Career growth and the potential for an increase in compensation are often top reasons why one chooses to pursue an MBA. We are positioned best for growth and higher compensation when we know our worth and request it. This can be a daunting proposition and ignites fear in us. We fear several things:
- Creating havoc in our relationship with our future or existing boss
- Asking for more will not work and is useless to try
- Finding the words to ask in a rational, compelling manner
These fears are valid. On the flip side, there are compelling reasons why we should consider asking for more. The first is the amount of money we stand to miss out on if we don’t negotiate. Studies cite numbers from $500,000 up to $1,000,000 in lost earnings over the course of our careers if we don’t negotiate. It’s similar to the concept of compound interest and the value of starting to invest early in life. The same is true in our careers. A powerful way to think about this is a $5,000 raise in 2017 is not a one-time increase to your earnings. You’ll be receiving the benefit of that additional $5,000 in 2018, 2019, 2020, and beyond.
The second reason to negotiate is it’s expected. A study conducted by salary.com found 84% of hiring managers expect candidates to negotiate. Most hiring managers leave wiggle room when they make an offer in order to have flexibility if a candidate does ask for more.
For the ladies reading this post, a third reason to consider negotiating is due to the wage gap in the US. This topic is getting quite a bit of press in the news based on our volatile political climate. Caucasian women earn 79% of what their their male counterparts earn, African-American women earn 65% and Hispanic women 54%. McKinsey&Company has released information stating it will take us 100 years to have parity between genders in C-level roles and 25 years for parity at the VP level.
These numbers are appalling and invite action. As graduates of MBA programs, it’s incumbent on us to change this trend by knowing our worth and advocating for ourselves. If you’re looking to avoid the top 9 mistakes when negotiating compensation, download the free guide here and go forth to ask for more.
It’s incumbent on us to change this trend by knowing our worth and advocating for ourselves.
Written by Megan Betterman
Megan Betterman is on a mission to train women how to negotiate their compensation, earn their full value and advance their career goals. She recently founded a consulting business to bring this mission to life and offers group workshops along with individual training. Additionally, she leads a team of digital marketers at HealthPartners in Minneapolis, the largest consumer governed non-profit health care organization in the nation. Megan recently completed the MBA program at St. Catherine University in St. Paul, Minnesota with a focus in marketing. She spends her free time traveling the world, perfecting paleo recipes, and teaching yoga along with meditation. You can find her online at www.meganbetterman.com.