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Imagine hearing your interviewer say, "You've got the job, but we'll pay you $20,000 less than your male counterparts. And even if you do a better job, they'll get first dibs on the next executive position that comes along.
Obviously, this scenario wouldn't happen, but it might as well. Women are not hired into executive and managerial positions as often as men and are often paid less than their male colleagues when they are, according to recent studies. But there are steps women can take to negotiate better pay during the interview and to open opportunities for advancement later.
On average, male execs earn $10,000 to $20,000 more than females in the same positions in every field, according to a 2003 National Association of Female Executives (NAFE) study. Compounded over a person's lifetime, this leads to a difference of a half-million dollars in earnings. To add insult to injury, this also equates to a 50 percent pension gap, according to Betty Spence, president of NAFE.
"Not much is being done about the wage gap right now, says Spence. When asked if the pay is more equitable in some industries, Spence says no, and that it varies from company to company. However, a February 2003 salary study conducted by the NonProfit Times determined that female CEOs of nonprofit agencies are starting to close the wage gap to an average of $20,000 less than their male counterparts. This is an improvement over the 2002 wage gap of $24,756.
More Challenges for Female Minorities
Women of color face more challenges than other females, regardless of industry, says Katherine Giscombe, PhD, senior director of research for Catalyst, a New York-based nonprofit agency for the advancement of women in business. Giscombe directed the 1999 Catalyst study, Women of Color in Corporate Management: Opportunities and Barriers, which reinforced her conclusion that concrete ceilings exist for executive women of color. The numbers [of women of color in executive positions] are miniscule, Giscombe says. In 2000, only 1.3 percent of Fortune 500 companies [in the study] had any corporate officers that were women of color. In 2002, the numbers had only risen to 1.6 percent.
What Can Women Do About It?
To better their chances in this bleak environment, women need to do their homework. For women of color, that could mean inquiring about a diversity policy and researching to see whether any minorities are on the board, or in upper management and executive roles, advises Giscombe. And it's always good to network with colleagues familiar with the organization to learn about its culture.
Spence suspects women allow themselves to be paid less by not negotiating enough during the interview process. The solution to this also begins with homework. Find out exactly what the position is worth and what the going rate is for that particular area of the country, Spence advises.
When you do land the job you want for the salary you want, make sure you get the same opportunities for advancement as your male counterparts. The best way to do this is to find a mentor within the company, according to Giscombe. Another way is to make yourself available to aid colleagues with other projects and to volunteer for a taskforce or other committee.
