Over Half of Women Cite a Lack of Money as Their Biggest Financial Barrier: 3 Ways To Start Earning More
Written by
Cynthia Measom
Edited by
Molly Sullivan
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In GOBankingRates’ recent Women & Money survey, over half of women — 53% — said that a lack of money is the biggest barrier to achieving their primary financial goal, which includes things like paying off debt, covering basic expenses and saving for retirement.
So, how can women start earning more?
Sharon Rose Hayward, a women’s career coach who has coached hundreds of women over the past decade to help them maximize their earning potential and create fulfilling and inspiring careers and lives, said that women can definitely take action to start earning more, but it helps if they first understand some of the reasons why so many women feel financial stress.
How Women’s Attitudes and Behaviors Contribute To a Lack of Money
“In addition to the wage gap, now estimated at 20%, women’s learned behaviors and attitudes also affect this situation,” Hayward said.
Women Are Loyal to Their Employers
She explained that because women are often loyal to their employers, they spend longer with a single employer and gradually fall behind in the market value.
“Their pay increases follow an annual budgeted percentage instead of being based on the value they bring,” she said.
Women Don’t Feel Their Value
According to Hayward, minimal pay increases and performance reviews that rarely recognize a woman’s value in the workplace make it difficult for women to see the value they bring to their workplace.
“Chasing the money carrot means always trying to prove her worth, whether for a promotion or recognition,” she explained. “Many companies subscribe to grading on the ‘bell curve’ — not wanting employees to fall outside the majority. This practice does little to recognize a female employee’s worth or value.
“As an example, I had an employee who was excellent. She rarely made mistakes, and clients loved working with her. Our company’s performance review scale didn’t allow for me to grade her with all 1’s, the highest factor. When I did, our senior management refused to accept it. It’s subtle yet can feel demeaning.”
Women Work Harder and More
“Growing up, girls learned that working harder and doing more was a sure way to be praised and recognized,” Hayward said. “Women bring that to the workplace, but unfortunately, it doesn’t translate to more money. The reward is usually just more work.”
Women Don’t Know How To Ask
“Women have never learned to ask for more money — or more of anything,” Hayward said. “On the contrary, women were taught to use their manners, say thank you, not make a fuss and not to ask for more. This early lesson hits hardest in the workplace. Less than 10% of women ask for more money. In my experience, only 3% of women ever asked for more. (100% of men did.)”
How Women Can Start Earning More
Hayward suggested that the attitudes and behaviors that women tend to carry to their workplace can be reversed by taking the following actions. Additionally, she said these actions can change how women see their value and how they view compensation for the rest of their careers.
Understand Your Value
“The first step is to get a copy of your resume and make sure it’s up to date,” Hayward said. “Then, on a weekly basis, spend some time looking back over the week and adding a list of accomplishments, projects, client or colleague accolades, new goals and new assignments.
“This resume isn’t for the job search per se; [it’s] simply a tool to begin to understand your career story and the talent, skills, experience and worth you’re bringing to the office. I call this the ‘Weekly Coffee Date,’ and it’s proven to increase confidence and feelings of workplace value.
Research Your Compensation
Use Indeed, LinkedIn or Glassdoor to find the compensation for your position, Hayward suggested. She also recommended looking at competitors’ job listings to see what they are offering for a similar position to yours.
“You can even look at your own company’s postings, as they are often posting for the same job position you have but at a higher compensation,” she explained.
Ask For More Money
According to Hayward, you need to begin seeing the value you bring to the workplace as an equal exchange of your skills and experience for an equivalent compensation amount. She explained that this is more of a neutral point of view that will help reduce any feelings of guilt or disloyalty you may have.
“Take your resume and notes from the Weekly Coffee Dates and create a document that summarizes everything you bring to your company,” she suggested. “Include a section from your market research and what your compensation should be. If you’re meeting with your manager, schedule a meeting in a couple [of] weeks for their response.
You’re providing a copy of your document with everything you’ve just discussed. You might be nervous, but you must learn to believe that you deserve this higher level of pay.”
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