The cost of living crisis is twice as bad for women, with twice as many females relying on additional income streams to get by versus men. According to a ”¯recent survey of more than 6,000 professionals across North America by global recruiter Robert Walters Group:
- 1 in 10 women rely on additional income outside of full-time work;
- 40% of women feel underpaid for what they do, versus 24% of men;
- 67% of men earn a median salary of $55,000 or more, versus 39% of women;
- A quarter of females (24%) have not had a pay raise in the last 12 months, 9% more than men;
- Men are twice as likely to receive additional monetary-based perks, such as mortgage allowances;
- 17% more men received bonuses in line with their expectations ”“ 65% of men versus 48% of women.
This comes at a time when gender pay gaps and workplace equality are a core focus for organizations across the country.”¯But just 25% of women feel they can live comfortably and have a good amount of disposable income for savings or purchases of their choosing.
Said Coral Bamgboye, head of ED&I (Equity, Diversity and Inclusion) at Robert Walters United States:
“While the gender pay gap has narrowed over recent years, we still have a significant way to go. Our research indicates that men remain (at) higher wages, feel more satisfied with their salary and are far more likely to receive a pay raise should they request it. Indeed, our survey reveals just a quarter (25%) of women have received near 75% to 100% of the pay raise that they requested, with double the number of women than men stating that they received nothing following negotiation.
“Across the first half we saw the reality of rising living costs across the U.S. ”“ with home prices, groceries, gas and public transportation becoming increasingly expensive. Now more than ever, employees are relying on their salaries and job security to ensure they stay afloat. But with 7% more women than men stating that they live paycheck to paycheck with no disposable income, it”™s evident that men have an unfair advantage in living in the current economy.”
According to the Robert Walter survey, of those professional women who did receive a pay increase this year, the majority got below the current rate of inflation ”“ with 32% receiving a pay increase of 1 to 5%.”¯Just 9% received an increase of 21% or more, compared to twice as many men (19%) who earned the inflation-busting increase.
A quarter of women (24%) have admitted that they have not received a pay increase at all within the past 12 months. This while in 2022 the U.S. saw the largest increase in the Consumer Price Index (CPI) in 40 years, with increases of more than 7.5% from 2021. (Food prices increased 7%, while energy prices rose 27%.)
Men are also twice as likely to receive additional monetary-based perks than women, broken down below:
-”¯”¯”¯”¯”¯”¯”¯410K retirement plan ”“”¯25% of men versus 19% of women;
-”¯”¯”¯”¯”¯”¯”¯Bonus ”“”¯19% of men versus 11% of women;
-”¯”¯”¯”¯”¯”¯”¯Equity/company stocks and/or shares ”“”¯12% of men versus 6% of women;
-”¯”¯”¯”¯”¯”¯”¯Mortgage allowance ”“ 11% of men versus 6% of women.
Though the need for higher salaries and monetary benefits for women is evident, psychological barriers seem to prevent them from negotiating.
Almost a fifth (16%) acknowledges being hesitant in negotiating salaries, because they”¯“do not believe their employer will provide the pay raise.””¯A further double the number of women than men stated that they felt a lack of confidence or embarrassment when it comes to negotiating for better pay.
Coral added:”¯“The gender pay gap has been prevalent for as long as the modern economy has and because of this, women should be supported by their employers in a way that makes them feel comfortable and confident when it comes to salary negotiation.
“While organizations work to bridge the gap, employers need to be more prepared to address issues and make changes ”“ particularly when it comes to appraisals and benchmarking salaries more fairly, without waiting for employees to seek fair pay themselves.”¯
“Employers must remember that we”™re in the midst of a talent shortage. If women find it significantly more difficult getting by on their current wage, particularly as we navigate through this tough economy, it may be more appealing to look for new jobs rather than preparing for conversations around salary negotiation ”“ especially when many believe these conversations won”™t be successful.”
