Tag Archive for: Salary

Tips for Women on Negotiating Salary Now That Equal Pay Is Mandated

,

Guest contributed by Susan Brennan

On April 9, a US appeals court ruled that a woman cannot be paid less than a man for the same job simply because they had a prior lower salary.

While this is certainly progress in the right direction, it will be interesting to see how companies enforce and track this in action.

Do you cringe a little when you think about salary negotiations? While negotiating your salary might feel like something you would rather avoid, deciding, whether or not, to accept a salary offering and having the confidence to negotiate for higher, is a skill that take you well beyond your life right now.

However, pay secrecy or being discouraged to discuss salary is a real thing that many people, especially women, deal with. According to a survey from the Institute of Women’s Policy Research, 51 percent of women reported, “The discussion of wage and salary information is either discouraged or prohibited.” And with women in the United States earning on average 80 cents to every dollar a man makes, the time for women to feel confident to earn what they deserve and have these conversations is now.

Here is a guide on salary negotiating from the moment you receive the offer to the moment you and your future employer agree upon a number.
  • Before the offer—and even the interview—do your homework so you have data to back up your case

Before you start talking numbers, figure out how much you need to live by doing an inventory of your fixed expenses. This is called determining your bottom line. What do you have to pay every month rain or shine; rent, child care, food, car payment? This isn’t necessarily the number you should settle for, but it will give you your bottom line—then build up. Caveat: Employers do not care what your expenses are, so don’t use this as an argument for more money.

  • Know your worth

There are a lot of resources to help you determine what the market is paying for similar positions and experience levels. Websites like Glassdoor and Payscale allow you to plug in a job title and years of experience and get a range for what the market will bear for that kind of role. The numbers will take into account geography and a number of other factors that have an impact. Across industries, pay gaps vary. For example, female doctors earn significantly less than male doctors, an average of 28 percent.

There are also some awkward situations you need to be ready for, such as:
  • On the first interview, you’re asked about your salary expectations. A good (and honest) response is to tell the interviewer that at this point, you’re focused on learning more about the role and what you will be doing before moving forward with salary. If you absolutely need to answer, never provide a single number; have a range ready based on your research so you have data to back you up. If you’re asked about salary on an online application, try to skip that question or enter a range if possible; otherwise enter the high end of your range.
  • You get the offer at a lower salary than you expected. First, express that you are excited about being offered the position and the value you can add to the company. Then add something like this (given that you’ve done your homework on fair market salary): “I did want to talk to you more about the base salary because I’ve done research around comparable roles with my background in [insert experience], and my expectation was that I would be in the range of [insert range here] and I’m wondering if there’s room to negotiate.” And make sure you also ask questions about benefits such as health coverage, retirement matching, and vacation; they can add a lot of value and should be taken into consideration.
  • You want to negotiate the salary. Should you email, meet in person, or make a phone call? The natural tendency for a difficult conversation is to email, but when it comes to salary it’s very important to have a conversation if you can. You can certainly send email to say you would like to talk more about the offer, but set up a time to talk. It will help both of you get a good read on each other, and you can get answers quickly. If the answer is “No” to negotiation, ask when you could expect to get closer to your range. “How do people in this position historically move up the range? How often will I be reviewed and see salary increases?”
  • You get the call with the job offer and salary you want. Should you accept? First and foremost, do not say “Yes” right away, as it binds you without knowing the full terms of the offer, including benefits and reviews. Pause, take a deep breath, be gracious; and buy some time. A good response: “I’m thrilled to get the offer and I will definitely take some time to think about it. Could you send an email with all of the details and we can schedule a follow up call to discuss?” This is important: Do not make verbal acceptance to an offer without reviewing all the details! It may seem counterintuitive to pause after all your work negotiating, but there are a lot of other details that are part of the offer. The contracts are typically written by a lawyer or human resources personnel and can be binding— even if you’ve only made a verbal agreement. Carefully review the agreement once you receive it.

The bottom line of successful salary negotiation especially for women: Know your budget and have data on the market range (versus a single number) to back up your worth. Don’t be afraid to ask for what you deserve; but make sure you are vision-driven—the value you will add to the company—and data-informed.

Susan Brennan is Associate Vice President of University Career Services at Bentley University and co-host of the career advice podcast Counter Offer, the podcast that helps you love Mondays. Over the past decade, she has put Bentley on the map for delivering impactful career education and outcomes, with 99% of first-year students participating in her team’s ground breaking career development course and 97% of 2017 graduates employed or attending graduate school within six months of graduation.

Disclaimer: The views and opinions of guest contributors are not necessarily those of theglasshammer

/by

Changing Jobs: What Financial Benefits Do You Need to Think About Besides Your Salary?

,

People waiting for an interview

Guest contributed by Marisa Joseph

The excitement of a new career path, or even taking on a different role within your current company, can be accompanied by new (and sometimes overwhelming) personal and professional considerations.

And, for women who’ve spent more time establishing their careers, these considerations can vary significantly from those just starting out.

When approaching this transition, be sure to evaluate (and understand) the potential impact on your lifestyle that a new job might bring, along with how your short- and long-term financial goals could be impacted each step of the way. One in four Americans feel some level of financial anxiety, according to a 2017 Northwestern Mutual survey, making addressing these considerations – no matter the stage of your career – a key step to moving forward with confidence.

Before you accept the offer, ask yourself a few questions:

1. What’s going to happen to my non-cash bonuses? If you received stock options at the company you’ll be leaving, make sure you’re aware of the implications when switching jobs. Review your offer letter and/or employment agreements to ensure you’re cashing out your stock options within a stipulated time of departure, and checking on potential tax implications.

2. Is my tax bracket going to change? Depending on your new salary, you could be bumped into a different tax bracket. By meeting with an accountant, you can better prepare yourself for offsetting a potential tax increase.

3. Is your potential employer offering other benefits that are important to you? Maybe you’re looking for a more flexible schedule in your new job, or perhaps the opportunity to go back to school. Remember to highlight these possibilities in conversations with your potential employer. Ask also about a sign-on bonus or annual incentives, as well as termination provisions, to ensure you’re maximizing your financial options.

Once you’ve begun your new role, take the time to review your benefits package to update or supplement as necessary.

Below is a list of what you should review:

1. How am I handling my retirement plan? Your new job may provide you with the opportunity to contribute to a company-sponsored retirement plan, such as a 401(k) or Roth IRA. If this is something you took advantage of at your previous job, a financial planner can help determine if rolling over your old plan – or keeping your money where it is – is the best option for staying on track with your retirement goals. And, if this is a new opportunity for you, make sure you review what your employer is willing to match so you can maximize your contributions.

2. What are my insurance options? Your new employer may also offer insurance plans for employees, which could include health, dental, disability and life insurance. By thoroughly reviewing your benefits, you can identify any gaps in what your employer is willing to offer for baseline coverage, and where you may want to purchase additional protection. Ask yourself also; will I need to pay more in premiums, copayments or deductibles for my family? Consider again talking with your financial planner for help navigating your options and understanding any of those gaps in insurance.

3. Is there a waiting period before my disability (and/or life) insurance coverage begins? Sometimes, new employees are required to wait 90 days before they become eligible to receive coverage. Find out if you fall into this category, and from there, identify if supplementary insurance could be an option to protect you and your family during the gap.

Finally, once you’ve made it though the first several months at your new job, it’s time to evaluate one more crucial metric.

1. Am I happy? While your job may have come with perks like the ability to have more discretionary income or additional vacation days, these can sometimes seem less attractive when coupled with demanding hours or difficult relationships with coworkers. Does the new job fit with your lifestyle? Is it putting you closer to achieving your long-term financial and professional goals? Consider discussing your thoughts and options with a trusted friend, mentor or coach to map out the next steps of your plan.

By keeping in mind this checklist of questions, you’ll be on your way to embracing your new position feeling confident and prepared.

Guest contributed by Marisa Joseph http://marisajoseph.nm.com

Disclaimer: The opinions and views of guest contributors are not necessarily those of theglasshammer.com

/by

Refusing to Provide Salary History Information During Job Interviews

,
By Ken Levine, Esq., Bailey Duquette P.C., New York, New York

 

job interview

 
 Potential employers routinely ask for an applicant’s current salary before making an offer.  The practice arguably perpetuates gender pay disparity, since an unfairly low salary at one company will then have an “anchoring effect” and lead to a lower salary at the next job, continuing the systemic bias.  Many women who also take time off from work to care for children re-enter the workforce at a lower salary, and similarly run the risk of being stuck at a lower salary rung at subsequent jobs.
 
Employers are already prohibited by federal and state laws from compensating men and women at different rates for the same work, and women can sue if they experience wage disparity in violation of those laws.  But reliance on salary history may still perpetuate the gender disparity, even if not done for overtly sexist reasons.   
 
In an effort to ensure pay equity for women, Massachusetts, Philadelphia and New York City have all recently passed laws to restrict salary history questions, and other states, including Illinois, New Jersey, Maine, California, and Vermont, are considering similar measures. The New York City law prohibits employers or their agents from inquiring about the salary history of an applicant, whether male or female, and restricts an employer’s ability to rely upon salary history in determining compensation during the hiring process, even if the employer finds the information through lawful publicly-available sources.  The New York City law allows an employer to discuss with an applicant his or her expected salary, salary range and benefits.  A prospective employer is also allowed to consider salary history if the applicant “voluntarily and without prompting” discloses the information.  The law does not apply to internal promotions. 
 
No state or city laws are currently in effect. Philadelphia‘s ordinance was scheduled to take effect on May 23, 2017, but a federal court stayed its effectiveness pending a legal challenge on first amendment grounds. The New York City legislation will take effect on October 31, 2017, and the Massachusetts law, passed last summer, will take effect on July 1, 2018, unless either of them faces similar legal challenges.  Several government agencies also prohibit inquiry into salary history for the same reasons.
 
The new laws can serve to embolden women to withhold their current salary information during contract negotiations.   Women (and men) can credibly argue that not relying on salary history requires employers to make clear, market-based decisions about pay.  Some head hunters in fact actively advise all clients not to reveal current salary for this very reason, even when pressured to do so.  The issue is especially relevant for women who have taken time off from work to care for children.  Citing to these new laws and policies, even if not currently legally binding on prospective employers, can serve as sound justification for withholding salary history information during employment negotiations. 
 
 
Ken Levine is a commercial litigator and general corporate adviser.

 

/by