Salary Negotiation: A Tool To Even the Playing Field Against Pay Disparity
In celebration of Women’s History Month, this article
focuses on common professional challenges faced by women in the workplace. In
this article, I discuss gender pay disparity and then empower women to leverage
salary negotiation as a tool to even the playing field.
What do we tell her?
Imagine that your teen-age daughter came home from school
deeply distressed. She tells you that her teacher told her that as a girl, the
best grade she could accomplish if she did everything right was a 3.4 or B+. What
would you tell her? How many people
would it take to keep you off of that teacher?
What if her best grade was “adjusted” to 3.78 or an A- due
to the results of others including boys in her neighborhood and other
factors? Would that make things better?
This scenario may seem extreme and impossible to imagine due
to our laws. However, this legally occurs daily at many workplaces around the
world including America through gender pay disparity.
Pay Disparities
Gender pay disparity is a fact in America as
well as in many countries around the world. Women
in America are being paid up to 21% less than their male counterparts. The
statistic can increase to up to 45% for women of color. Glassdoor
research conducted by Harris Poll in 2015 cited an adjusted wage disparity of 5.4%. This adjusted wage as
cited by Glassdoor means that a woman earns 5.4% less just because she is female. At initial glance, 5.4% may seem innocuous; but when we apply the math 5.4% disparity can be staggering. A woman earning
$94,600 (versus a $100,000 male salary) loses $54,000 in income over 10 years for
no other reason except that she is female!
Salary Negotiation: the missed opportunity
Since we know that salary disparities do exist, let’s
explore what women can do to maximize their salary potential and empower them
to confidently increase and negotiate their salary. In the Harris poll survey, Glassdoor
also found that when it came to salary increases, males were more confident
than females that they would receive an increase within the next 12 months. 59%
of those polled admitted to accepting the initial offer without negotiating
their salary. Of those who did
negotiate, only 10% report that they received more money post negotiation. Why
are so many people hesitant to negotiate salary even when they believe they
should be paid more? The answer may
surprise you.
Got Confidence?
Early in my management career, I was newly divorced and had
been “right-sized” (I know, right?)
from a company I thought would be where I would retire. I found myself smack
dab at a cross-road. To be honest, I was terrified. There was so much
uncertainty in my life at the time, I felt like I had nothing to lose. I
interviewed for a supervisor position that I probably wasn’t qualified for, but
somehow managed to get a call for an interview. The cards were well stacked
against me. I had quit college to get married, I was both female and minority
at a time when there weren’t many of either in the industry and I had never
worked in a warehouse before. Being combination desperate and naïve, I
unequivocally told the General Manager what my bottom line was. It was more
than I ever made and wasn’t even sure what the salary range for the position
was. I walked out of that interview that day surprised at my audacity convinced
that I had screwed up the interview. I was pleasantly surprised when I got the
position and a higher salary than my
bottom line! I was later told that my
“spunk” was what helped me get the position.
Here’s what I learned: People naturally gravitate to someone
who exudes confidence. Someone with high confidence in the value of their contribution
will still attempt to negotiate despite being told by a recruiter that the
salary offer is final. Some would argue that while they are confident, why mess
things up when there is an offer on the table. One could logically question why
would having a respectful salary
discussion be considered a negative?
After all, the company must recognize your value because they extended an
offer. Why allow them alone to define your value? Salary negotiation is expected. It’s not an
adversarial thing. In fact, most companies want their new employees to feel appropriately
compensated and prepare for negotiation. Would you really want to work for a
company that would rescind an offer just because you attempted to negotiate a
better salary?
When does Salary Negotiation begin?
Salary negotiation begins with your resume! The content in
your resume communicates the value you potentially bring to an organization. For
this reason, it is important that your resume content places you in the best
light and aptly reflect your talent. Designs are great, content is what
matters. The next step in the salary negotiation is during the interview
process. How questions are answered helps the company determine where you could
fall within the established salary range for the position (For example, bottom
of the range for entry-level experience). In addition, your presentation during
the interview must also match the resume content and interview communication. During
negotiation, stating that you belong in the higher end of the salary range but
fail to effectively communicate it in the interview will not result in the
higher salary. Your value should be reflected throughout the hiring process and
in everything you do.
7 Simple Tips to Salary Negotiation
There are many suggestions and tips to remember when
negotiating your salary and a plethora of resources available on the topic. Keeping
it simple, I am offering seven easy tips to salary negotiation that I have used
in my own career and have worked.
Know Your Value/Be
Confident. I often talk about the effect of having confidence. It is
important that you are confident and realize the value that your unique talent,
knowledge and experience brings to the table. Understand and be able to
communicate what differentiates you. People are willing to pay for what they
value. Keep in mind that you are negotiating with people who represent the
company. Focusing on “the company” as an entity makes it seem as if you are dealing
with an impenetrable adversary.
Sharpen Your
Perspective. Approach the negotiation as an equal participant. Don’t ask
for permission or apologize. Focus on
full compensation which include base salary, benefits, bonuses and any other
amenities provided. Tools like salary.com,
glassdoor.com,
payscale.com, including executive compensation, paylab.com and askamanager.org all offer useful tips on
salary.
Have clear goals.
Decide on what you want or need in terms of compensation and base salary. Understand what your minimum compensation
package is and what are you willing to compromise to get to your goal. (For
example; are you willing to take a lower base salary for lower medical costs or
higher medical costs for higher bonus potential?)
Do Your Research.
Understand the industry
salary ranges for your position. Research compensation. Use sites like
Glassdoor which will also provide company reviews. Tap into LinkedIn contacts and
your network who can provide insight on key issues the company has that can
leverage your talent.
Prepare for the
Discussion. A Glassdoor
article by Amy Elisa Jackson offers tips by Josh
Doody, Author of Fearless Salary Negotiation on what to do at discussion
time including strategic word use.
Additional tactics
to prepare for include low salary offers, extended silence and the fear of loss
to cause you to accept the initial offer. Maintaining focus on your established
goal and keeping emotions at bay will help neutralize the effect of recruiter tactics
and the pressure of the negotiation.
Get it in writing.
Any official offers should be made in writing. Allow 24 hours to think about
your decision before responding to prevent making a rushed decision. Be sure to
ask
clarifying questions including how their number was derived. This information
will help you best determine how to leverage your point.
Be prepared to walk
away. You may have to make the decision to walk away because your minimum
requirements were unmet. In a negotiation, either party may decide to walk
away. Remember not to take it personally.
it is time
to take control of your career
Salary disparity is real. Salary negotiation is a tool that
can be used to even the playing field. Salary negotiations are a normal part of
the hiring process. It doesn’t have to be difficult, but it does require work.
The key is that you have the ability to control your career. Don’t allow fear
to keep you from making decisions that empowers you and maximizes your
potential. What are you prepared to do?
Nanette Kirk is the
President and CEO of NetKi Enterprises, A resume writing and motivational services
company. We are helping our clients reach newer heights in their career. To
learn more about us, our resume design templates or online course, Write a Captivating Resume like the
professionals! Go to www.netkienterprises.com or be inspired at www.netkient.com. Follow me on LinkedIn and the NetKi
Enterprises Company page on LinkedIn.
I love information! While many resources share identical
information, the following are a few additional resources you may also find interesting
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