Women and Negotiation Patricia M. Gallagher, Ph.D., P.E. Associate Professor Civil, Architectural and Environmental Engineering Drexel University

The high cost of avoiding negotiation More than 50% of people (women AND men) will accept their next job offer without the benefit of negotiation. They will receive lower salaries and fewer benefits than the employer was willing to pay. Many people (especially women!) think they need to choose between a good offer and a good relationship. In fact, you can negotiate and maintain or even improve a relationship with effective negotiation. Negotiation tools can be applied to all the relationships in your life, not just your work life!

The high cost of avoiding negotiation One study of MBA graduates (Gerhart and Rynes, 1991) found that on average, when people negotiate: –Women receive 2.7% higher salaries –Men receive 4.3% higher salaries What does this mean over the course of 50 years? (yes, you’re going to be working for a long time!)

The high cost of avoiding negotiation Assume: –Base salary of $50,000 –50-year career –Mean annual pay increase of 3-4% –Changing jobs once every 8 years –A 2.7% salary increase for women who negotiate –A 4.3% salary increase for men who negotiate

The high cost of avoiding negotiation RESULTS: If you negotiate ONCE at the beginning of your career and you’re –A woman. You will earn $1,040,917 MORE in the course of your career than a friend who’s afraid to negotiate. –A man. You will earn $1,714,779 MORE in the course of your career than a friend who doesn’t like to negotiate.

Why don’t women fare better? Women don’t ask –Linda Babcock of CMU conducted numerous surveys of women and men and their negotiation habits –What she found: In general, women ask for things (whatever they are) less frequently than men and when they do ask, they get less

Why don’t women fare better? Accumulation of disadvantage –Just as small difference in salary can make a huge difference over 50 years (1.6% of $50,000 is just $800, or ~$15/week), the cumulative effects of the gender gap can quickly turn into big discrepancies with time. –So even if women were getting just what they asked for and were asking for the same things as men, the fact that they ask less often would result in men having more access to resources and opportunities. –But women usually ask for less and get less when they do ask, so “molehills become mountains” (Valian 1998)

Why don’t women fare better? Opportunity doesn’t always knock –One of the major barriers preventing women from asking for what they need more of the time: Women perceive that their circumstances are more fixed and absolute (less negotiable) than they really are. –This perception is based on many factors, including how men and women are socialized – perhaps a topic for another day!

Why don’t women fare better? Expecting less Women’s pay satisfaction tends to be > that of men in similar positions, even though women typically earn less than men when doing the same work (Sauser and York 1978). Graham and Welbourne (1999) confirmed this finding 17 years later! WHY? Why would women be just as satisfied as men while earning less? Many experts believe that women are satisfied with less because they expect less (Major and Konar 1984). In other words, women go into the work force expecting to be paid less than men, so they’re not disappointed when those expectations are met.

Fear of asking The problem that consistently plagues women, interfering with their ability to ask for and get what they want: ANXIETY Researchers have consistently shown that women have more anxiety around negotiation than men. –Words and expressions women use to describe negotiation: Scary Going to the dentist –Words and expressions men use to describe negotiation: Exciting, fun Winning a ballgame, a wrestling match

Strategies for change Learn how to negotiate well Practice, practice, practice (until you gain confidence) Networks – instrumental vs. friendship Use “the female advantage” to your advantage – women’s focus on cooperation and relationship building can be a huge advantage in negotiation Overcome your fears of negotiating Learn to endure the “moment of discomfort” If you have it, get over the “imposter syndrome”

The Imposter Syndrome Reference: “Individuals experiencing this syndrome seem unable to internalize their accomplishments. Regardless of what level of success they may have achieved in their chosen field of work or study, or what external proof they may have of their competence, they remain convinced internally that they do not deserve the success they have achieved and are really frauds. Proofs of success are dismissed as luck, timing, or otherwise having deceived others into thinking they were more intelligent and competent than they believe themselves to be. This syndrome is thought to be particularly common among women who are successful in their given careers.”

References Babcock, L. and Laschever, S. (2007). Women Don’t Ask: The High Cost of Avoiding Negotiation – and Positive Strategies for Change. Bantam Books, New York, NY, 252 p. (ISBN ) Fisher, R., Ury, W. and Patton, B. (1992). Getting to Yes: Negotiating Agreement Without Giving In Orenstein, P. (1994). Schoolgirls: Young Women, Self-Esteem, and the Confidence Gap. Doubleday, New York, NY. Pinckley, R.L. and Northcraft, G.B. (2000). Get Paid What You’re Worth: The Expert Negotiators’ Guide to Salary and Compensation. St. Martin’s Press, New York, NY, 189 p. (ISBN: ) Young, V. (2008) Ten Steps to Overcoming the Imposter Syndrome, Valian, V. (1998). Why So Slow: The Advancement of Women. MIT Press, Cambridge, MA.