Data and Research January 18, 2017

Pay Gap Means Women Need to Save More for Retirement

While the gender pay gap is better in some states than others, it still indicates women need to save more than men, according to a NerdWallet analysis.
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The average American woman must save $1.25 for every $1 a man invests in retirement savings to build an equivalent nest egg, a NerdWallet data analysis shows.

For every dollar men earn, women in the U.S. make 80 cents on average, according to the latest available data. That wage gap can lead to an even bigger divide down the road when it comes to retirement savings in a 401(k), NerdWallet says.

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The company looked at U.S. Census Bureau data from 2007 and 2015 and found Rhode Island saw the earnings difference narrow the most. There, women have to save for retirement at a rate of $1.17 for every $1 men put away. In Oklahoma—the bottom-ranking state for wage gap improvement during the same time period—women planning for retirement would need to sock away $1.37 for every $1 men save.

NerdWallet notes this doesn’t mean women need to move. “Research suggests the issue isn’t so much that a woman working as a bank teller in any given state makes less than her male colleague at the next window; rather, it’s that the odds are greater that he will rise to bank manager someday,” it says.

“The wage gap means women need to save more of every dollar they earn to accumulate the same amount of money as men,” says Arielle O’Shea, NerdWallet’s investing and retirement specialist. “That’s difficult to achieve, particularly when women spend more time out of the workforce to raise children or care for family members. Retirement savings may be put on hold during those times, and employer matching dollars are left on the table.”

More of the analysis is available here.
Break from the Grind January 17, 2017

Communication Skills Biggest Difference Between Generations in Workforce

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In today’s multigenerational workforce, most executives agree that each age demographic exhibits its own styles and approaches.

CFOs in a Robert Half Management Resources survey said they see the greatest generational differences in employees’ communication skills (30%), ability to adapt to change (26%) and technical abilities (23%).

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Fourteen percent see difference in cross-departmental collaboration, and only 7% of executives noted there are no differences.

Research conducted for “Get Ready for Generation Z” by Robert Half and Enactus highlights key differences in these areas among Baby Boomers (born 1946 to 1964), Generation X (1965 to 1977), Generation Y (1978 to 1989) and Generation Z (1990 to 1999). It found Baby Boomers tend to be more reserved, while Gen Xers favor a control-and-command style of communication Conversely, Gen Yers prefer a more collaborative approach to communication, and Gen Zers prize in-person interactions.

As for change management, Gens X and Y tend to see change as a vehicle for new opportunities, while Gen Z is accustomed to change and expects it in the workplace.

When it comes to building their abilities, employer-backed training is expected by all workers. Baby Boomers and Gen Xers most value traditional instructor-led courses or self-learning tools; Millennials, which include Generations Y and Z, prefer collaborative and technology-centric options.

“Each generation brings unique characteristics to the workforce, which should be embraced,” says Tim Hird, executive director of Robert Half Management Resources. “Too often, managers see these differences as negatives, but building a team with diverse perspectives, insights and strengths can only be a positive, leading to improved products and service levels.”

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