Tag Archives: Andreas Leibbrandt

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

Anna Beninger

Anna Beninger

Alixandra Pollack

Alixandra Pollack

Women negotiate salaries less frequently than men, leading to a persistent compensation gaps 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 earn about 80 percent of their male peers’ compensation 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

Likewise, Carnegie Mellon’s Linda Babcock reported that women MBAs earn USD $500,000 – USD $2 million less than their male classmates over their careers, and she linked this to men’s greater willingness to negotiate salary and promotions.

Babcock, with Sara Laschever, outlined precursors of these negotiation differences based on gender socialization.

Linda Babcock

They posited that many parents encourage boys to take risks, earn money, and participate in competitive team sports.
In contrast, they suggested that parents more often encourage girls to play collaboratively and value interpersonal affiliation.

These practices enable boys to negotiate, compete, and tolerate disrupted interpersonal relationships, according to Babcock and Laschever.

John List

John List

The gender-based wage gap’s association with women not negotiating salaries and preferring less competitive work roles, was also reported by University of Chicago’s John List, Andreas Leibbrandt, and Jeffrey Flory.

Their research studied respondents to two identical job ads on internet job boards with different wage structures.
One position offered hourly pay whereas the other role’s pay depended on performance compared with 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 wage gap “more than doubled” as performance-linked compensation increased.
Women were significantly more likely to walk away from a competitive workplace when they had alternate employment options.

Jeffrey Flory

Jeffrey Flory

In contrast, women were more likely to apply to jobs if the performance relied on teamwork rather than individual accomplishment, or if the salary was a flat fee independent of their performance.

Men were also more likely to negotiate when there was no explicit statement that wages are negotiable.
They did not wait for an invitation or permission to negotiate.
In contrast, women negotiated as frequently as men when they were invited to ask for higher salaries and job titles.

Negotiation practices considered “acceptable” for men are often viewed as “aggressive” when women use them, according to Babcock.
To counteract this reaction, she and Laschever advised women to:

  • Consider that “everything is negotiable,”
  • Research personal “market worth” using online resources like Salary.com, Payscale.com, and Glassdoor.com,
  • Consider oneself a viable candidate for higher salaries and job roles,
  • Examine self-limiting beliefs  about negotiation,
  • Plan negotiation talking points, including, accomplishments, results, impact,
  • Practice negotiation proposal, suggest timing, set an ambitious anchor point, prepare for objections,
  • Plan counter-offers and self-regulation to maintain negotiation position and interpersonal rapport.

Collaborative negotiation enables both people to derive value from the negotiation conversation through preparation and stamina, while focusing on the negotiation goal and providing value for all parties.

Negotiation principles were summarized in the classic 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 reveal 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.

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 suggested a structure to guide 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”) whereas men identify external factors (“rationalizations”) associated with their shortcomings.
In contrast, women attribute success to external factors (“deflection of merit”). Men typically attribute their effective performance to to themselves (“self-bolstering”).

Men are often promoted because they are seen to have “potential,” whereas women are  promoted based on their results and accomplishments, noted Heim.
Even factors like attire can influence perception of authority:  Men judged women 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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©Kathryn Welds

Women May Undermine Salary Negotiations with Excessive Gratitude

Andreas Leibbrandt

Candid self-disclosure can hamper salary negotiation outcomes, found Monash University’s Andreas Leibbrandt and John A. List of the University of Chicago, in a study of women who expressed gratitude for a salary that exceeded their expectations.

John List

John List

Some women applying for administrative assistant jobs were told that the wages were “negotiable,” and these women negotiated higher pay by a ratio of more than 3 to 1.
This result echoes previous findings that women frequently do not negotiate unless given explicit permission.

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 exceeded expectations and that they were willing to work for a lower hourly rate.

Edward E. Jones

Edward E. Jones

Though this approach likely leads to lower salary, it could be considered strategic ingratiation.
This negotiation tactic can take several forms, according to 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.

The ingratiator’s intent may be to enhance the future working relationship, but could lead the negotiation partner to question the applicant’s judgment, qualifications, and confidence.
This maneuver may delay salary increases because the candidate expresses satisfaction with the original offer.

Steven H. Appelbaum

Steven H. Appelbaum

However, “strategic ingratiation” may result in 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 and individual factors 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 to negotiate when no statement was made about salary discussions.

In fact, male participants said they prefer ambiguous salary negotiation norms.
Despite women’s possible hesitance to negotiate without an invitation, they achieved higher salaries at about the same rate as men when invited.

The team analyzed compensation plans of nearly 7,000 job-seekers.
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 who seek higher salaries benefit from proposing their “aspirational salaries” rather than waiting for permission to negotiate.
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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©Kathryn Welds