Why Women Earn 75% Of What Men Earn

For some time you've heard that women earn 75% of what men earn, and like me, you probably jumped to what you felt was the obvious reason: it's because of accepted and rampant pay inequality practices that most are aware of, and few address with transparency.

When I assumed my current role as Director of Workforce development, it was both my intention - and my desire - to avenge that the injustices of those who have held the power to eradicate, or at the very least - to mitigate, this common workplace (mal)practice. 

 

So in an effort to get to the root of the true causes of the income disparity between women with similar or equal educational and professional backgrounds as men in the same occupation, I did research that found...no justifiable reason for the disparities that existed within my own company! These were corrected. But paving a new path forward was the most revealing insight. 

Over the course of 10 years I've observed that female job candidates consistently underbid themselves, and place salary demands that are less than male applicants 98% of the time! So, my new role has provided me with a different perspective on the male/female pay gap issue and it's this: Women often receive less money, because they don't negotiate for more money. 

The solution? First, better self-advocacy and self-advocacy skills are needed by women. Women are the backbone of every business I've been a part of. Their value cannot be understated, but they have to know it, own it, and negotiate salaries that are commensurate with their overall worth.

Second, men in my role need to have better awareness of the psychodynamics that are at play when negotiating with women who tend to be more hesitant to engage in robust salary discussions out of fear of adverse consequences. Better compensation starts with better respect and better communication about one's significance, contributions and expectations. More on other aspects of pay disparities between men and women are in the video below.