Higher education is supposed to lead to greater opportunities. However, a recent study by the Forté Foundation, that has been actively involved in getting more and more women to enrol in MBA programs, has found that female or minority students lag behind their white male counterparts in getting the right kind of opportunities to fulfil their career goals.
The Foundation had conducted an online survey of 900 male and female MBA alumni who graduated between 2005 and 2017 as the first part of a new research series.
To begin with, women battle a pre-MBA gap of around 3%, it widens to 10% during the first job post-MBA and continues to increase to 28%. Minority women face the biggest pay gap with a difference of 52% or $76,589, says the study titled, Outcomes and Perspectives of MBA Graduates.
Pre-MBA, women on average, earned 97% of what their male counterparts received. However, it drops to 90% in their first post-MBA job and 72% in current compensation, adjusted for years of experience.
In the case of minorities, they earn $101,505 on an average compared to $117,834 for white people, equivalent to a 16% pay gap. However, in this case, the gap reduces once the degree is earned, from 24% to 16% and continues to narrow down to about 12%.
The study, conducted between March and April 2018, found that Finance had the highest pay gap at 60% and Operations at 48%. However, in Marketing, women were seen to be earning more than men at 2%. Around 40% of respondents, mostly women, stated that they had experienced a gender pay gap.
The study notes that in the overall reckoning, everyone stands to gain after getting the degree, regardless of any gender or race differences. While the women saw pay increase of around 63%, the men were much ahead at 76%, the report said.
While the variations in job functions may result in a pay gap to a certain extent, the likelihood of unconscious bias and other factors cannot be ruled out, according to Forté CEO Elissa Sangster.
Under such circumstances, companies have to take proactive steps to lessen the pay gap, or risk losing highly-skilled women employees,” she says.
The study, conducted between March and April 2018, found that Finance had the highest pay gap at 60% and Operations at 48%. However, in Marketing, women were seen to be earning more than men at 2%. Around 40% of respondents, mostly women, stated that they had experienced a gender pay gap.
ALSO READ: IIM Lucknow Final Placement: Consulting Tops At 32%
While most women prefer to leave the company than stand up for their rightful dues, the businesses need to address the issue of loss of talent and provide the women with the opportunities needed to advance their careers. The women, on their part, should not just walk away but bring such inequalities to the notice of the company heads, Sangster says.
The study had also examined other typical measures of career progression, including the number of promotions and direct reports, plus level-title, since the first post-MBA position. The outcomes revealed that, on average, men have received 2.3 promotions since completing their MBA program, while women have only received 1.8.
Men have an average of 3.3 individuals reporting to them while women only have an average of 1.8. On average, the men rose to the equivalent of the Director within their organizations, while women trailed behind one rung on the career ladder with an average level of Senior Manager. In terms of career satisfaction also, the men were ahead.
