Headline Convo – Gender Pay Gaps, Resume is Dead and CEO Pay

KaizenBiz , Twitter chat,This week is our monthly “Bring Your Own Headline” discussion. This conversation is usually much more wide ranging and even better when someone from the KaizenBiz community shares something that caught their attention. What are you reading or viewing that made you stop and think? This week, we are going to move from topic to topic and see what big ideas are popping up. So, check out these stories and bring your own this Friday to the live Twitter chat, #KaizenBiz at 4pm GMT/12pm ET/9am.

Women entrepreneurs pay themselves less?

We often think of how entrepreneurship can be totally designed by the individual entrepreneur. He or she can designate their hours, their rate of pay and the products and services that are offered. Arecent Babson College study discovered that women entrepreneurs pay themselves approximately 80% of their male counterparts. While the study does not explain why this occurs, it seems rather interesting that there is a gap.

It is easy to focus on the US since this conversation about salary gaps has been going on for some time. It even made a mention in the 2014 State of the Union address by President Obama. However, there is a bigger picture. There is gender wage gap all over the world (here is an infographic from Time). While there are some who will argue that it has everything to do with the types of businesses women found. After all, some work is valued more than other work. There is always the argument that women take time off from work due to family obligations. Still, there are questions about what the disparities mean in real life.

What are the possible business reasons women entrepreneurs pay themselves less?

How does looking at men’s pay as the standard skew our perceptions of what are appropriate salaries?

If we make the picture more global, what sorts of socioeconomic reasons exist for women entrepreneurs to pay themselves less?

Just when you thought job hunting could not get more complicated

There are always reports that something is “dead.” Now it is the resume (or the CV, curriculum vitae) that is passe. With the global economy growing (albeit sluggishly), many companies are hiring new staff. While this Forbes post is self-serving the author, he does point out how different things have become in the job hunt. With potential employers looking at social media, search engines and in-person networking, the resume simply confirms information about you. This certainly puts the resume fairly low in importance. Interestingly, in a post by BlueGlue (a managed recruitment service firm based in the UK), the cv is described as less important than the online information and digital portfolios. If the resume and the cv are being phased out, this may become a stumbling block for many job seekers.

How much weight do recruiters and human resources professionals put on resumes/ cv’s versus online information?

If resumes and cv’s are less important, what social ramifications are there for job seekers?

LinkedIn is mentioned as a resource for both job seekers and recruiters. To what degree is this social media site used around the world?

 The relationship between CEO pay and performance

Periodically, there is a conversation about CEO pay. There are often huge gaps between what the CEO is paid compared to others in the company. Another area that gets people talking is how CEOs are never really punished for failing as they get golden parachutes. The connection between these two conversations is whether or not there really is a relationship between CEO pay and performance.

It certainly seems that CEOs of large companies are much like the manager or head coach of a sports team. When things are going well, the CEO is praised and when things are going badly, well, the CEO is at fault. They are paid very high salaries which makes one wonder if they truly have the skills to merit such a reward and do they really matter that much to their organizations.

Gilles Hilary, INSEAD Associate Professor of Accounting & Control, states that CEOs do bring quite a lot of value to their organizations. In a HKUST Business School study, they discovered that if there is good governance and strong shareholder rights, CEO compensation is a good predictor of success. But as Rick Wartzmann asked in his Forbes post, how do you define performance? There is a temptation to aim for increased revenues and profits but that could result in undermining the long term health of the company, discouraging innovation or weakening the overall vision and strategy of the company.

What criteria must a CEO meet in order to be described as performing well?

How is the pay of CEOs of smaller organizations tied to performance?

To what degree are CEOs involved with the actual performance of the company?

 Time for your suggestions

The above topics are my suggestions for our lighting roundtable discussion on the Twitter chat, #KaizenBiz. If something caught your attention this week, bring it the discussion on Friday, March 21, 2014 at 4pm GMT/12pm ET/9am PT. Remember to include the link and even  one or two discussion questions

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