A Place at the Table
Negotiating compensation and authority is a delicate maneuver, but savvy skills and honorable techniques can help you earn results for yourself and your team.

A half-million dollars. According to Carnegie Mellon University economics professor Linda Babcock, that’s how much money a woman may forfeit over her lifetime if she doesn’t negotiate her salary. Babcock’s research showed that M.B.A. students who negotiated rather than accepted the employer’s initial offer increased their starting salaries by 7 percent to 8 percent, yet only 12 percent of female M.B.A.s negotiated, compared with 52 percent of the males.

According to Babcock, simply knowing that men are more likely than women to ask for what they want can help you level the playing field for your female associates. When you’re distributing promotions, bonuses and plum assignments, be careful not to inadvertently discriminate against those who deserve the recognition, but weren’t aggressive enough to ask. Additionally, mentor and coach your female associates to get ahead in compensation discussions and client contract negotiations by teaching them these skills:

• Document. Ask employees to track their achievements, then, at least once a year, sit down with them to establish specific goals. They, and you, will be able quantify and qualify achievements before discussing compensation.
• Stand firm. Encourage your employees not to acquiesce on points of importance. Instead, they can politely disagree or offer alternative ways to reach the same goal. Ask them to enter discussions with two or three options already in mind.
• Think “opportunity.” Many women are concerned that asking for too much will sever a relationship they’ve worked hard to build. As a result, they may see an initial offer as a “yes or no” scenario. Help them understand that negotiating and compromise are tools that help both parties get what they want.
• Get creative. Remind your employees about perks that can sweeten a salary offer or a client relationship, even when direct compensation or a discount isn’t on the table.
• Say “no.” Encourage employees to maintain their integrity. If your staff member’s preparation and flexibility don’t convince the other party to meet her minimum requirements, remind her to walk away.

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