Gender Bias Towards Women in Finance
When it comes to equality, women have fought long and hard for the right to enter the workplace on an identical footing to men.
Whilst in many ways, today’s society is far more balanced, with the contribution from women recognized in every field; there still remains an inequality in one significant area: earnings.
The report titled ‘Women’s Earnings’ published in 2003 by the United States General Accounting Office found that females are generally paid a lower rate and their overall benefits package is poorer in general.
We take a look at the role of women in the workplace and examine the reasons why their salary could compare so poorly to their male counterparts.
Balancing act
With the pressure on family finances in many households, it is not unusual for both parents to go out to work and in many cases; the woman may have a similar career to her partner.
However, whilst she may be seen as an equal in the workplace, her commitments at home are often not shared to accommodate her career.
In the vast majority of cases, it is the woman who is expected to take time off if the children become sick, or to juggle their working hours around school times and childcare. Although more men are now taking a joint custodial role, it is the women who are still primarily responsible for caregiving in addition to carving out a career.
What this means in practice is that opportunities for overtime are limited, there are restrictions on how committed a woman can be, and she may frequently be absent due to parental leave. All of these factors inevitably impact on progression and earning capacity.
Even in households where there are no children, if there are elderly parents who need support, it is the woman who has to adopt a similar role again.
Work shouldn’t just be about money, but many women in finance find they earn less than male colleagues
Choosing flexibility
The above patterns are not a surprise to most women; they understand that if they choose to work they will somehow need to find a way to juggle all their commitments.
For this reason, in the US women veer towards career options which are more flexible, rather than picking the path which would offer the greater reward. Fields where alternative working habits such as telecommuting would not be viable, such as science, means that women are vastly under-represented, despite the opportunities available.
In addition to seeking out roles which are far more amenable to flexible working arrangements, a rising number of women are opting to start their own businesses in a bid to have the ultimate control over when and how they work.
Specific gender issues
Women who have children have to take a break of some kind from their career and in many cases this is extended during the early years of a child’s life. This not only impacts on their potential career path but also the Social Security they are entitled to.
However, conversely, women have a greater life expectancy than men – five years more on average – which means their retirement fund actually needs to be higher in order to create a large enough pot to sustain them once they stop working. The other factor is that because of the larger number of years women are likely to spend in expensive care homes, their medical insurance is far more expensive, even for those still in their 20s.
Finally, and although this is a stereotype and not one that holds true in all cases, as a general rule women are not as assertive about asking for pay rises in the work place. Research has shown that even if they do get round to asking for one, they are less effective at bargaining that their male colleagues.
Conclusion
Women are now a fundamental part of the workplace, holding an equal status to their male colleagues and establishing themselves as valued members of the team. However, with the majority of households still reliant on the woman to be the primary caregiver for the family too, it is not possible for women to have the same level of commitment or focus on their career as perhaps they would like.
And it is these extra responsibilities, along with greater financial expenditure, such as a working wardrobe and medical insurance which points towards a distinct gender bias in the subject of finance, no matter how hard campaigners have fought to the contrary.
The post was written with the help of Mercer & Hole consultants and accountants from Milton Keynes.
Category: Business
My wife had to take off between 2-3 months each time our two children were born. She wasn’t paid a salary when she was out of work. It was a little difficult to get by without the two paychecks but it was well worth it.
Women traditionally get the short end of the stick in the culture, but it is getting better. But strong role models like Hillary Clinton, Sheila Bair, and Elizabeth Warren are getting good results. They are good role models for women government and finance.