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Getting Equality with Men: Plant the Seeds to Secure Your Financial Future, with Sallie Krawcheck, CEO and Co-Founder, Ellevest, and Author, Own It: The Power of Women at Work
Asking for a Raise
How do you think differently about asking for a raise? So let me start with the fact that I wish I didn’t have to give you this advice. That I wish every company out there just let you be you, and that you’re just not comfortable going in and negotiating for the raise and not to force you to do it. To close that gender pay gap, pay everybody exactly what they’re worth and not make negotiating a core part of getting compensated in this country. So I wish I didn’t have to do that. But I do. And so we have to accept the world as it is today.
And so ladies, you’ve got to negotiate from the first job. You just have to. Let me give you the example why. So I managed a lot of people over a lot of years and I will tell you that every year almost every guy who reported to me before bonus time would come into my office and tell me how much they wanted to make. And every guy every year typically told me more than he was in the budget for. And so think about what happens, right. Jim and Mary. Jim and Mary are both in the budget for a bonus or a raise of 5 each. Jim comes in, tells me he wants 10. Never hear from Mary. I giggle to myself that Jim, he’s so crazy, you know, we’re never paying him 10. Well, comes around time to put the budget together, give out the raises or the bonuses, and my HR head and I both know Jim wants 10. Well, you know, we’re not going to pay him 10, but, you know, his office door was closed the other day and the guys down the street are looking for someone like Jim. And by the way, he made a really good point, I totally forgot about that project he did. We’ll pay him 7.
Now, how much does Mary make? The answer usually is 5. The right answer, of course, is 3. Just because Jim asked for more and I choose to give him more doesn’t mean my bonus pool goes up. It doesn’t mean my budget goes up. And so there is to some extent a zero sum game. Alright, ladies. Now that I’ve convinced you how do we approach it? With facts and in advance. So much of the advice to us is sort of in the meeting, in the moment. You have to start planting those seeds well before. First of all, you need to know how much you should be making and go to a payscale.com or a getraised or comparably or hired. Any of these services that are popping up. Talk to your friends. Have two glasses of wine or four, you know, and have the conversations. So know how much you should make.
Have the conversation in advance with your boss about what are, if possible, the metrics. How many new, you know, quantify to the extent you can. How many new reports? What kind of client satisfaction score? How many new clients? What in sales? How many clean audits? Whatever it is you can quantify. What does success look like? So set that up for this is success for me, for the department, for the company. Here’s what I need to achieve this year. Here’s what I want to make, right. Get an agreement and then the negotiation at the end of the year is not a negotiation. To the extent, of course, that you come in, you’ve done that or haven’t done it.
Never have one ask and take “no” for an answer. That if you’re told “no” on the raise or even if you’re told “yes”, come in with 12 other requests, right. I want, you know, to take a coding class that the company pays for. I want to have a stint in marketing. I want to work overseas for a period of time. I want to be mentored by XYZ. I want to work on this big project. I want to, I want to, I want to. And if by number 20, you know, typically your boss is going to say yes to something that can turn into professional advancement or money down the road. And if he or she says no to all 20 I think you’ve gotten a pretty clear message there as well.
Investing Your Earnings
There is so much career advice for women. The best career advice that you are not getting is to invest. What? That has absolutely nothing to do with my performance on the job. Yes, but it does have to do with having more money.
One morning when I was putting on my mascara I had an insight which is the retirement savings crisis in this country is really a women’s issue and a women’s crisis. We retire with two-thirds the money of men and we live six to eight years longer. Eighty percent of nursing home residents are women. So it really is, while we’re not used to thinking about it through a gendered perspective, it is really a women’s issue.
And if you are investing to the same extent that the guys are that will on average and has historically added to your wealth hundreds of thousands of dollars, for some women millions of dollars, over the course of their lives. What happens when you’ve got more money? You can play looser, right. You can with more confidence go in, ask for that promotion, for that overseas assignment, quit that job you cannot stand because that boss is such a jerk. Start your own business, test your own business. The degrees of freedom when we’ve got more money are substantial. And I’ll even take it all the way to also help us get to equality with men. That confidence in the workforce, that equality. Ladies, we will not be equal with men until we are financially equal with men. So the best career advice you’re not getting is to invest.