How much do you earn?
Don’t want to say?
Hm, I didn’t think so.
A few months ago, I sat down with two close friends and spoke about money. It was a candid conversation, fueled equally by frustration and cheap wine. With a degree of candor, we shared our incomes, slowed in our tracks by the voices in our heads that told us ‘no’.
Like politics, religion and sex, salaries is a topic of conversation often left untouched. Opening the dialogue felt like a mini-revolution was taking place, albeit within the four walls of a Waterloo apartment in the inner city of Sydney.
We were aware of the Federal Government’s fresh tone around pay transparency and decided that if we were to welcome change and seek advice, we as workers had to be open and honest about where we were financially.
Old habits die hard, however. We were fearful - that what was to be said would lead to judgment from others. We realised that by not sharing our incomes with one another, we were dooming ourselves into assumption-making.
So what if Kate’s income is lower than that of Ryan? Higher? Distinct for our age, gender, or the area in which we live? Perhaps discussing numbers would arouse tense conversations in others (or within ourselves), and we were hesitant as a result?
Australian digital publication, Refinery29 runs a popular segment titled ‘Money Diaries’. In it, anonymous contributors of various working ages reveal their salaries. It’s a telling feed with incomes varying exponentially person-to-person, largely due to the industry in which they work.
The segment’s existence proves our innate curiosity; to serve as flies on our peers’ walls. Social media may provide a window into how others live, but it only tells half the story. Home ownership, designer wears and international trips aren’t always the be all and end all. The same can be said about our salaries.
I posed the question to friends, friends-of-friends, and anyone between the ages of 27 and 41 who was willing to talk money: how much do you earn? Sheltered by anonymity and much to my delight, people bared all.
My survey paved the way for some unexpected insights. From this data, I created an average. Let’s call that average: Jamie. Jamie is 31 and identifies as female. She lives in a major Australian city and works 40 hours per week on average.
An employee at a first-level management level, Jamie’s gross wage is $AUD94,225 annually (before tax and not including superannuation payments). Jamie is part of the 55 per cent who indicated they were not entirely satisfied with their current salary.
According to the latest stats released by the ABS, Jamie’s salary is actually in line with the national average. Conversely, nearly half of us don’t believe that our salaries are on par with that of other Aussie workers our age.
It’s a complex discussion. Seeing numbers that floated far beyond my own made me cringe, particularly as few of those I spoke to work long hours. We need to keep in mind that salaries are largely industry-based and that by the time we hit our 30s, the take home pay of an engineer will no doubt exceed that of a retail assistant.
“Nearly half of us don’t believe that our salaries are on par with that of other Aussie workers our age.”
Does knowing our peers are earning $95k empower us to ask for more? Or disparage us into feelings of self-doubt? Without taking the myriad of additional factors into account, such as one’s education, working hours, job level, skill set, and industry demand, can we really truly compare apples with apples when it comes to how much we earn?
Interestingly, over half of respondents were on the same page in that they felt pressure to earn more money to avoid falling behind their peers. Having yielded results whereby a quarter of us are earning $150,000 or more, I found this feedback surprising.
It shows that despite some of us raking in numbers as high as $300,000 annually, perceptions around our incomes aren’t always so linear. It was clear that respondents were considerate of the market average salary for their roles. And despite being aware of those averages, some say they expect they could be paid a higher wage elsewhere.
For nearly half of us, a key reason we’re not earning more is because our employers won’t pay us more. Some of us were recently granted a pay rise. Others say time spent child-rearing and caring for others prevents them from earning more. A quarter of us also shared that we’d recently received a pay rise.
Although, all other signs suggest that raise may not have been enough. We’re also well aware that women continue to earn less than men across the board (which is a larger conversation best saved for another day).
Variables like salary negotiations can also come into play. One-fifth of all Australian workers receive an award wage, ie. a system of minimum wages set by the government. As a result, negotiations aren’t an option. For the rest of us, not negotiating can leave us with a number we’re not happy with.
So where do these insights lead us? When my girlfriends and I sat down to talk money, we had no real objective other than to simply spill the tea. We’ve realised that while the conditions of our salaries aren’t so black and white, what‘s become so apparent is a universal desire to earn more amongst our peers.
With 80 per cent of us living in a major city, the need to afford housing and basic necessities is a key driver of this desire. We fear that by falling behind our friends financially, the physical distances between us will only grow, too.
Our 30s are a time of great change. While the careers of some can sky-rocket, the social lives of others can slow with the welcoming of children or need to care for our ageing parents. No two lives look the same with so many variables at play impacting our day-to-days. Our salaries walk the same line.
We say - do the talking. Start the conversation. Tell me about it.
Like the highs-and-lows of parenthood, navigating a challenging boss, new ways to train, feuding friends and saucy situationships, seeking salary support and advice from friends is simply another conversation over coffee. And cheap wine.
Author’s note: A big, heartfelt thanks to all of my millennials mates who shared their salaries with me in support of this story.
And to Sarah and Ariana - thank you for being my inspiration and friends. x
Bringing the important conversations forward, go Hannah!
An interesting and insightful read - well done hannah!! 👏🏼👏🏼 subscribed ✅