Money Talks—But It’s Not Speaking to Everyone this Labor Day

I’ve got money on my mind, and Labor Day is an appropriate day to tell you what I have been thinking about. After all, this holiday is meant to celebrate the common American worker. That’s you and me, hardworking people who are trying our best to pay our bills, support our families, and make ends meet. Many of you write to me to tell me that’s harder right now.

Show Me the Money

This article will explore the current situation regarding money and compensation in America along with real-life strategies for employees and company leaders to consider about how to address them. Money can no longer be a taboo or forbidden subject. The silence is broken. Employees are talking and they are worried. The stakes are high and getting higher every day.

Everyday life is expensive, isn’t it? 2025 is a time when most every worker is experiencing a personal wage gap. This is a gap between earnings and the ability to pay your bills. If you have children, the pressure to buy the right shoes, mobile phone, backpack, etc. has just begun with the start of a new school year. Oh yeah, Christmas is right around the corner too. Regardless of what gender you are, this gap is causing fatigue, stress, sleepless nights, and burn out.

The Wage Gap by the numbers

In 2025, the wage gap between women and men has barely budged in the past twenty years. White women earn 83 cents for every dollar that men make, Asian women earn 79 cents, Black women earn 66 cents, and Latina woman earn 58 cents. CNBC says that it will take 134 years to reach parity given the current progress or lack thereof. While it might seem that the wage gap is only a women’s issue, the reality is that it adversely impacts men, children, and whole families.

In my experience training Executive Assistants worldwide, I see that the profession is dominated by females – 93-97%. In general, women are not trained to negotiate money and it can be an extremely difficult process which they would prefer to avoid. This avoidance partially accounts for the wage gap since the data shows that men negotiate more and better than women. Training on how to negotiate is essential for closing the wage gap.

It’s Personal – Have you ever felt like this?

I lived in Houston in the 1980s and that is precisely when the oil bust happened. My husband lost his job and we could not pay our bills from my job alone. Despite our best efforts, our modest house went under foreclosure. That was the year when money was so tight that I had to decide if I had enough money to go to the grocery store and still have enough gas to go back and forth to work for the week.

Have you ever lost your job? The assault on your nervous system, your confidence, and your sleep is as real as it gets. If you know these feelings, you most likely care a great deal about figuring out ways for you to never feel that way again. I sure did and still do.

Here are relevant factors impacting our preoccupation with money and our struggle to sleep.

1. Raising kids isn’t cheap The average cost of raising one child in the United States from ages 0-17 is $322,427.00, excluding college. (Approximately $19,000 per year.) This figure varies due to geographic location, housing costs, and what kind of childcare is utilized.
2. The cost of living The cost of living expenses in the United States is rising. For a single adult to live comfortably, the required income is approximately $84,281.60, while a family of four needs $208,748.80, depending on location, taxes, travel costs, and lifestyle. Here is state by state data from World Population Review.
3. The cost of staying healthy Healthcare costs are rising, too. In 2023, total U.S. healthcare spending reached $4.9 trillion, a 7.5% increase from the previous year. This translates to roughly $14,570 per person, according to the Centers for Medicare & Medicaid Services (CMS). Older adults (65+) spend $22,356/year on health care.
4. Two salary households and second jobs are the necessary norm Dual-income households are the norm in more than 50% of households in the United States. 14% of households have a part-time earner in addition to a full-time income earner. One third of American workers hold down a second job in order to pay the bills.
5. Cost of Retirement One in five Americans over the age of 50 has no retirement savings, and more than half worry they won’t have enough money to last in retirement, according to an AARP survey. It is estimated that you need $1.2 million dollars to retire comfortably.

Why Closing the Wage Gap Matters

Addressing wage equity isn’t just ethical, it’s strategic. Companies that close the gap benefit from:

• Reduced turnover of employees
• More financial stability for families and companies
• Better outcomes for children and families
• Stronger retirement security for mature workers

What can employees do about their wage gap?

• Seek to be employed by companies that are committed to a culture that aligns with your own values around compensation and benefits. Carefully read the Careers tab on company websites.
• Be ready at all times with your current and detailed job description, along with your resume and compensation history. This data will support you in all discussions around compensation and your value to the organization.
• Are you applying for a new job or preparing for your annual review? Do your homework on market value for your role using Linkedin, Indeed, and Glassdoor. Negotiate by asking for a salary review and having your business case prepared. If you are a well-liked high performer, your leverage is that your team does not want to lose you.
• Tolerate the discomfort and initiate the money conversation. Ask. You don’t get if you don’t ask. One manager said, “Bonnie, if I don’t hear there is a problem, I think there isn’t any.” Another said, “I had no idea how underpaid my assistant was until she told me the number. I was embarrassed and we fixed it fairly quickly. I won’t let that happen again.” Don’t assume that your manager knows your salary details.

What Companies Are Doing (Links to examples included)

Forward-thinking organizations are already implementing policies that are successful for both the employees and the company.

• Conduct an annual salary audit to determine the gap (Salesforce)
• Fair and equitable maternal and paternal paid leave policies (Netflix)
• Be known as a company with family friendly policies that does not have “motherhood penalties” for working mothers. These penalties manifest by women receiving lower salaries, not being promoted, and being viewed as a less valuable employee compared to employees who do not have childcare responsibilities. (Hilton)
• Promote fair workplace flexibility in schedules and dress code, such as “Purposeful Presence” (Cigna) and “Dress Appropriately” (General Motors)
• Commit to pay transparency and open discussions about career progression (Buffer’s radical pay transparency policy)
• Invest in professional development for the staff (Walmart, IBM, Amazon, and more)
• Profit-sharing to help close the gap (Publix profit sharing stock program)

 

 

 

 

 

 

 

 

 

 

 

Profit Sharing as a Cultural Strategy

In a workplace where employees are struggling financially, they struggle even more when they see how leaders are being compensated. According to the Economic Policy Institute (EPI), CEO pay has increased 1,460% since 1978. CEOs were paid 399 times as much as a typical worker in 2021. The company leaders who are choosing to share their profits with the employees are experiencing high retention, increased productivity, and improved job satisfaction, not to mention boosted profits.

IRL Case Study – Kate H., Executive Assistant

Kate grew up poor, but she did not know the true extent until she was 35 years old. That’s when her biological sister found her in 2020. When Kate was 18 months old, her parents decided to put her newborn sister up for adoption because they could not afford to feed both of them. They never told Kate she had a sister.

Kate managed to go to college on scholarships and loans, taking one or two classes at a time while she worked. At one point, she worked on a horse farm and lived in a small studio apartment in the stable. In exchange for working with the horses, she received free room and board, utilities, and $400/month. At another point, she lived out of her car for two weeks and showered at the college gym. At still another time, Kate worked as a mystery shopper for a pizza chain so she was able to eat as part of her job.

At age 20, Kate was pulled over for speeding and had to take a driving class. The teacher said, “If you remember one thing from this class, it is to be sure to open a Roth IRA.” Kate did not know what that was, but she found out. At a thrift store, she bought a copy of Dave Ramsey’s book “The Total Money Makeover” and then discovered Ramit Sethi’s book “I Will Teach You to Be Rich.” Kate: “These books taught me how to get out of debt and how to ask for a raise. I know I will never be poor again.”

Now at age 40, Kate has worked as an Executive Assistant for twelve years in a privately owned company supporting the COO. Consistently proving herself invaluable, Kate was frustrated by the “salary ceiling for her role” and being told that she had gone as far as she could financially. Six years into a job that she loved, Kate felt stuck and disrespected.

She decided to send a written proposal to her executive that, in addition to a pay increase, she receive 1% of her executive’s bonus at the end of the year. Bonuses were performance driven and based on company profits. Essentially, if the company made a profit, the COO would receive a bonus, and now, so would Kate. The leaders agreed to her proposal. As a result, Kate feels respected and valued for her contribution.

This is Kate’s advice for women. “I was nervous at first, but actually getting what I asked for built my resolve and confidence that is here to stay. Put all your proposals in writing and ask for the salary you deserve. Ask for it and keep asking. Too many women don’t ask. Don’t take no for the final answer. Get to be okay with uncomfortable. You are worth it.”

Kate plans to retire in 2026 and continue to work part-time as a financial coach as she and her husband travel full-time exploring the world.

The Path Towards Closing the Gap

We have lived through the Pandemic and the Great Resignation. In 2025, we are in danger of losing more top talent because of the wage gap. We can see that the wage gap isn’t just a set of numbers—it’s a story of genuine struggle, lost potential, strained budgets, and compromised futures of flesh and blood humans. But it’s also a solvable problem.

By recognizing wage equity as a larger workplace issue that deserves high priority status, we can build a problem-solving coalition that includes enthusiastic buy-in from leaders, staff, and shareholders.

Leaders who are determined to recalibrate salaries designed to close the wage gap will mean a more stable workforce. That’s a future worth fighting for.

Our kids are watching. Labor Day is a great catalyst for the conversation and an action plan.

 

I am Bonnie Low-Kramen, TEDx speaker, author of Be the Ultimate Assistant and trainer of Executive Assistants all over the world. As part of my work to build ultimate business partnerships,  I was published in Harvard Business Review and featured in a Forbes online cover story. In the research for my second book about the workplace Staff Matters, People Focused Solutions for the Ultimate New Workplace, I have had over 1,500 conversations with assistants, leaders, HR professionals, recruiters, and business school professors in 14 countries and 38 states. I am excited to work with you towards building your ultimate workplace. Click here to set up a time to speak with me about your training needs which can be delivered virtually or in person.