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Author Topic: pay equity-women charge less
Pride for Red Dolores
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Babbler # 12072

posted 21 August 2006 11:37 PM      Profile for Pride for Red Dolores     Send New Private Message      Edit/Delete Post  Reply With Quote 
This Reuters article is interesting. We all know that women are paid less than men, but this article suggests in a way that this is women's fault- but not for any bad reason, but for a good reason. Women invest more socially than men when they ask for wages it seems. This is due in part to social engineering- ie women are nice and men are taught to be assertive (in phenotypes at least). I am a strong believer in pay equity, but am wondering if there is a need to encourage people to invest more socially like the women in this article did- because good relationships with client and others etc is worth as much as pay equity.

[ 21 August 2006: Message edited by: Pride for Red Dolores ]


From: Montreal | Registered: Feb 2006  |  IP: Logged
Martha (but not Stewart)
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Babbler # 12335

posted 23 August 2006 01:02 PM      Profile for Martha (but not Stewart)     Send New Private Message      Edit/Delete Post  Reply With Quote 
Various conversations with university professors has revealed something a little scary to me. The greatest determiners of a professor's salary are the discipline s/he works in, the university s/he works for, and the salary that s/he began with at that particular university. And, adjusting for university and discipline, the greatest determiner of the beginning salary is the assertiveness in salary negotiations of the newly hired professor.

A friend of mine accepted a job in the humanities at an Ontario university two or three years ago. They offered her $55K. She had no counter-offers from any other universities. Before accepting, she had a meeting with the dean, where (after a lot of psyching herself up) she said, "I would feel better if you paid me $60,000 a year." The dean didn't even put up a fight: he said, "Done." Another friend of mine at another Ontario university had to be more assertive: over the course of two days of intense negotiating with the dean (lots of "I'll get back to you" on the dean's side), he got his salary from an initial offer of $53K to $55K to $60K to $62K.

What's the point? I wonder whether two of the factors contributing to the lower pay had by female professors than male professors are (1) that female academics are more commonly to be found in the lower-paying disciplines; and (2) female academics are less aggressive in salary negotiations than male academics. Hypothesis (2) would be consistent with the suggestion of the Reuter's article, and would explain the results. I might note that assertiveness with the dean has no serious negative effects: it gets you taken more seriously, and deans only last three to five years anyway. (If you get a dean towards the end of her or his mandate, it could be one or two years.)

I might add that, whatever career I end up in, I intend to behave as assertively as practicable in the initial salary negotiation: a $5K difference at the beginning has huge ripple effects throughout a career. And I always encourage my friends, especially women friends, to plan likewise.


From: Toronto | Registered: Mar 2006  |  IP: Logged
Martha (but not Stewart)
rabble-rouser
Babbler # 12335

posted 23 August 2006 02:46 PM      Profile for Martha (but not Stewart)     Send New Private Message      Edit/Delete Post  Reply With Quote 
To double-check my own claim about the ripple effect of an extra $5K starting salary, I did a little calculation. Suppose that (1) Smith and Jones have initial salaries of $55K and $60K respectively; (2) they each get a 4% raise every year; (3) Jones makes a yearly contribution of whatever salary she earns over Smith in an RRSP earning 4% per year, compounded annually; and (4) other than that, neither Smith nor Jones saves nor invests money. How big will Jones's RRSP be after 10 years? Answer: $71,165.57.

Here's another experiment. Suppose that (1) Smith and Jones have initial salaries of $55K and $60K respectively; and (2) Smith gets a 5% raise every year and Jones gets a 4% raise every year. In their 10th year of employment, Jones will still be outearning Smith, despite the steady differences in raises, by $85398.71 to $85323.05.

The moral: Negotiate assertively, especially when it comes to your starting salary. Waiting until your raise is too little, too late.


From: Toronto | Registered: Mar 2006  |  IP: Logged
MoeNetAh
recent-rabble-rouser
Babbler # 13088

posted 23 August 2006 06:28 PM      Profile for MoeNetAh        Edit/Delete Post  Reply With Quote 
As a former payroll administrator for a Canadian Top 100 company, I saw first hand the discrepancy of salaries between male and female engineers. I was told seven years ago by my HR boss that it was the fault of the women because they would accept what was offered and not negotiate their wage. Of course, this was the explanation for the discrepancy in bonus payouts as well....

This standard of women sitting at lower salaries became a problem as the salary gaps grew larger over the years and became obviously disproportionate to ability and position. To rectify the pay slide would mean handing out large increases to the women which would take up the entire department's annual budget and rival or surpass their manager's increase. Since the managers can see their employees' salaries, and the employees do not have this information, nothing changed. Anyone who could see the salary gaps in the reports provided were not overly concerned. It seemed prejudice to say it was the women's fault at hiring, so nothing was said about it at all.

After all, HR spent a lot of money on salary surveys to ensure our salaries were competitive. To keep things fair across the board, the HR department afforded the manager a salary range they must use when hiring for particular positions. What was obvious in our investigation was that the women were offered a salary on a lower portion of the range, compared to the men who were offered a salary in the middle of the range, which ended at the top after negotiations. During annual salary reviews, a managers' performance was based on project profitability, and no effort was made to address a hiring practice that perpetuated the salary gap. It was always 'just one of those things' my boss would remind me as I entered the salary increases and bonuses for the year. I always had to sign a new confidentiality agreement every year at that time and I was the only employee who had to do so.

During media opportunities, women employees were paraded past journalist to demonstrate our superior hiring practices that earned our Top 100 place. I hardly think our star female players would have grinned so much and said they were 'honoured to be among those chosen for the photo shoot' if they knew how their salary and bonuses stacked up. Too bad the criteria for the Top 100 award did not examine pay scales divided by gender.

I completely agree women must be aggressive in demanding more during salary and bonus negotiations, but managers' performance must reflect more then profitability as well. Rewarding social responsibility, like those modelled by the women veterinarians, is a good place to start. Salary gaps occur as part of the human process in any organisation. The consistent presence of gender-based salary gaps over a long period indicates the organization is happily ignoring the problem.

[ 23 August 2006: Message edited by: MoeNetAh ]


From: Calgary, Alberta | Registered: Aug 2006  |  IP: Logged

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