Unless more women actively participate in major financial decisions at the household level, the perception that women are less responsible than men as leaders and managers in businesses will continue to exist.

Promotional Feature, HT Brand Studio

For far too long, women’s identities were firmly dictated by the men they were related to. But, thankfully, in the last few decades, women have been reclaiming control over their lives. The chauvinistic paradigm, which straitjacketed women into the roles of nurturers and caregivers, is slowly witnessing a shift as more and more women are challenging discriminatory barriers and making their presence felt in various fields.

But when it comes to the positions held by men and women on the pay scale, the picture is indicative of the fact that women still have a long way to go. According to the World Economic Forum’s Global Gender Gap Report 2020, men and women will have pay equality in 257 years. Of the 153 countries studied for the report, India stands at the 112th position on the overall Global Gender Gap Index.

The what and why of the gender pay gap

The Economic Policy Institute defines gender pay gap as “a measure of what women are paid relative to men. It is commonly calculated by dividing women’s wages by men’s wages, and this ratio is often expressed as a percent, or in dollar terms. This tells us how much a woman is paid for each dollar paid to a man.”

The reasons for gender pay gap are cemented in conservative notions about women being more suited for domestic roles and that they are less competent than men when it comes to handling professional responsibilities. A report published by the World Economic Forum highlighted that a ‘complex web of factors’ such as different levels of educational attainment between men and women, gender differences in household care responsibilities and occupational choices, a wage penalty for motherhood and discrimination, stereotyping and biases contribute to the staggering gender pay gap.

Encouraging women to invest to alleviate the pay gap

One of the ways in which unequal pay can be challenged is by encouraging women to take charge of their money. Unless more women actively participate in major financial decisions at the household level, the perception that women are less responsible than men as leaders and managers in businesses will continue to exist.

Financial planning in Indian households is usually considered a male bastion. The practice of excluding women from participating in the families’ financial decisions continues to thrive in the present day and age, even though the number of women who earn and are not financially dependent continues to rise. There also exists a perception that women are good with money only as long as it entails dumping extra cash into a savings account or in a safety deposit box or under the mattress. If an increasing number of women start taking charge of investments, it will drive home the idea that women have the potential to accumulate the same amount of wealth as men.

Married or unmarried, women can demonstrate that money is as important to them as it is for men by taking major financial decisions themselves rather than relying on the men in the family. Greater financial inclusion can also help women in getting rid of inhibitions and biases that prohibit them from seeking better compensation. Since a majority of women do not actively participate in financial decisions, the notion continues to fester that it’s okay to compromise on salary because women are not the prime earners in the family. It will also change prevailing mindsets and push employers to not downplay what talented, hardworking women can bring to the table.

Manisha Jain* (32) echoes that the knowledge of financial planning helps tip the scales in women’s favour when negotiating pay scales. She says, “When I started my career as a consultant in the agri-business space, I would have trouble convincing prospective employers for a better pay. I felt they could sense that I wasn’t even privy to the salary structure and terms of employee benefits. It created the impression that they could pay me less than what I deserved because I wouldn’t know. Once I took charge of my finances, I started making better headway with salary negotiations whenever I switched jobs. Employers knew that I knew the compensation I deserved.”

HDFC Life leading the way

HDFC Life has been leading the way in terms of catalyzing greater financial participation for women with its wide range of insurance policies. These cater to the different financial needs of women at different stages of their lives.

Of course, the fact that HDFC Life is headed by a woman has been conducive to making the brand’s products a game-changer in the women’s insurance space in India. Vibha Padalkar, MD and CEO of HDFC Life, has been an inspiration for many women who dream of climbing the highest echelons of the corporate ladder. During the early days of her career, she would take a break from work and head home only so she could put her son to bed and then rush back to office. Her experiences have played a pivotal role in helping HDFC Life create insurance products that suit the requirements of today’s women.

An example is the HDFC Life Click 2 Wealth plan, which is a unit linked, non-participating, life insurance plan that offers market-linked returns and provides valuable financial protection.

Women can safeguard their wealth and secure their spouse/child’s future with the premium waiver option and choose from a total of 10 investment options that offer unlimited free switches.

A greater sense of pride and confidence in one’s financial abilities are complementary benefits. If more women join the bandwagon of proofing their future from uncertain events, the collective impact can help women inch closer to breaking the glass ceiling.

*The name has been changed for the sake of privacy