Thursday, March 29, 2012

Working Wednesday: Paycheck Inequality

Yes, I know, this is not a fun subject to read about. But it is reality and if you are a business owner, you need to give this some thought and be prepared to treat everyone the same for the same skills and experience. This just isn't for legal reasons, it demonstrates trust with your employees and gives the workplace cohesion.

Progress has been made. When the federal Equal Pay Act of 1963 passed, women earned about 59% of what men did that year (full-time, year round employment). Now women make about 77% according to the Census Bureau. Of course this is a national figure, with dips and increases depending upon regions. Women are better off in Los Angeles where they make close to 90% of male salaries and far less in Baton Rouge where their wages are at 63% compared to men.

24/7 Wall St. has taken a look at 100 metro cities and their data to see who is the best and worst in the pay gap between men and women. To be fair, some of the gap may have to do with the leading industries in those metro areas. Obviously, some business sectors naturally pay better than others. 24/7 Wall St. announced the 10 worst cities. See: http://247wallst.com/2012/03/07/the-worst-paying-cities-for-women/

I am sorry to say we have a city in Ohio that made the list: Toledo. Women earned 70.0% of men for the past 12 months. The median income for men was $49,739 compared to women which was $34, 817.


Every business owner should be about "value added". What value is the person adding to the business, period. If you make this objective, straight forward, and your goals/evaluations are the same, then it is much easier to handle questions and concerns. Small business owners, you have it tougher because everyone literally knows everyone. If you show respect from day one, using skills and experience as your value points, your employees will know where they stand and what your expectations are.

Treat others as you would want them to treat you.

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