Breaking Free: Dispelling 6 Myths About the Gender Pay Gap I’ve been pondering what I’d like my last post of the year to be about. Below are some ideas that crossed my mind
I was definitively not thinking of discussing women and money. The reason? I’ve talked about women and money extensively since I started blogging. For example, I’ve discussed
Three reasons made me decide to revisit yet again the topic before the end of the year
In this article, I dispel some of the most damaging myths surrounding
But first, let’s start with the personal reason I’m so invested in this topic. My salary storyMore than 20 years ago I negotiated my first salary. I could have done much better. At the time, my future employer asked for my previous salary and offered exactly the same. Their bargaining chip was that they knew I was without a job and that it was obvious I was quite inexperienced in negotiating my compensation package. My gut feeling was that they were taking advantage of me but I didn’t have proof. I asked my friends for advice but none of them had much more experience than I did. Still, I negotiated a £3,000 increase, which I got. To make a long story short, a year later I learned that I was severely underpaid. That had three consequences
Myth #1: Equal pay is the same as the gender pay gapEqual payEqual pay is being paid the same salary for the same work. The right to equal pay has been recognised by EU law since 1957. More precisely, Article 157 of the Treaty on the Functioning of the EU (TFEU) states Each Member State shall ensure that the principle of equal pay for male and female workers for equal work or work of equal value is applied.
2.For the purpose of this Article, ‘pay’ means the ordinary basic or minimum wage or salary and any other consideration, whether in cash or in kind, which the worker receives directly or indirectly, in respect of his employment, from his employer.
Equal pay without discrimination based on sex means:
(a) that pay for the same work at piece rates shall be calculated on the basis of the same unit of measurement;
(b) that pay for work at time rates shall be the same for the same job.
Although the UK is not a member of the EU anymore, the Equal Pay Act 1970 established that (a) for men and women employed on like work the terms and conditions of one sex are not in any respect less favourable than those of the other; and
(b) for men and women employed on work rated as equivalent the terms and conditions of one sex are not less favourable than those of the other in any respect in which the terms and conditions of both are determined by the rating of their work.
It has since been repealed and replaced by the Equality Act 2010. Sex equality rule
(1) If an occupational pension scheme does not include a sex equality rule, it is to be treated as including one.
(2) A sex equality rule is a provision that has the following effect —
(a) if a relevant term is less favourable to A than it is to B, the term is modified so as not to be less favourable;
(b) if a term confers a relevant discretion capable of being exercised in a way that would be less favourable to A than to B, the term is modified so as to prevent the exercise of the discretion in that way.
Of course, that doesn’t mean that there are employers that break the law upfront — pay women less than men for the same work — or use subterfuges to pay them less. Two examples:
Across the whole period, equal pay claims made up 12% of all cases, which include other complaints such as unfair dismissal, discrimination, and unlawful deductions from pay. Equal pay claims made up 21% of all cases in 2017–18, 14% in 2018–19 and 14% in the first three quarters of 2019–20.
In the US, the Equal Pay Act of 1963 protects against wage discrimination based on sex. However, as in Europe, that doesn’t mean that discrimination is eradicated. For example “By 1969, the median salary for female computer specialists was $7,763. In contrast, men earned a median of $11,193 as computer specialists and $13,149 as engineers.” Gender pay gapThe gender pay gap measures the difference in the average hourly wage of all men and women in work. Unlike unequal gender pay, the gender gap pay is not unlawful although countries such as the UK have regulations and laws making its reporting recommended or even mandatory. In 2016, the Women and Equalities Committee published a report outlining some of the main causes of the gender pay gap:
I’ll add two more:
Finally, it’s very important to highlight that the gender pay gap is an intersectional issue.
Myth #2: Transparency in salaries will eliminate the gender pay gapI’ve been an advocate of salary transparency since in 2018 I attended a talk by Åsa Nyström, Director of Customer Advocacy at Buffer. She discussed Buffer’s value of “Default to Transparency” which consisted of sharing via their website all their employees’ salaries as well as the formula used to calculate them. The benefits of salary transparency are multiple
However, it’s not the magic bullet for the gender pay gap. We need to remember that the gender pay gap is about career progression and gendered careers, so transparency won’t eliminate entrenched conscious and unconscious biases. Still, transparency is a step in the right direction and there is some good news to celebrate. A new EU pay transparency directive, adopted in April 2023, will “ help workers or jobseekers better understand their position in the wider pay structure of a company or industry. It also includes collective measures to ensure employers share aggregated pay data broken down by gender, both internally and publicly.” Some of its key points are:
Myth #3: Women earn less because they don’t negotiateYear after year, I keep hearing that the gender pay gap is due to women not asking for raises or underselling their skills. Whilst some women may indeed be reluctant to negotiate, either because they don’t know that salaries are negotiable or they don’t know how to negotiate them, there are also other four important reasons:
Finally, some studies show that women are more likely to negotiate salaries than men. However, while women are more likely to ask for higher salaries, men still receive greater compensation. Myth #4: I will negotiate my salary once I prove my value to the organisationYou’ll never be in a better position to negotiate your salary than when you join an organisation. Please don’t count on being able to renegotiate your salary later on or at the next promotion — it’s extremely unlikely you have that leverage. Moreover, by not negotiating your salary, you risk
Myth #5: I may lose the job offer if I negotiate the salaryScoop: You’re expected to negotiate your compensation package. So do it! Worst case scenario? You get what you got offered in the first place but at least you know you reached the maximum that was on the table. And if you don’t know how much you should negotiate for, ask mentors, sponsors, professional communities, and friends. Myth #6: I need to be mindful of the ongoing economic situation and settle for lessIf you still feel reluctant to negotiate your salary, think about your future self. For example, an increase of £2,000 in 2024 will translate into £40,000 in 20 years. Moreover, promotions, bonuses, and contributions to your pension scheme are typically calculated as a percentage of your salary, so they’ll increase as your base salary increases. In summary, those £2,000 will be the gift that keeps on giving! Call to actionI have two asks for you
Happy New Year! Upwards & Onwards: The Career Breakthrough Gift You Deserve in 2024Last Friday, I received an email from a super-smart and ambitious woman that joined my personalised program “Upwards & Onwards”. This is a 3-month coaching and mentoring package where I work 1:1 with clients to
When we started the program, this client had been blocked in her career progression for some years and the gap between her situation and the career she dreamed for herself appeared to be insurmountable. Forwards to last week: In her email, she told me she just accepted a job offer that epitomised the role of her dreams! To her credit, she embraced coaching and mentoring and consistently followed up with the plan. Through this program, others have succeeded in getting
QUESTION: Are you ready to get the career you deserve? Click on this link to purchase the “Upwards & Onwards” program for £850.00.
NOTE: From January 2nd 2024, I'll raise the price to £970.00. This price change is a reflection of my commitment to keeping the program affordable whilst making my business sustainable financially. Questions? Contact me at patricia@patriciagestoso.com or book a free call. |
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