Women don't ask and when does gender matter in salary negotiation

Women don't ask and when does gender matter in salary negotiation

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Unformatted text preview: COM 259 COM “When Does Gender Matter in Negotiation?” Pradel, Bowles and McGinn and “Women Don’t Ask” “Women Babcock and Laschever Babcock Laschever Bureau of Labor Statistics 1000 900 800 700 600 500 400 300 200 100 0 White Hispanic Asian Black Men Women 4/15/2010 1400 1200 1000 800 600 400 200 0 MGT/PROF Sales Men Women Why Asking Is Important Why You have to ask to receive Starting salaries for those who asked were $5,600 higher Long­term consequences ­­ for you and your family – exist if you do not ask Costs of Not Negotiating First Job $361,172 Offer Difference in Earnings Over Career & $568,834 if Invested @ 3% Interest $196,970 $212,728 D id not negotiate Did negotiate $70,00 0 $75,60 0 Salaries at 30 Gap is $5,600 $15,758 Salaries at 65 Gap is Percentage of Students Who Negotiated Their Job Offer 60 50 40 30 20 10 0 51.9% 12.5 % Women Men χ²=10.68, ρ<.001 Consequences Of Not Asking Consequences People who negotiate consistently can earn up to $1,000,000 more in their lifetimes Depending on the situation, men are 8­9 times more likely to negotiate Why Don’t Women Ask? Why Don’t think to Aren’t socialized to Social structures inhibit asking • • • Their requests are responded to negatively Gender expectations Negative evaluations People negotiate more harshly w/ women Gendered Rewards and Penalties Men Women Self­promotion perceived competence Assertiveness/high task orientation enhance perceived competence “Masculine traits” set the standard, but create Catch 22 for women Self­promotion higher social risk Assertiveness/high task orientation enhance perceived competence/decreases likeableness Women are evaluated more negatively when they adopt traditionally male, authoritative leadership styles Male Evaluators: Willingness to Work with Candidates 5.0 4.85 No Ask 4.0 Ask 4.10 3.75 3.43 3.0 Male Candidates Female Candidates Female Evaluators: Willingness to Work with Candidates 5.0 4.51 No Ask 4.0 Ask 3.40 3.0 All Candidates Summary Male evaluators penalize women, but not men, for initiating compensation negotiations • Asking violates prescriptions of feminine niceness and makes women seem overly demanding • When facing male evaluators, women are less likely than men to initiate negotiations • Prospect of negotiation with male evaluators makes women more nervous than men •Female evaluators penalized both men and women for initiating Negotiations •When facing female evaluators, there was no sex difference in the propensity to initiate negotiations Gender Related “Triggers” Gender Effects of . . . Ambiguity Competition Negotiating for others Sources Sources Babcock, L. and Laschever, S. (2007). Women Don’t Ask. NY: Bantam Books. Pradel, D., Bowles, H., McGinn, K. (2005). “When does gender matter in negotiation?” Negotiation, Nov. 2005. ...
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