You're Not the Bad Guy. But Are You Part of the Solution?

I have been tip toeing around the topic of the gender pay gap, because I was scared of adjusting it wrong and therefore making a wrong argument.

If women are e.g. less aggressive in salary negotiations, how comparable are salaries between men and women really?

And there is always that one person waiting to argue, "It can't be that women and men get unequal pay, because there are regulations against it."

I had been so focused on not making an incoherent argument that I lost sight of the fact that women on average make 45% less than men throughout their lifespan.

"Even if we are not talking about the adjusted pay gap. There is still the unadjusted pay gap between men and women," Selina Haupt said during her presentation at our first financial education event by leadHER.

And that's effected by all the variables I was scared to include into my chain of thought:

1. Industry Choice: Women are concentrated in lower-paying fields like caregiving and education.

2. Leadership Roles: Fewer women are promoted to high-paying executive positions.

3. Domestic Work: Women bear a larger share of unpaid caregiving and household duties.

4. Career Breaks: Family responsibilities often lead to reduced work hours or time off, slowing career progress.

5. Part-Time Work: Women work part-time more often, which limits earnings and benefits.

6. Negotiation: Women are less likely to negotiate for higher pay.

7. Gender Norms: Societal roles can restrict women’s career advancement.

8. Stereotypes: (Unconscious) biases about women’s abilities or commitment limit opportunities, incl. wording differences, e.g. an arrogant woman vs. a confident man.

9. Cumulative Effects: Small early pay gaps grow over time through percentage-based raises.

10. Bias in Promotions: Workplace biases favor men for promotions and raises, e.g. if constant availability & mobility are favored.

Overall, leading to 49% less pension for women at the end of their work lives.

I believe it is important that all of us reflect on whether or not that is fair and why.

And I know this is an uncomfortable topic because some of us are on the other side of the gender pay gap, feeling like the bad guy.

You're not a bad guy, if you have been given a promotion. You are not a bad guy, if you are earning more than the women you know.

However, you are becoming a part of the problem if you are in a position of power, not changing discriminatory behavior in the work place and at home.

And we really need you to be part of the solution.

I am really happy Nadja N. Grünert will help us navigate the difficult conversations around money in relationships and throughout life during the second leadher event of finance January.

leadHERs & MANbassadors welcome!