A common myth is that women are less likely to negotiate their salaries than men, and that this contributes to the gender pay gap. However, a new study by researchers from Harvard University and the University of California, Berkeley, challenges this assumption and reveals a more complex picture.
The study, published in the journal Management Science, analyzed data from over 6,000 job seekers who used an online platform that helps people negotiate better offers. The researchers found that women actually negotiated their salaries more often than men, but they still received lower offers on average.
The study also examined how different factors, such as industry, job level, and location, influenced the negotiation outcomes. The results showed that women faced more barriers and biases than men in certain contexts, such as when they applied for male-dominated jobs or when they negotiated with male hiring managers.
Tekedia Mini-MBA edition 16 (Feb 10 – May 3, 2025) opens registrations; register today for early bird discounts.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
The researchers suggest that employers should be more transparent and consistent about their salary policies and practices, and that they should avoid making assumptions about candidates based on their gender. They also recommend that job seekers should be aware of the potential challenges and opportunities in different negotiation scenarios, and that they should seek feedback and advice from mentors and peers.
One of the ways that job seekers can improve their negotiation skills and strategies is by learning from successful examples and best practices. The study provides some insights into what works and what doesn’t for women and men in different situations. For instance, the researchers found that women who negotiated with female hiring managers received higher offers than those who negotiated with male hiring managers.
They also found that women who applied for female-dominated jobs received higher offers than those who applied for male-dominated jobs. These findings suggest that women may benefit from emphasizing their fit and value for the role and the organization, and from building rapport and trust with the hiring manager.
On the other hand, men who negotiated with female hiring managers received lower offers than those who negotiated with male hiring managers. They also received lower offers when they applied for female-dominated jobs than when they applied for male-dominated jobs.
These findings suggest that men may face some backlash or resistance when they negotiate with women or for traditionally feminine roles. To overcome this challenge, men may need to be more careful about how they communicate their expectations and demands, and to avoid being perceived as aggressive or arrogant.
The study is one of the first to provide empirical evidence on the gender dynamics of salary negotiations, and it has important implications for both individuals and organizations. By understanding the factors that affect the negotiation process and outcomes, both women and men can improve their skills and strategies, and ultimately achieve fairer and more satisfying compensation.
The study is one of the first to provide empirical evidence on the gender dynamics of salary negotiations, and it has important implications for both individuals and organizations. By understanding the factors that affect the negotiation process and outcomes, both women and men can improve their skills and strategies, and ultimately achieve fairer and more satisfying compensation.