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As for starting salaries, most companies do not have a fixed salary for a position, but rather a range. That range can sometimes be several thousand dollars. The initial offer is usually not at the top end of the range, meaning that companies leave room to negotiate salaries. In his book "Compensation" (McGraw Hill Irwin, 2005), Milkovich cites research that suggests that men are more likely to negotiate for a higher salary.
Thus, one possible explanation for the gender difference among recent grads is that men simply ask for more money.
Let the free market work. Do not add another worthless law or policy that will accomplish absolutely nothing longterm...
Therefore, in order to make herself more desirable for a position that she knows has competition, a smart woman would probably not push the issue of money as much as a man would. It is a free market economy, and free markets are not always fair.
I can speak from experience because although I went to a top-10 school, with a degree in engineering and very respectable grades, I was unable to find an engineering job for 5 years. Granted, the economy has been bad for manufacturing, and I saw many people get laid off, but I had to take lab jobs and sales jobs to pay rent. Even then, when I replaced a man in one job, I found out later that he had made an extra $0.50/hr from the get-go. That's what they had offered him.
Believe me, when I finally had some serious interest from a potential employer, I wasn't about to push for a measly extra $2-3K/year, and risk losing the job altogether. I took the attitude that I would be rewarded when I had paid my dues and proven myself capable.
Unfortunately, large corporations tend to give small, incremental raises to everyone, regardless of the marketplace, so I am looking again.
Still, now that I have some experience, I feel that I can be choosier on my next job, but is my salary even close to what my male peers from college are making? Not on your life. In fact, on at least two interviews when the salary question came up, I quoted a very reasonable, well researched range for the geographical area, and the tone of the interview changed. I could tell they weren't going to call me back.
Companies get away with this because the people who they don't hire don't have information about the process. People who they do hire are discouraged from sharing salary information with their colleagues. Even then, if you notice any differences, you assume that it was something in the other person's background that earned them higher pay. But if they really valued their female employees, they would make sure to pay them what they are worth.
This also applies a few years in the job, when pay compression starts kicking in. Men are still more likely to negotiate about money. Companies are not going to voluntarily do anything like offer women more pay unless they are under the minimum in the pay range (green circle pay). Assess the situation and see if you have any leverage to negotiate for a raise. Unfortunately men are still perceived to have an advantage in a negotiation situation, therefore negotiation skills can be critical for women to close the pay gap.
I think most people are uncomfortable negotiating anything, and therefore don't ask for a higher salary when an offer is made. If an organization wants, they typically won't withdraw an offer if you negotiate compensation in a professional way. I would say that a lot of "bickering" over compensation will make the future employer wonder if your in it for the money, or the job. No one wants to hire someone just in it for a bi-weekly paycheck. If your able to explain why an increase is justified, you may get a return phone call from HR with an increased offer.
Additionally, a good human resource rep or recruiter sets a "stellar" candidate up to accept an offer during the first conversation. The interviewer knows how much is available for the opening, and sets the tone of future conversations by addressing compensation right off the bat. Don't get me wrong, if you hear "we can't offer that kind of compensation" they typically can't. But what you aren't hearing is that they may have some flexibility. You may not realize it, but compensation is being addressed during every communication you have during your interview process.
Kristin Bolinske
http://bolinskeconsulting.com
If HR managers want to be influential in corporate strategy and in helping the organizai5ton achieve its mission, then HR should take system-wide responsibility for all pay, promotion, training, recruitment, efforts -- and pay equity is a big part of that.
In addition to pay equity, HR managers should also keep track of how assignments are distributed... my own research (many years ago) demonstrated that pay differences were due to unconscious differences in assignments. Male and Female managers at the same level were systematically assigned to different 'quality' accounts-- The men got Tide detergent, and the women got Banner bath tissue (ever hear of that brand? no?)
Remember that pay differences, even when based on 'fact' like faster increase in sales, often also depend on other decisions, like assignments, training programs, mentoring, etc., that are subjective and subject to gender bias.
The action steps are great, though. Have you seen any HR depts. put these into action and make a difference?
Thanks for your excellent thoughts on this. Interesting take about assignments...not something I considered, but will now. Very good thinking. I appreciate that!