Study: Working Women Underestimate the Hidden Costs of Having Children

Study: Working Women Underestimate the Hidden Costs of Having Children

The high monetary costs of having children are well known to working parents and the employers looking to support them. According to US Census data, child care costs skyrocketed by more than 50 percent in inflation-adjusted dollars between 1985 and 2011. These costs have been blamed for holding women back in the workforce by making it challenging for couples to start families without scaling back one of their careers: in the case of heterosexual couples, that usually means the woman’s, as she typically earns less money than her male partner.

Yet a study recently highlighted in the Wall Street Journal suggests that the total costs of motherhood are difficult for many working women to anticipate. “The Mommy Effect: Do Women Anticipate the Employment Effects of Motherhood?” by economists Jessica Pan, Ilyana Kuziemko, Jenny Shen, and Ebonya Washington finds that some women in their childbearing years have “misplaced optimism” about their employment prospects after becoming mothers due to other hard-to-quantify costs associated with having children. As the Journal noted, a recent US government survey found that 64 percent of women with bachelor’s degrees and children under the age of six agreed that “being a parent is harder than I thought it would be”; fewer than 40 percent of similarly situated men agreed.

Beyond the financial costs are the time and emotional “costs” associated with having children that are harder to plan for.

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US Women May Have Most to Gain from Student Debt Assistance

US Women May Have Most to Gain from Student Debt Assistance

A recent analysis by the American Association of University Women found that a sizable majority of all student debt in the US is owed by women—$890 billion out of $1.4 trillion—while individual women with bachelor’s degrees graduate with an average debt $2,700 greater than that of their male classmates:

The newly-released data from the 2015-16 National Postsecondary Student Aid Study also reveal that:

  • Women comprise 56 percent of enrolled college students, but hold 65 percent of outstanding student loan debt;
  • 71 percent of women have student loan debt at bachelor’s graduation compared to 66 percent of men; and
  • Black women graduate with the most debt – at $30,400 – compared to $22,000 for white women and $19,500 for white men. …

The analysis shows how the burdens become compounded by other financial factors – where women take two years longer than men to repay their student loans, in part because of the gender pay gap. Women with college degrees who work full time make, on average, 26 percent less than their male peers, which leaves women with less income to devote to debt repayment. Compared to white men with bachelor’s degrees, black and Hispanic women with bachelor’s degrees make 37 percent and 34 percent less (respectively) and struggle to repay their loans as a result.

The Millennial generation is already known to be struggling with an unprecedented burden of student debt, driven by the rising cost of college, the financial impact of the Great Recession, and other factors. The AAUW analysis adds a new dimension to this problem by illustrating how acutely it affects women (particularly women of color), in combination with the other factors that contribute to their disproportionate levels of financial insecurity.

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Most US Employees Say Their Employer Has Not Acted to Address Sexual Harassment

Most US Employees Say Their Employer Has Not Acted to Address Sexual Harassment

Despite the #MeToo movement bringing the problem of sexual harassment in the workplace to the forefront of the public consciousness in the US and around the world, a recent survey from the American Psychological Association’s Center for Organizational Excellence finds that most American workers don’t see their employer taking new action to prevent or stop it. The association gives an overview of the survey at Phys.org:

Only 10 percent of U.S. workers said their employer has added more training or resources related to sexual harassment since the recent increased media and public attention on this serious workplace problem. Just 8 percent said their employer implemented a more stringent policy related to sexual harassment, and only 7 percent reported that their employer hosted an all-staff meeting or town hall to discuss sexual harassment.

Research has shown training to recognize and report sexual harassment isn’t enough to change employee behavior or a workplace culture where harassment is more likely to occur. Instead, psychologists recommend a comprehensive approach that incorporates fair policies that are clearly communicated, ongoing training, leadership support of a civil and respectful culture, and the hiring and promotion of women into senior leadership roles.

It is certainly easy for companies to fall back on training as a solution when their main concern is mitigating liability. However, sexual harassment training is arguably better than no response at all; at the very least, it acknowledges that sexual harassment exists and signals to employees that the organization does not intend to simply sweep it under the rug. Without that acknowledgment from an organization and its leaders, by comparison, employee morale and confidence in the organization’s ability or willingness to handle harassment can suffer greatly. This can send organizations into a self-destructive feedback loop: Lack of acknowledgement and action from leadership discourages employees from reporting, which causes leaders to believe that their organization doesn’t actually have a harassment problem. This makes the fallout all the more damaging when it eventually comes to light that they were wrong.

In a white paper my colleague Lori Lipe and I are currently writing, we look at some of the beliefs that hinder employees from reporting sexual harassment. What we are seeing is that employees’ perception of whether harassment is actually taken seriously at the organization factors heavily into their consideration of the costs and benefits of coming forward. In our latest Global Labor Market Survey, CEB, now Gartner, found that employees are significantly less likely to report when there is a gender imbalance at the top management team, particularly when it is male-dominated. This perception likely stems from the skepticism that male leaders may not take harassment as seriously and therefore dismiss accusations or be unmotivated to pursue justice. This relationship is also evident in the findings of the APA survey:

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Nike’s Culture Upheaval Demonstrates the Power of Employee-Led D&I

Nike’s Culture Upheaval Demonstrates the Power of Employee-Led D&I

Since March, Nike has been conducting a massive overhaul of its company culture, executive leadership, and HR practices after a covert survey of female employees revealed widespread patterns of sexual harassment, discrimination, and hostile work environments for women. As the New York Times recently reported in a major story reviewing the upheaval, this toxic culture was driving talented women out the door. In recent months, several high-level male executives at Nike have left the company amid the scandal.

Some of these executives stand accused of engaging in sexist practices themselves; others do not, but have been faulted for failing to address employees’ concerns, creating the perception of an executive “boys’ club” in which male managers were protected from consequences for their misbehavior. Another key theme in the Times‘ report is the Nike women’s dissatisfaction with the response they received from HR.

Nike CEO Mark Parker has moved quickly to bring the situation under control and assure employees that the company is taking its culture problems seriously. At an all-company meeting last Thursday, Parker admitted that he and other executives had missed signs of the problems that have come to light recently, apologized to the affected employees, and promised a thorough investigation into their complaints, along with changes to the company’s training and compensation practices to make them more inclusive, particularly toward women.

While Parker and his executive team will be responsible for making these needed changes to Nike’s culture and practices, none of these changes would be possible without the women employees who took the initiative to bring the company’s problems to light. One important takeaway from this story, therefore, is the power and promise of employee-led D&I initiatives.

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US Senate Changes Rules to Allow Members’ Babies in Chamber

US Senate Changes Rules to Allow Members’ Babies in Chamber

In a historic change, the US Senate voted last week to allow members to bring their babies into the chamber. The new rule was prompted by the birth of Illinois Senator Tammy Duckworth’s second daughter on April 9. Duckworth, the first sitting senator to give birth, said the vote would “bring the Senate into the 21st century,” making the historically male-dominated chamber a more welcoming workplace for women and new parents, the Associated Press reported on Wednesday.

No Senators objected to the rule change, but effecting it still took some convincing. Minnesota Senator Amy Klobuchar told the AP that she had spent nearly two months “privately reassuring Republicans and Democrats that the new rule would not mean diaper-changing or nursing in the Senate chamber.” Quartz’s Heather Timmons followed up with Klobuchar about the questions she had fielded from her colleagues:

Will there be an infant dress code?

“No, we’re not going to have a dress code for the baby,” Klobuchar said. While that sounds off the wall, what women wear in the Senate in particular has been closely policed—it was not until the early 1990s that pant suits were allowed.

Can’t Duckworth just vote from the Senate cloak room, while holding her baby?

Both Republicans and Democrats have a room, originally quite literally a room for cloaks, that is outside the Senate chamber, where a small handful of aides sit to keep senators informed of voting. The chamber was built in 1859, and the cloakroom is difficult to access from the outside for Duckworth, who lost both her legs when she served in the Iraq war. “She can’t get from there to the floor without a wheelchair,” Klobuchar said, and she has to go across the floor to get into it anyway.

Duckworth and Klobuchar are both Democrats, but support for the rule change came from both male and female Senators across party lines. Although some of the men in the chamber expressed concerns about babies violating the Senate’s decorum, most were on board. “Why would I object to it? We have plenty of babies on the floor,” Florida Senator Marco Rubio joked.

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Venture Capital Firms Band Together to Take On Sexual Harassment

Venture Capital Firms Band Together to Take On Sexual Harassment

Around 40 venture capital firms have joined a new project called MovingForward, which “gathers VC commitments to foster a diverse, inclusive, and harassment-free workplace.” Participating venture firms are sharing their own policies against sexual harassment and discrimination, contact points for entrepreneurs to ask questions and report problems, and statements on their efforts to combat harassment and promote diversity and inclusion.

Although not all the participating firms are making both their internal and external policies public, Recode’s Theodore Schleifer reports, the creators of the initiative say they have encouraged several VCs that did not have anti-harassment policies to create them:

Most venture capital funds do not have human resources departments, and even if they have an internal policy that defines and punishes harassment, it generally has only applied internally to their firm — not to the entrepreneurs that they interview and fund. …

“This effort has created a movement within the VC partnerships to do something,” [co-creator Cheryl] Yeoh said, telling Recode that she believed she has set off a “scramble” within venture capital firms to craft policies or identify a contact. She claimed that around half of the firms did not have policies applying to entrepreneurs or publicly identified points of contact before she pitched them.

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DC’s Initiative to Raise Tipped Minimum Wage Billed as Combating Harassment

DC’s Initiative to Raise Tipped Minimum Wage Billed as Combating Harassment

Last week, the board of elections in Washington, DC, approved a ballot measure for the upcoming primary election on June 19 that will ask voters whether to raise the minimum wage for tipped employees in the restaurant industry from its current rate of $3.33 per hour to match the capital city’s minimum wage for all other workers by 2026. Advocates of the measure are framing it as a way of protecting low-income workers, especially women, from harassment and abuse, the Washington Post reported:

[C]ritics of the split-wage system say some workers face intimidation and retaliation when they tell their bosses that tips came up short. They say low-income workers in the restaurant industry deserve the same predictable income as other employees. …

“In this Me Too moment, in this Time’s Up moment, we have to stand up for women and empower women and really call this two-tier wage system for what it is: a source of sexual harassment,” said Diana Ramirez, director of the Restaurant Opportunities Center D.C., which is sponsoring the ballot initiative.

“If you know that you are getting a base wage from the employer, and a customer is acting inappropriately with you, you don’t have to put up with that behavior anymore to make a good tip,” she said.

Restaurant owners and some workers who earn much more than the minimum wage on the basis of tips oppose the measure, saying it will eat into restaurants’ already thin profit margins and force them to raise prices, cut jobs, and perhaps abandon tips altogether in favor of a flat hourly wage.

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