Harbour Trust & Investment MgmtMike HackettVice President & Trust Officer1024 N Karwick RoadMichigan City, IN 46360219-877-3500mhackett@harbourtrust.comwww.harbourtrust.com

Women and Work: Why Salary, Benefits, and Work-LifeBalance Count

May 19, 2014

As you progress along your career path, there's notelling how far you'll go. But to fully reap the financialrewards of all your hard work, you'll need to takecharge of your own career--here are a few issuesyou'll want to pay close attention to.

Salary and career advancementHaving a well-paying job is a major concern for mostpeople, but it's no secret that there's often a gendergap when it comes to pay. According to a report fromthe Bureau of Labor Statistics, within mostoccupational categories, women who work full-time,year-round earn only 82% (on average) of what menwho work the same schedule earn.2

Getting paid less affects not only your currentpaycheck, but also your long-term assetaccumulation. For example, the less you earn, theless money you have to contribute to your retirementplan, and potentially the lower the amount ofmatching employer contributions you'll receive if youremployer offers them. In addition, because currentsalary is the benchmark for future pay increases andbonuses (which are often expressed as a percentageof your salary), the effect of a pay gap is cumulative.Unless corrected, pay disparities may widen over thecourse of your career.

Unfortunately, making sure that your pay is in linewith industry or company standards isn't always easy,but you can start by checking with your employer.Many employers have transparent compensationpractices and are happy to share salary ranges or payscales, the criteria for pay adjustments, and thetimetable for compensation review. You may alsowant to check out Internet salary websites to get anidea of a typical salary range for someone in youroccupation and geographical location.

You may also benefit from honing your negotiationskills. It's possible that you might be missing out onpay raises, not because they're unavailable, butbecause you haven't effectively communicated whatyou want or need. Here are a few tips:

• When meeting with your employer (or a potentialemployer), be prepared to articulate your strengthsand specific achievements. What unique skills andqualities do you bring to the table?

• Recognize that negotiation is a two-way street.Clearly communicate not only your salaryrequirements, but also what you offer the companyin return. Be prepared to address any concernsyour employer has.

• Don't assume that the first salary or pay increaseyou're offered is the last. Be prepared tocounteroffer.

In addition to pay, bonuses, and other tangiblerewards, nontangible rewards such as careeropportunities and a supportive culture are importantpredictors of job satisfaction and success. Here are afew questions you may want to consider whendeciding if a job or company is a good fit:

• What advancement opportunities exist?• How many women in the company hold leadership

positions? If the number is low, does the companyhave any initiatives in place to change that?

• Are career development opportunities available,such as management training, mentorshipprograms, or networking opportunities?

• Does the company have family-friendly policiesand benefits? Are employees encouraged to makeuse of them?

Employee benefitsEmployer-provided benefits are the backbone of yourcompensation package because they can helpprovide a financial safety net for you and your family.Know what benefits you have, and make sure you'retaking full advantage of them.

Retirement plans

Employer-sponsored retirement plans such astraditional 401(k) and 403(b) plans are a great optionfor saving for retirement. You can make pretaxcontributions (which generally reduce your taxable

As more and morewomen earn collegedegrees, change in theworkplace may beinevitable. According tothe National Center forEducation Statistics,women now earn 57% ofbachelor's degrees, 62%of master's degrees, and53% of doctoral degrees.1

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Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2014

IMPORTANT DISCLOSURES

Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, or legal advice. The information presented here is notspecific to any individual's personal circumstances.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purposeof avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or herindividual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believedto be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any timeand without notice.

income) directly from your pay, and any earnings onyour contributions grow tax deferred until withdrawn.Your employer may also match a portion of what youcontribute.

Although the number of employers offering pensionplans has been dwindling, in some industries pensionplans are still commonplace. If your employer offersone, make sure you understand the rules forparticipating and becoming vested in your pensionbenefits.

Health, life, and disability insurance

Employer-sponsored group health insurance is a veryvaluable benefit, especially if your employer pays asubstantial portion of the premium cost. Employersmay also offer low-cost group life and disabilityinsurance that can supplement coverage you alreadyhave.

Flexible spending accounts

Your employer may offer you the chance to contributepretax dollars to a health and/or a dependent careflexible spending account. Your contributions aren'tsubject to federal income taxes or Social Securitytaxes (nor generally to state and local income taxes).You can use these tax-free dollars to pay forhealth-care costs not covered by insurance or fordependent care costs such as child care.

Sick leave, disability, and vacation policies

Your employer's sick leave and disability policies canmake a big difference in your ability to take care ofyourself and your family members, withoutjeopardizing your job. Having generous amounts ofpaid time off (e.g., vacation or personal days) will helpreduce stress and allow you to take care of personalbusiness, and will ultimately benefit your employerthrough increased commitment and productivity.

Other benefits

If you work for a mid- to large-size company, it's likelythat you'll have access to other employee benefits.One valuable benefit is an educational assistanceprogram that will cover some or all of the cost ofcourses and job-related training that you may need toadvance. Another is an employee assistance programthat can help you deal with challenging personalsituations such as divorce or elder care.

Work-life balanceBalancing the demands of career and family is one ofthe major issues people face during their working

years. Women are often most affected, in partbecause fewer women than men have stay-at-homespouses or partners. For example, according to theU.S. Census Bureau, approximately 24% of marriedmen who work full-time and have children under age15 have stay-at-home spouses, in contrast with fewerthan 1% of married women in the samecircumstances.4 It's not surprising that withoutsomeone at home to handle family and householdresponsibilities, women who work full-time often facethe paradox of having to be their family's "CEO" whilealso striving to be seen as CEO material at work.

Fortunately, the traditional workplace is changing.Employers are increasingly recognizing that providingwork-life balance programs are key to having adiverse, gender-neutral workforce. All workers,women and men, single or married, with or withoutchildren, can benefit from flexible scheduling such astelecommuting or a compressed work week that canhelp them meet personal needs and responsibilities.Here are some tips that can help you make a flexiblearrangement work:

• Make sure expectations are clear both at homeand at work. If you're working off-site, will you beexpected to work during certain hours? Will youneed to be available for meetings? Does yourfamily understand your work routine?

• Be proactive in communications with your bossand colleagues. Consider how they might beaffected by your arrangement, but don't hesitate toask for what you need to be successful.

• Stay flexible. Your needs and your employer'sneeds may change over time, and the terms ofyour arrangement may need to be adjusted.

While workplace flexibility is gaining momentum,some employers have not yet embraced the concept,and some jobs or industries aren't well-suited to it. Butyou can still strive to better integrate your home andwork lives. As a starting point, enlist support fromothers. At home, ask your family members for helpwith household responsibilities-you really can't do it allyourself--or if you can afford it, consider hiringsomeone to help out. At work, look for opportunities tonetwork with women who have faced similarchallenges, and help support them by sharing yourexperiences and tips. And don't expect perfection.Balancing career and family is always a work inprogress.

According to the Bureauof Labor Statistics,approximately 71% ofwomen with childrenunder age 18 are in thelabor force.3

Sources1 U.S. Department ofEducation, National Centerfor Education Statistics, TheCondition of Education,20122,3 U.S. Department ofLabor, Bureau of LaborStatistics, Women in theLabor Force: A Databook,December 20124 U.S. Census Bureau,Current Population Survey,America's Families andLiving Arrangements: 2012

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