a little more context about the wage gap in the U.S.
The low-down on the wage gap
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American women earn (on average) 80 cents on the dollar compared to a white man.
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Asian women earn 85 cents to the dollar.
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White women earn 75 cents to the dollar.
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Black women earn 63 cents to the dollar.
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Latina women earn 54 cents to the dollar.
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The pay gap contributes to women’s poverty. In 2015, 14 percent of American women ages 18-64 were living below the federal poverty level, compared to 11 percent of men.
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Eliminating the gender pay gap could cut the poverty rate for working women in half (!).
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The gender pay gap grows with age, as most pay increases are based upon someone’s original salary.
What that actually means for you
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Women overall lose out on more than $400,000 over the course of their careers, but most women of color are shorted more than double that.
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Women with college degrees are less able to pay off their student loans quickly, resulting in paying more in interest over a longer period of time.
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When women retire, they receive less income from Social Security, pensions, and other income sources than men do.
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Disability and life insurance benefits are also usually based on income, so they tend to be smaller for women.
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Careers occupied by women tend to be less valued, and therefore paid less.
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Forty percent of mothers with children under the age of 18 are their families’ primary earner. As women increasingly take on this role, the gender pay gap directly takes away money from families (which impacts men and children along with women).
How you can fight the wage gap in your life
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Know your value: Identify how you bring value to the company or organization that you currently or hope to work for. Don’t sell yourself short; write out all of your skills, accomplishments, awards, certifications, etc. Learn how to talk about all of these things and connect them to the career that you desire.
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Identify the compensation you deserve: Use websites like Salary.com or Glassdoor.com to research how much your current or desired position typically pays. Ask around at work to find out how much your peers are earning (it’s not illegal, and it’s important to talk about!).
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Ask for more: Negotiate! Ask for more than you want, so that you have some wiggle room. If you can’t get the salary you desire, negotiate your benefits. Stand firm in your value to a potential employer, and demand the compensation that you deserve. (Stay tuned for a future post on negotiation!)
Have you ever negotiated a higher salary or better benefits? Share your story in the comments!
For much more information on the wage gap and salary negotiation, visit AAUW.
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