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Why Women Leave Money and Opportunity at the Barganing Table

February 3rd, 2009 @ 6:20 am

6 Comments

Categories: Managing Others, Personal Effectiveness

Tags: Women, Negotiation, Gender And Diversity, Human Resources, Sean Silverthorne

A number of studies conclude that women tend to accept an initial salary offer rather than try to  negotiate a higher number. Men, meanwhile, are more willing to haggle to get what they want.

The results are:

  • Over the course of their careers, women can leave significant salary money on the table.
  • Organizations damage themselves by not recognizing this reality and doing something about it.

“Left unchecked, gender disparities in negotiation quickly transform into clear pay and promotion inequalities and costly employee turnover,” according to Linda Babcock and Sara Laschever, writing The Costs of Not Negotiating on Harvard Business Publishing.

The authors present a case where a woman foregoes $1.6 million by the end of her career compared with a male colleague based upon her very first salary negotiation out of business school.

Just as women try to avoid negotiating pay, they may also not speak up when plum assignments are handed out.

That women negotiate differently than men is well known. But what I particularly liked about this post was the idea that organizations have a real stake in ensuring equality is served. It includes a number of tips for what managers can do. Here’s one:

“Even managers who genuinely care about the advancement of women will discriminate unknowingly if they hand out assignments primarily to those who ask for them, because men tend to ask more than women do. By stopping to think whenever a man asks for an assignment whether he will do the best job or whether a woman who hasn’t asked might do the job better, managers can begin to right some of the imbalances created by men’s greater propensity to ask for what they want.”

To delve a little deeper into the complexities of gender-based negotiation, check out this Harvard Business School Working Knowledge interview with researchers Dina W. Pradel, Hannah Riley Bowles, and Kathleen L. McGinn, When Gender Changes the Negotiation. Their point: Gender is not a good predictor of negotiation performance, but ambiguous situations can trigger different behaviors by men and women — especially highly competitive situations.

Do you believe this research that men are more willing than women to speak up for themselves? What can women do to avoid this trap?

 
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  •  
    1

    bronwen92

    02/03/09 | Report as spam

    RE: Why Women Leave Money and Opportunity at the Barganing Table

    I have been criticized by women in my field for (successful) salary negotiation. Perhaps women fall into the trap that Miss Manners constantly warns against: behaving in a business context as one would expect to behave in a social situation.

  •  
    2

    Babs76

    02/04/09 | Report as spam

    RE: Why Women Leave Money and Opportunity at the Barganing Table

    It's a sad but true fact. The Lilly Ledbetter Fair Pay Act Obama recently signed into law shines a spotlight on this issue. Not only about unequal pay between men and women, it also makes me wonder if Ledbetter took it upon herself to negotiate for a higher salary/promotion prior to finding out about the unfair pay practices at Goodyear. If Ledbetter had, perhaps she would've been paid fairly much sooner. Then again, maybe not.

  •  
    3

    Rebekkah Carney

    02/04/09 | Report as spam

    RE: Why Women Leave Money and Opportunity at the Barganing Table

    Honestly, I have to say that women are often penalized for demonstrating the same traits that men use at the negotiating table. What is perceived in men as assertive is often punished as aggressive if it comes from the mouth of a wooman, still.

    If you see enough of your peers fail to progress after they behave assertively, you go with what is less painful. There's not just a cost to leaving money on the table- there's a cost to switching jobs, and a cost to negotiating and losing not only the negotiations but your reputation.

  •  
    4

    michelina0037

    02/04/09 | Report as spam

    RE: Why Women Leave Money and Opportunity at the Barganing Table

    I agree with Rebekkah -- women are often penalized for demonstrating the same traits men do. Aside from practical experience, if you read persuasion theory research, you will see that men are considered more credible when they exhibit certain types of body language/facial expressions, whereas women who exhibit the same body language/expressions are considered less credible and/or less likable (and therefore less persuasive). What is especially sad is that this is true whether the listener is male or female.

    It's understandable why many of us fail to speak up enough -- we don't often know how we will be perceived by a particular person. Or we do, and that's worse. I'm not sure how a management strategy such as that suggested would go in practice. It may incite resentment from those who are speaking up.

  •  
    5

    susiebl

    02/06/09 | Report as spam

    RE: Why Women Leave Money and Opportunity at the Barganing Table

    Excellence isn't a function of gender.
    However, it's often true that some extremely
    talented women are hampered by their own
    unwillingness to appear demanding.

    Talent, experience, confidence and conviction
    being equal, a person's ability to negotiate
    should be part of his or her curriculum.
    It's a subject to learn about and become
    comfortable with, prior to sitting down at a table.

    Using a term like 'assertive' for a woman
    but 'aggressive' for a man is classic, since
    aggressiveness has historically in a woman been viewed by both men and most women as unfeminine.
    The fact is...women have had challenges that men never had to confront; the right to own property, the right to vote, the right to work outside the home, the right to hold political office..those rights were granted when women fought for them. In the process those who battled most fiercely were often belittled as unfeminine.

    For a woman to negotiate about a compensation offer, she would have to set aside a possible fear of being considered aggressive. What's wrong with knowing one's own value? Absolutely nothing.
    How a woman feels about herself has an
    impact on her ability to negotiate her
    compensation level. Keeping a sense of humor, a sense of perspective, not taking issues personally, and above all, keeping sight of the objective..those are the principles to
    guide a negotiation.
    And that would end the 1.6 million dollars left behind.
    sbl




  •  
    6

    seansilverthorne@...

    02/07/09 | Report as spam

    RE: Why Women Leave Money and Opportunity at the Barganing Table

    I believe many of you are right -- women are penalized at times for showing the same behavior around the barganing table as men.

    Here's a question for the roup. What if the new female employee is negotiating not with a man but with another woman. How does that change the dynamic?

    Sean

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  • Blogger Thumbnail Sean Silverthorne Sean Silverthorne is the editor of HBS Working Knowledge, which provides a first look at the research and ideas of Harvard Business School faculty. Working Knowledge, which won a Webby award in 2007, currently records 4 million unique visitors a year. He has been with HBS since 2001. Silverthorne has 28 years experience in print and online journalism. Before arriving at HBS, he was a senior editor at CNet and Executive Editor of ZDNet News.... more »

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