Salary negotiation is not an easy task, and it can be particularly challenging for women. In general, women are less likely to ask for more money when offered a job, and more likely to stay in lower-paying positions. The reasons vary, but some of this hesitation includes discomfort in discussing salary and reluctance to ask for more.
Gender Pay Gap
The fact that women earn less than men complicates the salary situation. According to the 2020 PayScale report on the state of the gender pay gap, women earn 0.81 dollars for every dollar a man earns. Meanwhile, women of color earn 0.75 dollars for every dollar earned by a white man.
The only time there is no wage gap between men and women is when comparing single men and women without children. After that, the field is not level.
Jane Haaply Lukewaldt, former head of the PayScale job news blog, says, “Data shows that women pay a price for marriage and having children, even when they do not prioritize family over work. The only time the wage gap is 0.0 percent is when we compare single men and women without children, who have the same jobs and experience, and who do not prioritize personal matters over professional ones. This means the wage gap is at least partially due to unconscious bias. Even when they hold the same positions as men and work as hard as their male counterparts, women with families are seen as lacking dedication and suffer professional consequences.”
Considering that you do not start from an equal footing, the ability to negotiate a compensation package is important. It doesn’t even have to be related to your gender. It’s about getting what you deserve in the current job market.
Gender, Race, and Salary History Bans
If you are in a place where employers cannot ask about your salary history, you have an advantage over job seekers in places that allow salary history questions.
A study from Boston University School of Law indicates that in locations where employers cannot ask about salary history, wages are disclosed more frequently by employers, and wages for workers who change jobs increase by up to 5% more on average than in locations that do not prohibit salary history. Overall, there has been an 8% increase for women. For Black women, this wage increase was 14%. Black men received higher wages by 16% in locations where salary history questions were banned. Migrant workers also saw increases.
If You’re Not Comfortable Discussing Salary, You’re Not Alone
If discussing what you earned and what you expect to earn makes you uncomfortable, you are not alone. A study from Glassdoor states that 60% of women and 48% of men believe that questions about salary history should not be raised. Women are also less likely to negotiate for compensation, with the number of women who do not negotiate their pay ranging from two out of three women (68%), while the number of men who do not negotiate their pay is only around 52%.
When to Negotiate Salary and When Not To
Some experts believe that one should always negotiate salary and ask for more money. Before doing so, it is wise to research the job and the employer to ensure the compensation package is negotiable.
Jobs
With a Fixed Salary Rate
There are some positions where the pay rate is predetermined. On the positive side, there will be no gender discrimination as everyone receives the same pay. On the negative side, what you get is what you will earn.
Some jobs that tend to have a fixed pay rate include:
- Low-level retail, customer service, and hospitality jobs
- Hourly jobs
- Entry-level jobs
- Union jobs
- Jobs that pay a prevailing rate
- Government and civil service jobs
- Jobs at large corporations with structured compensation plans (you may be able to negotiate a higher amount within a certain range in this case)
High-Level Positions
As you move up the job ladder and compensation becomes more competitive, the gender pay gap becomes more significant. A PayScale report indicates that women reach their highest earnings at age 44, earning an average of $66,700. Meanwhile, men reach their highest earnings at age 55, earning an average of $101,200.
The largest wage gap exists in the legal profession, where women reach their peak earnings of $75,000 at age 35, while men reach their peak earnings of $168,800 at age 56. At the same time, Black American men and women earn the lowest peak wages, at $80,000 and $61,100 respectively.
Many mid-career and high-level jobs have negotiable salaries. Compensation may be part of a salary range that includes a low, average, and high point, or it may be selectively paid based on the candidate’s qualifications, where gender becomes a factor.
Women are likely to be paid at the lower end of the range as they start at a lower price point. Because you currently earn less, you might be offered a lower amount. This can lead to a significant loss of compensation throughout your career.
How to Determine if a Job Offer is Negotiable
The best way to determine if a job offer is negotiable is to do adequate research about the job and the company. You do not have to say yes immediately.
Ask for some time to think about the offer, then gather as much data as you can. Use websites like Payscale and Glassdoor to research what the job and you are worth.
If you know someone in the company, ask if they can help you think through the offer. You can also ask if they can provide any insight into the company’s compensation policies and practices.
When to Negotiate a Counter Offer
If you are excited about a job offer, you may accept it right away. Or you can take some extra time to make sure:
- Carefully evaluate the offer, comparing it to the job you currently have, the future prospects at your current employer, and other jobs you have applied for. Consider the benefits, perks, retirement plan, stock options, and other additions before you start negotiating. Know what benefits are negotiable.
- If everything seems perfect, you don’t have to ask for more money just because you can. Remember that this job, if accepted, becomes the foundation for your future wages, so think carefully about whether you should present a counter offer before you accept.
Tips for Women When Asking for More Money
- Know how much you want to earn. Before you even think about negotiating salary, it’s important to know how much you expect to earn in your next job. If the offer isn’t close, you don’t have to accept it. If you expect $60,000, for example, and the offer is $40,000, that’s likely a significant gap. Reevaluate your expectations and make sure this might not be the right job for you.
- Learn
It is acceptable to ask. You may not feel comfortable asking for more money, but that doesn’t mean you shouldn’t ask the question. It is better to ask than to wonder whether you can negotiate for a better offer. For example, a fantastic compensation package was offered to a candidate by the employer of her dreams. Although she would have accepted the first offer, she inquired whether there was any flexibility in the salary. The company offered her a higher base salary and a bonus. If she hadn’t asked, she wouldn’t have known there was room for a better deal. - Be aware of gender differences. Delving into salary research may help you determine whether this is a field where women are traditionally paid less. If so, there may be an opportunity to earn more. Be creative in your response; if the base salary is non-negotiable, there may be room to negotiate on the bonus.
Source: https://www.thebalancemoney.com/strategies-for-women-to-negotiate-a-higher-salary-4067697
Leave a Reply