Are You Playing It Safe and Paying the Price? How Risk-Taking Could Unlock Success for Overworked, Underpaid Women—Especially Black Women!

I had a coaching call with a woman, let’s just call her Denise, and she was explaining to me that basically she’s overworked and underpaid, and this is not a unique issue amongst Black women in particular.

Income disparities in America are a persistent issue, particularly affecting Black women. 

Black women are typically paid only 67 cents for every dollar paid to white men.

The wage gap widens with higher educational attainment. Black women with doctorate degrees earn only 65 cents for every dollar earned by white men with the same level of education, resulting in a substantial loss of income over their careers. This translates to a loss of $53,334 annually and more than $2.1 million over a 40-year career.

Black women earn 36% less than white men and 12% less than white women on average. Even among those with bachelor’s degrees, Black women earn significantly less than their white male counterparts. This disparity is not just limited to wages but extends to promotional opportunities, with only 58 Black women being promoted to manager for every 100 men.

Black households hold only about 15 to 20 percent as much net wealth as white households. For Black women, the wealth gap is stark, with single Black women household heads with a college degree having 38% less wealth than single white women without a degree. This limited wealth accumulation impacts their ability to build savings, withstand economic downturns, and maintain financial stability.

Despite these challenges, Black women are entrepreneurial, accounting for 42 percent of all women who opened a business and representing 37 percent of all Black employers. However, the income disparities they face limit their ability to grow and sustain these businesses effectively.

The COVID-19 pandemic exacerbated existing disparities. Black women were almost twice as likely as white men to experience job losses, furloughs, or pay reductions due to the pandemic. 

This is a complex issue but since freedom is my highest value, I say we need to break free!

1: Breaking Free from the Overworked, Underpaid Cycle

Many Black women, like Denise, are caught in a cycle of overwork and underpayment, struggling to make ends meet despite their dedication and qualifications. This issue is compounded by systemic wage gaps that leave Black women earning significantly less than their white male counterparts.

Rather than simply working harder, it’s time to take a calculated career risk. This might mean asking for a promotion, transitioning into entrepreneurship, or demanding better pay. By stepping outside of your comfort zone, you can break free from the cycle of being undervalued.

By taking this leap, you’ll create new opportunities for income growth and professional advancement. Plus, the sense of empowerment you’ll gain from advocating for yourself will positively affect both your mental and physical health.

Tips to Get Started:

1. Document your wins: Keep a detailed record of your achievements and the value you bring to your organization or business.
2. Build your network: Connect with other women who have successfully transitioned out of the overworked, underpaid cycle.
3. Schedule a conversation: Set up a meeting with your manager to discuss your compensation or consider exploring entrepreneurial options if promotions aren’t on the horizon.

2: Facing the Fear of Financial Instability to Achieve Freedom

Fear of financial instability keeps many Black women stuck in jobs that don’t pay them what they’re worth. This fear is exacerbated by the racial wealth gap, which leaves Black households with significantly less net wealth to fall back on compared to white households.

Start small by saving a percentage of your income and building an emergency fund. With a financial cushion in place, you’ll have more confidence to take career risks like asking for better pay, moving to a new company, or launching a business. Career coaching can also help create a plan that allows you to take calculated risks without jeopardizing your financial security.

By building financial resilience, you’ll have the freedom to make career moves that align with your true potential, leading to greater satisfaction and stability in the long run.

Tips to Get Started:

1. Start saving: Even if it’s small, commit to setting aside 5-10% of your income for an emergency fund.
2. Seek financial advice: Meet with a financial advisor or coach to create a plan that supports both immediate security and long-term growth.
3. Review your expenses: Identify areas where you can cut unnecessary spending and redirect that money toward savings or business investment.

3: Closing the Promotion Gap Through Self-Advocacy

Despite their hard work, Black women are far less likely to be promoted to managerial positions. The lack of upward mobility creates frustration and reinforces feelings of being stuck in underpaying roles.

Take a proactive approach to self-advocacy by outlining your value and pitching yourself for promotions. Coaching can help you refine your communication style, learn how to navigate office politics, and position yourself as indispensable to leadership. Additionally, seeking mentorship from other successful women can give you the guidance needed to move forward.

Closing the promotion gap not only improves your financial situation but also boosts your career confidence, allowing you to thrive in environments where you feel more valued and appreciated.

Tips to Get Started:

1. Research salary data: Know what others in similar roles are earning so you can ask for fair compensation.
2. Practice your pitch: Rehearse how you’ll present your value to management, focusing on the tangible ways you’ve contributed to the organization’s success.
3. Seek mentorship: Reach out to a mentor who can guide you through the promotion process and provide insights on leadership development.

4: Overcoming the Wealth Gap by Building Multiple Streams of Income

The racial wealth gap leaves Black women with significantly less wealth compared to their white counterparts. This makes it harder to build savings, invest in businesses, or retire comfortably, and many rely solely on their primary jobs for income.

Explore opportunities to create multiple streams of income through side businesses, freelancing, or investing. Coaching can help you identify skills or hobbies you can monetize. You can also network within Black entrepreneurial communities for inspiration and support.

Diversifying your income reduces reliance on a single job and accelerates wealth-building, giving you greater financial independence and peace of mind.

Tips to Get Started:

1. Identify skills: Think about skills you already have that could generate income outside of your 9-to-5 job.
2. Explore low-cost startups: Consider launching a side business with minimal startup costs, such as consulting, virtual assistance, or coaching.
3. Invest strategically: Look into low-risk investment opportunities that align with your financial goals and risk tolerance.

5: Reclaiming Power in a Post-Pandemic World

The COVID-19 pandemic exacerbated existing economic disparities, with Black women being more likely to experience job losses or pay cuts. This has made career recovery even more difficult and has reinforced the fear of taking risks.

Now is the time to reclaim your power by focusing on skills development and career pivots that take advantage of new post-pandemic opportunities. Online learning, professional certifications, and mentorship programs can help you upskill and reposition yourself in industries that are thriving in the current climate.

By upskilling or transitioning to a high-demand field, you’ll increase your employability, earning potential, and resilience against future economic downturns.

Tips to Get Started:

1. Assess your skills: Identify the skills that are in high demand post-pandemic and take online courses to improve in those areas.
2. Leverage remote work opportunities: Consider how the shift toward remote work might benefit you in terms of flexibility and new career prospects.
3. Stay informed: Keep up-to-date with trends in industries where women, especially Black women, can gain leverage and take advantage of new opportunities.

If you could take a career risk with no fear of failure, what would it be? How could you go for what you want in life and make it feel less risky? What’s one small step you could take to make that happen today?