Research into women entering the workforce show that female graduates expect less of a salary compared to their male counterparts. (Mcfarlin, Frone, Major, & Konar, 1989) found that females had significantly lower career-entry pay expectations than males. In most cases, if a person expects less of a salary they will earn less. This expectation continued from entry level to career peak level.
Primary research into the area revealed that female candidates tend to be happy with receiving an offer from a company rather than seizing the opportunity to negotiate. This point was further highlighted by Barbulescu & Bidwell, (2013), women tend to value relationships and trust over money. Meanwhile, men prioritise monetary reward and will tend to negotiate better terms. The gap widens. Further research into gender stereotypes was completed in 2012 by Madelin Heilman. A group of male and female participants were asked to identify three things; the attributes of men, the attributes of women along with the attributes of a successful manager. The results showed that the characterization of successful managers were more congruent with the characterization of men than of women. This stereotype of male characteristics being more suited to management has been labeled; think male think manager. Is this a glimpse into women undervaluing themselves by associating successful management traits to male characteristics?
How is this connected to negotiating?
When a female candidate is not aware of the value she can bring to a company and prioritises relationships and trust over a better salary and is generally just happy to receive an offer, then she is less likely to negotiate. If a negotiation does take place, she is in a weakened position and unlikely to succeed. Please note, there is nothing wrong with prioritising relationships and a trusting environment. These are key elements to a vibrant working culture, however, in a pay gap discussion they are limitations that work against one gender over the other.
What can be done?
In this case the answer falls to individual female candidates. Do your research, understand the current market rate for your position. Understand the value you bring to an organisation and appreciate how good you are at your job. When you grasp these elements and receive an offer that is below your expectations or the market rate you will be more likely to go back and explain why your services are worth more.
From the employer side, try not to base your offer on a candidate’s current earnings and instead focus on the level you went to market for and pay a fair market rate for the person you wish to hire.
For more information or a discussion on any points raised reach out directly, [email protected]
