According to a recent study, one in three (33%) women in the workforce don’t think they’re being paid what they’re worth currently. This is a huge problem, as it can lead to women leaving their jobs early or not getting hired in the first place.
What was the study?
Credello, a leading personal finance resource, partnered with the research firm YouGov to explore how women in today’s workforce think about money, particularly in regards to their salaries, while dealing with issues of pay transparency and gender pay inequality.
The work and money survey included 2499 participants that provided their opinions on topics including:
- The availability of financial health perks at their jobs, such as student loan repayment assistance or financial counseling
- Feelings of pay equality as related to gender at their employer
- Feelings of being adequately paid for the work they do
- Their confidence level for negotiating salaries
- Their attitudes towards budgeting and saving
- How they would adjust their spending habits should they encounter a financial emergency or change in their income.
What were the findings of the study?
The study found that one in three women currently in the workforce don’t feel they’re being paid what they’re worth. Only 12% of women reported any sort of financial health benefits from their employer.
How only $300 could change everything
Thirty-three percent of women reported an additional $300 per week would drastically change how they can handle their finances and improve their quality of life.
The women surveyed reported that with an additional $40 a day:
- 57% would be able to save for the future
- 43% would pay off major debts faster (healthcare, credit card, student loans)
- 36% would be able to take a vacation
- 35% would stop living paycheck to paycheck
- 32% would upgrade their living situation/transportation
- 27% could take better care of their health/their family’s health
- 22% would be able to spend more time with their family
- 20% would be able to pursue their passion projects
Why is this a problem?
Too often, women in the workforce don’t feel they’re being paid what they’re worth. This can have a negative impact on their morale and productivity. When women feel undervalued, it can lead to lower wages, fewer promotions, and fewer opportunities for career growth.
The issues created by the gender pay gap
The gender pay gap is a persistent issue in the U.S.. A report by the American Association of University Women (AAUW) found that women in the workforce earn only 84 cents for every dollar earned by men. The AAUW report also found that this wage gap exists across all industries and occupations.
There are several reasons why women earn less than men do. Some of these reasons include:
- Women are more likely than men to work part-time
- Women are more likely than men to work in lower-paying sectors
- Women are more likely than men to take time off from their jobs to care for family members
How can we fix the issues with women’s financial health?
The issues facing women’s financial health go beyond pay equity. Women face unique challenges in managing money, including a greater likelihood of experiencing financial stress and anxiety. This can lead to overspending and not having enough money to cover emergencies.
There are a number of ways that we can work to address these issues. We can:
- Encourage women to seek out financial counseling offer free or low-cost resources, like credit counseling or budgeting tools
- Support women in their career transitions, such as helping them find new jobs or negotiating higher salaries.
- Speak up about gender pay inequality in our workplace
- Advocate for better pay transparency policies
Women are undervalued in the workplace, and if we don’t start fixing this problem soon, it will only get worse.