A survey by the Australian Bureau of Statistics has found there are more women working as professionals than men in today’s workforce.
The latest Forms of Employment survey found that only 19% of the male workforce (which accounts for 52% of the total workforce) class themselves as professional.
This compares to 26% – more than a quarter – of the female workforce who identify themselves as professional.
How times have changed. Back in the 1930s, the jobs held by women were confined to nursing, teaching or secretarial and administrative roles. Over the past century women have not only entered the workforce, they’re now a real force in terms of numbers, talent and education.
From a financial perspective, women are on the right track in gaining tertiary educational qualifications that will help them find better paid work than non-qualified or lower-qualified people.
A recent AMP.NATSEM report, Smart Australians, found the more educated a person is, the more they’ll be paid in the course of their working life.
But when it comes to the industries that we women are working in it seems that, despite more than a quarter of us being classed as professional, we remain in the lowest paid areas. Health care and social assistance comprise 22% of the female workforce, followed by retail trade at 14% and education and training at 13%.
Men are more commonly found working in higher paid industries such as manufacturing, the most popular industry for men accounting for 13% of their workforce, and construction which accounts for 11%.
Even those women who do work in these male-dominated industries can sometimes face discrimination and in some cases are not paid as well as men in the same position. In fact, the pay gap between men and women in Australia currently sits at 18%.
Regardless of pay, women can still get ahead financially if they’re savvy with their money. Recently I was asked to reflect on the mistakes women make financially – but quite frankly, I would much rather talk more positively about what women can do to take control, starting today. Here are my top six tips:
- Have a plan
If you fail to plan, you plan to fail. Some people like the DIY approach, but most people benefit from seeing an accredited financial planner and working out a comprehensive plan with a professional. We don’t think twice about paying for a personal trainer to help us get fit, or to seek out a mentor at work to learn from professionally – the same should apply to your finances.
- Ask for a pay rise or apply for better paid positions
Aim high – it’s better to ask and be knocked back than to never ask and spend years being underpaid. Find the courage to ask for more. What’s the worst thing that can happen? They say no or they’ll tell you what they think you need to do to be eligible for a pay rise. If you’re in a job where your pay is non-negotiable and you’re not earning what you’d like, consider moving to a new employer or up-skilling and moving into a whole new role or career.
- Spending plan
“Look after the cents and the dollars will take care of themselves,” the old saying goes – and it’s true. Having a weekly spending plan is important for staying on track financially. If you are living on credit and randomly swiping your card at every opportunity, then chances are you have no idea of what you can actually afford to be spending. There are some great tools online to help get you started.
- Protect your wealth
You work hard to build wealth, why would you not insure it? Most of us have car insurance, house and contents insurance and health insurance, so why are we so reluctant to have insurance on our biggest asset – our ability to earn an income? In the event that we are injured or ill and cannot work, the right insurance allows us to remove the stress of money at a time when we need to be focused on our health. It’s something we can’t afford NOT to have.
- Don’t be afraid to take well-calculated risks
What I’ve noticed in the ten odd years that I’ve been working in this industry is that women seem to be more risk averse than men – and this sometimes hold them back. While there is something to be said for cash in the bank, investing wisely in other ways often yields a better long-term return. Usually the more people understand about investing over the long term, the more prepared they become to take well-calculated risks. So increase your financial literacy – read up or do a course.
- Take a stand
If we want the pay gap between men and women to close we must actively participate in the process of change. One way we can do this is to support ‘Equal Pay Day’ which is coming up on September 4. This day marks the extra 66 days women in Australia must work after the end of the financial year to earn the same average pay as men. Like this year’s Equal Pay Day on Facebook and take a stand!
Any advice given is general only and has not taken into account your objectives, financial situation or needs. Because of this, before acting on any advice, you should consult a financial planner to consider how appropriate the advice is to your objectives, financial situation and needs.