Here's Why Women are Earning Less

Have you ever wondered exactly why it is women are earning less in the workplace? What if I told you it is actually a decision made BY the women to earn less. Yes, it often was HER choice to get paid less. Sounds absurd right? Before you comment and vent at me I want you to hear me out, there is some logic behind this (and observational evidence). I run an IT Recruitment business that has a specialist division that's sole purpose is to advocate for equality for women and helping companies hire awesome female talent (and also helping women into their next role). So I talk to women on a daily basis and there is one question that literally will determine your salary. P.S This is just one factor within a very complex arrangement of societal and employment behavioural factors.

What If I told you that changing your answer to this one question could increase your salary and INCREASE your chance of getting the job.

There is a bounty of information available around female psychology and employment that coincides with my argument here. Without further ado, the question is...

"What salary are you seeking?"

That is the magic question. Whether a recruiter is asking or the company- Your answer will determine the exact figure you will be paid around 80% of the time (Stats are totes from my experience alright peeps chillax).

Many of you reading this are probably in a job- you might not even be actively seeking a change (but deep down you are open to the idea because you are so damn sick of that one person in your office who really peaves you off ) If I called you RIGHT NOW would you even know what you are worth? How could you know? Where would you research? (the internet ?- NO) Who would you ask? (your female friends-NO) Or do you base it on an increase on your current role (even though you are likely being underpaid comparatively to your male counter-parts).

Imagine you hear your colleague John who has the same title and responsibilities is earning (30%) more than you, What do you ask for in your next role?

You would ask for the same salary as John, right?

NO.

You Ask for MORE than John. Why? Well If John was going to leave his role will he command less? or equal? NO! he will also ask for on average at LEAST 20% more, and you want to be equal to John! (Not above, not under- but darn well equal).

So that's a 56% jump in your salary it sounds absurd! I know what you are thinking, but John will ask for 20% more next time in hopes that he will be negotiated down by the employer and get 10% more than what he is currently earning (which remember is already 30% more than you) So to get equal salary to John you have to use Johns logic and ask for more than John! Otherwise, you will consistently be underpaid compared to your male counterparts.

Example:

You are currently earning $50,000

John is currently earning $65,000 (30% more than you) (same job)

John asks for a 20% increase for his next job($78,000)

You will need to ask for a 56% increase ($78,000) to be equal to John for your next job.

Women are often presumptive- we feel we will simply not be chosen because we feel our salaries are too high because it is such an increase to our previous salaries (which we were being underpaid).

Don't get me wrong this does not always work. Employers have budgets and there is also a thing called reality- but if you feel you really are equally as experienced as John with equal capabilities then you should really be on an equal salary. I am not saying to ask for more than what you are worth- But I am saying this is how you get paid what you are worth as a female in a very competitive industry. You also do not want to go into a role that is beyond your expertise or where your salary is so high the expectation of quality of work from you is outside of your capabilities. So be realistic.

Salary negotiation is tough- but it is also a bit of psychology.

Sometimes we value somethings' worth on the basis of a price, you go into a store you have two different sound systems one is $150.00 and the other is $550.00 you assume the most expensive one will do a better job and be of higher quality. When I first started in Recruitment, I had an EXCEPTIONAL female developer ask for $60,000 salary when her male counterparts were between $90-$110,000 and when I submitted her to the client he said to me, I DON'T THINK SHE IS EXPERIENCED ENOUGH! Just on the basis of her salary- SHE LITERALLY HAD THE EXACT SAME YEARS AND QUALITY OF EXPERIENCE! But because her salary was so low he assumed she was not as good. So sometimes, having a higher salary expectation will psychologically improve your 'worth' to the employer and hence increase your chances of securing the role.

This is not by any measure a tool to use for people to just increase their salary for no good reason, in fact, a huge part of my job is negotiating people's salaries down to a realistic level and helping people see opportunity over salary. But this will help you see what goes on behind closed doors and in the minds of employers and how men often win at the very first step for salary negotiation.

Share your thoughts- your ideas, this is just a brief touch on the subject and I will be writing many more articles shortly on this topic to help educate women and help them feel confident when applying for jobs and getter better at salary negotiation. This is not the ONLY reason why women are paid less- this also is not the solution, it is just an idea to hopefully help you see the issue in a new light.

If you need a job? Or would like to fix the gender imbalance in your company feel free to contact us

Reesby Pty Ltd

www.reesby.com.au | [email protected] | +61 403 233 518