Here are the top ten important things women can do to help close the gender pay gap and gender savings gap.
Today's guest post is brought to you by Bianka Andrews.
One of the cornerstones of feminism is the empowering of women.
While it may appear on the surface that we live in an egalitarian society, a closer examination reveals that women are actually not paid equally, particularly in professional settings.
According to some surveys, women who hold particular jobs make approximately 40% less money than males who perform the same duties.
The feminist movement is attempting to bring attention to this issue, and things are gradually beginning to move in the correct direction.
In this post, you'll learn what the cause of the gender pay gap is, 10 things you can do to help close the gender pay gap, and what businesses can do.
A few businesses are actively looking for ways to reduce the gender wage gap.
What is the Gender Pay Gap?
The discrepancy between the average gross hourly salaries of men and women for the same job is known as the gender pay gap.
It is based on salaries that are paid directly to employees.
Causes of the Gender Pay Gap
There are many potential reasons that gender pay gap has evolved over time.
For example, women tend to put in more hours performing unpaid tasks like childcare or housework, which take away from time that could be spent in traditional jobs. Women are also considerably more likely to take work interruptions, and some of their employment decisions are impacted by caring for and supporting their families.
Therefore, when paid and unpaid work are both taken into account, women have been proven to work more hours per week than males.
Side note from Lisa at TFC:
In fact, I would even argue we work WAY more hours than men given I cook, clean, work my 8-5 job, work this side hustle business, and it takes me an hour to get ready every morning….but who's counting, right? =P
-Lisa
An overrepresentation of women in relatively low-paying industries like child or senior care, sales, or education can be used to explain the overall gender pay difference.
In addition, there are still industries with a disproportionately high male employee population, such as those in research, technology, and engineering.
There are also instances where women are paid less than their male coworkers who hold the same credentials and work in the same occupational categories.
Women are also underrepresented in executive positions; less than 10% of top company CEOs are female.
However, female managers face the greatest disadvantage of all when comparing pay as they are proven to less per hour than male managers.
So, not only do women make less money per hour than men, but they also put in more unpaid work, work fewer hours, and are more likely to be unemployed. The disparity in overall incomes between men and women is a result of all these factors working together.
10 Ways Women Can Help Close the Gender Pay Gap
Women nowadays need to protect their rights.
They need to understand the necessity of financial literacy and take steps to improve their circumstance and protect themselves from the gender pay gap.
Here is how you may deal with the gender pay gap and still achieve your financial goals, overcoming pay differences in your own professional life.
1. Develop Your Negotiation Skills
One of the main reasons for the female wage gap is poor negotiation abilities.
Related: How to Negotiate A Job Offer: Genius Hacks You Need to Know
If you're a woman seeking a pay increase, practice asking for more. Even if you don't ask for a substantial pay increase right away, developing negotiation skills is essential to increasing your income.
2. Engage in Civic Action
Due to civic involvement, the gender pay gap is less pronounced in some nations than in others.
Laws at the local, state and federal levels can significantly impact efforts to close the gender wage gap.
If you wish to fight for gender equality, find out how your state or nation compares to others and ask lawmakers to take a legal approach to the problem.
3. Salary Transparency
Without having access to the data, it is difficult to address the gender wage discrepancy.
It is challenging to determine whether the pay gap exists because certain businesses have a tendency to keep their employees’ salaries a secret.
Side Note from Lisa:
In fact, do you know what your colleagues are making? I know I sure don't…but that information would be extremely valuable.
Salary transparency would enable female employees to determine the extent of the pay gap and develop a more effective negotiating strategy.
4. Go After Promotions
Professional experts advise requesting promotions early on.
Side note from Lisa:
Studies have found that women don't start seeking promotions until their 40s, 50s, and 60s. In reality, it should be the opposite.
Women should be seeking managerial roles in their twenties and thirties.
5. Encourage Female Entrepreneurs
By removing obstacles and promoting female entrepreneurship, we can easily close the gender pay gap.
Side note from Lisa:
Women are just as capable as men.
In fact, I'd argue that we are even more capable in some instances. We all know what we go through. Amen?
Therefore, I encourage all of you to become your own boss, start a business, and learn financial literacy to make money and go after your dreams!
These articles will help you do just that:
How to Start a Blog from Scratch in 2022: Ultimate Beginner’s Guide
15 Passive Income Ideas for Beginners in 2022
Ultimate List of 45 Insanely Easy Ways to Make Money (that are actually good)
6. Learn from Successful Women
Instead of recreating the wheel, take advice from a professional woman you admire.
Find out as much as you can about their overcoming of obstacles by doing research. It doesn't have to be a well-known person. You can speak with a career mentor or develop a friendship with a female coworker you respect.
After learning her tactics, consider putting them into practice in your own life to reduce the gender wage gap.
7. Put Saving and Investing First
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.
Related: Ultimate Guide to An Emergency Fund: Why You Need It and Beginner’s Guide to Investing: Step by Step Tutorial on How to Invest
The more money you can put away, the more alternatives you'll have.
8. Maintain Your Personal Budget
Make sure you maintain a personal budget and stick to it.
Try creating a plan and a budget binder to follow. This will help you stay on top of your finances.
Related: FREE Printable Expense Tracker: The Downloadable Budget Binder You Need and How to Make Your Own FREE Personal Finance Organizer
9. Maximize your Capacity for Work
Keep working as long as you can to generate revenue because it is one of the most effective ways to save more money and prepare for future needs.
This benefits you in several ways:
- First, Social Security calculates your average based on the top 35 years of your earnings. For each year you had no earnings, a zero is added to the totals, which might lower your average.
- Second, women put off claiming Social Security benefits the longer they work, increasing the amount of their monthly benefit.
This doesn't have to be a chore.
You might spend a few years consulting in your industry before retiring, or you could settle into a job you enjoy for your final few years of employment to increase income and delay collecting benefits.
The objective is to continue receiving income.
10. Never Blame Yourself for the Gender Wage Gap
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 issue are unrelated.
The feminist movement is attempting to bring attention to this issue, and things are gradually beginning to move in the correct direction.
A few businesses are already actively looking for ways to reduce the gender wage gap.
Try to work in a company where they are aware of the significance of this because it is both morally and legally correct to pay people fairly for work of comparable value.
How Companies Can Close the Gender Pay Gap
We can do our part to close the gender pay gap, but if corporations can jump in to do their part, we can effectively start to bridge this gap as a society.
1. Qualifications Should Determine the Salary
When it comes to remuneration, the employee's gender shouldn't be taken into consideration. HR professionals should consider a candidate's education, professional background, and potential for contribution to the business.
The failure to reduce the pay disparity is directly caused by one major issue.
Employers frequently ask potential employees how much money they made at their prior position. The wage provided to the candidate will often be either equal to or somewhat greater. This indicates that the pay disparity might be carried over from one place of employment to another.
To avoid this as an employee, learn to negotiate your salary.
2. Release Preconceptions
The fact that some positions are still seen as male or female professions is a typical issue in today's business environment.
Sadly, this is one of the factors that deter women from applying for jobs that are perceived as “masculine”.
As an employee, don't let this deter you. Apply for the job you want.
3. Provide a Flexible Work Schedule
Typically, women are the ones who take on the duty of caring for the kids. Getting the kids ready in the morning, taking them to school, and helping them with homework are just a few of the things that go in the way of having a full-time day job, which inhibits many women from pursuing successful careers.
Companies could think about implementing flexible working hours and options for working from home.
By doing this, they would be enabling women to advance their careers and support the objectives of their business.
Closing the Gender Pay Gap Summary
We have no time to wait. The time to take action is right now!
The gender pay gap has existed for far too long, but the good news is that more businesses are standing up and making commitments to stop pay discrimination.
A fair and equal playing field that enables both men and women to work to the best of their abilities will be the result of the effort put forth to eliminate the gender pay gap.
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