Women work 50 days extra to equal men’s pay. Here’s a way to fix that

Just 50 days into the new financial year, we’ve passed Equal Pay Day, which occurred on Monday. From now on in, men and women’s earnings match for the year.

But the gender pay gap means that women need to effectively do double work days between July 1 to August 19, to equalise their earnings with men.

The gender pay gap may be improving, but women still earn nearly 12 per cent less than men.Credit: Michaela Pollock

The time representation is simply a different presentation of the (improving) 11.5 per cent Australia-wide gender pay gap, as calculated by the Workplace Gender Equality Agency.

Putting it yet another way, for every dollar an average man earns, the average woman makes just 89 cents – that’s $238 less than men a week. And I don’t know about you, but that also makes me think: challenge accepted!

The gender pay up is a function of three things: the types of industries women typically go into, the roles they often take up in those industries (sometimes both related to caring for kids), and some case-by-case, negotiation-by-negotiation underpayment.

However, the last one is solvable with a merit-based, dollars-where-they’re-due salary increase. Heck, that might even cancel the requirement to work 50 days’ extra to make the same money as a man.

22 per cent of Australians say they have witnessed or experienced gender-based pay inequity in their workplace

Here are the three steps to get a pay rise – yes, even in this economic environment.

Step one: Nail your initial approach. No one wants to be ambushed … human nature is that it puts people immediately offside.

So, first, message or email your boss requesting a pay review. This is totally reasonable if you have not had one for a year or if you’ve just completed a big project.

Realise that a rise normally takes several months. And if you can ‘seed’ the idea in multiple ways before officially asking for more money, you stand more chance of securing one.

Step 2: Get your dollar ‘ducks’ in a row. Understand up front that the squeeze on all of our finances right now does not qualify you for a pay rise. In fact, your employer is being squeezed just as hard – and this is something you will have to overcome.

So, omit the cost of living from the conversation. That conversation should instead revolve around your contribution to the company, preferably to its bottom line.

Think of these as ‘proof points’ and they require evidence: your actions coupled with their beneficial outcomes.

Step 3: Have the ‘uncomfortable’ conversation. The generalised, gender-based truism is that women miss out on matching salaries because they don’t ask for them in a manner that means they receive. Or they don’t ask at all.

If that is an issue you need to overcome, leave any niggling feelings of imposter syndrome at the door and repeat after me: “I deserve this”. Sometimes, bargaining can turn even the most alpha women into wimps.

For you, the important thing is to remember that it doesn’t have to be hard bargaining – indeed, that’s unlikely to work because of that aforementioned concept of making someone feel cornered.

Instead, your carefully constructed wage case needs to be delivered in a manner that is clear, calm and compelling. Remember, though economic times are tight, unemployment is low – your company probably needs to keep you. And that means keeping you sweet.

But don’t forget either that any change to your salary needs to be a win-win, good for you and also good for your employer.

How could you be more involved at work? Could you add responsibilities? What are your chances of promotion and contributing extra to the company down the track?

Spend some time focusing on what they will get out of it in the future, in a fair and reasonable exchange of values and your worth. And realise that even if the answer is no this time, your salary is not stuck. You may be more likely to get a lift next time.

Or you could start looking in the job ads. Because good people are precious and should be paid commensurately. Equal pay for equal or comparable work has been a legal requirement in Australia since 1969.

Yet 22 per cent of Australians say they have witnessed or experienced gender-based pay inequity in their workplace, according to a new report from UN Women Australia and Finder.

So, if necessary, negotiate your way to parity. To crystallise your purpose, remember you could be paid the same for 50 fewer days of work.

Nicole Pedersen-McKinnon is the author of How to Get Mortgage-Free Like Me, available at www.nicolessmartmoney.com. Follow Nicole on Facebook, Twitter or Instagram.

• Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.

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