It may not be as easy as “ask and you shall receive,” but for executive and professional women, negotiating your compensation package at a new or current position is not only expected, it will have a huge impact on your long-term wealth.
Let’s start with a reality check: Outdated gender stereotypes still permeate workplaces. Viewing women as “too assertive” when asking for a raise is chief among them. Women internalize these to our detriment. We too often aim low when negotiating equity compensation, succumbing to self-doubt.
However, the tide is turning. As opposed to 20-30 years ago, women are now negotiating at rates similar to their male counterparts. Those that ask are doubly likely to receive a raise compared to those who don’t ask.
Negotiating is expected, normal, and well within your skill set. What do you need to succeed?
1. Know your worth
Research and more research is key here. Payscale.com and Salary.com are excellent places to start to find out what the average salary is for the position you’re in or going after. Ask A Manager’s Alison Green annually puts together a salary survey from her readers and the 2021 edition had 24,000 responses. Talking about salaries with trusted colleagues (and internet strangers) is not illegal or embarrassing—it’s informative and empowering.
Your base salary isn’t the only thing to negotiate. Include stock options, vacation time, physical workspace, and work flexibility. With the Great Resignation underway and the arrival of the future of work, as well as an unprecedented focus on mental health in the workplace, you have never been better positioned to aim high and go after what you want.
You also need to audit your own career. Keep a running list of your workplace accomplishments. Be ready to give concrete examples and numbers that show the value you’ve brought to your role and company.
2. Aim high
Women are notorious for asking for lower raises than men if they do take the step of naming a number first (you should). Coming down from a high number is much easier than climbing up from a low one. Know your goal number, the bottom-line number you will accept, and lean on your research to state the reasons why you chose this number to keep the ask in your preferred range.
3. Practice the script
Focus on the value you bring to your company. From your self-audit, lay out your numbers, from the revenue you brought in and the budget you oversee, to the number of relationships you manage and projects you’ve completed. Clearly explaining your value helps clearly justify what you’re after.
Confidence is key. Practice your lines, tone, and body language in front of a mirror. Record yourself. Roleplay with friends and family. Repetition will only help.
Part of the script is to know when to stop talking. It’s all too easy to keep talking when you’re uncomfortable or want to fill in a silence. That silence is a powerful tool when negotiating, so be prepared to use it.
As for the long-term benefits, more money in your paycheck means more money to save. You can move faster to your financial goals. You’ll be able to work toward closing the retirement gap. Depending on your company, if you’re earning more, your employer is contributing more to your 401(k).
As much as the workplace can still feel like a boys’ club, the tide is turning. California, Connecticut, Colorado, Maryland, and Washington have enacted laws to varying degrees that require disclosure of salary ranges to prospective employees. Even if you do not live in one of these states, you can use this knowledge to be better advocate for the compensation you deserve, especially when coupled with your research and self-audit.
At WealthChoice, we believe in taking real action to help you achieve your financial goals. Get in touch and let’s make those happen.
