
In salary negotiation, there is nothing to fear but fear itself explains Brenda Bernstein
Many people are scared that by negotiating a salary package they will lose the position completelyâbut that rarely happens. You might lose the negotiation, but you wonât get a worse package than what you were already offered. And more often, youâll get what you want.
Maybe the people who are hiring are more scared of you than you are of them? They donât want to lose you and they have already chosen you as the best person for the job. So, you are in a position of power!
Salary negotiation works
The following story, one that a friend related to me just a couple of days ago, has become all-too-familiar: Judy (fictitious name), a part-time assistant in my friendâs office, was offered a full-time position at a salary lower than she deserved, and lower than she had made in previous positions. She felt underappreciated but wanted the full-time position. So, she went home to discuss it with her husband, and came back the next day with her decision. She would accept the job. She did not negotiate, but instead accepted the low-ball offer. What she didnât know is that the hiring manager had been prepared to give her moreâif she had chosen to ask for it.
Now, not only is Judyâs salary below her worth, but all her raises in the future will be based on a low starting point.
Youâre probably aware of the pay gap between men and women in the workplace. In the U.K., men are reported to make 18.4% more than women on average. Strikingly, this number varies depending on ethnicity. According to a study by the Fawcett Society, while the gap has closed significantly overall in the past 20 years, Black African women have seen almost no progress since the 1990s. Chinese women are now making more than white British men, but still less than their Chinese male counterparts. Pakistani and Bangladeshi women have a huge 26.2% gap with white British men, while white Irishwomen now make 17.5% more than white British men.
So, while it does seem that the gap is due to underlying sexism and racism, which contributes to educational and other socio-economic gaps, some of it could also be due to certain womenâs failure to ask for what they deserve. The Social Mobility Commission reported in January 2017 that many of these gaps persist even when controlled for educational attainment, role, and experience.
A study at Carnegie Mellon revealed that only 7% of women grad students negotiated vs. 57% of men. The average salary bump for negotiating was 7.4%, which translated to $500K over the course of a career!
If you are a woman who doesnât negotiate for your salary, I hope youâre getting that women DO succeed in salary negotiation. And you can too. Thereâs neuroscience at work here: if you think you will do well, you will do better than if you think you wonât do well. One way to convince yourself that you will do well is to know that others have succeeded before you.
Women face unique challenges in salary negotiation.
Women historically have a harder time advocating for themselves than they do for other peopleâbut they are better than men at ârepresentational negotiationââfighting to get something for another person.
The topic of the pay gap was discussed and addressed in a recent webinar presented by Professor Deborah Ellis for YaleWomen, “Salary Negotiation” (http://www.yalewomen.org/content).
Hereâs a nifty trick offered by Professor Ellis: If you think you donât deserve more for yourself, negotiate for someone else in your life, like your family, or even your dog. But ask!
There are also external barriers faced by women. The reality is that women who make demands can be seen as adversarial or confrontational.
How you ask makes a difference
Here are some techniques to work against the negative perceptions that are out there:
- Donât make demands in writing. Have a conversation, preferably in person or by Skype. Phone is okay too but itâs great to be able to see each other.
- Be friendly!
- Use âweâ instead of âIââmake it about the team and working together toward a common cause.
- Express enthusiasm about the job from the get-go.
- Never say itâs non-negotiable.
- Ask questions vs. making demands. Examples: âWould you consider a salary of $xxx?â âWhat would you think of my working from homeâŠ?â
- Use humor.
- Use the power of silence. Let them fill the silence.
Overall, keep in mind that the goal for both you and the employer is a continuing relationship. Both of you want to reach an amiable win-win solution.
I hope youâre feeling a bit more confident that you can go and negotiate for the compensation you want. But what about the nuts and bolts strategy of salary negotiation?
What if youâre asked about your prior salary or salary expectations?
Some employers try to get you to state a number before they do, which is dangerous territory for you. A low number sets you up to be underpaid by some organisations, and a high number sets you up to be eliminated from consideration. Knowing how to answer the salary expectation question is hugely important for women so that they get paid fairly, not based on a previously too-low salary.
Hereâs how Professor Ellis recommends responding if youâre asked about your salary expectations or previous salary:
- Say, âIâm sure that if you decide Iâm the best candidate for the job, we can agree on an appropriate salary for the position.â Or ask the employer, âWhat is the range that youâre thinking of for the position?â
- Show them youâve done your research. Say, âIâve done some research and understand that the range for this position is $X to $Y. I trust you will offer a fair salary based on industry standards.â
- If you must state a number, state a range. Or ask for a number at the top of the range youâve researched, and explain youâre hoping for that salary but are willing to negotiate.
Once you get an offer, here are Professor Ellisâs tips on how to negotiate effectively:
- Do not initiate a salary negotiation conversation before you get a job offer. Wait until youâve been offered a position before you bring up topics like salary, benefits, or working from home. Otherwise you will be seen as immature at best, and greedy at worst. You wonât get a second interview.
- Be prepared. Before you step into a negotiation, calculate your target, your ask, and your bottom line. Gather as many objective facts as possible, including the salaries of others. There are two main ways to do your research:
- Surf the web. Use LinkedInâs Salary Insights, payscale.com, glassdoor.co.uk, monster.co.uk, and industry-specific websites.
- Ask your networks (including LinkedIn!). If youâre a woman, ask your colleagues what a man would ask to be paid for this job. If you want to work from home, find out ahead of time whether other people in similar positions have worked from home.
- Ask for up to 20% over your target. And donât accept anything below your bottom line.
- Negotiate the total package, not just salary. Keep benefits, title, scope of responsibility, travel, flexibility, and resources to accomplish your job on the table. Asking for more than one thing allows you to trade off. Keep in mind that some benefits might be non-negotiable.
- Note: If youâre asking for multiple things, let the employer know at the beginning of the conversationâand ask them in what order they would like to address those things.
- Understand and leverage the concept of âanchoringâ. The first number spoken is the one everyone will remember. Donât say a low number first or youâll be stuck with it! Start high and then anything else will sound smaller.
- If you have another offer, use it as a bargaining point. Always be conversational and pleasant when advising a potential employer of other offers!
- Identify the employerâs interests and speak to them.
- Ask for time to consider an offer if you need it. If a company wants you, theyâll be willing to waitâwhether thatâs overnight or even a week or two.
- Practice with peers or a professional interview coach.
Then go negotiate!
Learn more about salary negotiation, and salary negotiation for women.
Roger Fisher, William Ury, & Bruce Patton, Getting to Yes: Negotiating Agreement Without Giving In (1991)
Babcock & Laschever, Ask For It: How Women Can Use the Power of Negotiation to Get What They Really Want (2009)