The Pay Gap Puzzle
Monday, March 1, 2010 at 2:20PM |
Gordon Miller Gender-based bias in the workplace is alive and well, unfortunately, especially when it comes to the continuing disparity between men’s and women’s pay. Sure, there are reports that show that the pay gap is shrinking somewhat. In my opinion, however it is not shrinking nearly as quickly as it should be.
What are the real reasons most women still earn less than men? Ask 100 people and you’ll get 150 different reasons. But according to some non-scientific research I conducted in 2008 when I interviewed 174 women and 174 men in Colorado, here are the reasons I heard the most. (Please don’t shoot the messenger.)
a. Many people I talked to said it’s all about lifestyle choices. Some women, they say, believe a full-time career goes against the family, while the majority of men think their career is for the family. The resulting trade-offs in time spent working may impact how much each earns.
b. Others believe it’s because so many women have historically worked in fields that are more public service-oriented and less profit generating. They cited teachers and nurses versus plumbers or stockbrokers.
c. Some claim that it’s due to a handful of holdovers from the good-old-boys’ club still up to their nefarious ways. This group said that these die-hards are smarter and quieter about practicing their beliefs, at least publicly, but are continuing to impact the verifiable skew in compensation levels.
d. A few contend that the pay gap is somehow associated with the notion that many women are more security-oriented than men and are less likely to have their compensation tied to their performance or their company’s performance.
I certainly don’t know what the truth is. It may be some combination of the reasons cited in my survey. At this point, however, I’d rather discuss what the possible solutions might be.
Possible ways to close the pay gap
Other than actions like lobbying our government to speed up the process of overhauling equality legislation, what steps can women take to close the gap? Here are some ideas that I have seen succeed in the workplace:
- Ask for a performance-based component to your existing pay plan. Most companies like it when employees proactively propose that a meaningful piece of their compensation be tied to (a) their personal performance vs. stated objectives and/or (b) the company profitability.
- Ask for a raise. The chances for success using the “equal pay” argument are, unfortunately, not great. Base your reasons on your accomplishments since your last raise or review. Oftentimes, the boss may not be totally aware of what you have done. Present the facts only, such as new processes you have created that have improved productivity or new accounts you have brought in or new employees you have referred to the firm or organization
- Ask for more assignments. It’s a powerful way to change the decision-maker’s view of you. That may help your chances to get promoted and close the pay gap in the near future.
- Ask for a promotion. Start by making the business case as to why you want a promotion to a loftier position (the best managers like it when their workers are proactive). Focus on the new programs, processes, tools and the like that will enhance your value proposition in their eyes. It can’t just be based on your tenure. Most managers don’t respond well to the entitlement argument.
- Switch firms. Some companies routinely practice equal pay concepts. There are lists of the Best Companies for Women to Work For published each year.
- Change professions. You can research which professions typically practice equal pay. Go to your local library branch. (Yes, Virginia, there are still libraries.)
- Start your own business. There may come a time when this is the step to take to make the money you deserve.
How about you? What’s your take on this topic?

Reader Comments (1)
I appreciate this subject and read the stats too. I am confused. You see, having interviewed well over a thousand executives and being involved in hiring hundreds of people, I don't see the gap. I really don't. Granted, my database only recently closed 50/50 on men and women in the professional workforce and entrepreneur ranks. Used to be heavy male, but even then compensation was the same in averages. No women considered or hired had less compensation than the men with otherwise equal experience for a particular job. Entrepreneur ventures are being taken over by women and they are earning equal to the value proposition for products and services.
Maybe it is who I hang out with, but what I see vs. what is published does not match?