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    Categories: Life Lessons

Why Women Are Paid Less….

I was asked the question yesterday ‘Why are women paid less?’  Not an easy question, and maybe one I have never really put much thought to.  I have often pondered why more women don’t run large businesses. The number of women who are the founders of seriously sized enterprises in Australia is not large. Take a look at the BRW Fast 100 or even the BRW Rich list.

We know that people in junior roles are paid almost equally to men. We also know that women are far more likely to take parental leave (and put careers on hold for many years) so when they return to work they do not have the same years of experience that their male counterparts have.

The disparity really begins in senior roles.

I left corporate life when I became a Mum. I wanted to have more flexibility in my life, be with my children and also keep myself intellectually stimulated by starting my own ‘little hobby business’ from home.

When I started my business – it was not about the money, nor about putting wheeties on the table, it was about using my skills to doing something interesting. Later (about 2 years into the project) I got a clear sense of purpose, which is to ‘Change gifting in Australia forever by delivering amazing experiential gifts.’

It is my purpose that drives me – rather than the financial rewards. I know many on those fast lists are probably driven by the money, ‘the deal’, the return on investment. As a result, they often end up with a bigger pay packet.

I think it is how we define ourselves – Women define themselves by the role they fulfil. Women still want to ‘prove’ themselves, as such they will do the role for much less financial gain – and until we are paid the same then we will never be equals.

There are just too few women in senior roles in Australia, too few role models, too few women on boards. It must start from the top. Let’s be outrageous and legislate to have 50% of board roles must be filled by women by 2020 and be paid equally. (Canada did this with its judiciary – and it really worked).

Something has got to change, and organisations will continue to pay women what they think they can “get away with.” But women have to want it… and pursue it single-mindedly.

Naomi Simson :

View Comments (15)

  • Like you, I don't measure my happiness by the size of my pay, but I am very concerned about pay inequity. The difference in pay for most women starts a lot earlier than your blog entry suggests. Entry level graduate women earn about $2000 per annum less than male graduates. and the pay gap has increased from 15.4% in 1999 to 17.2% this year.

    Women earn less than men at all points of the employment spectrum. For example, the pay gap for women and men in key management roles is around 28.3%.

    I agree with what you are saying about being driven by purpose, but women pay a high price for pay inequity in their careers. The wage difference adds up and by the time women retire, they have significantly less savings and superannuation than men. According to HREOC, retirement savings for women are less than half that of men. (See http://2020women.org/pay-equity/)

  • Unfortunately this article makes an assertion (that men are paid more than women) but does not back it up. Rather it writes about a few of the authors experiences and opinions.

    Yes on average women are under repesented in the board rooms, but that hardly is representative of the entire work force!!!

    When looking at relative pays one should also look at what the motivators call "hygiene factors".

    - 95% of all workplace related deaths are suffered by men (2006).

    - Almost all jobs that are outside in the cold, in dirty industrial refineries, in mines, on rooftops, etc etc are occupied by men. (because women choose nicer environments to work in).

    - Almost all jobs involving permanent relocations away from family and friends are taken up by men.

    The majority of jobs requiring extended hours, or lifestyle sacrefices are taken up by men.

    The majority of "hard" sciences and engineering students are men, despite the fact that entry scores for these courses and others such as MBA courses are lower for women.

    The question should be then "Why are men not paid more?"

  • "they do not have the same years of experience that their male counterparts have"

    When has that held men back? I know lots of cases where men with little to no experience have gotten jobs over a woman.

    Why have women bought into the idea that they should be penalized for taking a few years out of the workforce. Really, that meme has been trotted out by corporations to maintain their sexism. Just as things were changing and women were making strides in the workplace out comes this meme.

    Why do women buy into this stuff?

  • Yes, it is a sad fact that although the Sex Discrimination Act has been around for quite some time now which should in theory lead to equal pay for equal work, it is still a fact that men occupy most of the senoir positions in the workforce can generally be expected to be paid more for comparable jobs. It shows, I think, that the legal elements of change are not enough and that there must be a deeper cultural shift to a genuine committment to these principles before we will see real results.

  • Is it necessary to prove ourselves in a world where we probably don't want to exist in anyway. Is it not more important to know and be who we were created to be, by taking time off (and enjoying it) from traditional or not so traditional 'paid ' employment to have children if we want to. We devalue our role as mothers ourselves, by saying that we need to be paid in monetary ways to be important. To be a mother is a role that is so enriching challenging and fulfilling in many other ways. We perpetuate the myth that unless we are paid and equal in a monetary capacity then we are not as important.It puts money on the pedestal instead of doing,using and loving what gifts we have. If we do our jobs whatever they may be for the love of them and not for the monetary rewards then we will be much better off, mentally, physically and spiritually... and probably monetarily because it won't be the be all and end all so it will be satisfactory and meet our needs because we won't be needy of it on its own.

  • I recently discovered this blog and love reading your articles.

    Regarding this one, I believe (at the end of the day) that women really do focus more on family and protecting the nest, whilst men are more career minded and money driven. I know this is a stereotype and there are always exceptions to the rule, but I really do think this.

  • Recently when researching information on negotiation I came across the book "Women Don't Ask". What interested me was the assertion in the book that women don't negotiate well and ultimately under-value their worth.

    Some of their statistics can be found at: http://www.womendontask.com/stats.html

    Of course, there is a lot more to be said about this topic than just plain old negotiation skills, or a lack thereof.... however I haven't heard many people considering this as one of the variables that contribute to women being paid less.

  • Your comments about starting a business as a way of achieving flexibility to allow you to be a good mother whilst at the same time keeping you mentally stimulated resonated with me. I find that when you do something out of purpose that is aligned with your personal values, the outcome can be highly rewarding.

    I run a personal finance community for women (www.womenintheblack.com.au) which helps women make wise choices about money so that they can life the life they choose.

    One of the reasons women have less money than men is that they are underpaid but at the same time women don't negotiate well or do not ask for a raise (which is besides the point).

    One of the articles I have written "Have Your Cake and Eat It Too" http://womenintheblack.com.au/have-your-cake-and-eat-it-too/ features you as an inspiration for all women to start their own business so that they too can combine motherhood & a rewarding business life.

  • I appreciate how her articles focuses on how women can be their own worst enemies - and daily it is. At the cost of sounding defensive - I believe women are not paid equally to men for the same reason that you don't see many male CEO's who are short --- Go figure. In the politics of business, they are "nonsense reasons".

    It is frustrating for a woman knowing her male counterparts may not surpass her in competence, trustworthiness, skills (hard and soft) but she keeps getting passed over for promotions and juicy projects. Women bring different things to the table, different assertiveness, class, creativity, norms, value-systems, approaches, and encouragement. These assets are not always easy to value especially by male-dominated professionals who are not used to them - and especially since it took centuries for women + male feminists to help us come so far.

    It can be frustrating to think that as soon as you see a way - we go two steps backward - surprisingly all too often in developed countries. There is "paving the way" but there is still a difficult way if the way is blocked by people who do not welcome equality - and revert to sexism as "safe" and unchanging.

    However, men may be good at "aggression" - but I find that women are masterminds at the "way around". A woman can accomplish comparability very much even before sexists knew what hit them - while still maintaining her femininity and nurturing nature. It is a profound skill I have witnessed and one I am hoping to hone well. I refuse to give up anything good that I am, for anything good that I want. As women we should get used to the fact that we deserve both. And also to stop mentally sabotaging our own progression. We are our own worst enemies therefore all the "external" hurdles seem like mountains - and they cannot all be mountains. Not all at the same time.