Money: beat the career gap
Women returning to work after maternity leave often face a big drop in salary – but there are clever ways to buck that trend.
Whether it’s backpacking around Turkey or time off for twins, women are more likely than men to build a career break (or two) into their careers.
This means lower superannuation balances and often lower salaries and status once back in the office.
Ainslie van Onselen, Westpac’s Director of Women’s Markets, Inclusion and Diversity, advises women to plan ahead, by adding an extra 3 per cent or so to the 9.5 per cent guaranteed super rate for the year or two before your break. If you have a partner, ask them to put some of their super in your account.
“This has always been possible, but the recent budget means you now get the tax benefits,” she says.
Women should also be proactive with their careers, not reactive. “This may mean doing a bit of extra study on a career break – we know that women who pursue higher education beyond their undergraduate degree have an 18 per cent increase in pay.”
It is also vital to “keep your toe in the water”, whatever your career field. “Think about working one to two days a week during your maternity leave and have the practical discussion with your partner about sharing the load.
“Don’t necessarily take yourself out of the labour market for seven years because it is much harder to come back in then. It can be very daunting.”
Ainslie practises what she preaches, having studied for a Finance Masters while on maternity leave. With her two now school-aged daughters, she “buys” annual leave, which means she can take five weeks holiday at Christmas and one week in every other school break.
It’s not just family leave – it can save your sanity to build in breaks for travel, or to re-group after illness.
Sarah Wilson, founder of the I Quit Sugar empire, has done both and even advocates building gaps into your working week if you can manage it, even if it’s re-jigging your hours to spend less time commuting. “I’m lucky in that I run my own business, so I only go into the office two days a week, and I try to avoid rush hour,” she says.
Meanwhile, Ainslie encourages us to ask for flexible hours. “We had a branch where they normally work nine to five, but most foot traffic was around six, so the team went to headquarters and said they wanted to open 10 to six.
“I met male members of the team who said they were able to drop their kids off to school in the mornings for the first time and they loved it.”
“Think about working one to two days a week during maternity leave.”