This One Common Mistake Can Cost Women $1.5 Million Over Their Lifetimes
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Gabrielle Olya
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Molly Sullivan
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When you’re just starting out in the working world, you may not feel comfortable negotiating your starting salary — but this can be a costly mistake. Research shows that not negotiating a salary at the beginning of your career can add up to between $1 million and $1.5 million in lost earnings over a lifetime. And this loss of potential income particularly effects women — a study of graduating university students found that only 7% of female students attempted to negotiate an initial job offer compared to 57% of men.
In this “Financially Savvy Female” column, we’re chatting with career experts about why it’s so important for women, in particular, to negotiate their salaries at their first jobs and tips for doing this successfully.
Why Women Should Negotiate Their Starting Salaries
It’s important for workers of all genders to be willing to negotiate their starting salaries, but it’s particularly vital for women to do so.
“Negotiating salary is critical for women, in part because their salaries often lag [behind] their male counterparts,” said Diana Bernal, career strategist and founder of Corner Office Latinas.
It can also signify that you would take the role seriously and aren’t afraid to go after big goals.
“Many women don’t negotiate, so by negotiating you will stand out and show that you mean business,” Bernal said.
Finally, having a higher starting salary can help insulate you from potential salary loss if you take a career break later on.
“Compared to men, women are more likely to exit the workforce for a period of time due to family [caregiving responsibilities], so it is essential that they make the highest pay they can in case they take a career break,” Bernal said.
Tips for Negotiating Your Salary at a First Job
If you’ve never negotiated a salary before, it can be intimidating, but the truth is that you should always see an initial salary offer as a starting off point and not a best-and-final offer. Here are some tips to successfully ask for more, even if you don’t have a lot of work experience behind you.
Do Your Research
“Research the pay for the position in that particular industry so you are confident in your request,” Bernal said. “Keep the request about the market value for your work and what you bring to it, not your student loans or mortgage.”
Flex Your Skills
“A company wants to hire you for what you are capable of achieving as you support the company in pursuing its goals,” said Emily Walton, founder and coach at Alo Coaching. “Create a list of how you check the boxes of the position requirements and what additional skills and capabilities you bring to the table to support your request.”
Practice Makes Perfect
“Practice the conversation,” said Andres Lares, managing partner at Shapiro Negotiations Institute. “Role-play with a friend or mentor before the actual discussion. This will help you prepare responses to potential objections and typical job interview questions.”
More From GOBankingRates
Sources
- Inc., “Research Shows Not Negotiating Your Salary Could Cost You $1 Million (Especially Women)”
- Diana Bernal, Corner Office Latinas
- Emily Walton, Alo Coaching
- Andres Lares, Shapiro Negotiations Institute
