Wage Negotiation Know the Facts and Make the Ask

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Wage NegotiationKnow the Facts and Make the Ask

• Rachel Scott
• Division Administrator

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Objectives for the Session

• Inform you about the wage gap between men and
  women in Iowa
• Show you how to benchmark your salary and
  communicate your value even in tight economic
  times
• Provide tips and templates on asking for a raise
  and negotiating a salary at a new job
• Give you some practice asking

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What is the Wage Gap?

• 0.78/1.00
• US Census Bureau
• 62
• Employer reported data to US Dept. of Labor
• On average, women earn compared to what men in
  their same industry earn

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Iowa Average Wages Earned by Gender, and
Education Attainment for 25-64 Year-Olds with
Positive Wages Working 35 Hours per Week
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But the wage gap doesnt affect me

• Iowa ranks 37th among other states for wage
  equity
• The wage gap hits Iowas high wage earning women
  the hardest (8th largest gap)
• 67 of Iowas women are in the workforce,
  compared to national average of 59
• The wage gap is lowest when salaries are public
  and in unionized professions.

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Reasons for the Wage Gap

• Women tend not to negotiate salaries.
• Women tend to enter helping fields at high
  rates and enter high-wage fields at lower rates.
• Women often do not advance as quickly as men.
• Women are more likely to take time out of the
  workforce for family caregiving.

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2009 Iowa Equal Pay Act

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Whats so hard about negotiating?
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What are you worth?

• Benchmarking www.wageproject.salary.com
• Know percentiles
• Know the value of your benefits package
• Be observant and knowledgeable about whats going
  on for the employer profits, raises, the market
• A raise is not a COLA or a bonus

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Do your homework on yourself

• Your major accomplishments and their value to the
  employer
• How you build the organization internal
  training, mentoring, leading
• Education and licensure related to employer
• External validation praise from colleagues and
  clients
• Extra responsibilities taken on

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Guiding Principles

• Trust your intuition
• Set a pleasant tone
• Remember its just a discussion
• Set a target, but remember there are many ways to
  get there
• Listen to what the employer is telling you

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Tips for Preparation

• Know the priorities of the organization
• Know the time cycle for setting salaries
• Dont assume they know the extent of your
  contributions
• Aim high, but be realistic or get less
• Practice
• Anticipate objections be brutally honest
• Never, ever get personal

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Timing

• How long have you been there?
• How long has boss been there? How long has s/he
  been your boss?
• Avoid crisis timing but know theres never a
  good time
• 6 months before salary adjustment time
• When the spotlight is on you

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Knowing when youre ready

• You know how much to ask.
• You know why you can ask for that.
• The timing is right.
• Knowing HOW to ask.
• Dont wait until you feel 100 comfortable.

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Step by Step to Make the Ask

• Set up a meeting in a professional way.
• Come with your documentation and leave it behind.
  Dont send it ahead.
• Have a professional, open and welcoming presence.
  Listen carefully.
• Keep it positive, constructive, thoughtful most
  of all, focused on the value you bring to the
  employer.

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Anticipate Objections

• Youre already the highest paid X focus on the
  marketplace not your department or business.
• Were just not in a position to offer a raise to
  anyone right now. homework on financial fitness
  of company
• Can we talk again in a few months?
• Can we get this into the next budget?
• If you agree that Im worth this, could we
  approach the big boss together?

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Anticipate Objections

• Theres no way we could do that. How much less
  would you take? Dont bargain yourself out. Let
  her figure out how to get you there.
• Your position isnt worth that/Youre pricing
  yourself out of the market. Dont take it
  personally.

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Bottom Line Responses

• Yes Gracious and warm thank you.
• Lets wait until next year What do I need to do
  to make sure its in the budget/at that amount?
• Less than you asked for What would it take to
  convince you I should get the whole amount? Or,
  can we revisit in a few months?

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If the answer is no

• Dont respond. Listen to the reasons.
• Help me to understand.
• Show that youre committed to building your
  value.
• If its a flat no without a reason,
• PauseI understand your position. Politely
  leave.
• Consider your situation.

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Tips to Negotiate a Promotion

• Your work ethic is a critical factor.
• Demonstrate willingness to learn new skills, take
  on new responsibilities.
• Get known and recognized for your work.
• Engage in the politics of your workplace.
• Compare yourself with the job description.
• Take feedback to heart.

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Steps for Getting a Promotion

• Choose the best time. Frontload the process.
• Follow up and show deliberate progress.
• Final meeting. Are we ready to go? Whats the
  protocol?
• Meet and exceed every requirement.
• After the promotion, whip out the benchmarking.
• Now lets talk about my benefits.

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Resources

• Iowa Civil Rights Commission
• www.wageproject.org
• The Iowa Equal Pay Act legislation introduced by
  the ICSW
• www.women.iowa.gov