Wages have been increasing at a faster rate than inflation since 2018. According to statistics released by the Office of National Statistics, the average weekly income for full-time workers has seen a year-on-year increase of 2.9%, rising from £568 to £585.
Delving into the salary expectations vs reality, research collated by Instant Offices reveals that in 2019 UK wages saw the fastest rise in just over a decade, increasing by 3.9% in just three months.
The difference between men and women regarding salary negotiations
One-third of women state they believe they are over qualified for their current role, regardless, data show that women seem less likely to approach or instigate a conversation around money in the workplace. In fact, growing number of women prioritise work-life balance, flexible working options and better hours over money.
|Workers who||Men (%)||Women (%)|
|Feel comfortable asking for an increase||64||43|
|Have never negotiated their salary||40||55|
|Are more likely to negotiate working hours than pay||41||56|
|Are more likely to negotiate on specific parts of a job||55||42|
In their book, “Why Women Don’t Ask“, Linda Babcock and Sara Laschever reveal that men are four times more likely than women to ask for a raise—and when women do ask, they typically request 30% less than men do. In a study of 78 masters degree students, Babcock, a Carnegie Mellon University economics professor, found that just 12.5% of women negotiated for their starting salary, versus 52% of men. That leads, by her estimate, to as much as $1.5 million in lost income over the woman’s career. The gap is closing somewhat among younger women, who are more likely to ask for raises and are more likely to be the family’s primary breadwinner, but women are still far from parity when it comes to negotiating pay. Moreover, an Australian study of 4,600 employees found that while women were as likely as men to ask for raises, they were 25% less likely to receive them.
Money disparity starts young and affects women throughout their lives
Moreover, money disparity starts young with boys receiving more pocket money than girls. It’s no wonder, then, that women’s financial security is compromised, literally from cradle to grave. See Insuring Women’s Futures, a recent report from the Chartered Institute of Insurers on the points in life when women’s financial security becomes vulnerable.
Three top tips for negotiating your remuneration package
Donna Hughes, founder of Launch Negotiation, shares below three top tips to prepare for salary negotiations.
1. Know your worth
Most of us tend to undervalue ourselves at the best of times, therefore it is necessary to perform market research to create an objective assessment of your worth. Make sure you review job advertisements for similar roles in the sector, as advertised on websites such as LinkedIn, Monster and Indeed. Next, initiate discussions with recruitment consultants within your industry to validate the salary range and benefits for similar positions. If you are applying for a position within your existing company, leverage your trusted network to further ascertain the salary range for the role.
2. Think outside the box
Whilst salary is often considered the most important component of the remuneration package, take time to list other variables available for negotiation. What other components of the remuneration package, besides salary, are important to you? By thinking creatively, you may be able to enhance other aspects of your remuneration package, such as bonus, holiday entitlement, pension contribution, training and development opportunities private medical insurance, company shares, company vehicle, flexibility to work from home, amongst many other factors.
3. Step forth with confidence
When you receive an offer, express your gratitude and ask for the proposal to be provided in writing, for your consideration. It’s natural for us to compare the offer against our current package; however, it’s likely that the new role will have increased responsibility, and therefore you should be compensated accordingly. How does the offer compare against the salary range for similar positions? If this is not aligned, provide feedback that demonstrates your gratitude for the offer, your excitement to start in the position, but share your insight on the remuneration package for similar roles, and request for the offer to be aligned within the uppermost part of this range. Remember, you deserve this raise, but you’ll likely need to ask for it.
Instant Offices have some additional handy tips
- Have a list of reasons justifying why it would be in your manager’s best interest to pay you more with emphasis always on your ability and what you can bring to the department and company.
- Prepare your manager for the upcoming discussion to allow them to also prepare; they may need to talk to the finance team, or even promote you to a more senior role. Send an email outlining your request and a suggested date for a face-to-face meeting to sit and discuss things in full.
- Don’t threaten to leave, unless you’re actually prepared to. If you’re wanting a pay rise, unless you have another job offer lined up, it is not sensible to threaten to quit. Worst case scenario your employer says no and you have no other card to play, resulting in long-term doubt about your loyalty to the company. However, your best case you current employer tries to match the offer.
- Think about the timing. If your company has just announced their budgets, restructuring or cuts then factor that in accordingly. You don’t have to wait for your annual review, or even a pay review, just choose a suitable time when there isn’t significant pressure on your manager or the business as a whole.
Practice, practice, practice
Donna Hughes suggests practising your negotiation skills on a regular basis, in a variety of settings, to help you refine this skill and she’s offering readers an exclusive discount on the range of workshops hosted by Launch Negotiation. For further details contact firstname.lastname@example.org citing “WiC”