Companies should always strive to recognize and acknowledge their diverse talent, pushing them to advance their skills, awarding them with more responsibility and a higher wage as they progress in their position. We know however, that this goal is sometimes far from reality. Courtney Connley, careers reporter at CNBC addresses the salary gap women and minorities face when compared to white men.
Helpful for: MBA Grads, Job Seekers
Read Time: 6 minutes
Quick Facts:
- A study done by Forté Foundation led by Michelle Wieser, found that men and women of all races saw a 63% increase in salary after obtaining an MBA degree. However, despite the same credentials, the salary of women and people of colour was lower than that of white males.
- According to Elissa Sangster, CEO of the Forté Foundation the difference in salary could be due to discrimination and an unconscious bias to how raises are given. She says:
Selected Quote:
Companies need to call managers out and make them responsible for ensuring that equitable decisions are being made,” she says. “I think companies need to have more intention around that, as well as looking at the whole pipeline to see how women and minorities are progressing up the chain in an organization and where they are being lost.
- In Sangster’s opinion, in order to fix the problem of the Salary gap, employers need to make sure that women and minorities are given a fair chance to advance in the company. In the case that they don’t, they risk losing diverse, talented professionals.
- Although MBA students are taught about the art of negotiating salary, there are many outside factors at play when considering to promote an employee.
- A woman is less likely to communicate concern for her salary if she is working for company that offers social benefits such as childcare. In this case, as Sangster suggests, salary is no longer a driving force but rather a single piece of the puzzle.
- A report conducted by Organisation for Economic Co-Operation and Development, concluded that each day in the U.S. men spend 150.2 minutes doing unpaid labor, and women 243.2. Laren McGoodwin, CEO and founder of Career Contessa believes the gap in time is due to women’s responsibilities at home.
Useful Information:
- Salary is not the only deciding factor when it comes to choosing a job and staying committed to your job. Still, all employees, especially women and individuals from minorities should always know their market value and never fear to communicate it with their manager.
Do you have any comments or thoughts on the salary gap? Share them in our forum!
Source: CNBC
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