Bridging the Wage Gap

Today, the number of women working in the insurance industry is roughly equal to the number of men, with 191,000 women and 197,000 men currently employed. Yet women continue to face a serious wage gap when compared to their male counterparts.

The Bureau of Labor Statistics (BLS) reports that women in the industry are currently earning just more than 62 cents per dollar earned by men. To put this current number in perspective, women working in the United States in 1951 made nearly 64 cents per dollar when compared to men. For 34 years, the insurance industry has been unable to make significant strides in bridging the wage gap. The reality of the gender disparity in the industry is a “black eye” that we must focus on addressing.

Why the Wage Gap?

Surprisingly, women can trace a large portion of the wage gap back to their first salary negotiation with a new employer. According to a study conducted by the National Bureau of Economic Research, unless an employer explicitly invited them to do so, women were often unwilling to negotiate their starting pay. Men, on the other hand, were much more likely to negotiate for a higher salary or additional benefits. As a result, women are starting their career at a disadvantage when compared to their male counterparts.

This mindset, and the reluctance to negotiate a fair wage, can be traced back to the mentality engrained during children’s educational years.

According to David Sadker, author of “Still Failing at Fairness,” girls are more likely to raise their hands and wait patiently to be recognized, while boys are more likely to aggressively raise their hands and shout. Even when boys do not volunteer, teachers are more likely to encourage them to give an answer or opinion than they are to encourage the girls in the room.

As a result, the boys received more attention and esteem-building than their female classmates. The girls learn that they must work harder to prove themselves and begin holding themselves back – not raising their hands, struggling with self-esteem and becoming less assertive.

What Can We Do?

As HR professionals and hiring managers, our focus needs to be on providing fair compensation and not perpetuating the growing wage disparity. Do not take advantage of an individual’s unwillingness to negotiate. Make sure to offer a compensation package that is fair and commensurate to an individual’s skills and contributions.

Be creative with raises, bonuses and other incentives to level the playing field for professionals that are contributing to the company in the same capacity. Furthermore, don’t let someone’s current salary drive your opinion of his or her perceived value.

Women preparing to enter the workforce or to accept a new position must understand and embrace their value. Do your research and make sure you investigate the average salary and compensation trends for the position in question. Use this as a starting point and negotiate for a salary that matches the skills and experience you bring to the table.

Also, be ready to articulate how past accomplishments can translate into success. Don’t hold back when sharing your achievements with a potential employer or your current boss. Often, women choose to place their team first, sharing the praise with their teammates and opting to put “we” before “me.” Yet, to truly be successful, women must focus on putting themselves first, embrace self-promotion and highlight accomplishments.