Women’s equality in the workplace has gradually improved in the past few decades. Despite this progression, female employees still face pay discrimination that threatens their financial security.
In 2002, women made about $0.80 for each $1 their male counterparts made, according to Pew Research. Today, there is still a gender wage gap of about $0.80 on the dollar. As a result, women in the workplace are more susceptible to financial stress, insecurity and burnout, compared to their male colleagues.
Learn how financial stress affects your employees and how all companies can help their female team members build financial security.
Women are less likely to be promoted, compared to their male counterparts
Women are underrepresented at every rung on the corporate ladder. Less than 50% of entry-level positions are filled by women, according to research by McKinsey & Co., compared to 28% of C-suite positions. This speaks to a larger trend: the higher the corporate position, the less female representation within the role.
Female employees are also less likely to get promoted to a managerial role, compared to their male colleagues. As a result, they are less likely to attain salary increases at the same pace as their male colleagues.
Women with marginalized identities are hit the hardest by financial stress & a lack of financial security
About 25% of women say they’re struggling financially, compared to 18% of men, according to a Mercer report. But not all female employees have the same experience when it comes to financial security and the workplace.
In fact, women with marginalized identities (e.g., LGBTQ+ women, disabled women, women of color) are hit the hardest by financial insecurity. Marginalized identities can make it more difficult to attain equitable wages and promotion opportunities.
For instance, for every 100 men promoted to manager, about 89 white women were promoted, 54 Black women and 65 Latinx women, per McKinsey’s report. The gap in financial security between men and women clearly widens when factoring in marginalized identities.
Match contributions can help women prepare for retirement & long-term financial security
Across the globe, women are struggling with what’s known as the gender retirement gap — the gap in retirement preparedness between male and female employees.
Women tend to have fewer retirement savings than men, largely due to the persisting gender wage gap. According to a Prudential Finance survey, women between the ages 55 and 75 have about a third of the income men have set aside for retirement.
To help female employees prepare for retirement and increase their financial security, consider offering a match contribution program. For every dollar that an employee saves into their retirement account, employers match (or contribute the same amount). Over time, match programs help female employees accelerate their retirement savings and build long-term financial security.
Caregiving benefits can help women employees fulfill both professional & personal duties
Today, women are twice as likely to take on unpaid caregiving roles than men, whether it be caring for children or an elderly loved one. For working women, caregiving and household responsibilities are almost like a second job — juggling both can lead to physical, financial and emotional stress.
To support caregivers in the workplace, companies are gradually adopting caregiving benefits. These include hybrid work models, subsidized babysitter costs or discretionary paid time off. Caregiving benefits can help women in the workplace find a better work-life balance, without having to reduce their hours or quit their job altogether.
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