The Power of Negotiation

There is a persistent salary gap between men and women in the corporate world, and to eradicate it we need to understand its underlying causes. The gender wage gap can be explained, among other factors, by segregation in the labor market, cultural stereotypes, differences in education, work experience and seniority, as well as low negotiation skills.

I consider this last aspect particularly important because it is something women can change without any other condition besides their determination. Recent evidence shows that women are less likely to negotiate their salary than men, mostly due to a lack of confidence. For example, a study carried out by Harvard Business School and Linda Babcock of Carnegie Mellon University, analyzed the differences between recently graduated MBA’s starting salaries. Where there is no transparency regarding the limits of the bargaining range, male MBAs negotiated salaries that were $10,000 higher, on average, than those negotiated by female MBAs.

In the long run, the impact of these negotiations results in a persistent financial inequality. I have plenty of experience in battling discriminatory practices in male-dominated environments ever since I got my very first job; I have learned to raise my voice. So, here is a piece of advice:

“Know thyself”: The first thing we need to do is to know ourselves, and recognize our talents to become conscious of our worth. If you know what you have to offer, you will be stronger in the negotiation process. Be confident! You have invested time, effort and money in your education and training. Believe in yourself because you have the power to face any challenge, no matter how hard it might seem. Keep in mind that strength comes from within. I know sometimes it might be difficult to embrace the idea that you deserve what you are asking for, but you do. Never underestimate your capabilities.

Be informed: Whether it is a starting salary or negotiating a raise, be informed and well-prepared. Research the industry, the median wage for this particular job and — very important- match the knowledge and skills you possess with the needs of the position. Do not be shy to explain why you are or will become an asset for the corporation.

Consider negotiation a must: There are only a few things in this world that are non-negotiable. Employers will most likely expect you to accept the first offer, so be prepared to use negotiation intelligently. This means to come with hard data and a plan, but also ready to put into practice the art of negotiation as one of your soft skills. Negotiation is not only about bargaining a number, but also a compensation package, perhaps flexibility, anything that is important for you to succeed in today´s competitive global environment. Always come to the table well prepared and ready to negotiate, period.

I know there is still a lot to do to finally close the salary gap. Nevertheless, women need to consider negotiation skills as key for their professional development, and also as a path to reduce gender inequality.

We will never get what we do not ask for, so let´s raise our voice and make it happen.