Tag Archives: Andreas Leibbrandt

“Everything is Negotiable”: Prepare, Ask, Revise, Ask Again

Anna Beninger

Anna Beninger

Alixandra Pollack

Alixandra Pollack

Persistent compensation gaps continue to occur for women MBA graduates from 26 leading business schools in the United States, Canada, Europe, and Asia, reported Catalyst’s Anna Beninger and Alixandra Pollack.

Women still make about 80 percent of their male peers in a study of salaries in academic medicine by Harvard’s Catherine DesRoches, Sowmya Rao, Lisa Iezzoni, and Eric Campbell with Darren Zinner of Brandeis.

Catherine DesRoches

Women worked more hours, spent more time in administrative tasks, were awarded fewer grants, held fewer top titles, had fewer publications, and were paid less than their male counterparts.

These findings reinforce estimates by Carnegie Mellon’s Linda Babcock, that women MBAs earn USD $500,000 – USD $2 million less than their male classmates over the course of a career because women tend not to negotiate the starting salary or those offered on transfer or promotion.

Linda Babcock

Linda Babcock

In contrast, Babcock found that men are four to eight times more likely to negotiate both salary and promotions.
They also obtain better results in most negotiations.

women dont askBabcock, with Sara Laschever, outlined precursors of these negotiation differences based on differences in typical gender socialization.

They posited that many parents encourage boys to take risks, earn money in part-time jobs, and participate in competitive team sports.
In contrast, parents are more likely to encourage girls to play collaboratively and value interpersonal affiliation.

Sara Laschever

Sara Laschever

These differences enable boys to practice negotiating and competing, and to tolerate disrupted interpersonal relationships, according to Babcock and Laschever.

John List

John List

This suggestion was supported by findings that the gender-based wage gap is associated with women’s tendency not to negotiate salaries and to avoid competitive work roles, in research by University of Chicago’s John List, Andreas Leibbrandt, and Jeffrey Flory.

They posted two identical job ads on internet job boards with different wage structures:  One offered hourly pay whereas the other had pay dependent on performance compared to their coworkers.
More women than men applied to the hourly wage role.

Andreas Leibbrandt

Andreas Leibbrandt

Men were 94 percent more likely than women to seek and perform well in competitive work roles in a study of nearly 7,000 job seekers across 16 large American cities.
This gender gap “more than doubled” when the reward for performance rose.
Women significantly more likely to walk away from a competitive workplace if they saw few alternative employment options.

Jeffrey Flory

Jeffrey Flory

In contrast, women were more likely to apply if the performance relied on teamwork, not on the individual, or if the salary was a flat fee independent of their performance.

When there was no explicit statement that wages are negotiable, men were more likely to negotiate than women.
However, when wages were “negotiable,” this difference reversed when women had explicit “permission” to ask for higher salaries and job titles.

Babcock also found that women and men evaluate negotiation and interpersonal behavior differently:  Negotiation practices that are generally judged “acceptable” for men are frequently assessed as “overly aggressive” when women use them.
As a result of this differential evaluation of negotiation practices, Babcock and Laschever advised women to:

  • Define goals, acknowledging that “everything is negotiable,”
  • Research personal “market worth” in comparative job using online resources like Salary.com and Glassdoor.com,
  • Reconsider low sense of entitlement to higher salaries and job roles,
  • Challenge potential anxiety about negotiation,
  • Plan negotiation rationale, citing specific accomplishments, results, value to the organization,
  • Practice a positively-stated, confident negotiation “pitch,” offer timing, set an advantageous anchor point, and provide counterarguments to mitigate objections,
  • Plan counter-offers and self-supporting thoughts to manage anxiety while maintaining negotiation position and interpersonal rapport.

Collaborative negotiation by cooperative bargaining enables both people to derive value from the negotiation conversation.
They suggest building negotiation courage, comfort, skill, stamina, and strength while focusing on the negotiation goal and delivering value for all parties through a “Negotiation Gym” program.

Foundational negotiation principles were summarized in Getting to Yes: Negotiating without Giving In by Harvard’s Roger Fisher and William Ury.
More recently, Ohio State’s Roy Lewicki, David Saunders of Queen’s University, and Vanderbilt’s Bruce Barry of Vanderbilt detailed their research-based guide to Negotiation.

Leigh Thompson

Leigh Thompson

More than 90% of all negotiators fail to ask “diagnostic questions” that uncover the negotiation partner’s most important needs, priorities, preferences, and even fears, found Leigh Thompson of Northwestern.
Eliciting this information is associated with significantly improved negotiation outcomes, she found

Knowing Your ValueTelevision journalist Mika Brzezinski echoed Babcock and Laschever’s recommendations based on interviews with prominent women and men about the persistent gender wage gap.
She distilled disconcerting labor statistics and suggested a model for negotiation:

  • Research,
  • Leverage,
  • Negotiate,
  • Re-negotiate.Hardball for Women
Pat Heim

Pat Heim

Women’s reluctance to negotiate may be related to gender differences in attributions of success and failure, suggested Pat Heim:
Women attribute failures to themselves (“internalizing,” “taking it personally) whereas men identify external factors (“blaming”, “rationalizations”) associated with their shortcomings.
In contract, women attribute success to external factors (“deflection of merit”). Men, in contrast, typically attribute their effective performance to to themselves (“self-bolstering”).

Men are typically promoted because they are seen to have “potential,” whereas women are typically promoted based on their results and accomplishments, noted Heim.
Even factors like attire can influence perception of authority:   Men judged women but not other men as less authoritative when wearing “business casual” attire.

Women can systematically develop skills and behaviors required to close the well-documented wage gap between professional women and men.

-How do you prepare for negotiations and overcome objections during negotiations?

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Women May Undermine Salary Negotiations with Excessive Gratitude

Negotiators and poker players know the value of limiting full self-disclosure in words and non-verbal expressions.

Andreas Leibbrandt

Andreas Leibbrandt

However, some women undermined their salary negotiations by revealing their gratitude for a salary that exceeded their expectations in an experiment by Monash University’s Andreas Leibbrandt and John A. List of the University of Chicago.

John List

John List

Participants were women applying for administrative assistant jobs with a posted wage of $17.60 USD per hour.

Researchers told some volunteers that the wages were “negotiable,” and these women negotiated their pay upward by a ratio of more than 3 to 1.
This result echoes previous findings that women frequently do not negotiate unless given explicit permission, and consequently, have lower salary offers than those who negotiate.

Leibbrandt and List tested this hypothesis by not mentioning negotiation to the remaining participants, and these women typically provided “too much information” by remarking that the posted wage “exceeds my expectations. I am willing to work for a minimum of $12.”

-*Could this comment be “strategic ingratiation” to effectively influence a negotiation partner?

Edward E. Jones

Edward E. Jones

Consider three methods of ingratiation, outlined by Duke University’s Edward E. Jones:

  • Self-presentation (self-enhancement or “one-down” humility, providing favors or gifts),
  • Flattery (“other-enhancement” either directly or ensuring word-or-mouth report of positive yet credible comments),
  • Agreement (opinion-conformity, non-verbal matching-mimicry).

Although the ingratiator’s intent may be to enhance the future working relationship, this approach may be seen as “overselling” after a sales prospect agrees to a deal – and may lead to undoing the proposal.

In this case, the negotiation partner may question the applicant’s judgment, qualifications, and confidence, and may delay salary increases because the candidate appears satisfied with the offer.

Steven H. Appelbaum

Steven H. Appelbaum

When discerningly applied, ‘strategic ingratiation’ in organizations may result in personal rewards including promotion or pay increase, according to Concordia University’s Steven H. Appelbaum and Brent Hughes.

They found that effective use of “strategic ingratiation” was influenced  by situational factors and individual variables including:

  • Machiavellianism,
  • Locus of control,
  • Work task uniqueness.
Jeffrey Flory

Jeffrey Flory

In another of Leibbrandt and List’s randomized field studies, collaborating with Concordia colleague Jeffrey Flory, they found that among nearly 2,500 job-seekers, men did not wait for permission when no statement was made about salary negotiation, and in fact, male participants said they prefer ambiguous salary negotiation norms.
Despite women’s general hesitance to negotiate without an invitation, women advocated for more favorable salaries at about the same rate as men when they were invited to negotiate.

The team extended these findings by analyzing nearly 7,000 job-seekers with varying compensation plans.
In “competitive work settings,” salary negotiation was typically expected, and men stated a preference for these work environments.

Leibbrandt, List and Flory concluded that women accept “competitive” workplaces provided “the job task is female-oriented” and the local labor market leaves few alternatives.

Women looking for better salary outcomes benefit from proposing their “aspirational salaries” rather than waiting for permission to negotiate.
In addition, women negotiators can achieve better outcomes when they offer moderate expressions of gratitude and avoid revealing their “reserve” salary figure.

-*In what work situations have you benefitted from applying ‘strategic ingratiation’?

-*To what extent have expressions of gratitude in negotiation undermined bargaining outcomes?

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