Recently, I spoke on a panel for the Financial Women’s Association (FWA) about women and entrepreneurship. One of my fellow panelists, Caroline Tanis, shared a fact: over a 40-year career, women typically make $900,000 less than their male counterparts.
I thought we as women had come so far that this couldn’t be true!! But I found this statistic in a CBS News article. The CBS News quote was based on findings from Payscale’s 2024 Gender Pay Gap Report, which sheds light on the uphill battle women face in achieving financial parity.
The gender pay gap manifests in two ways:
The “Uncontrolled Pay Gap” is what the $900,000 fact was based on. Women earn 83 cents for every dollar men earn. Basically, women tend to have more opportunities for jobs that pay less.
The “Controlled Pay Gap” is really interesting. Even when controlling for the same job and qualifications, women earn 99 cents for every dollar men earn—a gap that, while A LOT narrower, still shows persistent bias. This represents the equal pay for equal work philosophy. While it isn’t totally equal, it did make me feel better!
Some other reasons for the pay gap noted in the study include:
Parenthood Penalty: Women who become mothers often face reduced earning potential. Meanwhile, in what’s been called the “fatherhood bonus,” men are sometimes paid more after having children.
Corporate Ladder: The higher women climb in leadership, the wider the gap. Female executives earn 94 cents for every dollar male executives make in the Controlled Group, but only 72 cents in the uncontrolled group.
Remote Work Bias: Women in remote roles earn 10% less than those who work in traditional office settings.
Why Aren’t Women Talking About Compensation?
As a recruiter, I talk about compensation ALL DAY. So I see firsthand how uncomfortable women can be when talking about money. It happens constantly. In addition to the bias the PayScale article discusses, I think cultural norms also play a role. Women are often awkward when discussing their worth, fearing they’ll appear "greedy" or impolite. This hesitation reveals itself during salary negotiations. Many women undervalue themselves in these discussions, saying things like, “I know my last job paid me a lot so I’m flexible," or accepting less than they’re worth because that is what is offered.
This reluctance is also tied to societal conditioning. From a young age, women are often encouraged to prioritize modesty over self-promotion. Sharing accomplishments, whether it’s a raise or a stellar performance review, can feel like "bragging." Women can bring this mindset into adulthood, where feeling uncomfortable with self-advocacy ends up reinforcing pay disparities.
Two groups of laws were put into place so that women and minorities could close the gender pay gap:
Salary history bans: Companies in many states can’t ask you what you are making currently or what you made in the past. So if you started out in your career 15 years ago with a big gap, this might enable you to “catch-up” to a male peer who is interviewing for the same role.
Pay transparency legislation: These more recent laws force organizations to openly advertise pay ranges and enforce pay equity that way. Some evolving legislation also requires employers to share pay data internally with existing employees. Posting salary ranges on job ads benefits women and minorities by removing some of the bias that occurs with them in salary negotiation.
Changing the Conversation
I’m happy to report that I see progress being made, especially among younger women who are increasingly vocal about their achievements and rights. Social media and growing pay transparency laws are also helping to normalize conversations around pay equity.
Here are four ways that we can collectively bridge the gap:
1. Normalize Negotiation: Negotiating a salary isn’t just a transactional moment—it’s a critical step toward achieving gender pay equity. The modern workplace demands confident self-advocacy. Many women fear being labeled negatively, as aggressive or ungrateful. The result? Women often leave money on the table, perpetuating the pay gap between men and women. To close this gap, we need to normalize negotiation as a routine and empowering process. We should all be encouraging women to negotiate pay without reluctance or anxiety. Platforms like Payscale, Glassdoor, and Salary.com offer invaluable resources for women to benchmark their salaries against industry standards and better prepare for those conversations.
2. Embrace Pay Transparency: Pay transparency is more than just a compliance checkbox—it’s a game-changer in the fight for gender pay equity. When companies openly share salary ranges, they give candidates and employees a critical tool to ensure fairness and accountability. In recent years, legislation requiring pay transparency has gained momentum across states and countries, offering a powerful way to empower women and all underrepresented groups to demand fair pay.
3. Celebrate Success: Sharing professional wins inspires others and reinforces the message that success isn’t just individual—it’s a step toward breaking systemic barriers. It sends the message that hard work, determination, and courage to take risks are rewarded. This ripple effect builds collective confidence and motivates others to pursue their goals. I felt this way when sharing the news about my recent inclusion on the Women2Watch List issued by the Women Presidents Organization. I hope my win helps other businesswomen believe that their hard work will be recognized. Making the list made me proud of my success but also motivated me to move up the list!
4. Advocate for Systemic Change: Make sure your organization recognizes and addresses biases, from hiring practices to promotion pathways, so that women have equal access to high-paying roles. Individual actions matter. If you notice an unfair hiring decision, a promotion oversight, or pay inequity, say something. Advocacy doesn’t have to come solely from leadership—it can start with any employee who is committed to creating a more equitable workplace.
Remember Lily Ledbetter, who fought for equal pay and changed US law – it all started when someone slipped her a note to tell her she was being underpaid.
Let's Do It Together
The gender pay gap isn’t just about dollars—it’s about power, confidence, and equity. While laws and cultural shifts are moving the needle, real progress depends on empowering women to advocate for their worth at every level of society.
Together, we can make sure future generations of women never face a $900,000 shortfall over the course of their careers.
Until next time,
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