Are You Leaving Money on the Table?
Linda Babcock, a Professor at Carnegie Mellon University, made a striking discovery: while 51.5% of men negotiated their salaries, only 12.5% of women did the same. The disparity is significant, and it translates into substantial financial consequences. Those who refrained from negotiating forfeited a substantial sum of money. Those who DID negotiate, on the other hand, managed to boost their incomes by an impressive 5% to 15%. Clearly, the act of not negotiating can result in leaving a substantial amount of money on the table.
Negotiating your salary and benefits is an essential skill that empowers you to advocate for fair compensation and maximize your professional worth.
First off, evaluate the company.
Assess the company's financial health, market position, and industry standards.
Research the company's culture and values to determine if they align with your beliefs and work style. Consider aspects such as teamwork, collaboration, work-life balance, employee recognition, and opportunities for growth and development.
Evaluate the company's benefits package. Websites like Glassdoor, Indeed, or Payscale may provide information about benefits. Employee reviews and salary reports often mention details about the benefits packages, allowing you to gather insights from current or former employees.
Examine the company's leadership and management style. Look for indicators of supportive and inclusive leadership, transparent communication, and opportunities for mentorship or guidance.
Explore the potential for career growth within the organization. Consider factors such as promotion opportunities, internal transfers, skill development programs, and access to mentors or career coaches.
Evaluate the company's stance on work-life balance. The resources listed above can also be used to assess factors such as flexible work arrangements, remote work options, and vacation policies. Understanding the company's approach to work-life balance is crucial for long-term job satisfaction and well-being.
Next, research your market worth.
Websites like Glassdoor, Payscale, Salary.com, and Indeed provide salary data and comparison tools.
Industry-specific associations or professional organizations often conduct salary surveys or report compensation trends within their respective fields.
Explore job listings and recruitment platforms to gather information about salary ranges for similar positions.
Some states require job postings to list salary ranges. This can give you an idea of what employers offer for similar roles in your industry and location.
Engage with professionals in your network or connect with individuals in similar roles or industries. Conduct informational interviews to discuss compensation-related topics, including market trends, salary expectations, and negotiation strategies.
Consult with external recruiters who specialize in your field. They can provide valuable insights into salary ranges and market trends.
Now, build your case.
What are your accomplishments that the next employer will find valuable?
What relationships you have built.
What are your differentiators.