This Week in Your Wallet: My Takeaways from Jill Abramson
This week the pay gap reared its head again – in the firing of Jill Abramson from her post as executive editor of The New York Times. Pay was not the only issue. Abramson had also moved to hire an editor who would share equal billing with her number two. The fact that he didn’t seem to have been consulted didn’t play well. He threatened to leave. Now, he’s running the place. But pay dominated the headlines for two reasons.
First, as The New Yorker’s Ken Auletta reported, Abramson had not only “discovered” that her pay and pension benefits were lower than her predecessor’s in the top job, but also when she had been his deputy. Arthur Sulzberger, Jr., the paper’s publisher, has since disputed that noting that the pay structure at the company had changed. Her larger bonus, he said, made her total comp 10% higher than that of the last person to hold her job.
Because the Times doesn’t publish salary information, it’s tough to know where the truth lies…exactly. Still, as salary is definite and bonuses are left to the discretion of management, it’s understandable why Abramson bristled. Second, there was the way Abramson went about trying to get more money. As reported by Auletta, she didn’t sit down and ask for it. She hired a lawyer to ask for her. That form of leaning in didn’t go over well with management.
As the Class of 2014 enters the working world — it’s important to acknowledge that the pay gap is still real and problematic. According to a study from the American Association of University Women, one year after graduation women were making just 82 percent of what their male colleagues earned. It wasn’t an issue of major, in most cases. Female business majors earned an average $7,000 less a year than male business majors, for example. Nor was it an issue of job choices. Even women who sought out jobs in engineering and computer science were paid almost 7% less than men.
What can our daughters (and for that matter, the rest of us) do with that discouraging information? Learn how to get paid what you’re worth. In general, you always want the interviewer to throw out the first number. If it’s lower than you expect, respond with enthusiasm and appreciation – “Thank you. I’m thrilled that you’re offering me this opportunity. I very much want to work for this company.” Simultaneously, however, ask if they can do better – “Can you do any better on the offer? I was hoping for more like X.”
If you’re told no, ask when your first salary review will happen and see if you can parlay the refusal into extra vacation, or a signing bonus or some other goodies. If you’re still told no, and you really do want to work there, it’s time to shut up and take the job.
And if and when that job doesn’t work in your favor, take a page out of Jill Abramson’s book. She not only spoke about resilience when she gave her Wake Forest Commencement Address on Tuesday, she modeled it simply by showing up. Kudos.
And now for the other news of the week.
Another gap to close
There’s a gender gap in retirement too, and it’s leaving more women struggling to make ends meet. As CNNMoney reports, women are twice as likely as men to fall below the poverty line in retirement. According to a Congressional analysis of Census data, they’re living on average incomes of $16,000 a year, compared to men’s $27,000. And it’s no secret as to why (see the above).
Smaller paychecks (and savings) not only impact women’s nest eggs, but also the social security benefits they’ll accrue over time. We know that women work less over the course of their careers – up to 12 years to be exact. Why? They’re more likely to step out of the office to raise children, nurse sick family members and take on the role as caregiver to aging parents. And since Social Security benefits are based on your top 35 years of earnings, these absences can weaken your benefits throughout retirement too. Also, we know that women are more likely to live longer, which means their savings need to live longer too.
Take all of the above, and more (head to the full article for why America’s Social Security is outdated), and you really start to see the need for action on the Hill. What women can do is use this knowledge as power, and save more if they can. If you don’t receive retirement benefits at work, start an IRA or look into Obama’s new myRA plan. As for boosting Social Security benefits, there has been talk of “caregiver credits” for those giving unpaid care. Except, as of right now it’s just talk. Stay tuned.
What’s the beef?
Did you break up with your butcher yet? We talked about it a while back when beef prices were on the rise (and unfortunately still are). For those of you still budgeting for beef, and are paying more for added value (i.e. sustainably produced or humanely raised meats), then there’s a good chance you’re paying for peace of mind – not pasture-raised.
As TIME reports, 80% of meat labels could be meaningless. For example, when your burger patties have the above slogans like “sustainably produced” or “humanely raised,” know that the definitions of these titles are neither scientifically established, nor consumer-agreed-upon. When the Animal Welfare Institute sought out proof from the USDA that these claims were indeed accurate, the USDA was unable to provide any grounds. The bottom line: Some feel-good labeling dupes you into paying more when you shouldn’t.
I’m not calling you cheap, but…
How old are those Ziploc bags you’ve been washing and reusing for months? Years? The same goes for the sheets of tin foil. And exactly how many hours do you spend coupon hunting? Are you sacrificing your social life (and happiness) to save money? As DailyFinance suggests, there are a few signs that you’re too cheap for your own good.
Instead of being Dog the Bounty Hunter of bargains, spending too much of your life chasing after deals, DailyFinance says to remember your time has value too. Be a little less frugal with your money, and more frugal with your time. Also consider the true value of your money. As your cleaning out your Ziplocs for the umpteenth time, ask yourself if it’s really worth it? Chances are you can find a coupon to keep prices at bay (and better sanitation in mind). For more, head here.
Have a great week,
Jean
