Financial Feminist – 121. Negotiate Like a Woman with Kathryn Valentine

Intro

In this episode of the “Financial Feminist” podcast, host Catherine interviews Kathryn Valentine, CEO of Worth More Strategies, about negotiating like a woman. The podcast focuses on saving money, getting out of debt, negotiating salaries, investing, and starting businesses through the lens of feminism and intersectionality. Kathryn shares strategies for success in negotiation, highlighting the importance of advocating for oneself and negotiating beyond just salary. This episode provides valuable insights for anyone preparing for annual reviews or negotiations in their career.

Main Takeaways

Negotiating Strategies

• Research-based solutions exist for women to negotiate effectively.
• Successful negotiation involves demonstrating that the ask is both legitimate and beneficial.
• Use the formula: past performance + future vision + ask, then stop talking.
• Negotiation should be a collaboration to solve problems together.
• Women are often expected to be grateful, making negotiation more challenging.
• Negotiation should be framed in terms of what the employee can do for the employer with more freedom.
• The future of negotiation may be more collaborative for all genders.

Gender Gaps in Negotiation

• Women negotiate at rates equal to or higher than men but are only successful half as often.
• Research shows that when women are forced to negotiate, they get worse outcomes and are more susceptible to backlash.
• There is a financial incentive to negotiate, but it should not be forced.
• Women undervalue themselves by 20-40% in negotiations.
• Gender differences in negotiation start as early as age eight, with little girls asking for 40% less than little boys for the same work.

Negotiable Benefits

• Negotiation involves thinking holistically beyond just base salary.
• Other benefits like stock options, 401k match, and performance bonuses are also negotiable.
• Women need to research the bargaining zone to determine what is reasonable for salary and bonuses.
• Women need to understand all the things that are negotiable in addition to base salary.

Challenges and Solutions

• Backlash against women who negotiate can take on different forms, such as being removed from presentations or given less responsibility.
• Women face gender gaps in key business skills such as networking, time management, and feedback.
• Women make mistakes in negotiations such as waiting until their backs are against the wall, negotiating just one issue at a time, and undervaluing themselves.
• Building the muscle of negotiation can be done in everyday life, such as negotiating with credit card providers or negotiating with children.
• Low stakes negotiations help build confidence and negotiating muscle.

Summary

Negotiating Strategies for Women

Kathryn Valentine emphasizes the importance of research-based solutions for women to negotiate effectively. Successful negotiation involves demonstrating the legitimacy and benefits of one’s ask, using the formula: past performance + future vision + ask, then stop talking. Collaboration and framing negotiation in terms of what the employee can do for the employer with more freedom are key strategies. However, women often face challenges in negotiation, including societal expectations of gratitude and the risk of backlash. The future of negotiation may involve a more collaborative approach for all genders.

Gender Gaps and Negotiable Benefits

Research shows that women negotiate at equal or higher rates than men but are only successful half as often. Women undervalue themselves by 20-40% in negotiations, and gender differences in negotiation start as early as age eight. It is crucial for women to understand all the negotiable benefits beyond base salary, such as stock options, 401k match, and performance bonuses. Researching the bargaining zone helps determine reasonable salary and bonus expectations.

Challenges and Solutions in Negotiation

Backlash against women who negotiate can manifest in various ways, such as being removed from presentations or given less responsibility. Women also face gender gaps in key business skills like networking, time management, and feedback. It’s important for women to avoid common negotiation mistakes, such as waiting until their backs are against the wall or undervaluing themselves. Building negotiation skills can be practiced in everyday life, and low stakes negotiations help build confidence. Overall, women should advocate for transparency and equity in the workplace.

Conclusion

Negotiating like a woman requires understanding the unique challenges and solutions that exist in the business world. By utilizing research-based strategies, considering all negotiable benefits, and building negotiation skills, women can achieve greater success, lower stress, and help retain female talent in the workforce. It’s essential to advocate for oneself and negotiate beyond just salary, ensuring fair compensation and creating a more equitable workplace for all.