At a recent industry awards dinner, the host promised to keep the speech short because “Everyone knows that you are just here to check out the hot chicks.” In one short sentence, the sprinkling of women in the room - accomplished business owners, CEOs, investment managers, and young investment professionals - were reduced to eye candy.
You may not think this is problematic. Perhaps you think I lack a sense of humour. If believing that words matter – and are more important than a cheap, momentary laugh – means I’ve lost my sense of humour, then perhaps I have.
Around International Women’s Day, it’s worth considering the financial implications of viewing women’s work as inferior. You may be tired of the conversation around women in work because we have been talking about it for a long time. Unfortunately, the evidence shows that not enough has changed in the story.
The gender pay gap still varies between 10-30% depending on the sector and country. That means that women earn, on average, 10 – 30% less for doing the same job as men. This doesn’t account for the fact that women don’t progress past middle management in many industries. Women are more likely to take career breaks, primarily for caregiving responsibilities. As a result, they earn less over time, face challenges with promotions, and are more likely to be laid off during difficult economic times.
Furthermore, research shows that women in industries dominated by women, such as nursing and education, earn on average 30% less than similarly qualified employees in industries dominated by men. Once women start doing a job, “It just doesn’t look like it’s as important to the bottom line or requires as much skill,” said Paula England, a sociology professor at New York University. “Gender bias sneaks into those decisions.” When women enter an industry in greater numbers, pay declines.
Just in case you secretly wonder whether women may really be less stellar at their jobs, research consistently shows that teams with women perform better—yes, even in the investment industry.
The pay gap exists because of societal biases, which start early. Studies show that parents perceive their sons as more intelligent than their daughters. Additionally, men’s self-estimates of their intelligence were higher than women’s.
The consequences of these biases cause actual harm to women. Women are more likely to end up in poverty, have less financial security, and are less likely to build significant financial resources. I see this in my work.
We are all prone to these biases. Therefore, we must collectively tackle them. We must consider how we talk about women’s work, interview women for jobs, consider women for promotions, and help them view their work.
Financial security for women is not optional. Women have no special safety net at the end of their careers.
Let’s not pretend that our words and actions don’t have real consequences for women. Nor should we brush our biases off as mere humour. Not when they come at such a dear cost to women.
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Kind regards,
Sunél