tag:theconversation.com,2011:/ca/topics/salary-26175/articlesSalary – The Conversation2024-01-16T19:15:55Ztag:theconversation.com,2011:article/2208482024-01-16T19:15:55Z2024-01-16T19:15:55Z6 questions you should be ready to answer to smash that job interview<figure><img src="https://images.theconversation.com/files/569210/original/file-20240114-17-udqgs4.jpg?ixlib=rb-1.1.0&rect=629%2C0%2C5078%2C3837&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/happy-businesspeople-handshaking-after-deal-interview-1450518563">Antonio Guillem/Shutterstock</a></span></figcaption></figure><p>With the new year underway employers are beginning to resume normal business activities and restart their hiring process. Similarly, many school and university graduates are beginning their job search after a well-earned break.</p>
<p>While some employers are using increasingly sophisticated approaches to recruiting such as <a href="https://doi.org/10.1037/bul0000373">psychometric testing</a> and <a href="https://theconversation.com/computer-says-no-more-employers-are-using-ai-to-recruit-increasing-the-risk-of-discrimination-218598">artificial intelligence</a>, interviews remain <a href="https://doi.org/10.1146/annurev-psych-010213-115134">one of the most common selection methods</a>.</p>
<p>If you have been invited to a job interview, congratulations, as it likely means you have been shortlisted for the role. However, for many people, interviews can be an unnerving process. Not only do they require candidates to think on their feet, but also to create a positive impression of themselves as a potential co-worker.</p>
<p>With that in mind, it always pays to prepare by anticipating what will be discussed and practising your answers. Here are six types of questions you may be asked:</p>
<h2>1. Tell me a bit about yourself?</h2>
<p>An interview will often start with broad questions about your background and interest in a job. These may include questions such as: “What motivated you to apply for this role?” or “Tell me about your long-term career aspirations”.</p>
<p>For these types of questions, a convincing answer will highlight relevant skills you can bring to the role. These professional experiences do not have to come from the same type of position. For instance, if you were applying for a customer service job, you might cite communication and problem-solving methods you used on a student team project.</p>
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<a href="https://images.theconversation.com/files/569211/original/file-20240115-17-hlj9jg.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Men and women sitting in line in a waiting room" src="https://images.theconversation.com/files/569211/original/file-20240115-17-hlj9jg.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/569211/original/file-20240115-17-hlj9jg.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/569211/original/file-20240115-17-hlj9jg.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/569211/original/file-20240115-17-hlj9jg.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/569211/original/file-20240115-17-hlj9jg.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/569211/original/file-20240115-17-hlj9jg.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/569211/original/file-20240115-17-hlj9jg.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">Interview candidates need to present themselves as someone others would want to work with.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/multiethnic-applicants-sitting-queue-preparing-interview-1022439355">fizkes/Shutterstock</a></span>
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<p>A convincing answer will focus on intrinsic motivation: specifically, the aspects of the job you find interesting, enjoyable or otherwise rewarding. These could involve working with people, solving tricky business problems or making a social impact. Avoid negative remarks about your current employer and sources of extrinsic motivation - such as money or benefits - unless part of a salary negotiation.</p>
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<p>Your answer will also show how the role aligns with your own values. For instance, if you are applying for a teaching position, you could highlight your belief in the importance of education, as well as anything about the school you admire, such as its program of extracurricular activities.</p>
<h2>2. How did you resolve a particular problem in the past?</h2>
<p>Behavioural questions require candidates to provide examples of the past actions they took to manage situations. For instance: “Tell me about a time when you received a customer complaint. What actions did you take, and what was the outcome?” Their objective is to predict how candidates will behave in similar situations. </p>
<p>You can prepare for these questions by studying the job selection criteria and anticipating the questions the interviewer may ask.</p>
<p>If you do not have the relevant experience for one of the questions, you can say that you can’t recall a specific example, but you could outline how you would deal with the situation described in the question.</p>
<h2>3. What are your weaknesses?</h2>
<p>Interviewers will often ask about what you see as your greatest strengths and weaknesses.</p>
<p>The strengths part of this question enables you to highlight your knowledge and skills most relevant for the role. In general, it is a good idea to provide examples of specific accomplishments that illustrate these capabilities.</p>
<p>The weaknesses can be addressed by framing “weaknesses” as professional aspirations. In general, it is a good idea to focus on a capability that is non-essential for the role, in which you would like to gain experience. For instance, if you are not a confident public speaker but recognise it as a necessary for your long-term career, you could say it is a skill you would like to work on.</p>
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<a href="https://images.theconversation.com/files/569227/original/file-20240115-19-i81cjn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Woman standing in front of room addressing colleagues seated at a table" src="https://images.theconversation.com/files/569227/original/file-20240115-19-i81cjn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/569227/original/file-20240115-19-i81cjn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/569227/original/file-20240115-19-i81cjn.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/569227/original/file-20240115-19-i81cjn.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/569227/original/file-20240115-19-i81cjn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/569227/original/file-20240115-19-i81cjn.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/569227/original/file-20240115-19-i81cjn.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">Weaknesses, such as a lack of public speaking experience, should be framed as professional aspirations.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/young-indian-asian-woman-stands-front-1132524026">Mentatdgt/Shutterstock</a></span>
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<p>By expressing willingness to receive further training and development, you can leave a much more positive impression than simply listing your current shortcomings.</p>
<h2>4. What are your salary expectations?</h2>
<p>Usually, pay negotiations will occur after an offer has been made, but sometimes the topic will come up during the interview.</p>
<p>Before stating your expectation, it is wise to find out the salary and other benefits associated with the role. If the salary has not been listed in the job description, you should ask the employer what the budgeted salary range for the position is.</p>
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<p>Ahead of the interview, do some research and find out what is typical for the role you are applying for based on your level of experience.</p>
<p>Be careful about disclosing your current salary; this information can provide a baseline that can make it difficult to negotiate a higher salary. If you are asked this question, you can politely decline to answer or indicate the information is between yourself and your current employer.</p>
<h2>5. Inappropriate or illegal questions</h2>
<p>Unfortunately, some employers may ask <a href="https://www.hrmonline.com.au/recruitment/illegal-interview-questions/">inappropriate or illegal questions</a>. These may relate to relationship status, carer responsibilities, childhood planning, physical or mental health, cultural or ethnic background and union activity.</p>
<p>If you are asked an inappropriate question, you can politely ask the interviewer how that information would be <a href="https://www.lawyersalliance.com.au/opinion/are-you-hiring-beware-of-illegal-interview-questions">relevant to your ability to perform the job</a>.</p>
<p>Ultimately, job candidates have a right to refuse to answer such questions, and employers who ask them may open themselves to <a href="https://www.fairwork.gov.au/employment-conditions/protections-at-work/protection-from-discrimination-at-work">legal action</a> through the Fair Work Commission, Fair Work Ombudsman or the Australian Human Rights Commission.</p>
<h2>6. Do you have any questions for me?</h2>
<p>Often, the interviewer will invite the candidate to ask their own questions. Thoughtfully selected questions can leave a positive lasting impression.</p>
<p>In this part of the interview, you can clarify any aspect of the role you feel unsure about, such as the working hours. It can also be good to do some research on the organisation and to ask some more specific questions about its clients, projects, or long-term plans.</p>
<p>Beyond the specific requirements of the role, a good topic to ask about is the team and organisational culture. You could, for example, ask what a typical day in the life of a team member would look like.</p>
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Read more:
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<p>At the end of the interview, you should ask about the next steps including when you should expect to hear back from them.</p>
<p>One final thing to consider about an interview is that it is a two-way process; you are also interviewing the employer to see if the job would be a good fit for you personally and professionally. If the role, organisation or people seem unappealing after the interview process, then it is wise to look elsewhere.</p><img src="https://counter.theconversation.com/content/220848/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Timothy Colin Bednall does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Competition for the best jobs can be fierce but some simple preparation can ensure you stand out from the pack at the interview stage.Timothy Colin Bednall, Associate Professor in Management, Swinburne University of TechnologyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2079772023-10-17T21:02:34Z2023-10-17T21:02:34ZBeyond the paycheck: The key to building a thriving workplace goes beyond salaries<figure><img src="https://images.theconversation.com/files/553733/original/file-20231013-19-ucgkud.jpg?ixlib=rb-1.1.0&rect=71%2C56%2C9418%2C6260&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Current research suggests it's time to re-evaluate existing pay structures and prioritize worker health and safety. </span> <span class="attribution"><span class="source">(Shutterstock)</span></span></figcaption></figure><iframe style="width: 100%; height: 100px; border: none; position: relative; z-index: 1;" allowtransparency="" allow="clipboard-read; clipboard-write" src="https://narrations.ad-auris.com/widget/the-conversation-canada/beyond-the-paycheck-the-key-to-building-a-thriving-workplace-goes-beyond-salaries" width="100%" height="400"></iframe>
<p>Today’s news is filled with stories highlighting salary figures, from <a href="https://www.pbs.org/newshour/economy/ceos-got-smaller-raises-it-would-still-take-the-average-worker-2-lifetimes-to-make-their-annual-pay">sky-high CEO compensation packages</a> to boards trying to <a href="https://www.thestar.com/news/gta/toronto-zoo-board-quietly-boosts-ceo-pay-20-per-cent-amid-city-s-financial-crisis/article_cc517b9c-2121-5318-9e3b-552f793d1ee3.html">hide CEO pay increases during periods of austerity</a>, to <a href="https://www.blg.com/en/insights/2022/11/bill-124-wage-cap-legislation-declared-unconstitutional-by-ontario-superior-court">governments interfering with collective bargaining over wage increases</a> and <a href="https://www.bnnbloomberg.ca/ford-workers-in-canada-ratify-agreement-set-precedent-for-other-automakers-1.1975855">unions securing pay hikes</a>.</p>
<p>Some provinces, including <a href="https://www.ontariosunshinelist.com">Ontario</a>, <a href="https://www.alberta.ca/salary-and-severance-disclosure-table">Alberta</a> and <a href="https://beta.novascotia.ca/public-sector-compensation-disclosure-reports">Nova Scotia</a>, are also mandated to release annual sunshine lists of public sector workers who earn above $100,000 — all of which might suggest that higher pay equates to more productive, healthy and safe workplaces. But is this a correct assumption? What if the opposite is true?</p>
<p>Could certain pay structures — like wide wage disparities, pay-for-performance systems, the belief that time equals money and pay secrecy — actually hinder organizations from reaching their primary goals? Current research suggests it’s time to re-evaluate these potential barriers to creating thriving workplaces.</p>
<h2>The impact of pay gaps</h2>
<p>Many organizations have significant pay gaps — also known as pay dispersion — between their highest and lowest earners. <a href="https://doi.org/10.1146/annurev-orgpsych-031413-091253">Pay dispersion</a> is driven by variations in employee skills, performance and market demand, and can be exacerbated by systemic biases like gender and racial discrimination.</p>
<p><a href="https://www.jstor.org/stable/256872?typeAccessWorkflow=login">One study</a>, which analyzed nine years of data from 29 Major League Baseball (MLB) teams, found that teams with wider pay gaps had poorer individual and team performances and declining financial metrics like gate receipts and television revenues. </p>
<p><a href="https://doi.org/10.1007/s10902-023-00680-0">Another study</a> on employees from German firms found that pay gaps led to job dissatisfaction because employees perceived the wage distribution to be unfair.</p>
<p>If pay gaps don’t make a positive difference, then what does? One solution was found by organizational psychologist Christian Resick and his colleagues. They demonstrated that <a href="https://doi.org/10.1037/a0016238">transformational leadership in MLB CEOs</a> resulted in higher levels of manager retention, improved team winning percentages and increased fan attendance.</p>
<h2>The perils of pay-for-performance</h2>
<p>Many organizations adopt pay-for-performance systems because they believe it highlights the importance of performance. This type of compensation model pays employees, or teams of employees, based on how well they perform their duties.</p>
<p>However, <a href="https://doi.org/10.1037/1076-8998.6.2.127">a study conducted on industrial plants in the mid-western United States</a> showed that companies using pay-for-performance systems experienced more workdays lost to injuries and had lower labour productivity. Notably, the researchers found that increased training hours over the prior year led to fewer injuries and higher productivity.</p>
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<img alt="A person, seen from the neck down, pointing to a graph on a clipboard with a pen" src="https://images.theconversation.com/files/553574/original/file-20231012-17-rvcdkh.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/553574/original/file-20231012-17-rvcdkh.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=381&fit=crop&dpr=1 600w, https://images.theconversation.com/files/553574/original/file-20231012-17-rvcdkh.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=381&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/553574/original/file-20231012-17-rvcdkh.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=381&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/553574/original/file-20231012-17-rvcdkh.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=478&fit=crop&dpr=1 754w, https://images.theconversation.com/files/553574/original/file-20231012-17-rvcdkh.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=478&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/553574/original/file-20231012-17-rvcdkh.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=478&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">Pay-for-performance systems pay employees based on how well they perform their duties.</span>
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<p>In another study, researchers examined the impact of pay-for-performance systems on mental health. <a href="https://doi.org/10.5465/amd.2018.0007">They analyzed the pay data of over 318,000 employees from 1,309 Danish companies between 1995 and 2006</a>, alongside their medical prescription records. </p>
<p>The shift to performance-based pay was associated with an increase in prescriptions for anti-depressants and anxiety medication. These pay structures often led to the departure of employees who were prone to, or currently facing, mental health issues. </p>
<p>In sharp contrast, <a href="https://doi.org/10.1037/a0023663">a different analysis of 420,599 people across 63 countries</a> revealed that autonomy had a more positive influence on psychological well-being and anxiety than wealth. In fact, researchers found that wealth only impacted well-being to the extent that it offered individuals more life choices.</p>
<h2>The costs of ‘time is money’</h2>
<p>Pay structures that prioritize the “time is money” concept emphasize direct compensation for hours worked. Examples include hourly wages in retail and manufacturing sectors and billable hours in law firms. Not surprisingly, “time is money” pay structures tend to <a href="https://doi.org/10.1016/j.socscimed.2009.01.031">result in longer working hours</a> and other consequences.</p>
<p>In <a href="https://doi.org/10.5465/amd.2016.0017">one study</a>, participants who were reminded of the “time is money” concept reported higher psychological stress levels, evidenced by a 23 per cent rise in <a href="https://my.clevelandclinic.org/health/articles/22187-cortisol">cortisol levels</a> — a known stress biomarker. </p>
<p><a href="https://doi.org/10.5465/amj.2007.26279171">Another study</a> found that workers who were paid hourly volunteered less frequently at work than salaried workers. When participants were reminded of the “time is money” principle, it reinforced an economic-focused mindset, which was identified as the primary obstacle to employees’ volunteer behaviours. </p>
<p>A relational mindset, grounded in a general orientation to relational information, emphasizes the importance of interpersonal relationships and interactions. In contrast to the “time is money” perspective, a <a href="https://doi.org/10.1016/j.obhdp.2020.04.007">series of four studies</a> showed that promoting this relational mindset resulted in improved ethical behaviour in the workplace.</p>
<h2>The hidden dynamics of pay secrecy</h2>
<p>In many western societies, pay secrecy is <a href="https://global.oup.com/academic/product/exposing-pay-9780197628164">more common than pay transparency</a>. The <a href="https://www.theguardian.com/commentisfree/2023/jul/22/royal-secrecy-public-money-crown-estate-king-charles">British royal family</a> — often referred to as “<a href="https://time.com/5945032/what-is-the-firm-royal-family/">The Firm</a>” — serves as a well-known example of an organization that keeps the salary of the royals themselves hidden from the country.</p>
<p>Pay secrecy keeps employees in the dark about how much they earn compared to their colleagues and how pay is determined. It also discourages salary discussions among colleagues.</p>
<p><a href="https://doi.org/10.1111/1748-8583.12292">Across three studies</a>, researchers from the U.S. showed that employees perceive pay secrecy as a deliberate, negative strategy used by their employers, resulting in diminished trust in management. This distrust deepens when companies prevent employees from discussing salaries amongst themselves. </p>
<p>While transitioning to a transparent pay system demands time, effort, and money, two benefits stand out. First, companies that transition don’t experience a drop in profits since the costs are <a href="https://doi.org/10.1111/jofi.13136">balanced by declining wage growth for male employees</a>, who were already earning more than their female counterparts. Second, <a href="https://doi.org/10.1111/joes.12545">it results in a consistent reduction in the gender pay gap</a>.</p>
<h2>A not-so-new perspective on compensation</h2>
<p>Trying to perfect compensation strategies can be a fool’s errand. As business scholar and organizational consultant <a href="https://psycnet.apa.org/record/2000-07220-000">Ed Lawler noted almost 30 years ago</a> — a situation that remains largely unchanged today — many organizations invest significant time in giving minimum financial rewards to employees in hopes of improving performance. However, Lawler found this approach rarely yields substantial positive outcomes.</p>
<p>But if pay doesn’t help organizations create better workplaces, what does? The keys to a <a href="https://global.oup.com/academic/product/brave-new-workplace-9780190648107">workplace that fosters productivity, health and safety</a> are: high-quality leadership, job autonomy, feelings of belonging and fairness, opportunities for growth, meaningful work and psychologically and physically safe work.</p>
<p>However, this doesn’t mean organizations should underpay their employees. While organizations don’t have to be the highest payers in the industry, they should aim to <a href="https://jeffreypfeffer.com/books/the-human-equation/">compensate above industry standards</a> to avoid dissatisfaction and other negative consequences.</p>
<p>Implementing all these facets might seem overwhelming, but they don’t need to be introduced simultaneously. For leaders, the challenge is breaking away from traditional norms. But, grounded in years of studies, they can be confident that even the smallest meaningful changes can result in productive, healthy and safe work.</p><img src="https://counter.theconversation.com/content/207977/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Julian Barling receives funding from Social Sciences and Humanities Research Council of Canada. </span></em></p><p class="fine-print"><em><span>Nick Turner receives research funding from Social Sciences and Humanities Research Council of Canada.</span></em></p>Traditional pay structures — like wage gaps, pay-for-performance systems, the belief that time equals money and pay secrecy — are stopping organizations from reaching their goals and thriving.Julian Barling, Distinguished Professor and Borden Chair of Leadership, Smith School of Business, Queen's University, OntarioNick Turner, Professor of Organizational Behaviour and Future Fund Chair in Leadership, Haskayne School of Business, University of CalgaryLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2004152023-03-10T13:48:48Z2023-03-10T13:48:48Z5 tips for women to negotiate a higher salary<figure><img src="https://images.theconversation.com/files/514522/original/file-20230309-18-m81h0x.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">U.S. women earn 82% of what U.S. men earn — and the gap is significantly higher for Black and Hispanic women.</span> <span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/photo/young-female-applicant-at-job-interview-royalty-free-image/1355656345">Portra/E+ Collection/Getty Images</a></span></figcaption></figure><p><a href="https://www.pay-equity.org/day.html">Equal Pay Day</a> falls in 2023 on March 14 — a date determined by how long into the new year American women must work to catch up to American men’s earnings the previous year. In 2022, <a href="https://www.pewresearch.org/fact-tank/2023/03/01/gender-pay-gap-facts/">women earned 82%</a> of what men earned. The wage gap for Black and Hispanic women is even higher — these groups made <a href="https://www.pewresearch.org/social-trends/2023/03/01/the-enduring-grip-of-the-gender-pay-gap/#gender-pay-gap-differs-widely-by-race-and-ethnicity">70% and 65%, respectively</a>, of what white men made.</p>
<p>Some of the gender pay gap can be attributed to differences in <a href="https://doi.org/10.1093/qje/qjab026">how women negotiate</a>.</p>
<p>This is not to say that women don’t negotiate as well as men, or even less often. Women are negotiating well and self-advocating in their careers every day – sometimes <a href="https://doi.org/10.1111/ncmr.12153">more actively and effectively</a> than their male counterparts. Women have been observed to <a href="https://doi.org/10.5465/amj.2017.1497">negotiate exceptions</a> to typical work or business practices more than men. This includes, for example, negotiating a remote work arrangement prior to the pandemic.</p>
<p>But when it comes to salary and wage negotiations, research suggests that women are <a href="https://doi.org/10.1037/bul0000135">more reluctant to ask</a> and <a href="https://doi.org/10.1111/irel.12214">less effective</a> when they do.</p>
<p>That’s because salary negotiations are generally seen as competitive <a href="https://doi.org/10.1111/j.1750-4716.2010.00072.x">situations that favor men and masculinity</a>. In such settings, self-advocating violates societal norms that women should be kind and communal. According to the authors of one study, <a href="https://doi.org/10.1037/a0017094">women anticipating backlash from attempting to negotiate</a> “hedge their assertiveness, using fewer competing tactics and obtaining lower outcomes.” </p>
<p>The fear of backlash is reasonable. Men and women alike say they are <a href="https://doi.org/10.1016/j.obhdp.2006.09.001">less willing to work with women</a> who ask to be paid more. </p>
<p>I <a href="https://scholar.google.com/citations?hl=en&user=p2WhPu4AAAAJ&view_op=list_works&sortby=pubdate">research negotiation and conflict management</a> and <a href="https://www.american.edu/kogod/faculty/mislin.cfm">teach a variety of negotiation courses</a> to undergraduate and graduate students.</p>
<p>Here are five tips that you can start applying today to be more effective in your workplace negotiations. These strategies benefit women but represent best practices for anyone seeking higher pay regardless of where they identify on the gender spectrum.</p>
<h2>1. Think before you ask</h2>
<p>Consider what you really want before you launch into your negotiation – hit pause and take a step back. How does what you’re asking for fit into your bigger work or life aspirations? You might start with a focus on a salary increase, but what you really want is an accelerated promotion track. </p>
<p>Negotiating professional development opportunities and your role at work <a href="https://doi.org/10.5465/amj.2017.1497">may do more</a> to help close the pay gap than getting paid more than you are currently earning. So, take stock of your goals and make sure you are focusing on negotiating about the right issues.</p>
<h2>2. Communicate your value</h2>
<p>Once your purpose and objective are clear, figure out how to articulate your value. Women are <a href="https://doi.org/10.1177/0361684312455524">more persuasive and reduce the risk of backlash</a> when they explain why what they are asking for is appropriate and justified. As you do this, put yourself into the hiring manager’s or your boss’s shoes and consider how the request you are making is legitimate from their perspective. How can, for example, your data visualization skills help your team communicate more successfully at the next client meeting? How can you position what you are asking for, such as a promotion to senior analyst, in terms of bigger business goals, like expanding the client base?</p>
<p>When women articulate their value while considering the other person’s objectives, their negotiation behavior is perceived as more socially acceptable and women are <a href="https://doi.org/10.1177/0361684312455524">better positioned to succeed</a>.</p>
<h2>3. Ask for more than just salary</h2>
<p>Gender differences are <a href="https://doi.org/10.1037/a0038184">most likely to arise</a> when it is less clear whether negotiating is appropriate. This might be a job that doesn’t explicitly indicate that wages are negotiable, or where the salary range is not disclosed. In these cases, women are less inclined to negotiate because they anticipate backlash. This applies not just to salary or wage negotiations, but also negotiations for other opportunities, including promotion, work assignments, developmental opportunities and resources.</p>
<p>When you are not sure whether negotiating is appropriate, ask around and gather information from trusted sources. Use your network, but also stretch beyond your network. You may want to seek advice from, for example, men in male-dominated work settings. People tend to <a href="https://doi.org/10.1038/srep01214">connect with others who are similar</a> in age, gender, ethnicity and socioeconomic status, so information from your close network can be skewed. Find out what people are negotiating at work and <a href="https://doi.org/10.1521/soco.2009.27.3.418">reduce the social risk of asking by decreasing ambiguity</a> around whether negotiating is appropriate.</p>
<figure class="align-center ">
<img alt="Young woman with long hair wearing white blazer smiles at laptop screen" src="https://images.theconversation.com/files/514529/original/file-20230309-20-htsh1k.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/514529/original/file-20230309-20-htsh1k.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/514529/original/file-20230309-20-htsh1k.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/514529/original/file-20230309-20-htsh1k.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/514529/original/file-20230309-20-htsh1k.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/514529/original/file-20230309-20-htsh1k.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/514529/original/file-20230309-20-htsh1k.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Successful negotiators offer solutions that aim to work out a problem rather than win a fight.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/photo/happy-businesswoman-working-in-a-coffee-store-royalty-free-image/910726126">Richiesd/iStock/Getty Images Plus</a></span>
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<h2>4. Check your mindset</h2>
<p>Whether you see yourself as a reluctant negotiator, a competitive negotiator or a people-pleaser, what matters more is your mindset going into the negotiation. A <a href="https://doi.org/10.1177/2041386613505857">review of individual differences in negotiations</a> identified the single best predictor of performance as having a positive mindset – confidence in one’s own ability and confidence that it is appropriate to negotiate.</p>
<p>A positive mindset also means approaching negotiations with curiosity. Make it about trying to work out a problem, not winning a fight. This approach is more aligned with <a href="https://doi.org/10.2307/41166421">social expectations that women are communal</a>, and it is also a best practice that produces better results.</p>
<p>Even if the other person starts with no, don’t let that derail your negotiation. Prepare to stay at the table and find out why. If you cannot get the salary increase you are asking for, maybe you can successfully negotiate a developmental opportunity and revisit the salary conversation in six months. </p>
<h2>5. Don’t skip the small talk</h2>
<p>On the other side of the negotiation is a person, and you will find it easier to reach a solution together if you get along. Small talk before the negotiation helps build the relationship and can have a <a href="https://doi.org/10.1016/j.obhdp.2011.01.002">positive effect on your negotiations</a>. Familiarity with the employer may even <a href="https://doi.org/10.1287/mnsc.2017.2880">give women a bigger boost</a> than men. So get to know the person you will be negotiating with personally, and don’t skip the small talk.</p>
<p>Practice these five tips and keep negotiating. The more experience you have negotiating, <a href="https://doi.org/10.1037/a0032255">the better you will do</a>. And the better results women get from negotiating well will help shrink the gender pay gap between men and women.</p><img src="https://counter.theconversation.com/content/200415/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Alexandra Mislin does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>A negotiation expert offers practical tips for getting the salary or promotion you want.Alexandra Mislin, Associate Professor of Management, American UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1980412023-02-08T06:05:56Z2023-02-08T06:05:56ZMaths that will help you as an adult: from baking a cake to asking for a pay rise<figure><img src="https://images.theconversation.com/files/507614/original/file-20230201-10139-vyv5pl.jpg?ixlib=rb-1.1.0&rect=0%2C8%2C6000%2C3979&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/young-african-man-baking-homemade-cake-2122875098">DimaBerlin/Shutterstock</a></span></figcaption></figure><p>The prime minister, Rishi Sunak, has proposed that school pupils should continue learning <a href="https://www.gov.uk/government/news/prime-minister-sets-ambition-of-maths-to-18-in-speech">maths until 18</a> in order to obtain the numeracy skills needed in careers and everyday adult life. This proposal may be useful to current teenagers – but what about those of us who have already started grappling with adult life, and may feel anxious every time we encounter numbers? </p>
<p><a href="https://www.nationalnumeracy.org.uk/sites/default/files/documents/National_Numeracy_publishes_2019_Impact_Report/nn180_2019_impact_report.pdf">Millions of adults</a> in the UK <a href="https://business-school.open.ac.uk/news/one-five-parents-suffer-arithmophobia">struggle with basic arithmetic</a>. Many suffer from a real phobia – <a href="https://www.nationalnumeracy.org.uk/what-issue/about-maths-anxiety">mathematics anxiety</a> – of numbers, calculations, and even the word “maths”.</p>
<p>Buy there are many times in our daily life where knowing some maths can be helpful to make good decisions. Here are just a few examples to get you started using maths more confidently. </p>
<h2>1. Use ratios to adapt a recipe</h2>
<p>You’ve found a great recipe in a cookbook that you want to try – but the recipe serves four, and you’re only cooking for three and don’t want to use extra ingredients. Ratios can help you work it out. This means dividing something up into parts. Where the recipe calls for four parts of something, you only need three. Mathematically, you can say that what you need compared to the recipe is on a 3:4 ratio. Or, you could use the fraction ¾; the mathematics to solve it is the same. </p>
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<img alt="Quarter life, a series by The Conversation" src="https://images.theconversation.com/files/451343/original/file-20220310-13-1bj6csd.png?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/451343/original/file-20220310-13-1bj6csd.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=600&fit=crop&dpr=1 600w, https://images.theconversation.com/files/451343/original/file-20220310-13-1bj6csd.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=600&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/451343/original/file-20220310-13-1bj6csd.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=600&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/451343/original/file-20220310-13-1bj6csd.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=754&fit=crop&dpr=1 754w, https://images.theconversation.com/files/451343/original/file-20220310-13-1bj6csd.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=754&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/451343/original/file-20220310-13-1bj6csd.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=754&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<p><em><strong><a href="https://theconversation.com/uk/topics/quarter-life-117947?utm_source=TCUK&utm_medium=linkback&utm_campaign=UK+YP2022&utm_content=InArticleTop">This article is part of Quarter Life</a></strong>, a series about issues affecting those of us in our twenties and thirties. From the challenges of beginning a career and taking care of our mental health, to the excitement of starting a family, adopting a pet or just making friends as an adult. The articles in this series explore the questions and bring answers as we navigate this turbulent period of life.</em></p>
<p><em>You may be interested in:</em></p>
<p><em><a href="https://theconversation.com/hearing-loss-headphones-and-concerts-could-put-young-people-at-risk-heres-how-to-protect-yourself-194843?utm_source=TCUK&utm_medium=linkback&utm_campaign=UK+YP2022&utm_content=InArticleTop">Hearing loss: headphones and concerts could put young people at risk – here’s how to protect yourself</a></em></p>
<p><em><a href="https://theconversation.com/festivals-must-do-more-to-address-sexual-violence-189188?utm_source=TCUK&utm_medium=linkback&utm_campaign=UK+YP2022&utm_content=InArticleTop">Festivals must do more to address sexual violence</a></em></p>
<p><em><a href="https://theconversation.com/how-early-failure-can-lead-to-success-later-in-creative-careers-193754?utm_source=TCUK&utm_medium=linkback&utm_campaign=UK+YP2022&utm_content=InArticleTop">How early failure can lead to success later in creative careers</a></em></p>
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<p>If the recipe calls for 120g of flour, you know that that’s to serve four. To find one part, divide 120 by four. Use a calculator – no problem. One part is 30g of flour. Then multiply by the three people you’re cooking for. This gives you 90g of flour for your recipe. </p>
<p>If the recipe said six teaspoons of oil, how much oil would you need? Divide it by four, which gives you one and a half. </p>
<p>You then need three lots of one and a half teaspoons – that’s four and a half teaspoons of oil for your recipe. </p>
<h2>2. Understand averages to see if you need a payrise</h2>
<p>In 2021, the average yearly earnings of people working full time in the UK was <a href="https://www.avtrinity.com/uk-average-salary">£38,131</a>. How do we make sense of this number? </p>
<p>There are different ways of working out an average. In this case, this figure is a type of average known as the mean. It was calculated by adding up all the earnings of all the people working full time, and then dividing that vast number by the number of people. But it doesn’t actually tell us how common it is to earn this amount. </p>
<figure class="align-center ">
<img alt="Woman looking at bills anxiously" src="https://images.theconversation.com/files/507605/original/file-20230201-9701-bz77s1.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/507605/original/file-20230201-9701-bz77s1.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/507605/original/file-20230201-9701-bz77s1.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/507605/original/file-20230201-9701-bz77s1.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/507605/original/file-20230201-9701-bz77s1.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/507605/original/file-20230201-9701-bz77s1.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/507605/original/file-20230201-9701-bz77s1.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">Many people find that numbers make them anxious.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/portrait-worried-young-single-mother-feeling-696059800">Cast Of Thousands/Shutterstock</a></span>
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<p>This number could be reached if most people earn around £38,131. But it could also be reached if just a few people earned huge amounts and the rest earned very little. The mean could be the same.</p>
<p>Another way of understanding averages is to use the median. This essentially means ordering all the people in a line from the one that earns the least to the one that earns most, and picking the one in the middle. Their earnings would be the median. This is more meaningful, because it means that just a few people earning much more than others don’t skew the average. It is the notion used by the Office of National Statistics to talk about <a href="https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/bulletins/annualsurveyofhoursandearnings/2022">“average earnings”</a>.</p>
<p>The median earning for full-time workers in 2021 in the UK was £31,285. If you earn much less than the mean salary for your industry, this doesn’t necessarily tell you a huge deal, because it could also include the earnings of CEOs. But if you earn a lot less than the median, it could be worth figuring out why. </p>
<h2>3. Use mental division at a restaurant</h2>
<p>Having calculators on our phones can make splitting the bill at a restaurant easy, and there’s no shame in using one. But there may be times when your phone is lost at the bottom of a bag, or out of battery. Being able to do the maths in your head is a great skill to have. </p>
<p>The best way to do quick division is to develop your own methods to make it easier. This could involve rounding the figure up or down to a number that is easy to split by the number of people at your table. </p>
<p>Imagine you have to split a £92 bill between four people: 92 is nearly 100, and we know that 100 divided by four is 25. But 92 is eight less than 100, so we need to take that eight off the bill. £8 divided by four people is £2 each less per person. So the bill for each person is £25 minus £2 – £23 each. </p>
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<img alt="Friends clinking beers at restaurant" src="https://images.theconversation.com/files/507612/original/file-20230201-10196-xvmqx2.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/507612/original/file-20230201-10196-xvmqx2.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=381&fit=crop&dpr=1 600w, https://images.theconversation.com/files/507612/original/file-20230201-10196-xvmqx2.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=381&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/507612/original/file-20230201-10196-xvmqx2.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=381&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/507612/original/file-20230201-10196-xvmqx2.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=478&fit=crop&dpr=1 754w, https://images.theconversation.com/files/507612/original/file-20230201-10196-xvmqx2.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=478&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/507612/original/file-20230201-10196-xvmqx2.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=478&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">Maths can help you split the bill.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/happy-friends-toasting-bio-organic-beer-691181062">DisobeyArt/Shutterstock</a></span>
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<p>Someone else might prefer to round the £92 down to another number that is easy to divide by four: £80. This makes £20 each. There’s then £12 left on the total to divide up between four. This means an extra £3 each, so £23 for each to pay. </p>
<h2>Work out a route for a hike</h2>
<p>Perhaps you’re planning a trip with some friends, and it involves a sightseeing walk through a city or a countryside hike. You want to plan a route that suits everybody and won’t leave you stranded and far from your destination when it gets dark. Maths can help you. </p>
<p>More than a century ago, a Scottish mountaineer devised a formula called <a href="https://www.ordnancesurvey.co.uk/newsroom/blog/why-were-adjusting-naismiths-rule">Naismith’s rule</a>. It says that when planning a route, allow one hour for each 5km (three miles) you will walk, and, if you’re going uphill, add ten minutes for each 100m (300 feet) you climb. So if your planned route is a 15km hike with 600m of climbing, this would take you three hours plus one extra hour: four hours in total. </p>
<p>Once you’ve worked that out, another mathematical skill can come in useful: estimation. Perhaps your walk will be more of an amble – so add on a bit of time. You’re going to stop for lunch, so an hour to eat. You might end up giving yourself about six hours to complete your walk, and now can figure out what might be a good time to set off. </p>
<p>Mathematics is there to help you. With the right mindset, <a href="http://www.mathematicalresilience.org/">everybody can learn mathematics</a>.</p><img src="https://counter.theconversation.com/content/198041/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Davide Penazzi does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Many people suffer from maths anxiety, which can make using numbers difficult.Davide Penazzi, Senior Lecturer in Mathematics, University of Central LancashireLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1758902022-02-17T10:47:28Z2022-02-17T10:47:28ZCOVID may have made us less materialistic – new research<figure><img src="https://images.theconversation.com/files/446755/original/file-20220216-16-3skspd.jpg?ixlib=rb-1.1.0&rect=80%2C50%2C6629%2C4416&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/excited-beautiful-girl-medical-protective-mask-1766784323">Shutterstock/Shopping King Louie</a></span></figcaption></figure><p>The early days of COVID brought a new sense of urgency to shopping for certain items. Toilet paper, pasta and bread <a href="https://theconversation.com/coronavirus-why-people-are-panic-buying-loo-roll-and-how-to-stop-it-133115">flew off the shelves</a> as people stocked up on vital supplies. Then came the must-have purchases to help with the tedium of lockdowns, with hot tubs, kitchen gadgets and new pets becoming extremely <a href="https://www.bbc.co.uk/news/business-59207124">popular purchases</a>. So did the pandemic make us generally more materialistic?</p>
<p>Certainly, research suggests that a tendency towards materialistic behaviour – a focus on acquiring money and possessions that signal economic and social status – is caused by <a href="https://academic.oup.com/jcr/article-abstract/29/3/348/1800916">high levels of stress</a>, anxiety and <a href="https://academic.oup.com/jcr/article-abstract/40/4/615/2907485">loneliness</a>. For many, the pandemic has been a stressful, anxious and lonely period.</p>
<p>Materialism is also fuelled by <a href="https://academic.oup.com/jcr/article-abstract/32/3/473/1867282">media consumption</a>. And <a href="https://www-statista-com.abc.cardiff.ac.uk/statistics/1106766/media-consumption-growth-coronavirus-worldwide-by-country/">early reports</a> found that during periods of lockdown and social restrictions, people became even more glued to their screens than before. </p>
<p>But despite these conditions which might have been expected to make people more materialistic, <a href="https://onlinelibrary.wiley.com/doi/10.1002/mar.21627">our research suggests</a> that the opposite was true. We asked people in the UK about their beliefs and values before and after the arrival of COVID and found that, overall, most people have moved to caring less about money and material gains. </p>
<p>They rated goals like “being financially successful” and “having a job that pays well” lower than before. Other social values to do with self-acceptance and sharing our lives “with someone I love” remained the same. </p>
<p>We believe that these changes might be explained by other factors related to the pandemic. For example, COVID focused attention on the importance of health. Also, advertising and social media promoted social values <a href="https://www.youtube.com/watch?v=pcXTnyCmQbg">like solidarity</a> and dealing with the challenges of a <a href="https://www.thinkwithgoogle.com/future-of-marketing/digital-transformation/coronavirus-crisis-marketing-examples/">shared experience</a>.</p>
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<p>Not all of our respondents had the same response, it should be said. We used various data collection techniques to ask a representative sample of the UK population, and people who were more exposed to the media and more anxious about COVID, were seen to display greater levels of materialism. Nevertheless, we found an overall reduction in people’s material interests.</p>
<h2>Fresh focus</h2>
<p>There may be benefits to such a change in attitude. Research has <a href="https://academic.oup.com/jcr/article-abstract/19/3/303/1786697">found that</a> materialism leads to <a href="https://onlinelibrary.wiley.com/doi/full/10.1002/mar.21387">lower levels of happiness</a> and life satisfaction, as well as causing negative moods and anxiety. </p>
<p>Yet popular culture and social media make materialism hard to avoid. From a <a href="https://academic.oup.com/jcr/article/41/6/1333/2379564?login=true">very early age</a>, many children quickly learn to associate material gain with rewards for good behaviour. </p>
<p>As they get older, they discover that things can help us to present ourselves in a more <a href="https://myscp.onlinelibrary.wiley.com/doi/full/10.1016/j.jcps.2017.07.006">appealing way</a>, and gain other people’s attention. Material items gradually become highly desired prizes that also help us to overcome some of our perceived shortfalls. </p>
<p>To add to the appeal, <a href="https://academic.oup.com/jcr/article-abstract/32/3/473/1867282">the media</a> and advertising sectors generally promote materialistic beliefs through stories and images that link money and consumption to happiness, high self‐esteem and social recognition. </p>
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Read more:
<a href="https://theconversation.com/advertising-in-the-pandemic-how-companies-used-covid-as-a-marketing-tool-172202">Advertising in the pandemic: how companies used COVID as a marketing tool</a>
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<p>Of course, big advertisers and marketing departments didn’t completely avoid their traditional methods during COVID. Our research also revealed a higher number of social media posts from brands promoting consumption as a way to cope with negative emotions and improve wellbeing. </p>
<p>This, combined with a widespread reduction in value placed on financial and material gain, could eventually lead to the development of polarised mindsets. On the one side, it is possible that many people will continue the trend initiated by COVID and slowly drift away from consumerism, potentially bringing deep social consequences: it may already be part of the reason for the “<a href="https://www.wired.co.uk/article/great-resignation-quit-job">great resignation</a>” in the labour market, where a higher than usual proportion of workers have decided to quit their jobs. </p>
<p>On the other side, though, the higher number of adverts and online messages which present spending as a route to happiness could have the opposite result. Those more exposed to social media, like teenagers and young adults, may be more likely to <a href="https://onlinelibrary-wiley-com.abc.cardiff.ac.uk/doi/pdfdirect/10.1002/mar.21387">embrace materialism</a>, and encounter some of the negative effects <a href="https://onlinelibrary.wiley.com/doi/full/10.1002/mar.21387">it brings</a>. </p>
<p>This kind of polarised thinking could develop into part of the long-term social impact of the global health crisis, with serious ramifications for younger generations. A pandemic which pushed many away from the damaging effects of materialism may have pulled others much closer towards them.</p><img src="https://counter.theconversation.com/content/175890/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Olaya Moldes Andrés receives funding from BA/Leverhulme Small Research Grants. </span></em></p>For many, the pandemic switched the focus away from financial gain.Olaya Moldes Andrés, Lecturer in Marketing, Cardiff UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1737202022-01-20T13:46:04Z2022-01-20T13:46:04ZThe better you are at math, the more money seems to influence your satisfaction<figure><img src="https://images.theconversation.com/files/441590/original/file-20220119-23-mo0nsn.jpg?ixlib=rb-1.1.0&rect=0%2C139%2C4787%2C3063&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Being better at math increases income but also ties satisfaction more closely to money.</span> <span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/photo/man-throwing-dollar-bills-in-the-air-arms-raised-in-royalty-free-image/200381413-001?adppopup=true"> Jonathan Kitchen/Digital Vision via Getty Images</a></span></figcaption></figure><p>Your grade school math teacher probably told you that being good at math would be very important to your grownup self. But maybe the younger you didn’t believe that at the time. A lot of research, though, has shown that <a href="https://theconversation.com/people-who-are-bad-with-numbers-often-find-it-harder-to-make-ends-meet-even-if-they-are-not-poor-172272">your teacher was right</a>. </p>
<p>We are two researchers who study decision-making and how it relates to wealth and happiness. In a study published in November 2021, we found that, in general, people who are better at math <a href="https://doi.org/10.1371/journal.pone.0259331">make more money and are more satisfied with their lives</a> than people who aren’t as mathematically talented. But being good at math seems to be a double-edged sword. Although math-proficient people are very satisfied when they have high incomes, they are more dissatisfied, compared to those who aren’t as good at math, when they don’t make a lot of money. </p>
<p>Many researchers have suggested that more money only increases <a href="https://qz.com/1503207/a-nobel-prize-winning-psychologist-defines-happiness-versus-satisfaction/">life satisfaction and happiness</a> up to a certain point. Our research modifies this idea by showing that satisfaction derived from income relates strongly to how good a person is at math. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/441600/original/file-20220119-27-1kh4idi.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="A person holding a pencil above a sheet of paper." src="https://images.theconversation.com/files/441600/original/file-20220119-27-1kh4idi.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/441600/original/file-20220119-27-1kh4idi.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/441600/original/file-20220119-27-1kh4idi.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/441600/original/file-20220119-27-1kh4idi.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/441600/original/file-20220119-27-1kh4idi.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/441600/original/file-20220119-27-1kh4idi.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/441600/original/file-20220119-27-1kh4idi.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">Nearly 6,000 people responded to a survey that asked about math skills, income and life satisfaction.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/photo/student-taking-math-quiz-cropped-royalty-free-image/97612935?adppopup=true">PhotoAlto/Odilon Dimier via Getty Images</a></span>
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<h2>A math and happiness test</h2>
<p>We investigated the relationship between math ability, income and life satisfaction, using surveys sent to 5,748 diverse Americans as part of the <a href="https://uasdata.usc.edu/index.php">Understanding America Study</a>.</p>
<p>The study included two questions and one test relevant to our research. One question asked participants about their household yearly income. Another one asked respondents to rate how satisfied they are with their lives on a scale of zero to 10.</p>
<p>Finally, people answered eight math questions that varied in difficulty to get a sense of their math skills. For example, one of the moderately difficult questions was: “Jerry received both the 15th highest and the 15th lowest mark in the class. How many students are in the class?” The correct answer is 29 students.</p>
<p>We then combined the results to see how they all related to one another. </p>
<p>Math skills and income also are tied to <a href="https://theconversation.com/money-buys-even-more-happiness-than-it-used-to-141766">level of education,</a> so, in our analyses, we controlled for education, verbal intelligence, personality traits and other demographics.</p>
<h2>Connecting math skills to income and satisfaction</h2>
<p>On average, the better a person was at math, the <a href="https://doi.org/10.1371/journal.pone.0259331">more money they made</a>. For every one additional right answer on the eight-question math test, people reported an average of $4,062 more in annual income. </p>
<p>Imagine you have two people with the same level of education, one of whom answered none of the math questions correctly and the other answered all of them correctly. Our research predicts that the person who answered all of the questions correctly will earn about $30,000 more each year.</p>
<p>The survey also showed that people who are better at math were, on average, also more satisfied with their lives than those with lower math ability. This finding agrees with <a href="https://doi.org/10.1257/0002828041464551">a lot of other research</a> and suggests that income influences life satisfaction.</p>
<p>But prior research has shown that the relationship between income and satisfaction is not as straightforward as “more money equals greater happiness.” It turns out that how satisfied a person is with their income often depends on how they feel it <a href="https://doi.org/10.1177/0956797610362671">compares to other people’s incomes</a>.</p>
<p>Other research has also shown that people who are better at math tend to make <a href="https://doi.org/10.1093/oso/9780190861094.001.0001">more numerical comparisons</a> in general than those who are worse at math. This led our team to suspect that math-proficient people would compare incomes more, too. Our results seem to show just that. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/439268/original/file-20220104-15-15r038f.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="A graph correlating math skills to life satisfaction and income." src="https://images.theconversation.com/files/439268/original/file-20220104-15-15r038f.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/439268/original/file-20220104-15-15r038f.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=513&fit=crop&dpr=1 600w, https://images.theconversation.com/files/439268/original/file-20220104-15-15r038f.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=513&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/439268/original/file-20220104-15-15r038f.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=513&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/439268/original/file-20220104-15-15r038f.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=645&fit=crop&dpr=1 754w, https://images.theconversation.com/files/439268/original/file-20220104-15-15r038f.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=645&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/439268/original/file-20220104-15-15r038f.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=645&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">This chart shows that people who scored highest on the math test (red line) appear to be happiest when they make a lot of money (top right of graph), but also the least satisfied when they make less money (bottom left of graph). Different color lines correspond to the number of math questions answered correctly.</span>
<span class="attribution"><span class="source">Ellen Peters, Pär Bjälkebring</span>, <a class="license" href="http://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a></span>
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<p>Simply put, the better a person was at math, the <a href="https://doi.org/10.1371/journal.pone.0259331">more they cared about how much money they make</a>. People who are better at math had the highest life satisfaction when they had high incomes. But deriving satisfaction from income goes both ways. These people also had the lowest life satisfaction when they had lower incomes. Among people who aren’t as good at math, income didn’t relate to satisfaction nearly as much. Thus, the same income was valued differently depending on a person’s math skills.</p>
<h2>Money does buy happiness for some</h2>
<p>An often-quoted fact – backed up by research – says that once a person makes around $95,000 a year, <a href="https://doi.org/10.1038/s41562-017-0277-0">earning more money doesn’t dramatically increase satisfaction</a>. This concept is called <a href="https://www.nature.com/articles/s41562-017-0277-0?mod=article_inline">income satiation</a>. Our research challenges that blanket statement.</p>
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<p>Interestingly, the people who are best at math did not seem to show income satiation. They were more and more satisfied with more income, and there didn’t appear to be an upper limit. This did not hold true for people who weren’t as talented at math. The least math-proficient group gained more satisfaction from income only until about $50,000. After that, earning more money made little difference.</p>
<p>For some, money does seem to buy happiness. While more work needs to be done to really understand why, we think it may be because math-oriented people compare numbers – including incomes – to make sense of the world. And maybe that’s not always a great thing. In comparison, those who are worse at math appear to derive life satisfaction from sources other than income. So if you are feeling dissatisfied with your income, maybe seeing beyond the numbers will be a winning strategy for you.</p><img src="https://counter.theconversation.com/content/173720/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Pär Bjälkebring receives funding from Swedish Research Council (VR; DNR-2016-00507). </span></em></p><p class="fine-print"><em><span>Ellen Peters receives funding from the U.S. National Science Foundation and USAFacts.</span></em></p>Compared to people who aren’t as good at math, people who are better at math are more happy when they have high incomes and less happy when they have lower incomes.Pär Bjälkebring, Assistant Professor of Psychology, University of GothenburgEllen Peters, Director, Center for Science Communication Research, University of OregonLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1588652021-05-20T17:46:06Z2021-05-20T17:46:06ZRegardless of education or training, racialized immigrant women earn less<figure><img src="https://images.theconversation.com/files/397697/original/file-20210428-17-ezv2io.jpg?ixlib=rb-1.1.0&rect=0%2C0%2C4761%2C3570&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Intake workers assist visitors at an immigrant and refugee vaccine clinic set up by Global Medic in Toronto in April. Research suggests racialized immigrant women earn less money than other groups, regardless of how much training, education or networking they do.</span> <span class="attribution"><span class="source">THE CANADIAN PRESS/Frank Gunn</span></span></figcaption></figure><p>Conventional wisdom suggests that first-generation immigrants often struggle in their careers for <a href="https://www.shrm.org/resourcesandtools/hr-topics/talent-acquisition/pages/removing-employment-barriers-immigrant-workers.aspx">reasons related to being new</a> to the domestic workforce. </p>
<p>For example, offshore degrees, poor language fluency or an absence of networking contacts are cited as common reasons for career challenges. This means most efforts to improve immigrants’ career outcomes often focus on things first-generation immigrants can do for themselves, like networking and training.</p>
<p>We wanted to know whether this is actually the best approach. Our evidence about which groups get paid the most versus which earn the least points to an alternative that may be even more effective: reducing workplace discrimination based on gender and race.</p>
<h2>Who earns the most and the least?</h2>
<p>To find out why immigrants receive lower pay, we looked at who earns more or less as a result of their combination of immigrant generation, gender, race and native language. We also wanted to find out whether being a first-generation immigrant is really the most important factor in terms of salary. (<a href="https://doi.org/10.1016/j.jwb.2019.101013">Spoiler alert: it’s not, according to our findings.</a>)</p>
<p>We compared the annual pay for a sample of 20,000 employees within 6,000 firms <a href="https://www12.statcan.gc.ca/census-recensement/2011/ref/92-135/surveys-enquetes/workplaceempl-milieutravailempl-eng.cfm">that represent Canada’s workforce</a>. Canada is a particularly good test case for examining immigrants’ outcomes because of its high proportion of first- or second-generation immigrants (<a href="https://www150.statcan.gc.ca/n1/daily-quotidien/171025/dq171025b-eng.htm">37.5 per cent of the population</a>).</p>
<p>We took an “<a href="https://hbr.org/2019/04/ending-harassment-at-work-requires-an-intersectional-approach">intersectional” approach</a> to this research. That means we looked at all 24 possible combinations of these four characteristics, rather than measuring how much each characteristic impacts pay on its own:</p>
<p>· Immigrant generation: First-generation, referring to those born abroad; descendants, referring to their Canadian-born children and grandchildren; and non-immigrants, referring to those who are not recently descended from immigrants</p>
<p>· Gender: Men and women</p>
<p>· Race: Self-identified as a person of colour, or not</p>
<p>· Language: Whether the person works in their native language or in an additional language.</p>
<h2>Big-picture comparisons</h2>
<p>We recognize that these are all rough categories that ignore important complexities. For example, because of data limitations, we couldn’t test for different outcomes <a href="https://hbr.org/2019/03/race-at-work">between racial groups</a> or across the full <a href="https://theconversation.com/transgender-americans-still-face-workplace-discrimination-despite-some-progress-and-support-of-companies-like-apple-106140">gender spectrum</a>. </p>
<p>Despite this lack of nuance, rough categories can still be useful as a starting point for making big-picture <a href="https://doi.org/10.1177%2F0950017014538337">comparisons between groups</a>.</p>
<p>Finally, we compared “apples-to-apples” by controlling for five individual characteristics (age, experience, education, occupation and unionization) plus four characteristics of their workplaces (size, industry, performance and international competition). That means we aren’t comparing entrepreneurial housekeepers in one group against corporate data analysts in another.</p>
<figure class="align-center ">
<img alt="A graph shows annual salary by intersectional characteristics." src="https://images.theconversation.com/files/397439/original/file-20210427-19-13w10u3.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/397439/original/file-20210427-19-13w10u3.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=464&fit=crop&dpr=1 600w, https://images.theconversation.com/files/397439/original/file-20210427-19-13w10u3.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=464&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/397439/original/file-20210427-19-13w10u3.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=464&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/397439/original/file-20210427-19-13w10u3.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=583&fit=crop&dpr=1 754w, https://images.theconversation.com/files/397439/original/file-20210427-19-13w10u3.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=583&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/397439/original/file-20210427-19-13w10u3.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=583&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Annual salary by intersectional characteristics.</span>
<span class="attribution"><span class="source">Authors' calculations</span>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<p>First-generation immigrant white men — most of them from the U.K., France or the United States — working in their native language have the highest pay of any group, including non-immigrants, and are closely followed by their sons. </p>
<p>In contrast, another group of first-generation immigrants — racialized women who are neither anglophone nor francophone — earn the least. The gap in annual income between these two groups of first-generation immigrants, even after controlling for other explanations like education and experience, is close to $10,000. </p>
<p>This shows why it doesn’t make sense to talk about first-generation immigrants in the workplace as though most of them share similar experiences.</p>
<p>It is possible to see the combined effect of race and gender for first-generation immigrants who all work in their mother tongues. White men received $6,263 more in annual pay than women of colour. These results emphasize the importance of looking at multiple characteristics together when considering the employment experiences of immigrants. </p>
<h2>What to do about it?</h2>
<p>Investing in <a href="https://theconversation.com/what-the-history-of-diversity-training-reveals-about-its-future-143984">diversity and inclusion more generally</a> is one step that may help the immigrant employees who need it most. However, a more effective approach may be to directly target those groups most disadvantaged; for example, focusing on immigrant women of colour, rather than broad diversity initiatives.</p>
<p>Immigrants, women and people of colour have very different employment experiences, and these differences are even bigger when considering these characteristics in combination.</p>
<figure class="align-center ">
<img alt="Long-term care workers talk outside to an elderly woman; all wear masks." src="https://images.theconversation.com/files/401703/original/file-20210519-15-9w85y6.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/401703/original/file-20210519-15-9w85y6.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=410&fit=crop&dpr=1 600w, https://images.theconversation.com/files/401703/original/file-20210519-15-9w85y6.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=410&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/401703/original/file-20210519-15-9w85y6.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=410&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/401703/original/file-20210519-15-9w85y6.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=516&fit=crop&dpr=1 754w, https://images.theconversation.com/files/401703/original/file-20210519-15-9w85y6.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=516&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/401703/original/file-20210519-15-9w85y6.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=516&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Long-term care workers chat with a resident of the Orchard Villa Long-Term Care in Pickering, Ont., in June 2020.</span>
<span class="attribution"><span class="source">THE CANADIAN PRESS/Frank Gunn</span></span>
</figcaption>
</figure>
<p>Businesses that recognize these differences will be better placed to reduce unfair pay gaps and capture the full value of a diverse workforce. A <a href="https://fsc-ccf.ca/wp-content/uploads/2020/01/EmploymentGaps-Immigrants-PPF-JAN2020-EN.pdf">recent report</a> suggests the onus is on employers to actively recruit newcomers through immigrant services organizations like <a href="https://www.mosaicbc.org/services/employment/employers/">Vancouver’s MOSAIC</a>, <a href="https://accesemployment.ca/hiring-talent">Toronto’s ACCESS Employment</a> and <a href="https://www.cfiq.ca/en/service/services-aux-entreprises/">Montréal’s le Collectif</a>.</p>
<p>Ultimately, our findings suggest that no matter how much education, training or networking that racialized female immigrants do, they are still earning less than their peers. That means it’s up to employers to remove employment barriers and recognize the benefits of all their employees.</p><img src="https://counter.theconversation.com/content/158865/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Stacey Fitzsimmons receives funding from the Canadian Research Data Centre Network (CRDCN) from the Social Sciences and Humanities Research Council (SSHRC), the Canadian Institute for Health Research (CIHR), the Canadian Foundation for Innovation (CFI), and Statistics Canada. Although the research and analysis are based on data from Statistics Canada, the opinions expressed do not represent the views of Statistics Canada.</span></em></p><p class="fine-print"><em><span>Jen Baggs receives funding from the Canadian Research Data Centre Network (CRDCN) from the Social Sciences and Humanities Research Council (SSHRC), and Statistics Canada. The analysis presented in this paper was conducted at the UVic Research Data Centre which is part of the Canadian Research Data Centre Network (CRDCN). The services and activities provided by the UVic RDC are made possible by the financial or in-kind support of the SSHRC, the CIHR, the CFI, Statistics Canada, and the University of Victoria. The views expressed in this paper do not necessarily represent the CRDCN's or that of its partners'</span></em></p><p class="fine-print"><em><span>Mary Yoko Brannen does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Racialized women immigrants still earn less than their peers on average even when well-qualified. It’s up to employers to remove employment barriers.Stacey Fitzsimmons, Associate Professor of International Business, University of VictoriaJen Baggs, Associate Professor, Economics, University of VictoriaMary Yoko Brannen, Honorary Professor of International Business, Copenhagen Business School Professor Emerita San Jose State University, University of VictoriaLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1191492019-08-20T11:21:34Z2019-08-20T11:21:34ZStudents who plan to seek more education than needed for their career earn more money<figure><img src="https://images.theconversation.com/files/288380/original/file-20190816-192250-qqjrm3.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Extra education has been shown to pay off in the long run.</span> <span class="attribution"><a class="source" href="https://www.flickr.com/photos/44340128@N03/34887431355/in/photolist-V9TcTa-2euDUnv-9LG9jX-UCSSgR-28mZjVn-26ZpzxV-nv5N29-25ng6GH-28mY3Q8-KnaXj-27gvEnL-RyVeR-27B4FGu-9JJVwy-YKqRET-nPmpwT-W8SJgT-26ZoqUz-V9zTKv-UQp41p-V6dvDY-26QCVKq-25ng72k-TKsxrs-JyqBPW-28hHW71-25AZVRd-26Zos5k-KKijUL-27RSpkU-293Pdv8-nCez5G-2fP29rm-27gwPpm-Uyy94y-27gvEQu-27gv37Q-25AYRZN-26KHty7-26yM5eR-ejvHZY-GQpvMS-28Rzzzr-U4eBhh-26QSrAw-TAQ1Vn-Le94Hy-26Zog2Z-c1cMqj-nBX688">John O'Boyle/Flickr</a></span></figcaption></figure><p>When it comes to career success, it pays to aim for more education than what you need for the job you want.</p>
<p>That is the key finding of a new study that I and several colleagues did by analyzing the salaries of high school students who expected to get more education than needed for their desired job. We compared their salaries to the salaries of students who planned to get only as much or less education than needed for their desired job.</p>
<p>Prior research had already shown that high school students who have a profession in mind and know what sort of education they need for that profession – what is sometimes referred to as <a href="https://yalebooks.yale.edu/book/9780300082753/ambitious-generation">“aligned ambitions”</a> – secured more stable careers and <a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1540-6237.2011.00799.x">higher wages</a> early in their careers. </p>
<p>As a researcher who studies the <a href="https://scholar.google.com/citations?user=2tUKvb0AAAAJ&hl=en&oi=ao">impact</a> college enrollment has on future earnings, I’ve discovered an additional payoff when students have what we might call “over-aligned” ambitions – that is to say, they expect to get more education than what they need for their desired career. </p>
<p>For example, suppose a student aspired to become a police officer or a banker. At the time the students in our study were in high school – 1979 – those careers required only a high school diploma, which is still pretty much the case <a href="https://www.bls.gov/ooh/a-z-index.htm#B">today</a>. However, students who planned on those careers and planned to go to a four-year college ended up making substantially more money per year than others who aspired to the same occupation but did not plan as much education.</p>
<h2>Long-term payoffs</h2>
<p>To reach this conclusion, we used data from a <a href="https://www.bls.gov/nls/nlsy79.htm">national sample</a>. Starting in 1979, the survey asked young people how much education they expected to finish and what career they aspired to have at age 30, then followed them into their careers over the next few decades.</p>
<p>In analyzing these data, we identified three groups: Students who planned to get less education than they needed for the job they wanted; students who planned to get enough education for the job they wanted; and those whose educational goals were bigger than they needed to be.</p>
<p>What we discovered is that students whose educational goals were too low in relation to their career goals earned the least. By age 33 to 45, those whose education goals were well aligned with their career goals earned 4% more than this first group. But students who were overly ambitious – planning to take on studies that weren’t required by the jobs they wanted – actually did best, earning 11% more than the least educationally minded peers. This is based on an <a href="https://usa.ipums.org/usa-action/variables/SEI#description_section">index</a> used to measure wages and occupational prestige.</p>
<p>These benefits extend through a person’s mid-40s.</p>
<p>You might wonder if those who planned to get more education actually did so. In our analysis, we found that 75% of those who planned to get more education than needed for their planned careers actually got it. We also found that high school students who planned to have more education than required for their aspired job are more likely to graduate from four-year colleges.</p>
<h2>Aspiring for more</h2>
<p>These findings show the importance of high school students having information about how much education is necessary for certain careers, as well as aiming for more education than is necessary.</p>
<p>Do these findings about high school students from 1979 apply to today’s high school students? In my opinion, the answer is yes. </p>
<p>Students with high educational ambitions are more likely to <a href="https://www.tandfonline.com/doi/full/10.1080/15427609.2017.1305811?scroll=top&needAccess=true&">attend and complete college</a> than those with low educational ambitions, and college completion is <a href="https://www.nber.org/papers/w19053">likely to increase a student’s future earnings</a>. </p>
<p>In addition, as the <a href="https://www.sciencedirect.com/science/article/pii/S0169721811024105">education requirements of the workplace have risen</a>, students are more in danger of finding themselves lacking the necessary skills and credentials for the careers they want. Students who complete more education than is needed still get the skills they need, while leaving themselves open to more lucrative and prestigious career options.</p>
<p>Students can get job information from parents or other relatives. Or it could come from school counselors and teachers. School counselors, however, are often <a href="https://www.schoolcounselor.org/asca/media/asca/Publications/ratioreport.pdf">stretched thin</a> and <a href="http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.543.5670&rep=rep1&type=pdf">have more responsibilities</a> than just helping students figure out their education and career options.</p>
<p>Students should also have access to the high school coursework they need to pursue the college major they choose. However, students in schools that serve high proportions of minority students sometimes lack access or aren’t counseled, encouraged or prepared to enroll in <a href="https://www2.ed.gov/about/offices/list/ocr/docs/stem-course-taking.pdf">STEM or advanced math coursework</a>, which is likely to <a href="http://jhr.uwpress.org/content/44/1/171.abstract">increase a student’s chances of going to college</a>. Even when schools do offer a wide array of courses, <a href="https://journals.sagepub.com/doi/10.1177/003804070908200103">minority students are often placed in lower-track courses</a>.</p>
<p>This is especially problematic because we found that minority students reap some of the largest benefits from having high educational and career ambitions. For example, we found that Hispanic students saw 13% higher wages when they expected to obtain more education than needed for their desired career.</p>
<p>Planning coursework is a process that schools and parents should start early. This is because the courses students take in middle school and early high school can determine if they are able to get into higher-level and more specialized classes. For instance, research has shown that taking more advanced math and science <a href="https://journals.sagepub.com/doi/full/10.3102/0162373719834067">increases the likelihood</a> of going to college. It also leads to <a href="http://jhr.uwpress.org/content/44/1/171.abstract">higher wage earnings</a>.</p>
<p>Finally, <a href="https://mindsetscholarsnetwork.org/learning-mindsets/purpose-relevance/">mindset programs</a> can help students envision their futures and <a href="http://mindsetscholarsnetwork.org/wp-content/uploads/2015/09/What-We-Know-About-Purpose-and-Relevance-.pdf">persist through setbacks</a>. This is important so that students who have higher expectations for education can actually realize them.</p>
<p>Getting students to want more education is not just something that will make them better educated. My research shows that it will lead them to earn more money as well.</p>
<p>[ <em>Like what you’ve read? Want more?</em> <a href="https://theconversation.com/us/newsletters?utm_source=TCUS&utm_medium=inline-link&utm_campaign=newsletter-text&utm_content=likethis">Sign up for The Conversation’s daily newsletter</a>. ]</p><img src="https://counter.theconversation.com/content/119149/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>This work was supported by the National Science Foundation (#1316702) and Office of the John A. Hannah Chair in the College of Education at Michigan State University.</span></em></p>Students who plan to get more education than is required for the career they hope to have end up earning higher salaries as a result, a new analysis shows.Soobin Kim, Post-doctoral Research Fellow, Michigan State UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1139752019-03-28T20:12:28Z2019-03-28T20:12:28ZWhy pay transparency alone won’t eliminate the persistent wage gap between men and women<figure><img src="https://images.theconversation.com/files/265887/original/file-20190326-36248-mf03wx.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">The gender pay gap has proved difficult to close. </span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/gender-pay-gap-488107402">Ian johnston/shutterstock.com</a></span></figcaption></figure><p>No matter how you slice the data, women in the U.S. earn a lot less than men. </p>
<p><a href="https://www.census.gov/data/tables/time-series/demo/income-poverty/cps-pinc/pinc-05.2017.html">A typical woman working full-time makes 81 cents</a> for every dollar a man earns, little more than the 77 cents she got a decade ago. Within careers, it can vary widely, with female physicians and marketing managers earning 71 cents, while female registered nurses are at 92 cents. A university degree doesn’t help, as women with a bachelor’s earn just 74 cents of every college-educated man’s dollar.</p>
<p>One of the <a href="http://www.pbs.org/wgbh/point-taken/should-salaries-be-transparent/#poll">popular solutions</a> proposed for <a href="https://pay-equity.org/day.html">narrowing this persistent gap</a> is <a href="http://www.law.uci.edu/lawreview/vol4/no2/Estlund.pdf">pay transparency</a>. There are two rationales for this. First, employers will be less likely to pay women less than men for the same job if salaries are known. Second, if a woman knows how much her male colleagues are earning for doing the same work, she’ll be in a better position to negotiate a higher salary. </p>
<p>The House <a href="https://www.congress.gov/bill/116th-congress/house-bill/7/text">passed a bill on March 27</a> <a href="https://thehill.com/homenews/house/436121-house-passes-paycheck-fairness-act">designed to promote equal pay and transparency</a> by, among other things, banning employers from asking applicants about their salary history and preventing them from retaliating against employees who compare wages. </p>
<p>Many states <a href="https://www.salary.com/blog/pay-transparency-laws-mean/">have already passed similar laws</a>, while the federal government has <a href="https://www.law.com/nationallawjournal/2019/03/04/federal-judge-hits-trump-agency-for-illegal-move-to-stop-new-pay-data-rule/?slreturn=20190228082114">issued</a> <a href="http://www.dol.gov/ofccp/regs/statutes/eo11246.htm">a few regulations</a> along these lines. </p>
<p>The question is, are they working? As an <a href="http://law.ubalt.edu/faculty/profiles/modesitt.cfm">expert in employment discrimination law</a>, including equal pay, I have my doubts about many of these laws. </p>
<p><iframe id="suLUh" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/suLUh/3/" height="400px" width="100%" style="border: none" frameborder="0"></iframe></p>
<h2>No salary disclosure required</h2>
<p>Part of the problem is that with one exception – government employees – the laws currently in place to promote pay transparency do not actually require disclosure of individual salary information. </p>
<p>For example, the <a href="http://www.dol.gov/ofccp/regs/statutes/eo11246.htm">government regulation</a> that has been touted as a pay transparency law prohibits federal contractors only from retaliating against employees who disclose their own salary. And states with the <a href="https://www.dir.ca.gov/dlse/California_Equal_Pay_Act.htm%20https://labor.ny.gov/formsdocs/factsheets/pdfs/p828.pdf">toughest laws</a>, such as California and New York, use similar language.</p>
<p>The idea behind these anti-retaliation laws is to allow employees to disclose their pay without repercussion, eliminating pay secrecy policies and customs.</p>
<p>For these laws to create actual pay transparency, however, employees must be willing to share salary information. And while there <a href="http://www.hreonline.com/HRE/view/story.jhtml?id=534359883">appears to be a trend</a> toward employee willingness to do so, it is at odds with the <a href="http://scholarship.law.berkeley.edu/cgi/viewcontent.cgi?article=1345&context=bjell">longstanding social norm</a> against discussing pay.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/265889/original/file-20190326-36260-hdcomb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/265889/original/file-20190326-36260-hdcomb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=414&fit=crop&dpr=1 600w, https://images.theconversation.com/files/265889/original/file-20190326-36260-hdcomb.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=414&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/265889/original/file-20190326-36260-hdcomb.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=414&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/265889/original/file-20190326-36260-hdcomb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=521&fit=crop&dpr=1 754w, https://images.theconversation.com/files/265889/original/file-20190326-36260-hdcomb.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=521&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/265889/original/file-20190326-36260-hdcomb.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=521&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Whole Foods is one company that allows employees to know other employees’ salaries.</span>
<span class="attribution"><a class="source" href="http://www.apimages.com/metadata/Index/Future-of-Work-Entry-Points/98b921ce6cf9454da667dada856a84be/30/0">AP Photo/Steven Senne</a></span>
</figcaption>
</figure>
<h2>Finding a link to pay equity</h2>
<p>In the absence of a legal requirement to disclose actual wages, an increasing number of companies are making salary information transparent on their own. </p>
<p>Different companies have taken varying approaches to this. For example, Whole Foods <a href="http://www.cbsnews.com/news/at-whole-foods-paychecks-are-public/">allows workers to check</a> their colleagues’ salaries, while social media scheduler Buffer <a href="https://open.buffer.com/transparent-salaries/">publicly discloses the formula</a> it uses to determine employees’ salaries. At the extreme end of transparency, <a href="http://www.fedsdatacenter.com/federal-pay-rates/">many governmental employees’ salaries</a> are publicly available, depending on the state. </p>
<p><a href="http://www.law.uci.edu/lawreview/vol4/no2/Estlund.pdf">Proponents argue</a> that transparency decreases the gender pay gap because if employers disclose salaries, they will also be disclosing any gap that exists, which will lead to efforts to eliminate it. This is precisely what happened at Buffer, which, after disclosing employee salaries, found a wage gap and <a href="http://www.theatlantic.com/business/archive/2016/03/pay-transparency-gender-gap/475683/">changed its compensation system</a> and hiring priorities to eliminate it. </p>
<p>The federal workforce, where <a href="https://www.opm.gov/policy-data-oversight/pay-leave/reference-materials/reports/governmentwide-strategy-on-advancing-pay-equality-in-the-federal-government.pdf">the pay gap is significantly lower</a> than in the private sector, can also be seen as support for the argument that pay transparency <a href="https://www.dol.gov/wb/resources/womens_earnings_and_the_wage_gap_17.pdf">helps reduce it</a>. The <a href="https://thehill.com/policy/finance/391965-equal-pay-for-women-elusive-55-years-after-landmark-law">federal wage gap ranges</a> from about 4 percent to 9 percent, when controlling for relevant factors that affect pay, <a href="https://www.nber.org/papers/w21913.pdf">compared with 8 percent to 18 percent</a> among all employers.</p>
<h2>Limited research</h2>
<p>But there is little actual research that supports these arguments.</p>
<p>I don’t know of any empirical study of how pay transparency affects the gender wage gap, such as what happens to the gap when companies shift from withholding to disclosing employee pay. While <a href="https://www.opm.gov/policy-data-oversight/pay-leave/reference-materials/reports/governmentwide-strategy-on-advancing-pay-equality-in-the-federal-government.pdf">research does exist</a> comparing the federal workforce’s wage gap with the private sector’s, it does not show whether pay transparency is a factor. </p>
<p>It is quite probable that the most important reason for the smaller federal wage gap is the government’s highly structured pay and promotion system. Because pay is based on a job’s classification, with step raises that are identical, there is less chance for men and women to be paid different amounts for doing the same job.</p>
<p>When one looks more closely at the anecdotal evidence, pay transparency appears more likely to be simply one part of narrowing the pay gap. For example, while <a href="http://fortune.com/2015/08/18/tech-transparency-wage-gaps">Buffer eliminated its pay gap</a> after disclosing employee salaries, Salesforce <a href="https://www.salesforce.com/blog/2016/03/equality-at-salesforce-equal-pay.html">did so after merely conducting an internal review</a>. </p>
<p>The common link in these approaches is not pay transparency but recognition of a gap and a commitment to closing it. Thus, transparency can assist in pushing companies toward recognition of a problem but isn’t an essential component to eliminating it.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/265888/original/file-20190326-36248-3c1e9y.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/265888/original/file-20190326-36248-3c1e9y.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=399&fit=crop&dpr=1 600w, https://images.theconversation.com/files/265888/original/file-20190326-36248-3c1e9y.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=399&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/265888/original/file-20190326-36248-3c1e9y.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=399&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/265888/original/file-20190326-36248-3c1e9y.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=502&fit=crop&dpr=1 754w, https://images.theconversation.com/files/265888/original/file-20190326-36248-3c1e9y.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=502&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/265888/original/file-20190326-36248-3c1e9y.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=502&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">In 2016, the World Economic Forum found that the global gender pay gap will not close for another 170 years if current trends continue.</span>
<span class="attribution"><a class="source" href="http://www.apimages.com/metadata/Index/Gender-Pay-Gap/9a24d93c03e3434a9890915aa632745b/20/0">AP Photo/Jessica Hill</a></span>
</figcaption>
</figure>
<h2>Pitfalls of transparency</h2>
<p>One downside to pay transparency is the effect on employee morale.</p>
<p>A <a href="https://www.princeton.edu/%7Eamas/papers/card-mas-moretti-saezAER11ucpay">fascinating study</a> on the effect of revealing salaries of University of California employees showed that employees below the median salary for their position had decreased job satisfaction and an increase in desire to change jobs. </p>
<p>This was not offset by improvements in employee morale among those who were paid higher than the median salary. Thus, there was a net overall decrease in employee morale. </p>
<p>On the other hand, a 2015 <a href="http://fortune.com/2015/10/15/pay-transparency/">PayScale survey suggests</a> that transparency has the opposite effect, encouraging retention, because employees tend to think they’re more underpaid than they actually are.</p>
<p>To avoid negative consequences, the <a href="https://www.shrm.org/publications/hrmagazine/editorialcontent/2014/0914/pages/0914-salary-transparency.aspx">Society for Human Resource Management recommends</a> that employers be prepared to explain any reasons for pay disparities that are revealed. This also suggests that how an employer handles a pay gap matters more than the disclosure of it. </p>
<h2>Other factors influencing the gap</h2>
<p>Another factor affecting the pay gap is simply an <a href="https://www.opm.gov/policy-data-oversight/pay-leave/reference-materials/reports/governmentwide-strategy-on-advancing-pay-equality-in-the-federal-government.pdf">employee’s initial salary</a>, which is usually higher for men than women for the same job.</p>
<p>California <a href="https://www.dir.ca.gov/dlse/California_Equal_Pay_Act.htm">recently passed a law</a> to combat this by prohibiting employers from asking applicants for salary history, and the <a href="https://www.congress.gov/bill/116th-congress/house-bill/7/text?r=2">bill the House just passed</a> would do the same thing. If employers don’t know the prior salaries of applicants, presumably they will offer the same pay to everyone. </p>
<p>This is a good start, but it may not be enough to completely close the wage gap. Even if offered the same salary, men are usually rewarded for negotiating a better salary – while <a href="http://thinkprogress.org/economy/2014/03/19/3416122/texas-republican-pay-gap-negotiate/">women are penalized</a> for doing the same. </p>
<p>Other factors blamed for why women earn less than men include seniority and time off to care for a baby or sick family member, and companies need to take these components into account as well if they wish to eliminate gender disparities in pay. </p>
<p>Putting this all together, pay transparency in and of itself doesn’t necessarily help close the gender pay gap. It creates opportunities for employers to reconsider their current compensation systems but doesn’t mean they’ll necessarily do anything about it. </p>
<p>So while pay transparency is a good idea, on its own it probably won’t be able to eliminate the persistent pay disparities between men and women. More aggressive legislation, such as the recent California prohibition on asking for prior salary or the pending House bill that makes it far more difficult for employers to pay women less than men, is likely needed to combat the persistent gender pay gap. </p>
<p><em>This is an updated version of an <a href="https://theconversation.com/could-knowing-how-much-your-coworker-earns-help-close-the-gender-pay-gap-58570">article</a> originally published on May 1, 2016.</em></p><img src="https://counter.theconversation.com/content/113975/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Nancy Modesitt does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Women make about 81 cents for every dollar a man earns, little changed in recent years. Could more pay transparency change that?Nancy Modesitt, Associate Professor of Law, University of BaltimoreLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1074562018-12-06T13:00:09Z2018-12-06T13:00:09ZGender pay gap at universities could get even worse – here’s why<figure><img src="https://images.theconversation.com/files/248744/original/file-20181204-34148-fah1wc.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">For every £1 men earn per hour, women earn 81.6p.
</span> <span class="attribution"><span class="source">shutterstock</span></span></figcaption></figure><p>Britain has one of the largest gender pay gaps in the European Union, with women earning <a href="https://ec.europa.eu/unitedkingdom/news/uk-has-one-highest-gender-pay-gaps-eu_en">roughly 21% less than men</a>. This means that women in UK universities today are still earning less than their male colleagues. So although laws on equal pay have been in place for more than 40 years, there <a href="https://www.bbc.co.uk/news/uk-england-43655192">is still a large gender pay gap in UK universities</a>. </p>
<p>The difference in hourly pay <a href="https://www.theguardian.com/news/2018/mar/22/cambridge-reveals-15-gender-pay-gap-in-oxbridge-college-audit">between men and women is 15%</a> in top UK universities and <a href="https://www.bbc.co.uk/news/uk-england-43655192">37% in other universities</a>. What’s more, men have most of the top jobs in UK universities, <a href="https://www.bbc.co.uk/news/uk-england-43655192">while women have more of the lower-paid jobs</a>. </p>
<p>And this “gender pay gap” <a href="https://www.sciencedirect.com/science/article/pii/S0747563218303753">may keep getting wider</a> if women aren’t supported to develop their digital skills. This is because women tend to have less advanced digital skills than men – skills that are increasingly in demand for university lecturer roles. And as universities around rely more extensively on digital technology, they need employees who have creative digital skills – which means women are more likely to miss out on jobs, promotions and pay increases. </p>
<h2>Wanted: technical talent</h2>
<p>The use of technology is now just part of the day job for anyone involved in teaching and learning in universities. Universities use technology to teach and communicate with students online – which can help to improve <a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/bjet.12651?af=R">a student’s learning experience</a>. Staff are also expected to use online learning and mobile learning platforms to teach, assess and talk to students in a virtual environment. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/247760/original/file-20181128-32191-zrzhei.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/247760/original/file-20181128-32191-zrzhei.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/247760/original/file-20181128-32191-zrzhei.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/247760/original/file-20181128-32191-zrzhei.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/247760/original/file-20181128-32191-zrzhei.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/247760/original/file-20181128-32191-zrzhei.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/247760/original/file-20181128-32191-zrzhei.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Our research shows there is a wide gap in the way men and women use technology.</span>
<span class="attribution"><span class="source">Shutterstock</span></span>
</figcaption>
</figure>
<p>Universities also plan to use more advanced technology. Gamification is on the rise in universities. This is where universities personalise a student’s learning, using game design thinking <a href="https://www.sciencedirect.com/science/article/pii/S0360131518301842">in non-game applications</a>. Wearable devices, such as an Apple Watch or Google Glass, can also encourage learners to get more involved in the subject. This type of technology will most likely be used more in universities over the coming years.</p>
<p>And as women in higher education are generally less likely to be skilled in <a href="https://www.pwc.co.uk/who-we-are/women-in-technology/time-to-close-the-gender-gap.html">using these technologies</a>, they may well be left behind – widening the gender pay gap in higher education – while also making it harder for women to progress in their careers. </p>
<h2>Digital skills divide</h2>
<p><a href="https://www.sciencedirect.com/science/article/pii/S0747563218303753">Our research</a> which looks at the gender gap in smartphone adoption and use in Arab countries shows there is a wide gap in the way men and women use technology in some parts of the world. And we found similar patterns in the UK. Men have more advanced digital skills than women, and women are underrepresented in the technology sector, <a href="https://www.pwc.co.uk/who-we-are/women-in-technology/time-to-close-the-gender-gap.html">specifically in the digital sector in education</a>. </p>
<p>This “digital divide” begins at <a href="https://www.itproportal.com/features/tackling-the-uk-digital-skills-gap-means-tackling-gender-diversity-in-uk-tech/">a very early age in school</a>. It continues into higher education – in the UK there is one of the highest gender gaps in technology-related courses <a href="http://www.europarl.europa.eu/RegData/etudes/STUD/2018/604940/IPOL_STU(2018)604940_EN.pdf">among all university courses</a> in the world.</p>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/xQGshHOUy8k?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
<figcaption><span class="caption">Why the World needs more women In tech.</span></figcaption>
</figure>
<p>Technology is advancing quickly, so academics and others working in higher education constantly have to update their skills. Without these skills, women in the sector are at a disadvantage when it comes to promotion and pay rises. So it’s more important than ever for universities to provide training and other programmes that help women develop their digital skills. </p>
<p>Closing the gender gap in digital skills would remove one factor contributing to the gender pay gap in UK universities. It would increase the chances of women being employed in the sector and make it easier for them to develop their careers. Tapping into female talent in technology would bring huge benefits to universities. And above all, it would help to close the digital skills gap – while helping to build a more equal and fairer society.</p><img src="https://counter.theconversation.com/content/107456/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Nisreen Ameen does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>How an increased use of technology could widen the gender pay gap in higher education.Nisreen Ameen, Lecturer in Information Technology Management, Queen Mary University of LondonLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1069792018-11-30T11:05:04Z2018-11-30T11:05:04ZThe rise of the low-pay workforce – when seven jobs just isn’t enough<figure><img src="https://images.theconversation.com/files/246720/original/file-20181121-161609-14pz74k.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Pexels</span></span></figcaption></figure><p>The UK is experiencing <a href="https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/uklabourmarket/october2018">record levels of employment</a>, with over 32m people in work. But many workers and their families <a href="https://theconversation.com/welcome-to-britain-a-land-where-jobs-may-be-plentiful-but-are-more-and-more-precarious-87423">continue to struggle to survive financially</a> – it’s estimated 5.5m workers are paid below the <a href="https://home.kpmg.com/uk/en/home/insights/2017/11/kpmg-living-wage-research-2017.html">Real Living Wage</a>, which is set at a level at which people can afford to “live”, based on the <a href="http://www.livingwage.org.uk">minimum income standard</a>. </p>
<p>But what’s missing from these statistics are those people who have to work in more than one low paid job to make ends meet. This is the focus of <a href="https://www.dur.ac.uk/business/research/research-centres/forgotten-workers/">our research</a> – which has never been conducted in the UK before. </p>
<h2>The Forgotten Workers</h2>
<p>We interviewed 50 low paid workers in multiple forms of employment in the regions of Yorkshire and North-East England. We expected to speak to workers with two or three jobs, but were surprised and alarmed to find a number with four, five, six and even seven different jobs.</p>
<p>All of the workers we spoke to had multiple jobs as they were struggling to make a living, and some made use of <a href="https://theconversation.com/why-does-the-growth-of-food-banks-matter-58000">food banks</a>. Ages ranged from late-teens to 60s and education levels varied: a minority had no qualifications, but many had NVQs, GCSEs, O-levels, A-levels, good quality degrees and even masters degrees. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/247029/original/file-20181123-149335-1dlzmzs.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/247029/original/file-20181123-149335-1dlzmzs.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/247029/original/file-20181123-149335-1dlzmzs.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/247029/original/file-20181123-149335-1dlzmzs.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/247029/original/file-20181123-149335-1dlzmzs.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/247029/original/file-20181123-149335-1dlzmzs.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/247029/original/file-20181123-149335-1dlzmzs.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">A culture of low pay is trapping people in poorly paid jobs.</span>
<span class="attribution"><span class="source">Shutterstock</span></span>
</figcaption>
</figure>
<p>The workers we interviewed were employed in cleaning, catering, the entertainment sector, the care sector, bar work, security, DIY, social services, public services, libraries, education, retail, administration, accountancy and IT services. These occupations spanned the private, public and third sectors, but a number of public sector jobs had been outsourced to private contractors due to austerity cuts. </p>
<p>In terms of employment contracts, there was a combination of full-time, part-time, agency, temporary, seasonal, term-time only, casual and zero hours. </p>
<h2>Job insecurity</h2>
<p>We believe the rise of multiple jobs is due to the creation of a deregulated “flexible” labour market. Recent research by the Joseph Rowntree Foundation highlighted the <a href="https://www.jrf.org.uk/report/monitoring-poverty-and-social-exclusion-2016">expansion of insecure work</a>. The TUC, which comprises the majority of the UK’s major trade unions, has also reported that only one in 40 jobs <a href="https://www.tuc.org.uk/economic-issues/labour-market-and-economic-reports/only-one-everyforty-net-jobs-recession-full-time">created since the recession is full-time</a>. </p>
<p>The workers we interviewed had to acquire additional jobs as a result of low wages, limited working hours, under-employment and job insecurity. Additional factors include the proliferation of part-time, zero hours contracts and temporary <a href="https://theconversation.com/jobs-figures-mask-bogus-self-employment-in-the-shadow-economy-58017">and casual contracts</a>. Many of the people we spoke to were experiencing job insecurity and instability, and having to work for employment agencies. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/246722/original/file-20181121-161609-10onmll.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/246722/original/file-20181121-161609-10onmll.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/246722/original/file-20181121-161609-10onmll.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/246722/original/file-20181121-161609-10onmll.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/246722/original/file-20181121-161609-10onmll.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/246722/original/file-20181121-161609-10onmll.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/246722/original/file-20181121-161609-10onmll.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">People are working multiple part-time, low-pay jobs.</span>
<span class="attribution"><span class="source">Shutterstock</span></span>
</figcaption>
</figure>
<p>The workers we spoke to were also acutely aware of these issues and the associated challenges of insufficient wages and hours in order to make ends meet – as Anna, who works four jobs, two cleaning, one in catering, and one as a shop worker, explained: </p>
<blockquote>
<p>I’m exhausted. I get up at 4:30 in the morning. I leave the house at 5:10 for a 6am start and 10am finish. Then I come here [to my second job] at 11am and I’ve got all day here. I finish at 4pm here, get across the water and go to my son’s and get a sandwich or something and then go to my next job. </p>
<p>That one is five nights a week and it’s a very hard job. The evening job is really hard. I get really tired when it’s about 8pm. It’s about midnight when I get to bed. But if I didn’t do these jobs I wouldn’t be able to live. I wouldn’t be able to survive. </p>
</blockquote>
<h2>Decent working hours</h2>
<p>The changing world of work has thrown up a range of challenges and the voices of these forgotten workers can no longer be ignored. These workers are not in this position out of choice. These were the only jobs available – leading them to have to take on more than one job due to low wages, limited working hours and opportunities.</p>
<p>Our research affirms the necessity for the adoption of the Real Living Wage. This is set at £9/hour, (£10.55 in London), whereas the National Minimum Wage (£7.38/hour) and National Living Wage (£7.83/hour) are set at a lower level. Indeed, some workers we spoke to who received a National Living Wage pay rise had their hours cut by their employer to compensate for the rise, so they actually ended up worse off. </p>
<p>Along with a recommendation for more effective wage regulation, there also needs to be stronger regulation of working time arrangements with guaranteed hours. Many of the workers we spoke to worked zero hours or highly variable short hours contracts. These recommendations are important because it is very clear that more people need access to secure jobs with decent working hours and opportunities for progression, if this situation is to be improved.</p><img src="https://counter.theconversation.com/content/106979/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>New research shows high numbers of people in the UK are working multiple low-paid jobs.Andrew Smith, Senior Lecturer in Human Resource Management and Employment Relations, University of BradfordJo McBride, Associate Professor (Reader) of Industrial Relations, Work and Employment, Durham UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/936092018-03-27T23:07:48Z2018-03-27T23:07:48ZCanadian professors still face a gender pay gap<figure><img src="https://images.theconversation.com/files/211793/original/file-20180324-54881-1yh6nk8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">People participate in a Women's March in Toronto in January 2018.</span> <span class="attribution"><span class="source">THE CANADIAN PRESS/Chris Young</span></span></figcaption></figure><p>My sister and I are both professors. A few years ago, in the wake of the global financial crisis, she faced the possibility of a six per cent pay cut. She joked to me over the phone one night, “What am I going to do — have six per cent fewer thoughts?” </p>
<p>So naturally, when I learned that the University of Toronto pays female professors 14 per cent less than male professors, I wondered whether my employer thinks I have 14 per cent fewer thoughts. </p>
<p>I was researching the gender pay gap in order to lead an informal discussion in my department. We have a group that meets to crunch numbers on why there are so few female science professors. I ended up doing a deep dive into the publicly available data on professor salaries. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/211790/original/file-20180324-54898-1ie85c7.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/211790/original/file-20180324-54898-1ie85c7.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/211790/original/file-20180324-54898-1ie85c7.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=600&fit=crop&dpr=1 600w, https://images.theconversation.com/files/211790/original/file-20180324-54898-1ie85c7.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=600&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/211790/original/file-20180324-54898-1ie85c7.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=600&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/211790/original/file-20180324-54898-1ie85c7.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=754&fit=crop&dpr=1 754w, https://images.theconversation.com/files/211790/original/file-20180324-54898-1ie85c7.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=754&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/211790/original/file-20180324-54898-1ie85c7.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=754&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Gender pay gap at Canadian universities, measured as the difference in median salary between male and female professors.</span>
<span class="attribution"><span class="source">Data from Statistics Canada for 2016-2017.</span></span>
</figcaption>
</figure>
<p><a href="http://www5.statcan.gc.ca/cansim/a26?lang=eng&retrLang=eng&id=4770123&&pattern=&stByVal=1&p1=1&p2=31&tabMode=dataTable&csid=">Statistics Canada</a> figures show that the University of Toronto paid male and female professors median salaries of $168,425 and $145,150, respectively, in 2016-2017. This is a difference of $23,275 a year, or 14 per cent. Over a 30-year career, this could add up to nearly $700,000 in lost income, a number that keeps me up at night. </p>
<p>The University of Toronto is not alone in paying female professors less. There is still a gender pay gap at nearly all Canadian universities, with especially big gaps at Canada’s 15 research-intensive universities, known as the U15.</p>
<p>Nationally, male professors were paid a median of <a href="https://www.universityaffairs.ca/features/feature-article/history-canadas-full-time-faculty-six-charts/?utm_source=University+Affairs+e-newsletter&utm_campaign=ef91df7589-EMAIL_CAMPAIGN_2018_03_21&utm_medium=email&utm_term=0_314bc2ee29-ef91df7589-425346225">$136,844 while female professors were paid $121,872 in 2016,</a> a difference of $14,972, or 11 per cent.</p>
<p>Ever curious, I wanted to know why. </p>
<h2>It’s not because men are better researchers</h2>
<p>“Why?” is a data-hungry question. </p>
<p>Luckily, since 1996, Ontario’s <a href="https://www.ontario.ca/page/public-sector-salary-disclosure">“sunshine list”</a> has published the salary of every professor in the province who earns more than $100,000 a year. This data set tends to underestimate the gender pay gap because it includes only professors making six-figure salaries, but it is rich in other ways. Salary data are available for more than 16,000 individual professors, in some cases going back 20 years. </p>
<p>Salary should reflect merit, but a professor’s merit is not easy to measure. </p>
<p>I know this first-hand from spending countless hours poring over professors’ CVs and research proposals for the Natural Sciences and Engineering Research Council of Canada (NSERC). I am on a committee tasked with boiling down a professor’s accomplishments to a single number: The dollar amount they will receive as a Discovery Grant. </p>
<p>The results are publicly available from <a href="http://www.nserc-crsng.gc.ca/ase-oro/index_eng.asp">NSERC</a>, as are Insight Grant awards from the <a href="http://www.outil.ost.uqam.ca/CRSH/RechProj.aspx?vLangue=Anglais">Social Sciences and Humanities Research Council of Canada (SSHRC)</a>, making it possible to combine grant and salary data for thousands of Ontario professors. These data sets do not include gender, but computer programs can infer gender from first names with high accuracy. (I used <a href="https://CRAN.R-project.org/package=gender"><em>gender</em></a> in the <a href="https://www.r-project.org/">programming language R</a>.) </p>
<p>Among all professors on the sunshine list, women were paid $9,921 less than men in 2016. Accounting for grant size hardly moves the needle, as women are paid close to this much less than men even when they get the exact same funding. </p>
<p>In other words, the gender pay gap is not because men bring in larger operating grants and therefore merit larger salaries. Also, the gender pay gap is slightly larger among professors getting grants from SSHRC than from NSERC, suggesting it is not driven by the scarcity of women in highly paid natural science or engineering fields. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/211661/original/file-20180323-54898-1uz2hfb.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/211661/original/file-20180323-54898-1uz2hfb.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=450&fit=crop&dpr=1 600w, https://images.theconversation.com/files/211661/original/file-20180323-54898-1uz2hfb.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=450&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/211661/original/file-20180323-54898-1uz2hfb.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=450&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/211661/original/file-20180323-54898-1uz2hfb.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=566&fit=crop&dpr=1 754w, https://images.theconversation.com/files/211661/original/file-20180323-54898-1uz2hfb.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=566&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/211661/original/file-20180323-54898-1uz2hfb.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=566&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Male professors are paid more than female professors even when they get the same grant funding. Each dot is an Ontario professor who held a Discovery (NSERC) or Insight (SSHRC) Grant in 2016. Lines are simple linear regressions.</span>
<span class="attribution"><span class="source">Data from Ontario public salary disclosure and NSERC and SSHRC awards databases for 2016.</span></span>
</figcaption>
</figure>
<h2>The ghost of sexism past?</h2>
<p>Some professors, mostly men, still working today were hired in the 1980s or even earlier. The gender pay gap at universities may be partly the legacy of <a href="https://www.universityaffairs.ca/features/feature-article/history-canadas-full-time-faculty-six-charts/?utm_source=University+Affairs+e-newsletter&utm_campaign=ef91df7589-EMAIL_CAMPAIGN_2018_03_21&utm_medium=email&utm_term=0_314bc2ee29-ef91df7589-425346225">gender bias in hiring that dates back several decades</a>. </p>
<p>The highest paid professors are generally those who have worked at a university longest, so there may be few highly paid women now because universities hired very few women 30 years ago. However, the median male professor has been on Ontario’s sunshine list for only one year longer than the median female professor (seven versus six years, respectively). </p>
<p>Of course, I don’t know how long they were employed by a university before earning six figures. Still, the gender pay gap of today does not appear to be simply a holdover from discrimination of long ago.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/international-womens-day-reminder-women-must-keep-fighting-everywhere-92819">International Women's Day: Reminder women must keep fighting — everywhere</a>
</strong>
</em>
</p>
<hr>
<p>My discussion group wanted to know more. What about race? <a href="https://www.nytimes.com/2018/02/05/upshot/even-in-family-friendly-scandinavia-mothers-are-paid-less.html">The mommy penalty</a>? Gender bias in tenure and promotion? Salary negotiation? </p>
<p>These are hard questions to answer with publicly available data, but universities can and should (and indeed <a href="https://www.theglobeandmail.com/news/national/education/ubc-gives-all-female-tenure-stream-faculty-a-2-per-cent-raise/article8150659/">sometimes do</a>) study these factors with data collected by their human resources departments. </p>
<p>The gender pay gap is not a new problem. Ontario has legislated <a href="http://www.payequity.gov.on.ca/en/AboutUs/Pages/the_act.aspx">equal pay for equal work</a> for over 30 years. It’s high time universities valued male and female professors equally.</p><img src="https://counter.theconversation.com/content/93609/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Megan Frederickson is a professor at the University of Toronto and could benefit directly from policies aimed at closing the gender pay gap at her institution. She receives research funding from NSERC. </span></em></p>The gender pay gap at Canadian universities cannot be explained away as the holdover from discrimination of long ago. It’s high time universities valued male and female professors equally.Megan Frederickson, Associate Professor of Ecology & Evolutionary Biology, University of TorontoLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/835302018-01-17T11:01:22Z2018-01-17T11:01:22ZWhy many click farm jobs should be understood as digital slavery<figure><img src="https://images.theconversation.com/files/197783/original/file-20171205-23002-1sbzskc.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Freer/Shutterstock.com</span></span></figcaption></figure><p>The digital economy has created new opportunities and ways of working. But it has also created millions of tasks or jobs that involve intense competition, unregulated working conditions and extremely low rates of pay.</p>
<p>Driven by the rapid rise of cloud and algorithmic computing, the “platform economy” is dominated by operators such as Uber, Facebook and Google and Amazon Web services. Airbnb and Uber, for example, use <a href="http://harouneducationventures.com/blog/2016/8/29/what-the-cloud-wars-mean-for-netflix-uber-and-airbnb">the latest cloud tools</a> like Amazon Web services to drive their dominance and cull competition in a wide range of sectors.</p>
<p>While workers in the “app-driven economy” do often make a decent wage, with some measure of legal protection, many others who do “crowdwork” or “micro-tasking” on platforms can find themselves being paid below the minimum wage and without the basic, ethical protections provided by mainstream employers. A <a href="https://www.researchgate.net/profile/Janine_Berg/publication/296638565_Income_security_in_the_on-demand_economy_Findings_and_policy_lessons_from_a_survey_of_crowdworkers/links/56d705fb08aebe4638af14a3.pdf">growing body of research</a> shows that large numbers of skilled and semi-skilled virtual workers routinely offer their services on such platforms for extremely low pay, with no recourse to the rights and protections accorded to “mainstream” workers and with little hope for alternative ways of making ends meet.</p>
<p>There is also <a href="http://www.telegraph.co.uk/technology/news/10281733/Digital-economy-needs-750000-workers.html">evidence</a> that a majority of these workers are young, relatively skilled and unable, for many reasons, to find decent work that pays a living wage. Sometimes called the “<a href="https://monthlyreview.org/product/labor_in_the_global_digital_economy/">cybertariat</a>”, these workers are unseen, unheard and paid very small amounts of money to do things like write a book or edit a document or manufacture “likes” on a web page. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/197789/original/file-20171205-22977-l1u6r0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/197789/original/file-20171205-22977-l1u6r0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=420&fit=crop&dpr=1 600w, https://images.theconversation.com/files/197789/original/file-20171205-22977-l1u6r0.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=420&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/197789/original/file-20171205-22977-l1u6r0.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=420&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/197789/original/file-20171205-22977-l1u6r0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=528&fit=crop&dpr=1 754w, https://images.theconversation.com/files/197789/original/file-20171205-22977-l1u6r0.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=528&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/197789/original/file-20171205-22977-l1u6r0.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=528&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Liking.</span>
<span class="attribution"><span class="source">Pe3k/Shutterstock.com</span></span>
</figcaption>
</figure>
<h2>Click farms</h2>
<p><a href="http://ayad-al-ani.com/pdf/Rebalancing-Interests-and-Power-Structures-on-Crowdworking-Platforms-SSRN-id2817293.pdf">Crowdworking</a>, in particular, is beginning to spread rapidly across the world as a way to survive in an increasingly precarious global economy – at least for those without a significant amount of formal education, capital or connections. Crowdwork is defined literally as crowds of geographically dispersed and culturally heterogeneous people who work without guarantee of frequency or pay. It attracts millions of people who cannot get jobs that promise career advancement, who are unable to make ends meet with a “day job”, who are unable to get on welfare or benefits, or who have profound caring responsibilities or health problems that make full-time work impossible to maintain.</p>
<p>Few of us realise that keeping the internet relatively benign, amusing, safe and lucrative for consumers and businesses requires such workers to do millions of “micro-tasks”. </p>
<p>Workers scramble for hours on end, for example, to succeed at bidding for pieces of micro-work posted on Mechanical Turk, ListMinute, Elance.com or TaskRabbit. While many freelancers also offer their skills on platforms like Fiverr.com, there is very little research on how any of these service providers calibrate their workloads or manage highly critical reviews from clients.</p>
<p>Other workers spend their days increasing the number of “likes” on corporate websites. Still others <a href="https://www.theguardian.com/news/2017/may/25/facebook-moderator-underpaid-overburdened-extreme-content">trawl through distressing or even gruesome images</a> online to render cyberspace fit for human consumption. Even when pay is constant, regular and stable, “gig” workers are often among the first to suffer the negative consequences of policies introduced, often with little warning, by regulatory bodies, local councils and corporations. <a href="https://theconversation.com/uber-in-london-firm-must-value-its-drivers-as-well-as-its-customers-84621">Uber drivers</a> in London are only one recent example of this kind of thing. </p>
<p>All of these examples point to a profoundly asymmetrical relationship between the skills people acquire and the pay they can (or cannot) sustainably command in a digital economy that is <a href="http://ayad-al-ani.com/pdf/Rebalancing-Interests-and-Power-Structures-on-Crowdworking-Platforms-SSRN-id2817293.pdf">increasingly powered by platforms</a>.</p>
<h2>Virtual work</h2>
<p>While there is data to show that median pay for such jobs can be as high as <a href="http://journals.sagepub.com/doi/abs/10.1177/1024258916688861">£20 per hour</a>, these tasks involve high responsibility and little flexibility. They require the worker to show up at a particular location and at particular times, such as dog-walking or taking care of disabled children. These tasks are not often taken up by workers – for reasons that are unclear.</p>
<p>And while a very small number of virtual workers are relatively well-remunerated – such as business consultants or project managers working for “flash” organisations set up to serve clients on high-value, high-cost platforms – the vast majority spend considerable time and energy picking up enough work to support their families or to support themselves. There is therefore intense competition for low-paid, virtual work. Most of those in the latter group are young people in developed countries. Many of these work from internet cafes, public or university libraries, or where there is free WiFi. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/197788/original/file-20171205-22977-13o9j3w.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/197788/original/file-20171205-22977-13o9j3w.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=420&fit=crop&dpr=1 600w, https://images.theconversation.com/files/197788/original/file-20171205-22977-13o9j3w.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=420&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/197788/original/file-20171205-22977-13o9j3w.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=420&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/197788/original/file-20171205-22977-13o9j3w.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=528&fit=crop&dpr=1 754w, https://images.theconversation.com/files/197788/original/file-20171205-22977-13o9j3w.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=528&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/197788/original/file-20171205-22977-13o9j3w.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=528&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Internet cafes: the new office.</span>
<span class="attribution"><span class="source">OHishiapply/Shutterstock.com</span></span>
</figcaption>
</figure>
<p>On platforms such as <a href="https://www.mturk.com/pricing">Mechanical Turk</a> (Amazon), <a href="https://www.upwork.com/?vt_cmp=344093325&vt_adg=20934130125&vt_src=google&vt_kw=upwork&vt_device=c&gclid=EAIaIQobChMIwO3_jene2AIVVj8bCh2mPw43EAAYASAAEgKKIvD_BwE">Upwork</a> and <a href="https://www.crowdflower.com/">Crowdflower</a>, the pay for microtasks ranges from pennies to a few dollars, rarely much more, wherever one is geographically based in the world.</p>
<p>This can equate to a great deal below minimum wage standards in developed economies; as the situation stands, only the EU and UK governments <a href="https://www.theguardian.com/law/2017/nov/29/eu-top-court-rules-workers-can-claim-compensation-for-untaken-holidays">have signalled</a> that basic protections must be provided for so-called “gig” workers. But these debates are at an early stage. Whether – and how – such legislation actually comes to pass is anybody’s guess at the moment.</p>
<h2>Digital slavery?</h2>
<p>There are an <a href="http://journals.sagepub.com/doi/full/10.1177/1024258917696233">increasing number of calls</a> to understand such work in the context of what we typically understand as slavery. Historically, slavery has been understood as the condition of working very hard for very little or no pay whatsoever. Going from “gig” to “gig” or “micro-task” to “micro-task” might not call slavery to mind, but gig workers are beginning to emerge as the slaves of the new economy.</p>
<p>Of course, there are many differences between historical slavery and digital slavery of the kind I have described here. This time, the chains are not so visible – but the scars may well be as lasting. First person accounts of digital click farm work are still thin on the ground but almost all of them testify to the extreme fear and sense of bondage engendered by such work. </p>
<p>The question is not so much who or what is driving these digital work inequalities. One cannot lay blame on the platform owners themselves nor the buyers of such services. Rather, it is the nature of perfect competition, in which profits to sellers are quickly eroded and <a href="https://www.theatlantic.com/business/archive/2014/09/peter-thiel-zero-to-one-review/380738/">no clear winner emerges</a>. </p>
<p>The platform economy has risen so quickly and spread so rapidly across the globe that its implications for workers, policy makers and labour rights organisations have not entered popular consciousness. It is time they did. We need to think about what we want working life to look like in the future.</p><img src="https://counter.theconversation.com/content/83530/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Ming Lim does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The digital economy has created millions of jobs that involve intense competition, unregulated working conditions and extremely low rates of pay.Ming Lim, Associate Professor in Marketing and Management, University of LiverpoolLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/665522016-10-27T02:59:18Z2016-10-27T02:59:18ZFactCheck: is wage growth at record lows?<blockquote>
<p>People are hurting, people are doing it tough. Wages growth at record lows. – Shadow treasurer Chris Bowen, <a href="http://www.abc.net.au/insiders/content/2016/s4553252.htm">interview</a>, October 9, 2016.</p>
</blockquote>
<p>In October 2016, the Australian economy hit a new milestone – <a href="http://www.businessinsider.com.au/chart-of-the-day-its-been-25-years-since-australia-was-in-recession-2016-9">25 years</a> of uninterrupted economic growth. At the same time, shadow treasurer Chris Bowen said Australian wage growth had fallen to record lows. </p>
<p>Is that right?</p>
<h2>Checking the source</h2>
<p>When asked for a source to support his statement, a spokesperson for Chris Bowen pointed The Conversation to the Australian Bureau of Statistics (ABS) <a href="http://www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/6345.0Jun%202016?OpenDocument">Wage Price Index for June 2016</a>. (You can read the full response from Bowen’s office <a href="http://theconversation.com/full-response-from-chris-bowen-67144">here</a>.)</p>
<p>The ABS <a href="http://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/6345.0Explanatory%20Notes1Jun%202016?OpenDocument">Wage Price Index</a> tracks hourly rates of pay, excluding bonuses, for all private and public industries in Australia. The chart below illustrates the ABS data referred to by Chris Bowen’s office.</p>
<iframe src="https://datawrapper.dwcdn.net/CXveR/6/" frameborder="0" allowtransparency="true" allowfullscreen="allowfullscreen" webkitallowfullscreen="webkitallowfullscreen" mozallowfullscreen="mozallowfullscreen" oallowfullscreen="oallowfullscreen" msallowfullscreen="msallowfullscreen" width="100%" height="456"></iframe>
<h2>Is wage growth at record lows?</h2>
<p>Wage growth is certainly low, and people are doing it tough, but to label the current situation a “record low” is a step too far. </p>
<p>Bowen is correct according to the data set he provided to support his statement (the ABS’ wage price index). But I don’t think it’s the most suitable data on which to base this claim. The first problem with it is that it only goes back to 1998. That’s a fairly small window of time on which to base a claim about “record lows”.</p>
<p>The second problem is that, according the <a href="http://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/6345.0Explanatory%20Notes1Jun%202016?OpenDocument">ABS Glossary</a>, </p>
<blockquote>
<p>changes in the price of wages and salaries resulting from changes in the composition of the labour market are also excluded from index movements. </p>
</blockquote>
<p>In other words, the wage price index accounts for changes in the wages of many types of jobs, but not the changes in the wages taken home by individual people. </p>
<p>If people upskill, enabling them to move from a lower paid job to a higher paid job, it won’t make any difference to the wage price index. Yet this sort of wage growth is fundamental in Australian society.</p>
<p>In an attempt to verify whether wage growth really is at “record lows”, I looked instead at data on <a href="http://www.abs.gov.au/ausstats/abs@.nsf/mf/5206.0?opendocument&ref=HPKI">“Compensation of employees”</a>; that is, the aggregate wage bill for the whole economy. </p>
<p>Adjusted for hours worked and CPI growth, this confirms that wages are indeed currently falling. It also reveals that there have been at least two other periods when annual real wage growth dipped lower than it is now – the wage reforms era of the 1980s and the mid 1990s, as this chart shows:</p>
<iframe id="datawrapper-chart-kf1DY" src="https://datawrapper.dwcdn.net/kf1DY/4/" frameborder="0" allowtransparency="true" allowfullscreen="allowfullscreen" webkitallowfullscreen="webkitallowfullscreen" mozallowfullscreen="mozallowfullscreen" oallowfullscreen="oallowfullscreen" msallowfullscreen="msallowfullscreen" width="100%" height="598"></iframe>
<p>The 1980s was a period of major reform, with wage demands significantly reduced in exchange for an improved social safety net over a series of <a href="https://theconversation.com/the-lessons-of-the-accord-for-modern-times-think-outside-the-box-14985">Accords</a>. The decline in wages over that period is not comparable to today’s decline, which has taken place without significant government intervention. I think it’s fair to exclude this period when establishing whether the current situation constitutes a “record”. </p>
<p>As for the 1990s dip? In the aftermath of the early 1990s recession, <a href="http://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/6202.0Main+Features1Aug%202016?OpenDocument">unemployment</a> was stuck above 10% from October 1991 until April 1994. </p>
<p>Wage growth eventually fell away, allowing unemployment to fall to about 8.5% (still high by today’s standards) by mid-1995. For a short time, wage growth was lower then than it is now. Compared against this period, Bowen’s assertion that “wages growth at record lows” is inaccurate. </p>
<p>It is true, though, that wage growth is now at a 20-year low.</p>
<h2>Why have wages stopped growing?</h2>
<p>Since recovering from the unemployment hangover of our last recession 25 years ago, positive wage growth has been the norm. Australia has seen average annual wage growth of 1.7% over the last 20 years, reaching a high of nearly 5% during the mining boom. Thanks to the mining boom and the strength of the Australian dollar, wage growth was particularly strong between 2004 and 2012, broken only briefly in 2009 by the global financial crisis. </p>
<p>With wages falling since 2013, workers are now doing it tough. However, it could have been worse. Unemployment is hovering at around 6%, <a href="https://data.oecd.org/unemp/unemployment-rate.htm">middle-of-the-range</a> by international standards. Moderate wage expectations have been an important factor in this relatively smooth <a href="https://theconversation.com/turnbull-inherits-an-economy-battered-by-global-headwinds-47473">adjustment to the biggest fall in the terms of trade</a> in over half a century. And on the upside, wage growth is heading in a positive direction, indicating that recovery may be beckoning.</p>
<h2>Verdict</h2>
<p>Chris Bowen’s claim that “wages growth at record lows” is somewhat overcooked. </p>
<p>Wage growth is now at a 20-year low. So it’s not unreasonable to say “people are hurting, people are doing it tough”. </p>
<p>But is it “record” low growth? No: there have been two other recent periods – in the 1980s and the 1990s – when annual growth in real wages dipped lower than it is now. (Though I’d argue we can disregard the 1980s, for reasons explained above.) <strong>– Janine Dixon</strong></p>
<hr>
<h2>Review</h2>
<p>I think this FactCheck is done really nicely. It is correct to argue that looking at the data source sent by Bowen’s office is a limited way to judge his statement, and the FactCheck then does a good job of looking at the alternative data source. </p>
<p>So in the substance of its analysis, I would give it full marks.</p>
<p>The only point I would take issue with is whether the analysis of wage growth contradicts Bowen’s statement. Bowen said “at record lows” – he didn’t say “lowest ever”. Perhaps this is just my interpretation, but I take “at record lows” to mean being comparable to the lowest levels observed. </p>
<p>Hence I’d be slightly less tough on Bowen than this author has been. Given the data reported in the FactCheck, I would say that his statement is reasonable. <strong>– Jeff Borland.</strong></p>
<hr>
<p><div class="callout"> Have you ever seen a “fact” worth checking? The Conversation’s FactCheck asks academic experts to test claims and see how true they are. We then ask a second academic to review an anonymous copy of the article. You can request a check at checkit@theconversation.edu.au. Please include the statement you would like us to check, the date it was made, and a link if possible.</div></p><img src="https://counter.theconversation.com/content/66552/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Jeff Borland receives ARC grants to work on research on the Australian labour market.</span></em></p><p class="fine-print"><em><span>Janine Dixon does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Shadow treasurer Chris Bowen said Australian wages growth is at record lows. Is that true?Janine Dixon, Economist at Centre of Policy Studies, Victoria UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/661132016-09-28T20:11:44Z2016-09-28T20:11:44ZWe need to change more than pay for executives to do better<p>The pay of executives of a company, whether in salary, bonuses or other types of remuneration, is usually justified as an incentive to improve the financial performance of a company. This has led to ever more complex performance packages with increasing percentage of variable, <a href="https://www.ft.com/content/9265406a-eaaf-11e4-96ec-00144feab7de">performance-based payments</a>.</p>
<p>But what is increasingly evident is that this definition of a role of an executive needs to change, as do the incentives, to act not only in the best financial interests of the company but to focus on how it serves the wider community.</p>
<h2>How executive pay changed for the worst</h2>
<p>Executives payments are <a href="https://theconversation.com/australia-should-compare-ceo-and-average-worker-pay-like-the-us-and-uk-65898">in the spotlight in Australia</a> and <a href="https://www.theguardian.com/business/2016/sep/16/legal-general-warns-firms-over-bonuses-executive-pay">overseas</a>, yet again as companies report this information. </p>
<p>As the market for top executives is global, there is a limited talent pool. In essence, if an Australian company is not prepared to pay the going rate, the talent will go elsewhere in the world to where a company is prepared to pay. </p>
<p>The design of executive pay in Australia has undergone significant change since the mid 1990s, when executive pay began to pick up. A smaller percentage of an Australian executive’s reward package was subject to performance incentives 20 years ago. A majority were on fixed pay or with short-term bonuses payable when they reached a specific measurable target. Today, the variable component of executive pay is much higher.</p>
<p><a href="https://www.ahri.com.au/resources/reports-and-white-papers/2009_pay_check_executive_remuneration.pdf">Findings from a survey</a> on executive remuneration by the Australian Human Resource Institute shows that within Australia, executive pay is typically comprised of three components: fixed remuneration and short and long-term incentives. </p>
<p>This three-part structure is endorsed by the human resource profession as it acknowledges not only the skill and experience an executive brings to a role (fixed remuneration) but the effort an individual executive makes to change performance and culture leading to better financial performance (short-term incentive) and improvement to shareholder returns (long-term incentives). </p>
<p>However, an increasing number of studies show these type of performance schemes <a href="http://highpaycentre.org/files/_hpc_Essays_FINAL_04_%281%29.pdf">do not lead to better organisational performance</a> and <a href="https://hbr.org/2016/02/stop-paying-executives-for-performance">actually have dangerous outcomes</a>. This is because it incentivises executives’ risk-taking and short-term orientation and <a href="https://dash.harvard.edu/handle/1/12025608">can lead to disastrous outcomes</a>, such as the Bear Stearns and Lehman Brothers collapses. </p>
<p><a href="http://www.psa.asn.au/Oldsite/news/files/The_Buck_Stops_here.pdf">A 2003 Australian study</a> shows that performance-based executive remuneration has not lead to increased performance by Australian companies. Current executive remuneration focuses heavily on short-term financial performance ignoring other success factors, such as customer satisfaction. </p>
<p>For example, Commonwealth Bank CEO Ian Narev is one of the <a href="https://theconversation.com/australia-should-compare-ceo-and-average-worker-pay-like-the-us-and-uk-65898">highest paid executives in Australia in 2016</a> despite a series of recent <a href="http://www.smh.com.au/business/banking-and-finance/comminsure-scandal-to-hit-cba-brand-again-20160308-gndj4y.html">scandals that shook the bank</a>.</p>
<p>Another distortion created by finance based incentives is the temporary effects of executive payment packages. BHP CEO Andrew Mackenzie’s pay was halved due to the company’s loss and he was <a href="http://www.theaustralian.com.au/business/opinion/terry-mccrann/bhp-and-chief-andrew-mackenzie-get-raw-deals/news-story/dd34539799c35597d92e0120b4fb98ec">left to deal with decisions made by his predecessor</a>. The former CEO, Marius Kloppers, walked away with a sizeable pay package in large part due to his term coinciding with very favourable economic conditions for mining and the fact that he could vest both his short and long-term incentives before leaving.</p>
<p>These limitations of current performance-based payment schemes have led to the proposal of payment packages that enable executives to <a href="http://www.law.harvard.edu/faculty/jfried/How%20To%20Tie%20Equity%20Compensation%20to%20Long%20Term%20Results.pdf">sell only a fraction of shares awarded to them each year</a>. This includes a specified number of years after retirement, combined with limitations on unwinding. </p>
<p>Such schemes still reward executives for improving companies’ performance but do not lead to short-term thinking and risk-taking. Unfortunately, changes to performance payment schemes are still rare. </p>
<h2>The alternatives</h2>
<p>While some companies in the US have started to bind performance payments to long-term results, such as Goldman Sachs, Procter & Gamble and Morgan Stanley, companies in Australia still haven’t followed suit. One Australian organisation that has made changes to address the above challenges in executives’ remuneration is fund management agency <a href="http://www.futurefund.gov.au/news-room/2016/05/23/Long-term-investing-as-an-agency-problem">the Future Fund</a>.</p>
<p>There are more radical suggestions such as completely <a href="https://hbr.org/2016/02/stop-paying-executives-for-performance">abolishing pay-for-performance</a>. The suggestion to abolish performance payment is aligned with the concept of stewardship. </p>
<p>Stewardship is about placing others’ long-term interests ahead of personal goals that serve an individual’s self interests. According to stewardship theory, executives are custodians of their organisations and are intrinsically motivated to contribute to their welfare and prosperity. It’s their personal beliefs and intrinsic motivation that drives their performance, not performance-based payments.</p>
<p>Revising performance structures is just one measure to increase stewardship among executives. Stewardship is based on fundamentally different assumptions about human nature than financial performance incentives. It emphasises the <a href="https://www.bkconnection.com/static/Stewardship_2nd_EXCERPT.pdf">social orientation and profession-like behaviour of managers</a>. </p>
<p>However you can’t rely on human nature alone, other measures are needed to change the <a href="http://highpaycentre.org/files/_hpc_Essays_FINAL_04_(1).pdf">institutional context in which businesses operate</a>. </p>
<p>These include changing the laws to reflect that the role of business in society goes beyond financial performance. Another measure is <a href="http://press.princeton.edu/titles/8463.html">changing business education</a> to cultivate future business leaders in moral judgement and accountabilities.</p>
<p>The recruiting process can also change to select candidates with demonstrated long-term orientation and care for all stakeholders, <a href="http://www.forbes.com/sites/joeltrammell/2015/02/09/what-are-the-right-criteria-for-selecting-a-new-ceo/#374de4ad381b">rather than based on the current focus on past financial performance</a>. Another measure is introducing external remuneration committees with employee representation and excluding current directors.</p>
<p>Such changes to the institutional context require a significant rethink of current business and economic practices and government policies. Despite calls for such changes <a href="http://www.psa.asn.au/Oldsite/news/files/The_Buck_Stops_here.pdf">in Australia</a> and <a href="http://www.highmeadowsinstitute.org/about/our-perspective/">overseas</a>, there is little we can be optimistic about at the moment.</p><img src="https://counter.theconversation.com/content/66113/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Studies show performance-based incentives for CEOs do not lead to better organisational performance.Natalia Nikolova, Senior Lecturer in Management, University of Technology SydneyRobyn Johns, Senior Lecturer in Human Resource Management and Industrial Relations, University of Technology SydneyWalter Jarvis, Course Director, Master of Management; Lecturer in Managing, Leading & Stewardship, University of Technology SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/658982016-09-27T19:25:51Z2016-09-27T19:25:51ZAustralia should compare CEO and average worker pay like the US and UK<p>Australia should follow the lead of the United States in requiring public companies to disclose how much their CEO makes each year directly compared to an “average” rank and file employee. Ballooning executive pay contributes to <a href="http://inequality.org/income-inequality/">income inequality</a> and the CEO pay ratio provides a measure of the extent of the pay gap between the top and bottom income levels in the <a href="http://www.annualreviews.org/doi/abs/10.1146/annurev.soc.012809.102541">economy</a>. </p>
<p>US companies will be required to disclose from 1 January 2017 the ratio of pay of a CEO’s annual total remuneration to the median annual total remuneration of all company <a href="https://www.sec.gov/about/laws/wallstreetreform-cpa.pdf">employees</a>. UK companies are also subject to a variation of the CEO pay ratio rule, with relevant <a href="http://www.legislation.gov.uk/ukdsi/2013/9780111100318/schedule">regulation</a> requiring disclosure of the CEO’s remuneration compared to their employees. In Australia companies don’t have to disclose this ratio, although companies do disclose information about remuneration for executives.</p>
<p>Disclosing the ratio provides greater transparency around CEO pay and places some constraints on escalating executive <a href="https://theconversation.com/pay-ratios-could-curb-excessive-ceo-pay-and-counter-inequality-54496">remuneration</a>. CEOs in the US are paid around <a href="http://www.epi.org/publication/top-ceos-make-300-times-more-than-workers-pay-growth-surpasses-market-gains-and-the-rest-of-the-0-1-percent/">300 times</a> the median employee wage, while in the UK the ratio is roughly <a href="highpaycentre.org/files/The_Pay_Today_draft.pdf">183:1</a>. </p>
<p>The graphic below shows CEO pay compared to the average annual Australian pre-tax salary for a selection of large Australian companies. Comparing CEO pay against the median pay of a worker at the same company is the ideal way to compare ratios given companies in some sectors pay workers higher across the board. However a comparison with the average worker salary also provides insight on income inequality.</p>
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<p>The Commonwealth Bank has the highest CEO pay ratio in our sample, with CEO Ian Narev earning more than 100 times the salary of an average worker. Even the lowest paid CEO in our sample earned 15 times the average Australian annual salary. The figures for many of the corporations were sensitive to the inclusion of bonus or equity elements of pay, for example, Fortescue Metals is second highest ranked when salary and bonus are considered, but falls to sixth place when equity-based remuneration is also considered. </p>
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<p>There’s quite a debate about what actually makes up CEO pay. Some argue that US CEO pay ratios are more like 70 to one when <a href="http://www.payscale.com/data-packages/ceo-pay">only cash remuneration</a> is taken into account. Others include equity claims exercised – like stock options - and come up with a much higher ratio of something like <a href="http://www.epi.org/publication/top-ceos-make-300-times-more-than-workers-pay-growth-surpasses-market-gains-and-the-rest-of-the-0-1-percent/">300 to one</a>.</p>
<p>Cash bonuses paid to CEOs are likewise controversial, with some <a href="http://www.abc.net.au/news/2016-08-31/australian-ceo-pay-packets-fall-but-bonuses-rise/7799656">suggestions</a> that observed reductions in CEO pay levels in 2015/2016 are simply a case of shifting pay into cash bonuses rather than cash salaries. Certainly the ranking of our sample firms change when cash bonuses are included, indicating that bonuses are a significant source of remuneration for our CEOs. A cash bonus is effectively the same as a salary if it’s very likely to be paid and so should logically form part of the CEO pay ratio.</p>
<p>The CEO pay ratio is an important measure of income inequality over time and Australian regulators should consider making this information mandatory. This would greatly enhance comparability with US and UK companies. </p>
<p>Research evidence describes wide differences in CEO remuneration across the world, with US CEO pay described as an outlier at 23% greater than the UK and 55% greater than Continental Europe, thereby contributing to <a href="http://www.annualreviews.org/doi/abs/10.1146/annurev.soc.012809.102541">income inequality</a> in the US. </p>
<p>Disclosure of the ratio would allow Australian investors to understand better where a particular CEO lies in terms of pay packet size relative to other firms of similar size and industry. </p>
<p>In recent years, Australian corporate boards have been subject to the two-strikes legislation under which shareholders vote on the company’s remuneration report at the Annual General Meeting. Any company receiving 25% or more of “no” votes from eligible shareholders at two consecutive meetings must put a motion to shareholders to spill the <a href="https://theconversation.com/executive-pay-pain-wont-go-away-18696">board</a>. </p>
<p>The increased accountability around remuneration resulting from the two-strikes rule has provided shareholder and lobby groups with solid evidence about executive pay levels and disclosure. For example, the Australian Shareholders Association actively <a href="https://www.australianshareholders.com.au/companies">monitors</a> the remuneration of selected corporations with the intention of influencing remuneration report voting. </p>
<p>Proxy advisers also have an important role to play in <a href="http://www.corrs.com.au/thinking/insights/proxy-advisers-in-the-interests-of-market-integrity-it-s-time-for-reform/">lobbying</a> institutional investors on remuneration voting. Disclosure of the Australian CEO pay ratio would be a useful input to that discussion. </p>
<p>While the two-strikes legislation has improved corporate accountability around executive pay, disclosure of the CEO pay ratio would provide a useful summary measure to voting investors, independent of location and currency. </p>
<p>Historically, executive pay has not always been at the current controversial levels but has steadily increased since the mid-1970s, an increase which has continued <a href="web.mit.edu/frydman/www/trends_rfs2010.pdf">after the global financial crisis</a>. Disclosure of CEO pay ratios gives everyone a consistent and meaningful yardstick by which to measure income equality.</p><img src="https://counter.theconversation.com/content/65898/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Julie Walker has previously received funding from Chartered Accountants Australia New Zealand. </span></em></p>Like in the US and UK, Australian companies should be forced to disclose how the pay of CEOs compares with that of an average worker.Julie Walker, Associate Professor in Accounting, The University of QueenslandLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/599572016-06-01T01:02:57Z2016-06-01T01:02:57ZWhat the new overtime rules mean for you and your boss<p>Earlier this month, the <a href="https://www.dol.gov/whd/overtime/final2016/">Department of Labor</a> outlined changes to the existing overtime exemptions. </p>
<p>As you are probably aware, some employees are exempt from being paid overtime, meaning their employers don’t have to pay them extra when they work over 40 hours in a week. The Fair Labor Standards Act outlines the criteria for this exemption. </p>
<p>Employees currently qualify for exempt status by clearing two hurdles: 1) <a href="http://washingtonovertimelaw.com/Duties_Test.html">the duties test</a> (position is executive, administrative or professional) and 2) the salary test (worker earns at least US$455 a week or $23,660 a year). </p>
<p>The new rules, set to take effect on December 1, change the height of the hurdle for the salary test but do not alter the duties test. The new threshold will be $913 a week ($47,476 a year), or 40 percent of the average full-time salary in the lowest-wage census region (currently the South). </p>
<p>So the headline of all this is that some employees (estimated at 4.2 million) who are currently exempt from overtime because they earn at least $23,660 (but less than $47,476) will no longer be exempt.</p>
<p>Is this a <a href="https://theconversation.com/long-overdue-overtime-update-will-give-boost-to-workers-and-economy-44488">win for workers</a>? And a loss for employers? In truth, the real impact on both groups and the economy is much more nuanced. </p>
<h2>What this means for an employer</h2>
<p>To illustrate this, let’s imagine that a company employs Dennis as a lab technician. </p>
<p>Dennis currently earns $42,000 a year and regularly puts in 50 hours per week in the lab. The company doesn’t pay overtime for anything over 40 hours per week because he is exempt from overtime pay. He meets the following requirements: he passes the salary test by earning at least $455 a week and the duties test because he is a “professional” employee. That is, his primary duty requires advanced knowledge, in the field of science and acquired by a prolonged course of specialized intellectual instruction.</p>
<p>But on December 1, Dennis would no longer clear the salary hurdle. So what’s his employer to do? </p>
<p>The company has the following main options: </p>
<ol>
<li><p>increase Dennis’ salary to $47,476 and keep him as an exempt employee, </p></li>
<li><p>make him a non-exempt employee and pay him $20.19 per hour ($42,000 divided by 2,080 hours per year) for the first 40 hours per week and $30.28 (1.5 x $20.19) per hour for any hour over 40 per week, or </p></li>
<li><p>continue to pay Dennis $20.19 per hour and limit his lab time to 40 hours.</p></li>
</ol>
<h2>Winners or losers?</h2>
<p>How does this impact the company and the employee?</p>
<p>It depends. There are a lot of companies with exempt employees earning less than $47,467 per year. These employees, in many cases, work extended hours and carry heavy workloads. As such, for profit-maximizing companies, not having to pay overtime is rewarding. </p>
<p>So, a higher salary hurdle means some of these businesses will have to make a choice based on new marginal costs and benefits. That is, companies will have to identify the marginal benefit of the overtime hours currently being consumed by their employees. </p>
<p>At overtime wages valued at time-and-one-half, Dennis’ 10 hours would cost the company roughly $15,000 (based on his $30.28 overtime wage from the calculation above). That’s well more than double the $5,500 raise necessary to make him exempt from overtime under the new rules. That suggests increasing his salary to $47,476 would be prudent. As a result, Dennis makes more money, but, <em>ceteris paribus</em> (all things equal), the company has higher costs and lower profits. </p>
<p>This sounds awful for companies. Except that the <em>ceteris paribus</em> condition does not hold – not all things are constant. </p>
<p>When companies are forced to reexamine marginal costs and marginal benefits, the people working in these organizations (e.g., any number of my former MBA students) are likely to reexamine the way they are allocating resources and may find that Dennis has a higher return elsewhere in the organization. </p>
<p>Ultimately, this new salary hurdle and rule change might be exactly what the organization needs to change the way it’s thinking, to shuffle around talent or to rethink its business model. There is ample evidence, from Beyonce’s release of <a href="http://www.economist.com/news/finance-and-economics/21698274-economics-digital-music-favour-streaming-artists-are-learning-adapt-when">“Lemonade”</a> to airlines charging crazy baggage <a href="http://www.nytimes.com/2011/09/06/business/airlines-recovering-from-911-with-extra-fees.html?ref=business&_r=0">fees</a>, companies and entrepreneurs have shown themselves to be inventive and flexible when the market moves against them.</p>
<h2>The big impact</h2>
<p>House Speaker Paul Ryan and others have asserted this rule will actually hurt those it’s aimed at <a href="http://www.speaker.gov/press-release/statement-department-labor-s-overtime-rule">helping</a>. </p>
<p>Although Ryan is identified as a <a href="https://newrepublic.com/article/107242/how-paul-ryan-convinced-washington-his-genius'">big-thinking</a> numbers <a href="http://www.latimes.com/nation/la-na-ryan-poverty-20140304-story.html#axzz2v9C1xHor">guy</a>, he’s not thinking big about how companies are likely to work around the final rule issued by the Department of Labor. </p>
<p>Consider the Dennis example above. At $42,000 per year, the company could decide that it wants to make him an hourly employee and keep Dennis working at 50 hours per week. If the company desires to keep its costs for Dennis at $42,000 per year, the company could reduce Dennis’ regular hourly wages so that his annual pay doesn’t exceed that level. </p>
<p>Dennis currently earns $807.69 per week. The company could pay Dennis a base wage of $14.69 (for 40 hours) and an overtime wage of $22.03 (10 hours), and he will continue to earn $807.69 (plus or minus a few cents with rounding). So the end result is pretty much as it was before, except the company will incur the costs of changing the worker’s status and filing regular and overtime wages in payroll and won’t be able to get more hours out of the employee without extra costs. For the most part, this wouldn’t hurt Dennis. </p>
<p>But there are likely a number of workers who are really close to the new salary hurdle (let’s say earning $45,000 per year). In these cases, it is very likely that companies will just bump up their salaries to avoid the headaches and costs of reclassifying the worker and filing straight and overtime wages in payroll. </p>
<p>In these cases the worker is better off, but the company might be a little worse off because of the higher payroll costs.</p>
<p>Then again, the company might not want to engage in the action listed above – dropping Dennis to an hourly position. The efficiency <a href="http://www.jstor.org/stable/1804018?seq=1#page_scan_tab_contents">wage theory</a>, championed by economic giants George Akerlof, Joseph Stiglitz, Carl Shapiro and Janet Yellen, suggests that companies are less likely to reduce wages if doing so might increase costs incurred by higher worker turnover, retraining new employees and the like (Alex Tabbarok writes eloquently about this <a href="http://marginalrevolution.com/marginalrevolution/2015/04/the-false-prophets-of-efficiency-wages.html">here</a>). </p>
<p>As such, perhaps companies will bump employees like Dennis to the new threshold but limit new hires in the future. In the end, there are few paths that would lead to workers being worse off. </p>
<h2>A little push</h2>
<p>In any case, companies have a lot of flexibility when dealing with changes like this and can find ways to turn them to their advantage. The impact on the economy depends on how companies and employees perceive this change and the current economic climate when the change goes into effect. </p>
<p>Real wages have been relatively stagnant for the last few year (<a href="http://www.tradingeconomics.com/united-states/wage-growth">4-5 percent year-over-year growth</a>), and even in the last few years a majority of people have been convinced the economy was still in a <a href="https://www.washingtonpost.com/news/the-fix/wp/2014/09/25/americans-think-were-in-a-recession-theyre-wrong-but-still/">recession</a>. This rule change might be just the right push to start moving wages upward at a faster clip. And that might be enough to convince people that the economy is in an economic recovery.</p><img src="https://counter.theconversation.com/content/59957/count.gif" alt="The Conversation" width="1" height="1" />
Obama’s new overtime rules will be a big win for workers, but they could also give a boost to companies and the economy.Thomas More Smith, Associate Professor in the Practice of Finance, Emory UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/585702016-05-01T15:42:44Z2016-05-01T15:42:44ZCould knowing how much your coworker earns help close the gender pay gap?<figure><img src="https://images.theconversation.com/files/120728/original/image-20160429-28139-1yznmut.jpg?ixlib=rb-1.1.0&rect=0%2C47%2C945%2C662&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Want to know how your salary jar stacks up?</span> <span class="attribution"><span class="source">Money jars via www.shutterstock.com</span></span></figcaption></figure><p><em>Editor’s note: This article is part of our collaboration with <a href="http://www.pbs.org/wgbh/point-taken/">Point Taken</a>, a new program from WGBH that will next air on Tuesday, May 3 on PBS and online at pbs.org. The show features fact-based debate on major issues of the day, without the shouting.</em></p>
<p><a href="http://www.pbs.org/wgbh/point-taken/#poll">Pay transparency</a> is all the rage these days. </p>
<p>President Obama <a href="http://www.dol.gov/ofccp/regs/statutes/eo11246.htm">has taken action</a> to increase pay transparency among federal contractors. The Equal Employment Opportunity Commission, which enforces laws prohibiting employment discrimination, recently issued a regulation requiring large companies to disclose aggregate salary information in <a href="https://www1.eeoc.gov/eeoc/newsroom/release/1-29-16.cfm">their annual informational filing</a>. And states have been taking action as well, with <a href="http://www.natlawreview.com/article/strict-new-california-fair-pay-act-will-become-effective-january-1-2016">California</a> and <a href="http://s3.amazonaws.com/cdn.orrick.com/files/firstlink.pdf">New York</a> enacting legislation to support pay transparency efforts.</p>
<p>Their primary goal is to eliminate the gender wage gap. Currently, in the United States, <a href="http://www.aauw.org/files/2016/02/SimpleTruth_Spring2016.pdf">women earn approximately 21 percent less than men</a>. The gap between men’s and women’s wages remains even when taking into account factors such as career choice (e.g., college-educated women become teachers more often than men do, and teachers are paid less than many other jobs requiring a degree), experience and education. <a href="http://www.aauw.org/files/2016/02/SimpleTruth_Spring2016.pdf">One study</a> found that 10 years after graduation, women earned 12 percent less than men after accounting for all other factors that could affect pay.</p>
<p>Pay transparency laws represent the latest effort to close the gap, which has remained stubbornly in place for decades. But will they be effective? </p>
<p>The answer depends in part on whether employees are willing to disclose their salaries and how employers address the concerns that are likely to arise when a salary gap is revealed.</p>
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<h2>No salary disclosure required</h2>
<p>Part of the problem is that with one exception – government employees – the laws currently in place to promote pay transparency do not actually require disclosure of individual salary information. </p>
<p>For example, the <a href="http://www.dol.gov/ofccp/regs/statutes/eo11246.htm">federal regulation</a> that has been touted as a pay transparency law only prohibits employers from retaliating against employees who disclose their own salary. California’s and New York’s laws are essentially the same. The idea behind these anti-retaliation laws is to allow employees to disclose their pay without repercussion, eliminating pay secrecy policies and customs.</p>
<p>For these laws to create actual pay transparency, however, employees must be willing to share salary information. And while there <a href="http://www.hreonline.com/HRE/view/story.jhtml?id=534359883">appears to be a trend</a> toward employee willingness to do so, it is at odds with the <a href="http://scholarship.law.berkeley.edu/cgi/viewcontent.cgi?article=1345&context=bjell">longstanding social norm</a> against discussing pay.</p>
<h2>Finding a link to pay equity</h2>
<p>In the absence of a legal requirement to disclose wages, an increasing number of companies are making salary information transparent on their own. </p>
<p>Different companies have taken varying approaches to this. For example, Whole Foods <a href="http://www.cbsnews.com/news/at-whole-foods-paychecks-are-public/">allows workers to check</a> their colleagues’ salaries, while social media scheduler Buffer <a href="https://open.buffer.com/transparent-salaries/">publicly discloses the formula</a> it uses to determine employees’ salaries. At the extreme end of transparency, <a href="http://www.fedsdatacenter.com/federal-pay-rates/">many governmental employees’ salaries</a> are publicly available, depending on the state. </p>
<p>One could argue, and <a href="http://www.law.uci.edu/lawreview/vol4/no2/Estlund.pdf">many do</a>, that increased pay transparency decreases the gender pay gap. </p>
<p>The argument has logic: if employers disclose salaries, they will also be disclosing any gender pay gap that exists, and this will lead to efforts to eliminate it. This is precisely what happened at Buffer, which, after disclosing employee salaries, found a wage gap and <a href="http://www.theatlantic.com/business/archive/2016/03/pay-transparency-gender-gap/475683/">changed its compensation system</a> and hiring priorities to eliminate it.</p>
<p>Pay transparency in the federal workforce can also be seen as support for the argument that pay transparency helps eliminate the gender wage gap. <a href="https://www.opm.gov/policy-data-oversight/pay-leave/reference-materials/reports/governmentwide-strategy-on-advancing-pay-equality-in-the-federal-government.pdf">It is significantly lower</a> in the federal workforce – in which salaries are publicly available online – than in the private sector.</p>
<h2>Assessing pay transparency’s impact</h2>
<p>Despite this anecdotal evidence of the effect of pay transparency, a note of caution is warranted. </p>
<p>First, there appears to be no empirical study of the effect of pay transparency on the gender wage gap. Specifically, there is no systematic research of what happens to the gap when companies shift from withholding to disclosing employee pay. Nor is there research comparing the gender wage gap in companies that keep salaries secret with companies that disclose employee pay. </p>
<p>While <a href="https://www.opm.gov/policy-data-oversight/pay-leave/reference-materials/reports/governmentwide-strategy-on-advancing-pay-equality-in-the-federal-government.pdf">there is research</a> comparing the federal workforce’s gender wage gap with that in the private sector, it does not show whether pay transparency is a factor. And, in fact, it is quite probable that the most important factor explaining the smaller federal wage gap is the government’s highly structured pay and promotion system. </p>
<p>Second, when one looks closer at the anecdotal evidence, what it suggests is that pay transparency is only one piece at play. Comparing the experiences of Buffer, the example that appears to be most popular in the press, with Salesforce illustrates this. </p>
<p>At Buffer, the company disclosed salaries then took concrete steps to eliminate the gender wage gap that was revealed. In contrast, Salesforce <a href="http://fortune.com/2015/08/18/tech-transparency-wage-gaps/">conducted an internal review</a> but did not disclose salaries. On the basis of the review, the <a href="https://www.salesforce.com/blog/2016/03/equality-at-salesforce-equal-pay.html">company adjusted the pay</a> of six percent of its employees to eliminate the gender wage gap. </p>
<p>The common link in these approaches is not pay transparency but recognition of a gap between men’s and women’s pay and a commitment to close it. Thus, pay transparency can assist in pushing companies toward recognition of a problem, but it isn’t an essential component to eliminating it.</p>
<h2>Corporate attitude</h2>
<p>Indeed, a company’s attitude toward the wage gap and its causes may be more significant in eliminating it than putting in place a transparent pay policy. </p>
<p>Consider the fact that differences in an employee’s initial salary <a href="https://www.opm.gov/policy-data-oversight/pay-leave/reference-materials/reports/governmentwide-strategy-on-advancing-pay-equality-in-the-federal-government.pdf">contributes to the gender wage gap</a>. Is this caused by differences in previous salary? Or that men are usually rewarded for negotiating a better salary – while <a href="http://thinkprogress.org/economy/2014/03/19/3416122/texas-republican-pay-gap-negotiate/">women are penalized</a> for doing the same? </p>
<p>Pay transparency would reveal a gap in starting salary, but the company could decide that it is not due to gender but “market forces” – e.g., the man had to be paid more to take the job in order to avoid a wage cut – or because of his negotiating ability. That would make it less likely that the company would take action. </p>
<p>To take another example, women take off more time than men do after the birth of a child. A “gender neutral” policy of basing raises on seniority will result in women having lower salaries over time than men do. Pay transparency will reveal this difference. </p>
<p>Yet seniority is generally considered a neutral, nongendered reason for a wage gap, and a company can explain away any differences based on this, claiming that it has nothing to do with sex. But isn’t a pay gap based on gender if it is caused by the fact that women have babies or that they stay home with sick children more often than men? </p>
<p>Companies have to be willing to reconsider many such components of compensation to eliminate gender disparities in pay.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/120780/original/image-20160501-28118-1kwaykb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/120780/original/image-20160501-28118-1kwaykb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=401&fit=crop&dpr=1 600w, https://images.theconversation.com/files/120780/original/image-20160501-28118-1kwaykb.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=401&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/120780/original/image-20160501-28118-1kwaykb.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=401&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/120780/original/image-20160501-28118-1kwaykb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=504&fit=crop&dpr=1 754w, https://images.theconversation.com/files/120780/original/image-20160501-28118-1kwaykb.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=504&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/120780/original/image-20160501-28118-1kwaykb.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=504&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Should absences caused by pregnancy count against a worker’s seniority?</span>
<span class="attribution"><span class="source">Pregnant worker via www.shutterstock.com</span></span>
</figcaption>
</figure>
<h2>Negative consequences</h2>
<p>Taking a step back and accepting that pay transparency would at least allow differences to be revealed, which could lead to a decrease in the gender pay gap, one must also consider the negative repercussions. </p>
<p>One downside to pay transparency is the effect on employee morale. A <a href="https://www.princeton.edu/%7Eamas/papers/card-mas-moretti-saezAER11ucpay">fascinating study</a> on the effect of revealing salaries of University of California employees showed that employees below the median salary for their position had decreased job satisfaction and an increase in desire to change jobs. </p>
<p>This was not offset by improvements in employee morale among those who were paid higher than the median salary. Thus, there was a net overall decrease in employee morale. </p>
<p>On the other hand, a recent <a href="http://fortune.com/2015/10/15/pay-transparency/">PayScale survey suggests</a> that transparency has the opposite effect, encouraging retention, because employees tend to think they’re more underpaid than they actually are.</p>
<p>To avoid negative consequences, the <a href="https://www.shrm.org/publications/hrmagazine/editorialcontent/2014/0914/pages/0914-salary-transparency.aspx">Society for Human Resource Management recommends</a> that employers be prepared to explain any reasons for pay disparities that are revealed. This also suggests that how an employer handles a pay gap matters more than the disclosure of it. </p>
<p>Putting this all together, pay transparency in and of itself doesn’t necessarily help close the gender pay gap. It creates opportunities for employers to reconsider their current compensation systems but doesn’t mean they’ll necessarily do anything about it. </p>
<p>So while pay transparency is a good idea, on its own it probably won’t be able to eliminate the persistent pay disparities between men and women.</p><img src="https://counter.theconversation.com/content/58570/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Nancy Modesitt does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Pay transparency laws are the latest effort to eliminate the still-yawning gap between the salaries of men and women. Do they work?Nancy Modesitt, Associate Professor of Law, University of BaltimoreLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/570132016-04-01T11:31:19Z2016-04-01T11:31:19ZWhy the living wage won’t compensate for tax credit cuts<figure><img src="https://images.theconversation.com/files/116794/original/image-20160330-28443-1fcc92n.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Will government cuts to tax credits hit Britain's poorest the hardest?
</span> <span class="attribution"><span class="source">Becky Stares/shutterstock</span></span></figcaption></figure><p>Wage poverty is endemic in Britain because wages are <a href="http://www.lancaster.ac.uk/news/articles/2016/wage-supplements--price-for-a-job-or-means-of-earning-a-living/">thought</a> of as a price for a job, rather than as a means of earning a living. </p>
<p>The introduction of the so called “<a href="https://www.livingwage.gov.uk/?gclid=CInk8e3T6MsCFQ0SGwodSWUMtg">national living wage</a>” – what really should just be viewed as an increase in the national minimum wage for the over 25s – will raise wages for the lowest-paid workers by 50p an hour. This should be good news for those receiving the increase, but it seems some businesses are using the national living wage as <a href="https://www.change.org/p/don-t-use-living-wage-as-excuse-to-cut-pay-benefits">an excuse to cut overall pay</a> and rewards for staff. </p>
<p>Pair this with concerns that businesses are <a href="http://www.theguardian.com/business/2015/sep/08/living-wage-fears-sending-shockwaves-through-uk-labour-market">scaling back recruitment</a> to make allowances for wage increases and it’s clear the higher minimum wage isn’t all it’s cracked up to be.</p>
<p>It isn’t only businesses that are playing hard ball. Alongside the introduction of this higher wage the government is moving forward with its cuts to wage supplements through the introduction of <a href="https://www.gov.uk/universal-credit/overview">universal credit</a> – a new benefit which is set to replace job seekers’ allowance and other means-tested benefits.</p>
<p>It is recognised that the cuts to wage supplements brought about by the introduction of universal credit will not be made up by the increases planned for the minimum wage. The Resolution Foundation, for instance, <a href="http://www.resolutionfoundation.org/media/press-releases/low-income-working-families-on-universal-credit-set-to-lose-1300/">calculates</a> that when all of the tax, benefit and minimum wage changes announced in 2015 are taken into account the average loss for the poorest half of households will be £650 a year by 2020.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/116812/original/image-20160330-15137-1i8341v.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/116812/original/image-20160330-15137-1i8341v.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=450&fit=crop&dpr=1 600w, https://images.theconversation.com/files/116812/original/image-20160330-15137-1i8341v.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=450&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/116812/original/image-20160330-15137-1i8341v.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=450&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/116812/original/image-20160330-15137-1i8341v.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=565&fit=crop&dpr=1 754w, https://images.theconversation.com/files/116812/original/image-20160330-15137-1i8341v.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=565&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/116812/original/image-20160330-15137-1i8341v.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=565&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Poor show for the low-paid.</span>
<span class="attribution"><span class="source">1000 words/Shutterstock</span></span>
</figcaption>
</figure>
<p>Wage supplements such as <a href="http://revenuebenefits.org.uk/tax-credits/guidance/how-do-tax-credits-work/">tax credits</a> help to address the problem of low wages, by adjusting the incomes of low-paid households to the number of people living in them. In this sense, wage supplements allow people to “earn” an income that is more related to their living costs than wages alone.</p>
<p>The reduction of these supplements alongside an increase in minimum wage, will do little to solve Britain’s longstanding problem with wage poverty.</p>
<p>As benefits for unemployed people are being eroded in value, working poor families face a bleak future. And while the shift to a higher minimum wage should increase the incentive to work, the mechanism that attempted to link wages to need is being put under pressure. </p>
<h2>A history of wage supplements</h2>
<p>Wage supplements have a <a href="http://www.palgrave.com/gb/book/9781137293961">chequered history</a> in Britain. At various points they have been interpreted as being both deeply problematic and highly beneficial for working people – and for the economy and society more generally. </p>
<p>To understand the problems we face today with wage supplements, we need to go back in time in the 1800s when this difficult relationship with benefits was first unfolding. Between 1834 and 1971, the main thrust of policy was that the supplementation of wages by the state – at least on a means-tested basis – would destroy the incentive for people to work and would encourage employers to pay low wages. </p>
<p>The <a href="http://www.nationalarchives.gov.uk/education/resources/1834-poor-law/">1834 Poor Law Commission</a> report’s argument, that wage supplements made working people “<a href="https://books.google.co.uk/books?id=BPw9AAAAcAAJ&pg=PA69&lpg=PA69&dq=idle,+lazy,+fraudulent+and+worthless&source=bl&ots=pKMKnu4zA-&sig=8uliiyIeZ5KS564SLLCI0Lw47Gg&hl=en&sa=X&ved=0ahUKEwjireuf6ujLAhWBPhQKHSJBDVEQ6AEIHTAA#v=onepage&q=idle%2C%20lazy%2C%20fraudulent%20and%20worthless&f=false">idle, lazy, fraudulent and worthless</a>”, cast a long shadow over policy. </p>
<p>But from the 1970s the position was reversed – it was argued that wage supplements had the potential to encourage people to do low-paid work and to reduce pressure on employers to increase wages. During the <a href="http://www.telegraph.co.uk/finance/recession/4323064/UK-recession-in-1980-What-was-it-like.html">mass unemployment</a> of the late 80s wage supplements came into their own as a way to encourage people into <a href="http://blog.britac.ac.uk/understanding-tax-credits-in-debates-about-wage-supplements-from-the-past/">low paid work</a> in the hope of reducing unemployment levels.</p>
<p><a href="https://en.wikipedia.org/wiki/Central_Policy_Review_Staff">The Central Policy Review Staff</a> (the Conservative think tank of the time) argued this could be done through the further development of wage supplements – which was introduced in 1988 as family credit.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/116814/original/image-20160330-28445-11f5l7o.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/116814/original/image-20160330-28445-11f5l7o.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/116814/original/image-20160330-28445-11f5l7o.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/116814/original/image-20160330-28445-11f5l7o.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/116814/original/image-20160330-28445-11f5l7o.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/116814/original/image-20160330-28445-11f5l7o.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/116814/original/image-20160330-28445-11f5l7o.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Replacing tax credits with the living wage will leave many people worse off.</span>
<span class="attribution"><span class="source">Yulia Grigoryeva/Shutterstock</span></span>
</figcaption>
</figure>
<p>Whether wage supplements are considered to be negative or positive, what has often been missing from arguments about them is reference to the way in which they might address in-work poverty.</p>
<p>It is not that such issues have been completely absent from debates about supplementing wages – quite the opposite in fact. The first benefit ever aimed specifically at people in low-paid work – family income supplement – which was introduced 1971, was the consequence of policy debates that had been revitalised by the “rediscovery of poverty” in the mid-1960s. Later, for New Labour governments, tax credits were partly a means of addressing child poverty.</p>
<p>However, in both these instances, concerns about poverty were either usurped by wider concerns with incentivising people to take low-paid work – in the case of family income supplement – or sat uneasily alongside them in the case of tax credits. </p>
<p>And of course attempting to incentivise unemployed people to take low-paid work is a very different exercise to addressing in-work poverty.</p>
<h2>Waging war</h2>
<p>It is because of this history surrounding wages supplements that the conservative government has found itself in difficulties in recent times. The government’s focus has been on shifting the incentive to work by taking away tax credits and increasing the national minimum wage, alongside lowering the real and relative level of benefits for workless people. </p>
<p>In this approach, the government’s belief is that the need for wage supplements is reduced. The problem with this belief is that even if it was not their original intention, wage supplements are important in relieving the poverty of poorly paid workers, as many people argued when resisting the cuts to tax credits. </p>
<p>The current proposal to reduce universal credit payments in favour of a higher minimum wage will not help to address the <a href="http://www.palgrave.com/gb/book/9781137293961">longstanding poverty</a> of many people in paid employment. In fact it will only make things worse for those already living on the breadline.</p><img src="https://counter.theconversation.com/content/57013/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Chris Grover received funding from the British Academy for research into wage supplements in the inter-war period and the 1980s. </span></em></p>Plans to stop universal credit payments in favour of a ‘national living wage’ will not address the long-standing poverty of many people in paid employment.Chris Grover, Senior Lecturer in Social Policy, Lancaster UniversityLicensed as Creative Commons – attribution, no derivatives.