Business 08 October 2018
It was announced yesterday, that in the wake of Starbucks’ Vice Chair Howard Schultz’s departure, the revered company executive Mellody Hobson will be taking his place.
Hobson, who boasts an impressive resume as a previous board member at Estée Lauder, DreamWorks Animation and Groupon, is the latest in a string of strategic post-crisis executive appointments that have caught the attention of true diversity advocates.
While the most recent HR move can, one side, be viewed as a natural promotion for a woman who has her fair share of experience and genuinely deserves it, it can also be looked at as a reaction to what Starbucks has been through in recent weeks. With the entire company taking four hours out of its workday last Tuesday to conduct racial bias training following a racially divisive scandal that caught the nation’s attention, it’s clear that they are under the “wokeness” microscope, and feel compelled to make it publically known, ever so slyly, that steps in the right direction are being made.
“I think Starbucks is sending a strong message in doing this,” Jeff Dickerson, a crisis communications adviser in Atlanta, told the Washington Post. “They’re bucking the trend, because ordinarily when large companies find themselves in this situation, they have counsel who will advise them against" admitting they'd done anything wrong.”
Without wanting to diminish the achievements of this incredibly qualified boss woman, is it perhaps, a little convenient that this appointment was made so close to the disaster that occurred not so long ago? Is this perhaps the most beautifully packaged PR stunt Starbucks has executed, superseding even that of the Unicorn Frappuccino?
Does this harken back to Uber’s genius move to appoint fan favorite Bozoma Saint John to her position as Chief Brand Officer in the wake of Travis Kalanick’s disastrous fall from grace? Is there a semblance of a pattern here?
And while sure, the end justifies the means [meaning we are always happy to see more female representation no matter the reason], wouldn't it be better practice to have women, and diversity as an integral part of the growth of the company from the get-go? Rather than this be a reactionary occurrence when a company is in panic mode, or when facing a crisis that begs a cataclysmic change of company culture, would it not be better to begin developing programs that aid those at a disadvantage entering the workplace?
Talking to Fortune last year, Ursula Burns, the first African-American woman to become CEO of a Fortune 500 company in Xerox, noted that the reason there are so few women of color at the top of the totem pole is because of the schooling in the country. “Not enough are coming out of the education system to get them all the way through to the C-suite,” she said. And while that might be true, the institutionalized bias against women in the workplace is another major contributing factor that goes almost unrecognized.
This self-serving, and somewhat predictable damage control move begs the question: Are these diverse women being promoted because of the mistakes of white men? And if so, why aren’t more companies proactively hiring or promoting diverse women in order to avoid these PR nightmares?
We recently explored the notion that women have been hired or promoted as CEOs of flailing companies, in order to become a scapegoat for a company’s failures. The “glass cliff,” the “glass ceiling’s” younger, more nefarious sibling, represents a situation whereby companies that are in trouble and looking for new leadership, turn to men first to help them out. But when these men, foreseeing a painful career catastrophe, turn them down, they then look to women, who invariably jump at the opportunity to breakthrough the proverbial glass ceiling, and take a job at the helm of a sinking ship.
“I think it’s good that she takes it [the job as CEO],” former Yahoo CEO Carol Bartz told Freakonomics Radio. “I have no problem with that. But it’s not that all of a sudden the boards wake up and say, ‘Oh, there should be a female here.’ … It’s easier to hide behind: ‘Well, of course, that failed, because it was female.’”
So what do the glass ceiling women, like Bartz, and new hires, like Hobson and Saint John have in common? That they weren’t considered before there was a crisis.
Three years ago, I made a deal with myself - I wanted to have $100,000 saved when I'm 25. But I didn't mind if it didn't happen until the day before my 26th birthday.
One of my biggest priorities in life has always been to save as much money as possible — and I owe much of that to my parents, who made sure I had a strong financial education at a young age.
My dad even helped me start a vending machine business when I was nine. The experience taught me essential skills like how to pitch a business, cope with rejection and open a checking and savings account.
For the past three years, I've never made more than $80,000. About a year ago, I reviewed my rate of savings and investments and realized that I was on track to save $100,000. With only a car loan away from being debt free, I've got another year and $10K to go!
I want to acknowledge that privilege is a key part of my story. I'm white, I come from a middle-class family, and I was able to graduate college without any debt. All these things helped a great deal.
But my parents didn't raise me with a silver spoon. Paying for college was a collaborative process. We'd sit down at least twice a year to discuss how we were going to pay for the next semester. The first question they'd always ask me was: "How much can you contribute?"
I've been fortunate. But it also takes a lot of hard work, sacrifice, and responsibility to save and maximize your earnings. Feeling motivated and knowing that I'll be prepared for whatever life throws my way fuels my drive to keep making smart financial decisions. Here's how I'm getting to $100K.
- I side-hustled
This kick-started my journey towards six-figures. In addition to saving the majority of my 9-5 salary, my first year of freelance social media marketing made me quite a bit of cash that I could immediately save. I was able to establish both a SEP IRA and a fully-funded emergency fund with my earnings.
2. I started investing early
Knowing that compound interest is so important, I wanted to start investing early to have my money work for me. Once I started my first big-girl job, I opened my first Roth IRA. Starting to save for retirement at age 22, I was able to max out my Roth each year and also contribute to aSEP IRA and a non-retirement investment account. My first job out of school had a 401(k), but you couldn't contribute until you were there at least a year. Knowing I wasn't planning on staying long — I was at that job for a year and a few months — I opened a Roth 401(k) and then rolled my earnings to my Roth IRA.
3. I negotiated salary offers and raises
Negotiating should be a collaboration, not a confrontation. Growing up, I watched my father sit on hold, patiently waiting to negotiate our cable and phone bills. Negotiation was always part of my life, and I grew up with parents who knew how to do it. So when I was offered my first social media freelance gig, I negotiated over $10k more than they offered. And after achieving a 20% bump at my first 9-5, I negotiated $20k more than what was offered at my next job. And $10k more at the next job. If negotiating for raises freaks you out, here's a guide that can help.
4. I've automated my savings
Automating your money not only makes your life easier, but it makes you feel like the percentage you're saving just doesn't exist. I have 26% of each paycheck automatically deposited into a high-yield savings account. This savings account is purposefully at a different bank than my day-to-day checking account, so I'm less likely to withdraw from it and less likely to think about it. This "set it and forget it" level of financial freedom was something I worked hard for -- through money diarying, budgeting, and conscious spending. So now, my savings amount is completely on autopilot.
At the age of 24, I know that I am on the right track to make my goal a reality. Inspired by my own journey, I wanted to help women everywhere to have that same feeling of confidence that financial education gives — and get information from someone who isn't an old, rich white dude. As a money speaker and coach, I run Her First $100K, a financial literacy platform for millennial women on the path to get their first $100K too.
It's possible to achieve your first $100K — whether that's debt paid off, earned, saved, invested, or something else. With intentional strategies and focus, you've got this!