Why Negotiate?
Introduction
In observance of Equal Pay Day, divhersity has compiled a series of articles that address questions focused on equal pay, with the goal of helping women specifically, close the pay gap that is all-too-often present in organizations worldwide.
This article is the first of a multipart series based on a Q&A session hosted by divhersity called “How To Ask for What You Deserve”. In the series we will be sharing the questions and answers provided by our expert panel: Meenakshi Tripathy from Facebook, Savvithri Sivaraamakrishnan from Qualio and divhersity Founder, Nidhi Gupta, formerly Chief Product Officer at Hired.
The Role of Culture in Equal Pay
In her Amazon best selling book, The Power of Perception, Dr Shawn Andrews discusses the huge influence that our culture plays in the development of women’s careers; discussing the many ways that not only western culture, but that every culture impacts women’s perceived value in the workplace. As young girls, women were (often silently) expected to follow the rules while the cultural norm is to (often silently) tolerate boys' breaking of these same rules. The measurable impact of this double standard can restrict girls' confidence as they move through the world, holding them back from speaking up, trying new things and fighting for what they want.
In the workplace, despite many recent policies to address gender inequality, discrimination and bias based on gender stereotypes continues to not only exist, but is widely tolerated. Women are faced with a barrage of gender bias and it actively works against their progress in the workplace. A simple example is how women’s conduct is perceived in the workplace; women might typically be expected to be warm, pleasant and likable, but not particularly forceful, competent, or suited for high-pressure, competitive leadership tasks. In many cultures, there’s intense pressure for girls to not disappoint their parents, creating a situation where girls are more likely to become followers and people-pleasers.
These cultural influences are even more visible when we look at how women approach compensation. A study by Linda Babcock that was the basis for her book Women Don’t Ask revealed that only about 7% of women attempted to negotiate their first salary, while 57% of men did. Of those people who negotiated, they were able to increase their salary by over 7%.
That may not sound like much, but as Stanford negotiation professor Margaret A. Neale puts it: If you get a $100,000 salary and your co-worker negotiates up to $107,000, assuming you’re treated identically from then on, with the same raises and promotions, you’d have to work eight years longer to be as wealthy as them at retirement.
So how do we invoke change in the workplace to ensure that not only you, but the women following behind you are less impacted by the multitude of gendered stereotypes and biases? In this series we will provide you with great insights on how to navigate the different stages of your career from job hunting to promotions, we’ve got some great content coming your way that will materially help you navigate securing a compensation plan that reflects your worth, irrespective of your gender and the inherent biases that affect your ability to get what you deserve.
Meet the Panel
Q & A Part One
I really don't care about the money. So why should I negotiate?
NG: Well, I think that I had to make a shift when it came to how I felt about the wage gap. At first, I thought, “I don’t really care about money! And who cares about when I retire.” Then I learned that there’s another very important reason I should care about this money. Because I learned that it not only impacted my pocketbook, it actually impacted my career trajectory, easily holding me back.
Let's say you are making $120K and you are interviewing for a job against a candidate who is making $150K. You both interview the same. The candidate who is making 150k will be perceived as more senior than you. They will be more likely get the Sr SWE title than you. After all, they must be more senior to be earning more money! A higher salary, pegs you at a higher title - its as simple as that! This becomes even more acute of an issue at managerial levels, where higher titles are harder to come by.
So, irrespective of your gender, in your first job or your fifth, effectively negotiating your salary is critical to your success.
Have you always been a negotiator? If not, was there an inflection point where you thought - holy shit - I should’ve negotiated for this?
SS: Growing up in India, you’re forced to negotiate on a daily basis with vendors, etc. I didn’t negotiate much for my first job as it was the peak of the recession in 2010 and was just happy to have a job. This was the only time I didn’t negotiate. It’s second nature to me.
MT: The very first job offer I received, I discovered that mine was much lower than my brother’s - for the same role at the same company. That was infuriating. So right then and there, I knew that I was not being valued as much as I should!
Why do you see women not negotiate?
NG: I think there’s an inherent fear of rejection if we step outside of the stereotype and stand up for what we deserve. And for a lot of women who have always been taught to be “nice”, asking for more, could be perceived as “not nice”. This is something that I see showing up when I talk to women who are grappling with when they are negotiating. Culturally there’s an expectation that we will not fight and if we do, we are labeled negatively. It’s such a conundrum.
I got a really good offer. I don't think I need to negotiate, do I?
NG: Well the real question is why wouldn’t you? What do you have to lose? At the most, they will say "no". At least then, you would know, that you stretched them to the max. Not only that, but it shows your future employer that you will always ask for the best possible terms for any deal. Negotiation plays a role in most of our jobs every single day; flexing this skill at the very beginning of your working relationship demonstrates you’re not prey to stereotypical traits that might be assumed.
Through this part of the conversation, we learnt why we should negotiate:
If you don’t want to work at least eight more years than your counterparts to earn the same amount.
If you want a bigger & better title and role!