I gave an interview the other day to Daryl Hannah of Diversity Inc with some advice for those negotiating a job offer.  Here’s the piece he wrote.

TAGS: Interview skills, negotiating pay, Women and Money

Marci Alboher’s Shifting Careers New York Times blog post last week cited the same Penelope Trunk blog post mentioned here regarding transparency with regard to compensation. Marci wrote:

A few months ago, I went to hear Gloria Steinem speak. She said many memorable things, including this: If women were more willing to reveal their salaries to one another, they would make strides in eliminating the gender gap in wages.

She then asked for readers who are in situations where their salaries are either “published” or reasonably transparent to comment. As you can imagine, a lively discussion ensued. Themes I noted:

• people who work in environments where compensation information is available are fine with it — it doesn’t seem to bother them except when they feel that coworkers are taking advantage of the protection they have as a result of being unionized or government workers
• many believe that secrecy benefits the company (whose managers may be making subjective decisions free from scrutiny) and those who are highly paid, disadvantaging others including women
• lots of people just don’t want to know — the idea that a coworker who produces less is being paid more cause all kinds of problems for them.

Yet, knowledge is power. Research shows that women who have solid data can more effectively negotiate for themselves. While you may not be comfortable asking your colleagues how much money they make, do your homework. Some sites to check:

• www.payscale.com
• www.salary.com
• www.glassdoor.com

Also, consider other ways to scout for information. Check, for example, to see if there is a salary survey published for your industry. Also take a look at job message boards (Vault is one of my favorites). Join an industry association where you’ll be able to meet other people who do the same sort of work that you do. You don’t have to ask them straight out how much money they make; instead, position your inquiry as a more general question, for example, “What information can you share with me about the salary range for my position at your company?”

One of the readers commented that in Norway there is complete transparency with regard to earnings - evidently there is a database where income (and the amount of tax paid!) is available. Hmmm, maybe we have to move there to close the gender gap in pay?

TAGS: Equal pay, Marci Alboher, negotiating pay, Pay Disparity, Penelope Trunk

With all the talk of economic instability, it may seem untoward to be thinking about how to ask for a raise but if you have demonstrated the value you bring to your company, it very well may be feasible.  In fact, smart companies are more likely to want to keep their top talent satisfied in challenging times.

The May/June issue of Pink Magazine (cited here before) included 2007 survey results which indicated that 51% of women had asked for a raise, perk or promotion (down from 54% in 2006).  And it paid to ask - of those who did, 79% heard “yes”.

When you get ready to broach the subject, start by benchmarking what you should be paid.  Penelope Trunk (The Brazen Careerist) mentioned a few online sources she recommends in a recent post. This step is critical for women who get much better outcomes when they negotiate for themselves armed with good information. 

TAGS: Economy, income, income disparity, negotiating pay, Negotiation, negotiation skills, Penelope Trunk, recession, strategies for success, Women and Money, women's equality

I’ve often thought it odd that people seem to be more reluctant to talk about their income than their sex lives-but that may be changing.  The NY Times reported yesterday that young people are more likely to share information about salary information (see Not-So-Personal Finance).  This trend is good news for women; the more women know about what others are making, the more likely they are to ask for what they are worth.

As you may know, the gender gap in pay affects not only older women but younger women as well.  For example, starting salaries of men with MBAs are 7.6% higher than those for women. Only 7% of women, but 57% of men asked for more money; those who negotiated increased starting salaries by 7.4%.

One of the things that makes the difference for women is good information.  So, keep up the sharing!

TAGS: differences between women and men, Fairness at work, financial planning, gaining confidence, negotiating pay, negotiation skills, Pay Disparity, Women at Work, women's equality

LouAnn DiCosmo, an editor at The Motley Fool writes that when the phrase “like a girl” is used to characterize the way one does something, it’s ususally not meant as a compliment.  Duh.

However, when it comes to investing, it may in fact be a very nice thing to say.  DiCosmo describes Warren Buffet’s investment style as similar to the approach women follow.  She writes that women tend to:

1. do more research before they invest
2. take less risk that men do (not that they avoid risk completely; as Liz wrote on Friday, you have to take prudent risk)
3. consider more than just the numbers (things like what the company does, how good a corporate citizen it is, etc.)

It feels good to know that the ways women tend to invest pays off - one study cited showed that women got slightly better results than men did.

Now, we can start figuring out how to close the gender wage gap so that working women will start earning what they deserve.  You’ve got to earn it before you can invest it.

Read the full article (free registration required).

TAGS: Warren Buffett

Last week, I gave a talk at the Atlanta Women’s Network Women Up 2008 event. The timing was in conjunction with International Women’s Day (March 8). They asked me to provide 3 key words about
negotiation that would coordinate with their principles:

“I am able.”

For this, I suggested the word, “authenticity”.

When you negotiate with people with whom you have an ongoing relationship, be authentic.  Be real.  Be yourself.

Authenticity makes you able.

“I have the tools.”

Here, the word is “preparation”.  Successful negotiators spend time planning.  They just don’t to wing it. The right  preparation makes all the difference between success and failure.

“I will shape the future.”

For this most important principle, I offered the word “proactive” .  You must proactively negotiate for what you want; you can’t just hope for it.

You will shape the future, not only for yourself but for others as well when you negotiate what you want and deserve.

TAGS: negotiating pay, Self-trust, women and power, women leaders

Penelope Trunk advised last week that you should never answer the question, “What’s your salary range?” 

I disagree; it depends on when the question comes and who asks it. In fact, there is a lot of research that suggests “anchoring” is an effective way to begin a negotiation.

If you have already convinced the questioner that you have the skills and experience for the position, there is no harm at all in being clear about what you expect vis a vis compensation. Remember, you can’t get what you are worth if you aren’t willing to ask for it.

But you won’t know what the right range is if you haven’t done your homework.  What is the fair market value for the job?  Consider the industry, the geography and the company. 

There is a wealth of information on salaries available on the Internet (check out sites like www.thevault.com; you can learn even more through social networking sites (see www.linkedin.com, for example).

In fact, one of the best ways to assess whether the position is a good fit for you is to talk about the salary range early.  If what they are paying is too low, the job is probably not what you think it is.

TAGS: career goals, disconnects, negotiating pay

Consider this:

“Since 1975, practically all the gains in household income have gone to the top 20% of households.”

“Long-term problems [for the U.S. economy] include inadequate investment in economic infrastructure, rapidly rising medical and pension costs of an aging population, sizable trade and budget deficits, and stagnation of family income in the lower economic groups.”

“Real median earnings of both men and women who worked full-time, year-round declined between 2005 and 2006 (1.1 percent and 1.2 percent, respectively). This is the third consecutive year that men and women experienced a decline in earnings.”

These quotes may sound like propaganda to some, but the sources are pretty sound. The first two statistics are quoted verbatim from the CIA World Factbook (yes, CIA as in Central Intelligence Agency). The third is from the U.S. Census Bureau’s latest “Income, Poverty and Health Insurance Coverage Report.” I added the italics.

I would add another statistic that is alluded to but not quite spelled out in that report: That median income, which was $48,201 in 2006, still hadn’t returned to its 1999 peak.

Plenty of people today are feeling the economic headwinds. It’s not their imagination, or necessarily their failure. More and more of the financial pie has been going to those at the top. Although pay disparity is of particular interest to women, income disparity should be of concern to everybody.

As individuals, we should do everything we can to succeed, including saving, investing and getting the best education we can for ourselves and our children. But we also should be mindful that wide income disparities are a destabilizing force in society. Real progress means gains for all groups, not just those already at the economic pinnacle.

TAGS: Economy, income, income disparity, income stagnation

 You may have seen the NBC series on the differences between men and women.  One segment: http://www.msnbc.msn.com/id/21134540/vp/22707660#22710673

provided data that within one year after graduating from college women earned as much as 20% less than men with the same education, background, etc.  So the next time someone asks me, “But don’t you think women have come a long way?” I’m going to tell them, “Obviously not far enough if in 2008 pay disparity still exists.”

TAGS: differences between women and men, Equal pay, Pay Disparity