No. 29. How much money are you leaving on the table?
No. 29. How much money are you leaving on the table?
How women and male CEOs handled their salaries during the COVID-19 pandemic and why this should teach us a valuable lesson
I recently read an article that during the COVID-10 pandemic, on average, female startups CEOs cut their salaries, while male CEOs tended to increase their salaries. As a result, female startups CEOs now make 0.89 cents to every dollar a male CEO earns (prior to the pandemic, in 2019, it was 0.96 cents compared to a dollar). Same job, different pay.
I know that’s probably not news to you - the gender pay gap is a common topic of discussion in the corporate world too. But here’s the thing: no one is going to fix that problem for us. Companies try, but as much as organizations need to do their part, so do we.
As we grow in our careers, we also grow in our expertise. Our pay should reflect that value. But, too often, we as women settle for whatever we’re told we’re worth with a job offer letter or a performance review evaluation. But if all that’s offered is 2-3% raise, well, with inflation at 8% right now, you’re getting paid less to do the same work (or more work than you did before!).
If you haven’t yet, you should read the book “We Should All Be Millionaires” by Rachel Rodgers. It’s geared more towards entrepreneurs, but those of us in the corporate world can learn from the concepts in the book too. For example, at one point Rachel talks about how women generally tend to undervalue what we offer and so we price things too low. So, her lesson is to double the initial number that comes to mind.
I believe that applies to salaries and promotions as well. Because here is what often happens in our minds when we decline to ask for more money for our work:
We want to take one for the team - we don’t want to ask someone to pay what we think is “too much” - as if the client or the company can’t afford it. Which, hey, if that is the case, go to a different company or find a client who is willing to pay what you’re charging or the salary you’re looking for!
We don’t think we’re worth the higher pay. We assume our bosses and companies know our work and value and their offers in salaries and promotions reflect that. We look at that offer or raise, and think it must align with the value we provide to the company. Sometimes, it does. But sometimes, when we maybe don’t do a good enough job speaking up for ourselves and talking about our contributions to the company, we leave money on the table.
In fact, studies show that staying with an employer longer than two years can cause you to lose money, and if you continue to be underpaid, could lead to a 50% lifetime loss of income. Now, it is possible to stay with one company and be paid your worth - we just can’t be passive about it!
I’ll be honest - this is something I personally struggle with and need to work on too!
What are your thoughts on this? Have you ever realized you were leaving money on the table?
This week’s favorites
I lost my identity during the pandemic—if we never completely return to the office, how will I find it again? (Op-Ed)
Personally, I am all for making remote work a permanent option in the corporate world, but I could also relate to this op-ed by Lindsey Stanberry about missing office life and that separation between work and personal lives.
Lessons from the Farm: Episode 85 - So, You Want to Buy a Farm? (Podcast)
I am currently listening to this episode since my husband and I want to own a farm someday. My husband knows a lot about farming, but as a city girl, I know very little about farming, so this is a fun episode to learn something new and useful!