The truth about women's pay

Commentary:

(MoneyWatch) The data says that women earn 77 cents for every dollar a man earns. The differential is even worse for black women -- 69 cents -- and worse still for Latina: 57 cents. It's shocking and what's infuriating is that these numbers have stayed roughly the same for the last ten years, despite an army of smart, brave women campaigning to get it changed. No one should believe any more that this has anything to do with capability. More women than men in OECD countries are graduating with degrees -- but still get paid less.

What should women do? Well the first thing to understand is that the numbers are averages which have, within them, the gigantic costs that women pay for taking maternity leave, losing some of their pension and 401(K) rights and for taking part time jobs which pay less well and offer less in the way of career advancement. Women are paid less well because we get worse jobs with fewer opportunities and worse benefits.

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But we are also underpaid because we don't demand more. Often this is because we are too trusting -- or too ignorant. I remember the abject horror I felt when I discovered that I was being paid exactly 50 percent what my male peers were earning. My first instinct was to quit. Then I remembered I loved my jobs and my co-workers. I sat down and wrote about a 2,000 word email to my boss which, slowly but surely, got reduced to just a few words:

Dear ***, I am deeply disappointed to discover that I am being paid half the amount earned by XYZ and other counterparts.

The next day my pay was doubled.

Was I thrilled? No. I was relieved that I could stay in a job I loved. I was happy not to take (or pay for) legal advice. But I was still mad. In fact, now I'm writing about it, I'm am -- 12 years later -- still very angry. On reflection, I recognize that this pay discrepancy was known about and tolerated. The company hoped to get away with it.

The way I found out about my pay differential was through another woman, in HR, who not only told me the numbers but pointed me to the public documents I could cite in order not to reveal my source. That kind of solidarity is something every woman should look for in HR departments until the pay gap is firmly shut forever. HR is mostly run by women: Why don't they use that power?

I'm sure there are plenty of companies like that still: Counting on women's ignorance, sentiment, passivity or fear to stay put. They should not count on it for long.

[JLee_HR]

Great comments...Women as well as men need to be certain they have done the research for the position they are seeking. They should also ask what the compensation range for the opening is before meeting with the hiring manager, and then not be afraid to negotiate a fair wage for their experience and education. It is also a good idea to research what salaries might the incumbent(s) have made in the position or a similar one and find out how many women versus men are in like positions in the organization. There are sites like salary.com that may provide insight into positions within specific localities. There is much research that could be done and it may be quite valuable with attempting to get a fair salary. The HR person can provide potential applicants with a hiring range but the HR person is not in a position to speak about individual salaries for all kind of reasons, and ethical is just one of them. Applicants typically accept a salary that they can live with, at least in the short run. If after being hired an employee discovers some sort of adverse impact to self and others in a protected group there are processes that will help the employee try and remedy that. However, employees should understand that accepting a salary in hiring range is also a personal decision. If the applicant tries to negotiate they may fair better, given that the employer is interested in hiring them. Negotiate before settling since it may be a while before an increase is available.

[dixon757]

As an employer myself, I have often had to deal with these kinds of situations; by that I mean differences in pay rather than presumed gender discrimination. The reality of a successful business is that you must pay your people enough that they will work efficiently, but no more, or you find your competitors outbidding you. So, yes, your peers may demand higher pay and get it, as you did. But when the time comes to downsize, who will be at the top of the list? When the really unpleasant jobs come up, ditto? By the way, I have seen the stats showing that women in comparable jobs actually make MORE than their male peers. And another thing, that 77% number includes a lot of non comparable jobs, like a female desk job with light duties and flexible hours thrown in the statistical mix with a male lineman in dangerous and difficult situations who is on call essentially 24/7. Lady soldiers, firefighters, and police demand the same pay altho the reality is that much of the dangerous and physically demanding parts of the jobs fall to their male associates.

[gigihr01]

"HR is mostly run by women: Why don't they use that power?"

Um, we don't use that power because it's wrong! It could get us fired or worse!

I've been in HR for 15 years. You just don't go around telling employees what their coworkers are earning; that's a violation of privacy and shows blatant disregard for one of the most basic doctrines of the HR profession: confidentiality. If an employee wants to reveal his/her pay to another employee, that's fine. We can't prohibit that and we don't. But no one who doesn't have a legitimate reason to know another employee's salary is going to get that information from me. No one.

[Rational_Observer100]

Typical Business Employee / Employer wants the value rather than the frills that one brings along. And to be envious is very human condition -- none of us are above that. But people with morals / conscience don't get their employee or colleague fired by weaving stories around. Like the famous executive wrote in one of the prestigious magazines, if it is you or your sub-ordinate, he would certainly let his subordinate go (survival human/ animal instinct). There is not any explanation needed for that action.

I do take exception because HR is mostly women, they should be more careful. However, it is the Mgrs / Execs and others who don't want have time or don't want to learn or afraid of the legality, want you to build the story around it (and it is also the first step). All this happens with tongue in cheek, when everybody agrees at employment offer that it is an "At-Will" employment and he / she can let go with or without a reason and likewise the employee may leave / with or with out any reason.

All these charades are not needed.

Let us not behave / believe that business is anything other than making money for its to shareholders / investors and not to worry about intervention and directions from who to hire / who to fire (that includes Govt rules / EOE etc).

[Rational_Observer100]

Typical Business Employee / Employer wants the value rather than the frills that one brings along. And to be envious is very human condition -- none of us are above that. But people with morals / conscience don't get their employee or colleague fired by weaving stories around. Like the famous executive wrote in one of the prestigious magazines, if it is you or your sub-ordinate, he would certainly let his subordinate go (survival human/ animal instinct). There is not any explanation needed for that action.

I do take exception because HR is mostly women, they should be more careful. However, it is the Mgrs / Execs and others who don't want have time or don't want to learn or afraid of the legality, want you to build the story around it (and it is also the first step). All this happens with tongue in cheek, when everybody agrees at employment offer that it is an "At-Will" employment and he / she can let go with or without a reason and likewise the employee may leave / with or with out any reason.

All these charades are not needed.

Let us not behave / believe that business is anything other than making money for its to shareholders / investors and not to worry about intervention and directions from who to hire / who to fire (that includes Govt rules / EOE etc).