by Solange Lopes | Apr 24, 2015 | Career, Make More Money
Photo credit: http://drvenusopalreese.com
A friend of ours once took his paycheck out in front of us while at a gathering, to show us he really makes as much money he says he does. Now this friend had never exactly been the tactful type (I mean, he once told me I was too close to my hubby’s age to sustain his interest over time, well), so we weren’t exactly shocked. Yet for someone, anyone to talk about money and how much they make, is always a bit of stretch for most people (not our friend obviously).
Fast forward to today, in the era of Equal Pay and wage transparency, is it still taboo (or at least the tacky equivalent of removing your weave tracks in public), to tell how much you make? Or is it actually an incentive to keep the records straight for everyone?
My $0.05: Especially for women, talking about money, salaries and paychecks often crosses the line of what’s considered “lady-like”. Yet, with all the controversy around Equal Pay (although we still have some ways to go before we can even talk about it at work), an increasing number of women are now asking demanding to get the raises they deserve, enrolling in salary negotiation courses, and rightfully asking why their male counterparts are getting paid more money for the same work! Actually, more women are now asking the question: “What’s your number?”
I personally think if you’re comfortable sharing your salary with a friend, family member, or even colleague, why not? Think about how much a genuine talk about salaries could help in new fields where pay information is not readily available. Or how much easier it would be asking for a raise when having enough information to at least target a reasonable range. How would you know your salary is not up to par if you don’t have anyone else’s to compare it to?
Do you think it’s OK to tell how much you make?
The Corporate Sis.
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by Solange Lopes | Mar 19, 2015 | Make More Money |
Photo credit: https://kellyewhitney.files.wordpress.com
We already know the gender wage gap is here, and is much more complex than we’d ever imagined. And apparently, it won’t close for another 43 years…Unfortunately, performance-based pay is also subjected to the much-dreaded gender bias. Back in 2009, Bank of America was the target of a federal lawsuit alleging discrimination against female brokers who received lower retention bonuses. More recently, cases like Silicon Valley’s Ellen Pao’s, have reminded us of the unfair biases and practices that happen at all levels of management.
A 2013 study by UK-based Chartered Management Institute finds the gender bias in salaries is being aggravated by bonus to male managers being 50% higher than that of female managers. The disparity between these is unfortunately striking, and very real. And given the nature of bonuses, they’re also very hard to discuss or remediate for obvious confidentiality and subjectivity reasons.
A “pay-by-committee” solution, whereby executives are evaluated strictly in terms of performance and results, has shown women CEOs on boards of FTSE350 companies to clearly outperform their male counterparts, according to a survey by the University of Southampton.
Why then don’t more companies adopt this, or a similar system, to award bonuses strictly on the basis of performance and results generated?
The Corporate Sis.
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by Solange Lopes | Mar 18, 2015 | Career, Make More Money
Photo credit: gobankingrates.com
So we’ve been discussing getting the bonus you deserve, and what not to do with all your bonus moolah once you get it. Now, one question most employees ask themselves after receiving their bonus is, why did I have to pay so much tax on it? Geesh…
Sorry to burst your bubble, but your bonus does get taxed. It’s intact considered “supplemental income” by the IRS, which recommends a flat 25% tax rate to employers. Keep in mind some employers do follow this, and others choose not to, preferring to combine your bonus and you regular pay together and withholding tax at the normal rate.
It may look like you’re taxed more on your bonus than on your regular pay. What really happens is this “supplemental income” may just end up placing you in a higher income tax bracket, which in turn makes it look like your withholdings are higher. However, no higher tax rates are used for bonuses.
My $0.05: You know the saying, “there’s no certainty in life other than death and taxes”. That holds true for your bonus too. So prepare yourself to see a chunk of it go to Uncle Sam every year! Keep in mind you can also beat Uncle Sam at his own game, by 1) saving some or all of your bonus money in your 401K (check with your employer how bonuses are handled in this case though, practices may vary from company to company), 2) investing it in a diversified portfolio,or 3) contributing in multiple accounts like a health savings account or Roth IRA to reduce your taxable income.
Or you could buy those shoes…
The Corporate Sis.
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by Solange Lopes | Mar 18, 2015 | Career, Make More Money
Photo credit: http://www.entrepreneurialwoman.ca
It’s bonus day! You’ve asked and negotiated to get the best you deserve, and now, as you happily log into your bank account with much anticipation, you notice it’s finally here! As plans start accumulating in your head, you begin to envision new shoes, gleaming purses, spa days and relaxing vacations by the beach…Or if you are the more reasonable type, you may find yourself dreaming of becoming debt-free and reducing your monthly cash flow.
If you’re one of the few fortunate enough to get a yearly bonus, there are many theories out there about what you should spend your bonus on, how you should invest it, turn it around, and make it last a lifetime! Yet, as far as I can remember, for the longest time I have received bonuses and..do not remember what I did with them! And when I did remember, I’d rather not list some of the splurges I’ve made here. So in the interest of not repeating the same mistakes twice (or three, four or five times), here are 5 things not to do with your bonus:
- Make on a big ticket purchase that is not urgent or really necessary: Unless you’re buying your significant other or family member the gift of a lifetime, or helping them out of a serious (read life-threatening) jam, blowing all your bonus money on that Rolex watch all at once may not be your best bet…
- Not saving any of it…at all! Treat your bonus as any amount of money coming in. Unless you really have unexpected emergencies, you should save some for the rainy days, or any day for that matter.
- Treating it as it it were your regular pay: Bonuses are infrequent in nature. As such, don’t use it in the same way as you would your regular paycheck. Whether you decide to pay down debt, invest or save some of it, choose to use at least some of it to set you ahead!
- Go on a splurge campaign! Just because you have the money now does not mean you’ll have it forever. Avoid over-spending and splurging on more items than you need to.
- Do nothing fun with it! On the flip side, not enjoying your bonus money at all can backfire on you, usually in the form of excessive shoe-shopping as a form of retaliation. Enjoy some of your money, and use the rest for wiser, long-term goals!
What advice do you have on what not to do with your bonus money?
The Corporate Sis.
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by Solange Lopes | Mar 17, 2015 | Career, Make More Money |
Photo credit: madamenoire.com
So you’ve just had your annual performance review meeting with your manager, and s/he just told you you got yourself some extra spending (or saving) money in the form of a pretty generous bonus. Ka-ching! Can you say good news, especially since you’ve been eyeing that Michael Kors bag for months? Now, do you share the awesome news with your colleagues, or should you keep your good financial fortune to yourself? Is there a “sharing etiquette” when it comes to bonuses at work?
My $0.05: While it’s totally understandable (and even recommended by fellow professional shoe addicts) to call your bestie and schedule your shoe-shopping calendar post-bonus, blabbing how much extra money you got (or didn’t get) as a bonus is a more delicate topic to discuss at work. Keep in mind bonuses are performance-based, and as such imply a certain level of ranking between colleagues, which can lead to unhealthy comparisons.
There’s no rule forbidding you, or anyone else, to divulge your bonus amount. However, for the sake of your own reputation and in the interest of team harmony, you may want to err on the side of caution! When in doubt, just smile!
What are your thoughts? Would you divulge your bonus amount at work?
The Corporate Sister.
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by Solange Lopes | Mar 17, 2015 | Career, Make More Money |
bonuses – Photo credit: http://www.unmarriedamerica.org
You may be able to buy more shoes this year, as you cash in that bonus check…According to a report from New York State Comptroller Thomas DiNapoli, the average bonus in Wall Street rose 15% to $172,860 in 2014. Not too bad huh? Especially since this is about three times more than the median US household income.
For the rest of us who are not privileged enough to be on the Street, a recent Aon survey found a record 12.7% payroll share was spent on performance-based bonuses in 2014. Judging by the rate at which variable pay structures are becoming the “It” thing at work, being able to negotiate for yourself the bonus you rightfully deserve (and some more) may just be your smartest bet going forward.
While many bonus decisions carry their weight of subjectivity (and resulting bias), there are a few tips and tricks out there to help you maximize your performance-based rewards (and increase your shoe collection in the process):
1. Help set your performance goals! When it comes to determining the criteria you will be judged on to be awarded a bonus, you want to be in on the conversation. As you initially discuss your yearly goals with your manager, or write your own self-performance review, be clear on your goals for the upcoming year. Don’t sell yourself short, but be careful not to bite more than you can chew too!
2. Keep in constant touch with your managers! In other words, don’t leave the bonus talk until the last minute! Keep in touch with your manager, make your bonus case all year long by keeping him/her aware of your accomplishments throughout the year. Think of it as a year-long self-promotion campaign!
3. Don’t be so individualistic! In today’s team environment, don’t just focus on yourself when presenting your case for a bonus. Remember, it’s about the team! What have you helped others accomplish? How have you led the team to success? Think, and speak, of your bonus in a context of “team spirit”!
4. Be subtle! Self promotion is far from being easy. Unless you own the art of bragging about yourself, you have to be smart about it. Pay careful attention to your manager’s personality, and tailor your approach to it. This is especially (and unfortunately) true for women in the workplace, who tend to be perceived as aggressive more easily than men.
5. Anticipate your future performance! Keep in mind bonuses are also used to keep top performers around, based on anticipated future performance. So don’t be afraid to get a bit ahead of yourself, and talk about your future contributions to the team and Company! You’ll be perceived as more valuable and more prone to get a larger bonus!
Any additional tips on maximizing your bonus?
The Corporate Sis.
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by Solange Lopes | Aug 21, 2014 | Make More Money |
Should you invest in your 401K – Photo credit: beyondblackwhite.com
Duh. Yeah. Many of us find it obvious to invest in our 401Ks as a source of retirement income, and even as a savings pool. And rightfully so, considering the perks a 401K plan can offer to employees including, but not limited to, employer matching, ability to borrow against it to purchase a home or pay for your child’s education, and the sheer fact that your money is growing tax-deferred.
Well, this is all fine and dandy, but because I like to keep my snack and money options open, I’ve always wondered…
1. If your employer’s plan is really not the cat’s meow: if your contributions are not matched at all, and the plan is frankly antiquated, think about setting up an Individual Retirement Account (IRA). Some good companies for this include Schwab, Vanguard or Fidelity.
2. If your debt is higher than your heels (i.e. You’re drowning in debt): if high-interest consumer debt is keeping you up at night, PAY YOUR DEBTS FIRST! If you can live with the moderate interest or can write off some of your debt (such as mortgage), your 401k may be a good option.
3. If your 401k is costing you your first born child (read: outrageous fees and costly funds): Scour the market for decent cost, deductible IRAs. You may get a better deal (and get to keep your first-born too)…
The Corporate Sis.
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