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Negotiating Salary 101 for Women Only

Monday, February 18, 2013
posted by Douglas Keene

pay gap genderWe’ve written before about salary negotiations and the discrepancy in pay for men and women. One of the issues consistently identified in the research is that men ask for more money and women often don’t. So researchers wondered (they are always so very curious) if women could begin to narrow the gender gap in salary by simply asking for more money. Pretty straightforward, right?

As it happens, women can increase their salaries by asking but they have to be much more careful than men about just how they go about asking for more money. So consider this post to be a CLE on salary negotiation when you are female.

Here’s the short version of the prior research:

Men can ask for more money directly. No one sees this as worthy of punishment or “social backlash” as the researchers call it. But when women ask directly for a higher salary they are seen as “less nice and more demanding” than women who did not negotiate, and the interviewer was “disinclined” to work with those women asking for higher salaries. Women are sensitive to this consequence for negotiating and so are less likely than men to negotiate for a higher salary.

Quite a ‘Catch-22’. The current researchers wanted to see if there were ways for women to request a higher salary that did not result in a “social backlash”. They were able to find a strategy but it requires you to negotiate very differently than you would if you were a man. While more effective, it would reasonably feel annoying to women to have to tip-toe through the process while men can breeze through the negotiations with far less concern. Regardless, it is a strategy that works. Here’s what they found:

Men are able to negotiate directly because it is expected they will negotiate directly. They are not penalized for doing what we expect them to do in an interview setting. Women, however, have to pay attention to the social outcomes (“I care about my relationships with others in this organization”) and the negotiation outcomes (“I would like more money”). If a woman just attends to the “social outcomes”, she doesn’t ruffle feathers, but the price of being “nicer” is that she gets a lower salary. If a woman just attends to the “negotiation outcomes”, she is viewed negatively and she faces an uphill battle to be liked, and is at risk of being ostracized to some degree.

So, the researchers recommend a strategy for women that includes both social and negotiation outcomes. In their study, the employee (represented on the video as either a male or a female) had been promoted to a higher level managerial position and was negotiating a higher salary. The research subjects saw the male and female interviewees use one of three scripts. Subjects (224 college educated Americans with work experience, ages 21 years to 75 years with a median age of 38, 91 women and 86 men) viewed the videos and then reacted to the interviewee’s requests and filled out questionnaires as to their sense of the individual interviewee.

Simple negotiation script: “I do have some questions with regard to the salary and benefits package. It wasn’t clear to me whether this salary offer represents the top of the pay range. I understand that there’s a range in terms of how much managers are paid in their first placement. I think I should be paid at the top of that range. And I would also like to be eligible for an end-of-year bonus. [This is the version akin to what most men use to negotiate a higher salary.]

Supervisor excuse script: “My team leader during the training program told me that I should talk with you about my compensation. It was not clear to us whether this salary offer represents the top of the pay range. My team leader told me there is a range in terms of how much managers are paid in their first placement. He thought I should ask to be paid at the top of that range and to explain that I would also like to be eligible for an end-of-year bonus.” [This is basically explained by the researchers as a “blame the male supervisor, don’t blame me” script.]

Skills-contribution script: ‘I don’t know how typical it is for people at my level to negotiate, but I’m hopeful you’ll see my skill at negotiating as something important that I bring to the job.’’ [This is explained by the researchers as a “see me as a positive contributor, not a selfish demander’’ script.]

When women used either the supervisor excuse script or the skills-contribution script, they improved both the social outcomes (i.e., willingness of the interviewer to work with the woman) and negotiation outcomes (i.e., giving her a higher salary). You might have already intuited–men using the supervisor excuse or skills-contribution scripts were not penalized for using the scripts but their outcomes were no better than if they simply asked for the money directly (using the simple negotiation script). No gain, but no penalty regardless of which one they chose.

Women’s requests for salary treatment are viewed through a very different lens than that applied to men. The researchers believe that these scripts improved women’s outcomes since they made them seem more relational (which we expect from women) and the requests for a higher salary were seen as more legitimate (thus they were granted). In short, you legitimize your request for higher salary while reassuring the interviewer that you are concerned for organizational relationships.

This study is well written (the researchers are very articulate and write in plain English). Here is part of their conclusion:

“We do not see our research as providing specific scripts that women should use but rather the outlines of one possible strategy. We recognize that some people will bristle at the practical implications of this research. For some women, the idea of crafting a relational account may feel inauthentic or even offensive: why should they conform to an unjust standard? Others may perceive relational accounts as a reinforcement of gender stereotypes… We share these concerns. If we could choose the results of our experiments, we would prefer to uncover a more liberated context for gender in negotiation.

…The motivation for this research was to offer strategies that women could use to change their personal circumstances and to send the message that, while gender constraints are real, they are not inescapable. Moreover, when women rectify gender inequalities, they do so not for themselves alone.

…Research suggests that when women break glass ceilings, they do so for others as well as for themselves. For instance, when more women gain high-status managerial positions, the gender pay gap reduces for lower level workers (Cohen & Huffman, 2007). We hope that some women will put the insights from our research into practice because every woman who reduces the gender gap in pay and authority reforms the social structures that keep women in their place.”

In essence, no, it isn’t fair. But it is a way to get a higher salary more comparable to men in similar positions. And if women do this one by one by one–it adds up to more gender equity. These researchers say the ends justify the means. We tend to agree with them.

Bowles, H., & Babcock, L. (2012). How Can Women Escape the Compensation Negotiation Dilemma? Relational Accounts Are One Answer Psychology of Women Quarterly DOI: 10.1177/0361684312455524