Fact: women make up almost half of the U.S. workforce, but earn 79 cents for every dollar a man makes. That wage gap is certainly something that should make every hard-working person cringe.
But to truly understand the wage gap between men and women, it’s important to have all the facts, says Melissa Greenwell, author of MONEY ON THE TABLE: How to Increase Profits Through Gender-Balanced Leadership.
There are many variables, such as scope of work, experience, education, and performance, that all go into how one is compensated. It’s not as simple as a male earning more because he is a man, and a female earning less because she is a woman.
Bringing Up Gender and Pay at Work
“I always advise women who believe they are not fairly compensated to approach their manager on the basis of scope of work and performance,” says Greenwell, who is also executive vice president and chief operating officer of national retailer, The Finish Line, Inc.
“I think the gender card should be the absolute last argument, because of how all of these other factors affect pay. If gender is the only argument, it puts everyone on the defensive and then requires answers to questions about how that information was obtained. I’ll go back to what I say in my book, Money On The Table. Women are not paid less simply because they are women, but more often are not paid more because they don’t ask for it.”
What Employers Miss About the Gender Wage Gap
Back in 2009, three economists set out to understand the wage gap between men and women by following a group of MBA graduates from the University of Chicago’s Booth School of Business.
That study was discussed in greater detail in the video, What People Miss About the Gender Wage Gap. The study looked at thousands of men and women who graduated from 1990-2006.
The data showed that men had slightly higher salaries right out of the gate. Women made an average salary of $115,000, with men making $130,000. But nine years out of business school, men had an average salary of $400,000, while women earned 60-percent less—$250,000.
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The study also found that women with kids had a wage gap twice as large as women without kids. What is common for women in their 20s and 30s? Yep—having kids and taking care of the kids, with many choosing to reduce hours or stay home full-time to handle child/parental responsibilities. A survey from Pew found that in two-parent households with both parents working, women did more than men when it came to managing kids’ schedules, taking care of them when sick, and handling household chores.
Workplaces weren’t as flexible in the 1990s, and flex work options, reduced schedules, or staggered start and end times were rare. But now, top employers understand that to attract and retain top talent, especially top female talent, they need to be open to flexible schedules.
How Employers Can Combat the Gender Wage Gap
The reality is that some jobs require really specific hours while others are more flexible.
Let’s say a woman is a venture capitalist, accountant, or businesswoman. Most employers today expect the employee to be available during traditional 9-to-5 business hours—when clients are available. If she’s not available during these hours, employers and bosses don’t see her as doing her job or doing a god job.
Compare that to a woman scientist, where most of that work is self-directed and in a lab. She can complete the work in the early morning, evening, or weekends. It doesn’t really matter as long as the experiments and work get done. If she gets her work done, her bosses think she’s doing a good job.
The video also points out that for the millions of women who work jobs with very specific hours, the wage gap is larger for women in jobs with more flexible hours. In the 1970s, women pharmacists earned about 66 percent of what men earned.
Today, most pharmacies are owned by large chains and stay open longer hours, which means they need more pharmacists, and there are more opportunities for women. So a 6:00 a.m. to 2:00 p.m. shift or a 2:00 p.m. to 10:00 p.m. shift is more acceptable, and offers flexibility for women, especially women with children.
And now, women pharmacists make 92 percent of what men make.
Making Jobs More Flexible
As the video tells us, the reality is, flex work doesn’t work for every profession or industry. But it also points out that there are lots of jobs that could be more flexible than they are right now.
And the research shows that the more employers make that work, the more the wage gap between men and women is going to shrink. Also, the talent pool will be that much greater, because working women seeking flexible work options will be more attracted to employers who offer this option.
But unfortunately, some employers still view creating flex work schedules as “making exceptions” and potentially creating a situation that some employees may complain about if the company is not able to do this for everyone, says Greenwell.
Instead, companies need to view the ability to offer flexible work options for those who want or need the flexibility as a competitive advantage to get the best talent.
“Most employees are very reasonable, logical people who get that flex hours may not work for every job,” says Greenwell, But not everyone wants to work non-standard hours—and that should be used to an employer’s advantage when recruiting, attracting, and retaining talent.
“The fact that employees don’t all want the same schedule can work to a company’s advantage, enabling operations to continue on a more continuous basis, rather than only during set business hours,” says Greenwell.
Formalize Flexible Work Options for Employees
Organizations need to start formalizing flexible work programs. But managers shouldn’t just ask for more flexible work options and expect it to happen: they should create and present a plan.
Develop a pitch and present it to decision makers. Employers who value women workers should also be willing and open to trying flex work, or allowing women to present flex work options.
“There’s no reason to leave your organization in search of a more flexible work environment without first asking for it,” says Greenwell. “But don’t put the entire responsibility on other decision makers to come up with a solution. Take a solution to them.”
Greenwell recommends figuring out what kind of schedule or telecommuting arrangement can be a win/win for both the employees and your company.
Employers can swing things in their favor by creating flexible work options and promoting them in their recruiting efforts.
Women want to be paid fairly for their contributions, and should be. And they should also be given the opportunity to work more flexible hours.
Interested in hiring flexible workers? Request an invite to FlexJobs.
Today’s top employers are already bridging the wage gap. Is your company?
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