Salary Negotiation: An Important Skill for Women

A New America's report found that millennials are experiencing a significant slowdown in wealth accumulation compared to earlier generations. In the face of gender bias and the lower pay rates experienced by millennials in comparison to previous generations, it is crucial for women to possess strong negotiation skills.

The study found that when comparing starting salaries at the same age, millennials began their careers earning about 20% less than Baby Boomers and 4% less than Generation X. 

Furthermore, a study conducted by Lending Tree, highlights that millennial men tend to have better financial circumstances than millennial women. According to the survey, 57.3% of men have an annual income of US$50,000 or greater, compared to only 42.11% of their female counterparts in the same generation. As a result, salary negotiation is an important skill for women from which they cannot shy away. 

However, according to a survey conducted by MintLife, 22.6% of millennials do not know how to negotiate, to which LinkedIn suggests treating it as a conversation and not a confrontation. This particular skill helps improve the financial well-being of the employees, aids career growth and narrows the gender pay gap. 

A report from Hired.com reveals that when women negotiate their salaries, they are 15% less likely than men to receive the desired salary. Nonetheless, the study highlights that being proactive with negotiation leads to a more fulfilling career. 

LinkedIn emphasizes the importance of two key techniques in improving negotiation skills: research and developing a strong sense of self-worth. Additionally, understanding the company's pay strategy and effectively articulating one's value are crucial elements in the negotiation process.

“When employees are compensated fairly and equitably, it contributes to increasing their productivity and efficiency. Furthermore, employees feel valued and rewarded if they have some clear visibility into the company’s compensation structure, making it more likely for them to stay in the company,” says Gabriela Ceballos, CEO and Co-Founder, Hitch.