Men Choose High-Paying Majors

It may not be as simple as it looks, but OnlineDegrees.orghas compiled some interesting facts on the role of majors in the gender wage gap. You may have your reasons for choosing English over engineering, but it’s clear that the majors men choose tend to earn more than majors that are traditionally dominated by women. The highest-paying major dominated by men, for example, is aviation with a median salary of $123,228.48. However, if we look at the same picture for women, it’s a different story: the highest-paying major with 75% or more degrees going to women is public health, which pays a median salary of $60,065.12. That’s less than half of the aviation salary – not the most encouraging statistic for women. Even if you level the playing field and compare the average man’s salary to the average woman’s, the wage gap persists: the average man makes $11,543.74 more money each year.

More Women Earning Degrees, Fewer Women Earning Dough

Even though women earned 58% of all undergraduate degrees awarded in 2008, they’re earning less money on average than men. While it’s true that a college degree increases your chances of earning a good salary, that’s obviously not the end of the story. It matters which degree you choose, and it’s unlikely that women are getting all the information they need to make a good decision. Colleges make a profit no matter which major a student chooses, and often, they’re trying to keep unpopular departments open by encouraging students to join them. They aren’t going to dissuade anyone from pursuing a degree just because it’s associated with a low salary. It’s up to women to educate themselves about the median salaries of the majors they choose, and even if making money isn’t the top priority, it’s still important to earn a dependable salary.

The Breakdown: Top 10 Earning Majors

Out of the top ten highest-earning majors, none are dominated by women, which means that the degrees women choose are far lower in the salary hierarchy. In most cases, these high-paying majors are completely dominated by men – in 7 out of the top 10 majors, over 75% of the degrees go to men. These majors are aviation, aerospace engineering, computer engineering, engineering, nuclear engineering, information technology, and electrical engineering. The remaining three of the top 10 majors are roughly equalized between men and women: business administration, business, and economics. It’s obvious that engineering fields are dominated by men, so now it’s up to the ladies to change that.

© 2011 SingleMindedWomen.com All rights reserved. Permission to reprint this article must be obtained from SingleMindedWomen.com.

Maria Rainier is a freelance writer and blog junkie. She is currently a resident blogger at First in Education, where she’s been looking into the data on the gender wage gap to see if it can be explained through women choosing lower paying degrees and men choosing higher paying degrees. In her spare time, she enjoys square-foot gardening, swimming, and avoiding her laptop.

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Quick – what was the first thing that came to your mind when you read the title of this post?

What about “Gentleman, should you ask for it?” Would this change your response? For many people the female-oriented title raises sexual connotations while the male-oriented iteration conjures thoughts of money and power.

For the record, in both cases I am talking about asking for raises at work. This is a subject that has long made my stomach churn. As a natural people-pleaser-and-avoider-of-conflict, I’ve preferred to work hard and hope my results will speak loudly for themselves. Turns out I’m not alone in this.

Recently I talked with Carnegie Mellon Professor Linda Babcock, coauthor of “Women Don’t Ask” and “Ask For It,” two fantastic books on why and how working women should negotiate salaries. (Professor Babcock is also very involved with motivating young girls. Thanks to her, the Girl Scouts now have a badge for negotiation skills). Here are two of the many eye-popping statistics from Professor Babcock’s work:

• Avoiding negotiating your first salary can cost you $500,000 by age 60 (oh, and men negotiate their first salaries 4x more often than women).
• Women who consistently negotiate their salaries throughout their careers typically earn $1 million more in lifetime career earnings than women who don’t.

So what motivates negotiators? Locus of control. Professor Babcock observes that people who negotiate tend to have a worldview that is more “optimistic than fatalistic, malleable versus fixed.” Psychologists have noted that men consistently – across countries – have a higher propensity to see “the world as their oyster” than women. Ergo, more men negotiate than women.

Alas, her research also shows that, “Men can behave anyway they want when they negotiate, but people have a strong preference for how women negotiate. Direct and aggressive doesn’t work.” For women a “more cooperative and relationship oriented” approach tends to be more effective. When women adopt a bold can-do attitude they are often met with a “visceral reaction to strong women” and perceived as being not nice. Clearly, for women to achieve lasting pay parity, this has to change… but that’s a whole ‘nother topic.

Let’s get back to how this discussion can improve your life now.

This gut-wrenching economic environment may not seem the obvious one in which to rock the boat. But it’s also an environment when employers can’t afford to lose their best people. An innovative new website called GetRaised.com can help you make the most of your current situation. With a few mouse clicks it will tell you if you are underpaid and for an additional $20 it will prepare a custom raise request that you can use to negotiate. If you don’t get a raise in 6 months you’ll get your $20 back. The company currently pegs the average raise received by users at $3,078. Not a bad return on $20.

What about you?  Have you ever asked for a raise and if so, how did it go?

© 2011 SingleMindedWomen.com All rights reserved. Permission to reprint this article must be obtained from SingleMindedWomen.com.

Want more financial love? You can follow Manisha on Twitter at @ManishaThakor, sign up to get her email updates delivered right to your inbox here, and enroll in her innovative new online personal finance course called “Money Rules.”  Founder of the Women’s Financial Literacy Initiative, Manisha can be reached via her website: http://www.ManishaThakor.com.

So, how do you figure out what constitutes a fair salary in the post-recession job market?

Research Your Field

Whether you’re vying for a raise or searching for a new job, you owe it to yourself to get up to speed regarding current market conditions as they relate to compensation.

Thanks to technology, this information is at your fingertips.

Job advertisements, professional association websites, and online business networks are among the resources you can tap to find the facts and figures you require.

At job boards, job search engines, online newspapers, and other websites that feature help-wanted advertising, find the position you seek or currently hold and see what it pays. If applicable, search in a variety of industries. For example, you may currently manage the accounting function of a manufacturing firm, but you’ll want to look at accounting manager jobs in other industries as well, particularly fields like health care and technology, where companies are hiring.

Meanwhile, professional associations often provide insight into what your field is paying. It’s not uncommon for associations to conduct member salary surveys, offer articles or blog posts about the job market, and/or provide other resources related to employment. As result, be sure to check out the websites of these organizations.

Online business networks, like LinkedIn, are also potential sources of information. At LinkedIn, there are Groups related to professions and industries, and within these groups employment discussions may already be taking place. Using the search box at the site allows you to find these conversations. If you can’t find what you seek, why not pose a question and start a discussion? People who use sites like LinkedIn are happy to share what they know, and in the current economic environment people seem even more eager to help one another.

In addition to these resources, you can take advantage of salary tools, like those available at Salary.com and PayScale.com, to hone in on salary ranges. Keep in mind, however, that because these tools take into account average salaries, often across a range of industries, they are best used in conjunction with your own research.

Consider Your Location

One important feature of salary tools, and one you don’t want to overlook when conducting your own salary research, is location.

Location, location, location, as the real estate mantra goes, matters to a job search as well.

Review Policy and Pay

Many large companies have severance policies, and typically these are written policies.

A severance policy describes the payout should you lose your job. Often based on years of service, it provides specific criteria, as in two weeks salary per year of employment.

Any additional income may also be mentioned in the policy, like payment for earned but unused vacation time.

With layoffs looming, now is the time to find out if your company has an official policy.

What if it doesn’t, and severance terms haven’t yet been disclosed?

Either way, you’ll want get out your calculator and project your possible packages, with two weeks’ pay for each year of service and one week for each year, as well as with and without any vacation time.

Knowing what your company will potentially offer is essential for several reasons. Unlike your married female coworkers, as a single woman, you are more apt to be your sole source of income.

From a financial standpoint, you need to figure out what the figures mean to fiscal wellbeing.

As important, before you can negotiate, it’s essential to know your starting point.

Assess Your Worth

Once you have an idea of what you’ll be offered, you can see how it compares to what you’ve contributed to the company.

For example, if the company intends to dismiss you with $4,000 and you’re a salesperson who recently brought in a deal worth $500,000, you have a valid point of discussion.

What if your company has a set policy? Or what if it has already put a severance package in writing in the form of a letter?

Experts say there is often opportunity to negotiate, regardless. However, it is key to keep your intent quiet, and to have your discussions behind closed doors.

What Matters

Several things will factor into your success: your reputation within the company, your relationship with your boss and other members of the management team, and the structure of the company.

In any conversation, your approach is also critical. Inquire in a friendly manner as to whether the company might be open to adding to your severance package. Explain why you think you are deserving of more.

Keep in mind there are other points of negotiation besides severance pay.

Even if your company won’t budge on the pay part of the package, it may offer professional outplacement services, which can consist of job search assistance, resume preparation, and/or career coaching. Some companies allow laid-off employees to continue to use office facilities while they look for employment.

Finally, another option may be available to you. Although your company terminates its relationship with you as an employee, it could very well be open to working with you on a contract basis.

Human resource consultants say the practice is more common than a lot of people realize.

Of course it will depend on the nature of your job responsibilities and your department and company’s structure. But if the work still has to get done, why not offer to be the one to do it?

If you think through your plan, and approach negotiations carefully, you could end up with a severance package and a freelance contract.

Now that’s a single-minded deal.

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When to Settle for a Lesser Job

Definition of Work

The first step is to decide what your job means to you. If you’re like most single women, your job is both a financial necessity and a source of professional and personal satisfaction.

However, where priorities fall on the scale of importance depends on each single woman and her circumstances.

For example, if you’re a single mother with three children, a job that offers a steady paycheck and benefits may be a priority. On the other hand, if you’re a mid-career single woman, with no dependents and a solid savings account, you may be in a position to settle for less in terms of income, at least for the short term, in order to find greater professional and personal satisfaction.

However, evaluating your job also requires looking beyond finances, and at the role work plays in your life. Are you an all-work and little-play type of single woman, one for whom career comes above most else? Or is your career only one facet of your life, and one that isn’t essential to your happiness?

Perhaps you find a great deal of satisfaction in other activities.

SMW knows one single woman professional who is a career coach by day, but in the off hours she pursues photography and writing fiction—and she’s quite good at both. This isn’t to say she doesn’t enjoy her full-time, income-producing work, but her day job is only one source of satisfaction.

Evaluating Your Situation

When looking at how attached you are to your career and/or your current job, be honest.

Work is a big part of a lot of people’s life, and for single women it can be an even larger component, one that factors heavily into identity.

When you think about it, women with partners are part of a unit outside work, and in most situations they interact as part of that unit on a daily basis. For single women, especially those without children, the workplace may be the only place where they feel a sense of belonging to a group on a daily basis. And the better the workplace, the stronger the bond.

In other words, look at what you’re getting from work on all fronts.

Ask yourself: Is the pay good, even if it’s not great? Is the job itself rewarding? Are you using your skills and abilities? Do you have an opportunity to learn and grow? These are the basic components of work a career-minded individual should consider.

But also ask yourself how satisfied you are with your job on a personal level. Do you like the people with whom you work? Do you like the corporate culture? Does the job fit who you are? Is the company a match when it comes to your values? Do you connect with your coworkers? Are they your friends?

If the answer to all the personal questions is yes, and you’re not struggling—really struggling—financially, you might want to rethink the focus on money. As a single woman, what you have may be worth its weight in gold.

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P Is for Perks

First, it’s important to recognize that companies view investment vehicles as part of an employee benefits package. As such, companies market various programs to job seekers and workers. This isn’t necessarily bad; after all, you want to be apprised of available benefits.

Popular offerings include 401(k)s, profit sharing, and employee stock purchase plans.

Participating in a 401(k) plan allows you to take a percentage of pre-tax income and invest it for retirement. An employer will sometimes match a portion of your contribution. You then choose where the money gets invested, such as in mutual funds, bonds or money markets. You may also have the option of purchasing your company’s stock.

Profit sharing is just like it sounds. A company allows you to share in the profits. Distributions, made annually, are based on company earnings. Plans vary greatly, but you usually have the option of deferring all or a portion of your distribution and investing it. One of the investment choices, as with a 401(k), may be the ability to purchase stock in the company.

Employee stock purchase plans are often standalone as well. Although plans typically have a monthly cap, they allow employees to buy stock in the company, usually through a payroll deduction arrangement, with no brokerage fees.

Long-term Plan

Each of these investment plans offers an opportunity to slowly grow your savings. Over time, the amount you amass can be substantial.

Of course, depending on the investment vehicle, income taxes and/or penalties may apply if you want or need to access money. Therefore, it’s wise to view these investments as long-term. These aren’t bank accounts.

As a result, you should only sock away what you can afford to do without. When investing through your company or in it, your focus should be on the long-term.

Since your view is long-term, it’s critical that you not overreact to every market swing. Sometimes your investments will go up, and sometimes they’ll go down, as SMW Money Editor Martin Brown points out.

Nevertheless, it’s wise to periodically review your investments and make changes to fit your situation and goals. If you’re a 24-year-old employee, for example, you might be inclined to take more risks than if you’re 54 with an eye on retirement.

Assessing Your Risk

And oh yes, there is risk–regardless of your age.

Investing through your company, paycheck by paycheck, or from year to year through a profit sharing plan, can be a highly effective way to build a nest egg. Many people have retired comfortably after years of participating in company-sponsored programs.

Feeling the Squeeze

Pain at the pump isn’t an illusion. In the United States last month, the average price for a gallon of regular gas was more than $4.00. And that was the bottom-of-the-barrel price; if your vehicle requires premium, you’ll pay $.40 or more per gallon. Prices are highest in Alaska, Hawaii, and California, but it’s safe to say these days no one is getting a bargain.

And it’s not only the cost of a filling up that’s got Americans fed up. Even people who rely on public transportation to get to work are faced with more costly commutes. Ironically, increased ridership has led some mass transit systems to implement or consider fare increases.

Meanwhile, people who travel for business have also been hit hard, as airlines raise ticket prices, charge for luggage, and eliminate in-flight services in an effort to offset record-high fuel costs. Airlines are also cutting flight schedules, which results in fewer options for business travelers, who may then have to add to trip costs with additional overnight stays.

It’s enough to make people throw up their hands and say, “Oy,” as in oil, while they consider alternatives.

But what are those alternatives?

Your Employer Is a Resource

You may have more options than you think. Start by checking with your company to find out what kind of help might be available.

Some employers offer assistance in the form of commuter subsidies and/or van pools.

Still other employers have traded in the traditional five-day workweek for a condensed, fuel-efficient alternative: four 10-hour workdays. The practice is catching on among state and local municipalities, with the state of Utah, the city of Birmingham Ala., and several towns in Connecticut among those leading the way.

Other employers, meanwhile, allow telecommuting, at least on a part-time basis. With an eye toward less travel, companies are likewise turning to online meetings and teleconferencing.

To encourage a healthier lifestyle, while addressing environmental issues and commuter costs, some companies have installed bike racks. Bicycling to work, though not common in every industry, is gaining in popularity.

Finding What Fits

What your company provides will allow you to weigh your options. But so too will personal obligations and preferences.

A single mother, for example, may not have the option of public transportation if commuter schedules conflict with childcare arrangements. Similarly, bicycling to work may not work if you have to transport a child to and from daycare.

Carpooling can be great, whether offered by your company or initiated by friends and coworkers. However, be sure you have a clear understanding of what’s required before you commit to this kind of arrangement.

One woman expressed surprise when, after a week’s vacation, the people with whom she carpooled expected her to contribute gas money for the week she was away. What’s worse, she knew her travel buddies viewed her as cheap.

Other Options

What happens if you’ve exhausted all possibilities, and you can’t find relief from the high-cost of commuting?

It may be time to take an honest look at your job, and even your career, particularly if you’re required to absorb exorbitant transportation expenses. Sales jobs with no or low travel reimbursement, for example, may no longer add up.

By the same token, it’s worth recognizing that a high-paying job with a long commute no longer pays as well. A job closer to home that pays less may net you more, in terms of money–not to mention that other precious commodity, time.

If considering a job change, find out if a potential employer offers commuter benefits, a condensed workweek, or telecommuting.

For the self-employed, similar considerations apply. Cultivating local clients and business associates, and relying more on technology instead of travel for meetings can make a difference.

Finally, regardless of your employment circumstances, you’ll want to take advantage of what little assistance the government offers. As of July 1, 2008, the income tax deduction for business use of your vehicle is 58.5 cents per mile, up from 50.5 cents per mile for the first half of the year.

The tax deduction might not mean much to your bottom line, but by accounting for your commute when assessing your job and your career, you’ll be on the road to finding solutions that can make an impact.

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And yes, it is legal, provided the incentive program doesn’t single out individual employees.

Why Companies Offer Incentives

Although the concept may seem odd, it makes perfect sense when you look at the bottom-line impact of escalating health care costs. Health care is a huge expense category for companies, and it’s one of the fastest growing cost categories, if not the fastest growing, at many organizations.

For years, employers have tried to address escalating health care costs other ways, by changing providers or benefits offerings, for example. But, because health care costs continue to skyrocket nationwide, employer options have been limited.

That is until now. Companies have decided to address the source: health care users. And that means employees. Healthier employees use less health care services, which, in turn, results in lower health care costs for companies.

From a financial standpoint, the impact of healthier lifestyles can be substantial. A recent study by Watson Wyatt, a leading global consulting firm, and the National Business Group on Health, a non-profit association of 285 large employers, finds that companies with highly effective health and productivity programs have cost increases that are five times lower for sick leave; four and one-half times lower for long-term disability; four times lower for short-term disability; and three and one-half times lower for general health coverage.

How It Works

What kinds of incentives are companies offering for healthier lifestyles?

The most common incentive is a reduction in health care premiums that typically ranges between $200 and $500 per year. The amount may be awarded all at once, as in applied to one premium, or credited to health care premium co-payments throughout the course of the year.

Some employers are also paying workers to participate in health initiatives: for example, $50 to complete a health risk assessment.

Program Motivation

Paying employees for healthier lifestyles is about partnering for better results–health-wise and financially.

Still, not everyone understands the connection between better health and lower premiums. Workers worry that their lifestyles may be used against them at some point. Indeed, employees have questioned whether they will they be penalized or even fired if they don’t quit smoking or lose weight.

However, organizations like the National Business Group on Health indicate that’s not the intent. Healthier lifestyles are not only good for employees from a wellness standpoint; they save companies and workers money, experts says.

A Healthier Future

Going forward, more people are likely to find their employers offering payment in exchange for a healthier style.

The Watson Wyatt/National Business Group on Health study finds nearly half of all surveyed employers currently offer or this year plan to offer financial incentives to encourage workers to monitor and improve their health. By 2009, the number of large employers providing monetary incentives is expected to exceed 70 percent.

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A.  Understanding total compensation can be tricky, but some new software programs can help. A company called TotalRewards Software Inc. has developed a tool companies can use to provide an analysis of total compensation to employees and prospective employees. TotalRewards markets the product for current employees as TotalCompBuilder.com; the version for job seekers is known as CandidateStatements.com.

You can use the software’s categories and subcategories to do your own side-by-side comparison. The section breakdowns are as follows:

1. Cash compensation (actual pay and any expected bonuses or profit-sharing);
2. Benefits (medical, dental, disability); and
3. Other valuable benefits (paid time off, holidays, tuition reimbursement and stock options).

When running your analysis, start by creating two columns: one for your current job and the other for your prospective one. Be sure to look at dollar amounts on an annualized basis. For example, if you are currently contributing $200 a month toward health insurance and would no longer be need to do so in your new job, you’ll want to view it from the standpoint of $2,400 per year. When you add $2,400 to a projected increase in base salary, your new bottom-line number looks even more appealing.

Doing an apples-to-apples comparison provides an accurate overview of what you have with your current employer versus what you could have if you were to make a change. Keep in mind, however, that this method only addresses broad financial categories. It doesn’t take into account other important considerations, like your commute. Is the new job closer to home or farther away? Don’t forget that increased travel impacts your finances and your quality of life on a daily basis.

This raises another important question: How critical is the additional income? Is that the main reason why you’re seeking a new job? Obviously, money is an essential part of work, but you should other components when conducting your comparison. Here are some questions to consider:

• Is the new job more interesting?
• Does the new company seem like a better fit for you?
• Are career advancement possibilities better at the new company or at your current one?

Take the time to do a comprehensive comparison before you make a decision. In addition, ask yourself if your reluctance to accept the new job offer is based entirely on money. If the company had offered you a higher starting salary, for example, would you still be hesitating? If the answer is yes, this may not be the right job for you. Considering the total package will help you make a good long-term decision for your career and your life.

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