Employers are being forced to reveal how much they will pay potential workers. It’s a good idea, but it isn’t a cure-all for our giant pay gaps.

Woman head in hands job interview
Pay transparency does not go far enough to solve pay inequities.

  • While pay transparency does help minorities, there are other factors that continue to perpetuate bias and inequities.
  • Compensation in the form of non-salary benefits, overtime, bonuses, and equity are still undisclosed.
  • Companies must address explicit and implicit biases, assumptions, and policies and programs that perpetuate oppression.
  • Monique Cadle and Fran Benjamin are partners at Good Works Consulting and experts in holistic inclusive leadership strategy and education.
  • This is an opinion column. The thoughts expressed are those of the authors.

For decades, pay secrecy has been a point of contention for advocates of pay equity, often described as a problematic feature of the employment process meant to ensure negotiations are always in favor of the corporation. However, over the past several years, a culture shift has made it challenging to maintain this system as many employees have begun disclosing their salary information regardless of company rules as a way to self-organize to support fair salary negotiations for their peers.

Now, legislation in several jurisdictions has moved to make pay transparency a requirement for employers to create a more fair negotiation process and improve pay equity for underrepresented groups in the workplace.

The majority of compulsory pay disclosure regulations require individualized disclosure to a specific individual under specified circumstances, including but not limited to at the candidate’s request. Employers in several states are subject to similar regulations. Colorado went further, introducing a comprehensive, affirmative pay posting law this year, requiring wage disclosures in job advertising for physically located occupations or remote jobs that could be done in Colorado.

Some top companies not impacted by legislation have chosen to adopt these practices to stand out, attract top talent, and gain visibility as being ahead of trends in equity, diversity, and inclusion.

While this transition has many positive attributes, it undoubtedly creates new challenges for business leaders and applicants alike. And since much of the conversation around this recent move is centered around improving pay equity, it’s essential to consider how this impacts the pay disparity issue in practice, and if it helps them at all.

Behind the push for transparency is the belief that if applicants know what a company is willing to pay, they will be less likely to be under-compensated. While this may help some candidates, it won’t cure pay inequality. Many factors impact how salaries are distributed, and bias – explicit or implicit – and discrimination still play a role.

Pay becomes a new strategic consideration

This simple change to the structure of our hiring process creates significant new strategic considerations for recruiters and hiring managers as these public pay rates will become part of the decision-making process for applicants. Now, leaders must consider how pay ranges might be perceived, who will and will not apply at certain ranges, and what these decisions will mean at the negotiation stage.

Before pay transparency, the corporation held the cards by keeping their budgets a secret. By forcing the applicants to share what they required to be paid first, the company could find out if the individual would accept a lower rate than what was budgeted and potentially save money. Candidates who were historically underpaid might simply ask for a slightly higher salary than their last position rather than knowing what a company should be willing to spend for the work being done.

Today, candidates will become more aware of their compensation potential without needing to conduct additional research, but this may also impact who applies. For example, an individual who has been chronically underpaid may essentially self-select out of higher-paying positions under the belief that it’s too high of a jump. In contrast, highly compensated individuals may not apply under the assumption that the top of the salary range is a non-negotiable cap. Therefore, it becomes even more crucial to enable candidates to understand the total compensation for a given role.

Disparities in non-cash compensation, bonus, and promotions impact equity

While creating equitable compensation for women, BIPOC, queer folks, people with disabilities, and other marginalized groups is helped by greater transparency, the administration of pay transparency by the employer varies and still stands to perpetuate bias and inequities.

Base salary or pay rate are two fundamental components of compensation: how much cash the individual makes on an hourly or annual basis. For hourly workers, an organization may make the pay range transparent during the application. Still, it may not be aware of nor address the common occurrence that special projects and overtime opportunities often go to men more frequently than women, and take-home pay is still wholly disparate.

For salaried employees, this equation may seem a little easier. However, in our work consulting with companies, we have observed that while an organization may disclose a codified pay range, in many instances, they will also exceed that range during the negotiation process – a fact not made transparent. We also know that groups historically underrepresented in specific roles, levels, and industries, including women, tend to negotiate less than their white male-presenting counterparts, and therefore may never access these secret dollars that exist beyond the top of the range.

Many organizations offer an annual or performance-based bonus structure. Often this bonus target or range (an intended percentage of base salary, usually) may or may not be disclosed as a part of these pay transparency programs. What often is not disclosed is that senior management and boards of directors may elect to apply a multiplier to an individual’s bonus that either increases or decreases the total cash payout based on corporate performance.

Further, organizations often hold back bonus dollars for those considered “high potential,” which often translates to rewarding individuals they feel are most similar to themselves. As a result, take-home bonus cash is highest among majority group members, often white folks, who tend to fill the top ranks in the organization by the sheer symptom of their proximity and similarity to those at the top making the pay decisions.

Long-term compensation incentives and equity (e.g., stock plans, others) usually are out of the equation for pay transparency efforts yet could hold the biggest value and potential for pay inequity and disparity. Most of the legislation we discuss here applies to cash compensation, and most elective programs that we are aware of do as well. In practice, frameworks for awarding these grants are difficult to codify equitably because the value assigned to the awards can change dramatically over time, market data for awards like these are variable and up for interpretation, and therefore many employers avoid pay-parity analyses of this form of compensation and any attempt at transparency altogether.

Lastly, due to some of the shortcomings mentioned above, systems like these require maintenance over time to be effective. If the organization is simply making base-pay range data transparent to candidates, but not conducting regular pay-parity analyses internally and market-based pay adjustments and corrections, unequal and unfair pay will propagate as the employee navigates their career.

Bias and privilege are still at the core of hiring practices

Pay transparency is just one tactic, and on its own it doesn’t solve all of the challenges of inequity in the hiring process. Ultimately, much of the issue rolls back into the hands of the hiring managers and leaders making decisions about the candidates worthy of a particular pay tier.

Systems of oppression continue to disadvantage people less proximal to the access and privilege often afforded white workers, whether by lacking the network to receive insider pay and negotiation tips, or by being evaluated with greater or varied levels of scrutiny, to name just two challenges.

Breaking this cycle involves systematically undoing explicit and implicit discriminatory biases, policies, and programs that perpetuate oppression throughout the employment process. It requires evaluating candidates based on actual capacity to accomplish the expectations of the role while correcting for disparities of power and privilege.

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How much should you be paid? Compare 250,000 salaries from top companies with Insider’s Salary Database

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  • Insider has compiled more than 250,000 salaries across more than 250 companies to help you determine how much you should be paid.
  • The data comes from visa disclosures and can be used to compare salaries across industries, companies, and locations.
  • Check it out here.

Insider has built a searchable database of over 250,000 salaries from more than 250 companies so that you can know how much you should be paid.

America has long had a taboo against salary sharing, and public disclosures are only required when companies hire immigrant using different visas.

Insider has compiled that public information into a database, searchable by employer name, industry, type of job, and job location. Firms like Microsoft, Goldman Sachs, Google, and Amazon were selected by Insider’s reporters because of their newsworthiness and how popular they are with job hunters.

Try it out yourself here if you’re an Insider subscriber.

Read the original article on Business Insider

Billionaire dealmaker Ken Moelis says Wall Street pay raises for junior bankers could just be getting started

Ken Moelis
“We need great talent,” Moelis said.

  • Banks have been boosting pay to hold onto junior Wall Street talent.
  • The going rate for first-year base pay is now at least $100,000.
  • Another wave of raises could be coming, Billionaire dealmaker Ken Moelis says.
  • See more stories on Insider’s business page.

Pay raises for young Wall Street bankers has been one of the stories of 2021. It could be for 2022, also.

Amid a surge in deal flow through 2021, financial firms have been force to compete to keep talent by raising pay and the going base pay for people fresh out of college is now at least $100,000. Some banks are also going on big recruiting pushes– though recruiters say the hiring pool is nearly tapped out for junior talent.

There’s already been a second wave of pay raise announcements in recent weeks, with banks including Bank of America and Morgan Stanley telling staff to expect another bump next year.

Ken Moelis, the billionaire founder of advisory firm Moelis & Co, told Bloomberg TV on Thursday that he’s also ready to bump up pay even more next year.

“It’s possible,” Moelis told when asked if the firm might raise pay again next year. “We need great talent.”

“Business is booming,” he added. “Our firm, last quarter, I think our business was up 100% year-over-year, and our people were up 10%. You can just do the math. Somebody is working very hard. And I think they deserve to be paid.”

There’s a big pipeline of IPOs coming this fall. And top dealmakers have told Insider a recent M&A boom is just in its early innings. Still,

You can get a bank-by-bank rundown of new investment banker salaries right here.

Read the original article on Business Insider

How much junior bankers are getting paid at 14 Wall Street firms after a frenzy of salary hikes

The Wall Street bull tempting suited hands with a one hundred dollar bill on a red background
Here’s the latest investment banker pay by level at different Wall Street banks.

  • Many Wall Street firms are raising base pay for junior investment bankers.
  • The going rate for first-year analyst base pay is now at least $100,000 at many banks.
  • Here’s a rundown of salaries at different levels across investment banking.

Across Wall Street, financial firms are competing to keep talent by raising pay. Some banks are also going on big recruiting pushes– though recruiters say the hiring pool is nearly tapped out for junior talent.

The going rate for base pay for first-year investment banking analysts is now at least $100,000 across many firms. And Evercore has bumped base comp to $120,000 for first-year analysts.

Some firms are also raising pay outside of just IB. Goldman Sachs has raised salaries for first-year analysts and some second-year analysts in markets, wealth, and research. And Bank of America’s latest pay raises applied to analysts in global corporate and investment banking, global markets, and global research.

And a second wave of pay hikes is emerging, with firms including Morgan Stanley telling staff about further bumps to pay that will go into effect in January 2022.

Trying to keep up with the latest on pay for junior bankers on Wall Street? Here’s a bank-by-bank breakdown of changes in salaries for analysts, associates, and other levels at firms like Bank of America, Goldman Sachs, JPMorgan, Morgan Stanley, and more.

You can also see our full running list here.


Bank of America

Bank of America announced a second round of pay increases for junior investment bankers that will go into effect in the coming months.

The firm is bumping salaries for analysts in global corporate and investment banking, global markets, and global research divisions, according to an internal memo sent by the bank’s global banking and markets leadership team and reviewed by Insider.

See all the pay details here.


Citigroup

Analysts, associates, and vice presidents in Citigroup’s banking, capital markets, and advisory division will receive base salary increases.

The raises will be reflected in payments starting in August, according to an internal announcement first reported by Insider on July 2. Tyler Dickson and Manuel Falc√≥, co-heads of Citi’s BCMA group, sent the memo, which was reviewed by Insider.

Keep reading here.


Credit Suisse

The firm raised salaries for people in the global capital-markets and advisory group at the director level and below, which includes vice presidents, associates, and analysts. Salary raises took effect for directors, vice presidents, and associates as early as April.

See the full story here.


Evercore

Evercore bumped its base compensation for junior bankers to make it the top-paying investment bank for first- and second-year analysts. The firm is also bumping base comp for 2022 first-year associates, Insider has learned.

More on the latest pay here.


Goldman Sachs

Goldman Sachs is bumping pay for investment banking analysts and associates, Insider first reported on August 1. The move came months after the firm’s culture regarding junior bankers first came under scrutiny this spring.

The firm later moved to raise salaries for first-years in markets, wealth, and research.

Read the latest here.


Guggenheim Securities

Guggenheim Securities, a division of the financial-services firm Guggenheim Partners, has raised base compensation for investment-bank analysts for a second time in a matter of months.

Read the full story here.


JPMorgan

Wall Street’s biggest bank is rolling out pay bumps for junior workers in its investment bank, sources familiar with the situation told Insider on June 28.

More on JPMorgan raises here.


Lazard

Lazard is raising base comp for junior investment bankers in the US, a person familiar with the matter told Insider on August 3. New salaries went into effect as of the August 13 payroll and be retroactive as of July 1.

Keep reading here.


Morgan Stanley

Morgan Stanley is set to raise salaries for its junior traders and research analysts, as well as raising base compensation for junior investment bankers for a second time, Insider has learned.

More on Morgan Stanley pay here.


RBC Capital Markets

RBC raised analyst and associate base pay. The raises impacted US employees and went into effect in June.

See the full story here.


Raymond James

The firm is increasing base compensation for first-, second-, and third-year investment-bank analysts, according to an email sent by James Bunn, Raymond James’ president of global equities and investment banking. The raises will take effect on October 1.

While Bunn said in his email that the pay bumps should put Raymond James at the “high end of analyst salaries on the Street,” junior bankers may not end up taking home more total pay than before.

“Importantly, our primary focus is on total compensation (salary + bonus) and these salary increases are not intended to represent an increase in total comp,” said the email.

See all the details here.


UBS

The bank is raising salaries for analysts, associates, and directors within its investment bank, two people familiar with the matter told Insider on July 21.

The raises were effective August 1. And analysts, associates, and directors across all regions are eligible for the raise.

Read the full story here.


Wells Fargo

Wells Fargo raised base comp for analysts and associates in its corporate and investment bank, a Wells Fargo spokesperson confirmed to Insider. These raises are retroactive to July 1.

“We can confirm the adjustment of base pay in certain client-facing positions across the Corporate and Investment Bank, which ensures we remain competitive and aligned with market practices,” the spokesperson said. “We are committed to offering compensation that attracts, motivates, and retains talent.”

See more here.


William Blair

William Blair is raising base salaries for bankers from first-year analysts to managing directors. The raises went into effect in the Aug. 15 payroll cycle. A person familiar with the matter told Insider that the raises apply to the firm’s investment bankers globally.

William Blair executives earlier this year told its investment-banking analysts, associates, and vice presidents who joined the firm before Jan. 31 they would receive “a special, one-time spot bonus” in the amount of $20,000. More recent hires got smaller bonuses. The special bonuses hit accounts in the April 15 payroll cycle.

Keep reading here.

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7 questions entrepreneurs should ask themselves before diving into a new business venture

Black business owner entrepreneur
You should know what resources are available to you before you get started.

  • Entrepreneurs should first take a hard look at their own values before jumping into any new startup.
  • Ask yourself questions like is your timing right and should you take this on alone to start strong.
  • If you have a clear roadmap, you can build a business that will bring you more in the long run.
  • See more stories on Insider’s business page.

Most aspiring entrepreneurs I know are just waiting for that unique idea to strike them that will kickstart their new venture, put them in control of their lifestyle, allow them to achieve financial independence, and maybe even change the world.

Unfortunately, these goals are often mutually exclusive, and focusing on the wrong ones won’t bring you that business success and satisfaction you crave.

Thus, in my role as mentor to young entrepreneurs, I always recommend that you first take a hard look at your own values and priorities before jumping into any new startup, as the founder or even as a side hustle.

Here is my list of key questions to ask yourself to best route your passions to a business that will bring you more visibility and respect than pain.

Read more: I have multiple streams of income. Here are 5 of my favorite ways to make money, from print ads to affiliate marketing.

1. When is the best time to embark on this journey?

Timing is critical for every startup. I know too many who have failed because of pending family commitments, lack of preparation, or health failure. Of course, if you wait for the perfect time, you may never start. I do first recommend getting some business experience, building relationships, and managing risk.

Some advisers recommend that the best time for a startup is immediately after academic studies, or even earlier, but I find that real business experience, perhaps many years in business, is the best education on the realities of business, current tools, and processes.

2. Should I start out alone, or assemble a team first?

For me, the acid test of a leader and an idea is whether you can persuade other people, and perhaps a cofounder, to join you in your quest. A business is never a solo operation. You need complementary skills for marketing, financials, and operations. If you find no takers, you may not have a future.

3. Is monetary return or helping others your priority?

Only you know whether you can find passion in creating the next Amazon, or bringing joy to people who are suffering. I often hear that the people who have made a lot of money are still not happy, and wish they had taken a different path. Think twice before committing to a business that is work.

A winning strategy today is to combine these objectives, by committing a portion of your profits for a higher cause. For example, Toms shoes agreed to donate a pair of shoes to the needy for every pair sold. The return was far greater than the cost of donated shoes.

4. Do I rely on my own resources or seek investors?

Bootstrapping is always a great alternative, because you can retain full ownership and make all your own decisions. Yet I find that most of us don’t have the financials for that option, so we must share the equity, control, and reward, and rely on funding from family, friends, and professional investors.

5. How do I assign responsibilities and compensation?

Usually, people who are capable and willing to join a startup, especially for a key role, expect to be given a big title and real equity, if not top cash compensation. It takes real work and skill on your part to recruit the right people to the right roles. Friends and family should not be your solution.

6. Would I prefer a local business or global enterprise?

If your comfort level is local, and you don’t like too much complexity, then a small successful business will serve you well. If your goal is to compete with Jeff Bezos, then be prepared to manage thousands of locations and employees around the world, with all the issues to get exponential growth.

7. What do you see as your legacy and exit strategy?

Some people like the challenges of building a product and starting a company, and then doing it again, while others look forward to scaling the business and driving a worldwide public enterprise. Your legacy may be that of a serial entrepreneur, or an industry giant and a worldwide leader.

For example, Richard Branson relishes the satisfaction of initiating innovative startups and rewarding strong team members with the opportunity to run a joint spinoff. His Virgin Group now encompasses over 400 companies, and his legacy as a leader is assured.

Not recognizing these dilemmas early has cost many an entrepreneur their sanity, as well as their businesses. We all have strengths and weaknesses, and are driven by different values and expectations.

Only you can turn these questions and related decisions into your competitive edge, as well as satisfying results. It’s easier to set your direction early than to change it later.

Read the original article on Business Insider

Bank of America is planning another pay bump for junior bankers after leading the charge on raises across Wall Street this spring

Brian Moynihan
Brian Moynihan, chairman and CEO of Bank of America.

  • Bank of America is planning another pay raise for junior bankers in the coming months, per an internal memo.
  • The raises will go into effect in February 2022.
  • The bank bumped juniors’ pay in the investment bank for the first time in April.
  • See more stories on Insider’s business page.

Bank of America announced Friday a second round of pay increases for junior investment bankers that will go into effect in the coming months, Insider has learned.

The firm is bumping salaries for analysts in global corporate and investment banking, global markets, and global research divisions, according to an internal memo sent by the bank’s global banking and markets leadership team and reviewed by Insider.

In all three divisions, first- and second-year analysts will make $100,000 and $105,000, respectively. Third-year analysts in global markets and global research will see their base pay bumped to $110,000.

The raises will take effect on February 1, 2022, and their goal, in part, is “fostering an environment where you can build a long-tenured career” the memo said.

A Bank of America representative confirmed the contents of the memo but declined to comment further.

Bank of America this spring kicked off a wave of pay increase on Wall Street for junior bankers, many of whom said they were approaching burnout thanks to understaffing amidst a busy dealmaking environment.

On April 8, Insider reported that the firm was bumping analyst pay by $10,000 and associates and vice presidents by $25,000.

Bloomberg first reported the news of Friday’s pay bump.

On Thursday, Insider reported Guggenheim Securities, a division of the financial-services firm Guggenheim Partners, raised base compensation for investment-bank analysts for a second time in a matter of months.

Previously, other investment banks have exceeded the recently-set $100,000 norm in the industry. Evercore Partners raised first- and second-year investment-banking analysts salaries to $120,000 and $130,000 respectively, Insider first reported.

Goldman Sachs, HSBC, and Lazard have also all announced pay bumps for analysts and associates in recent weeks.

At Lazard, Morgan Stanley, UBS, Deutsche Bank, PJ Solomon, Barclays, and JPMorgan, entry-level investment bankers now take home $100,000 in base pay.

Keep up with which investment banks have raised salaries or offered spot bonuses to analysts with our running list here.

Read the original article on Business Insider

7 ways to make your company more attractive to job seekers in a competitive market

Woman sits in front of computer.
Job seekers want both competitive compensation and a role with meaning and purpose.

  • Amid the current worker shortage, businesses need to pull out all the stops to recruit top talent.
  • Consider improving your wellness and benefits plans, and offer other perks like leadership development.
  • Embrace a unique company culture, be open to flexibility, and don’t give employees reason to leave.
  • See more stories on Insider’s business page.

With many businesses planning to increase their head count in the next 12 months, employees are finding themselves in the driver’s seat with unprecedented leverage when it comes to how and where they want to work. For employers, this shift in power has caused a whole new set of challenges, compounded by a critical worker shortage. In fact, according to the most recent Vistage CEO Confidence Index, 62% of CEOs recently said hiring challenges are impacting their ability to operate at full capacity,

The rapid adoption of a flexible, hybrid work model because of the pandemic has meant a reexamination of what’s needed to retain and attract talent. Leadership is operating without a playbook rather than leveraging best practices and proven strategies; it’s no mystery why many CEOs are struggling to design the workforce they need.

Read more: Former Amazon VPs say the smartest thing companies can do after the pandemic is get rid of 2 long-standing management practices

There are some important factors that can make or break an organization when it comes to navigating these uncharted waters. In much the same way colleges recruit athletes, businesses need to design a smart strategy that appeals to current and prospective employees on multiple levels to be competitive. While the Vistage report found that 51% of organizations are refining recruitment strategies to boost their position in the talent wars, there are some vital steps all businesses should take right now, including:

Offer career trajectory and focus on leadership development

People are hungry for a career with meaning and purpose rather than just a job where they punch the clock. Half of the businesses surveyed are focusing on developing their existing workforce, which is vital since leadership development is the most under-invested, under-utilized aspect of both retention and company culture. These actions create opportunities to free up talent to take on more strategic, meaningful roles as they develop their careers.

Offer a robust compensation and benefits plan, beyond salary

Salary is certainly one of the most competitive advantages, and 79% of business leaders have recently increased salaries, while 22% are offering hiring bonuses, according to Vistage’s report.

Still, other factors should be considered to up the ante. Stock ownership plans, spot bonuses, comp days, and additional perks can boost employee loyalty and are now expected to be part of the compensation package by many employees. Robust health insurance, tuition reimbursement, and skill-building opportunities are other benefits important to today’s workers.

Embrace a unique culture from the top down

People want to feel they belong and are valued at work, which is where unique company culture comes in. The only way to create an authentic culture is to root it in a company’s mission, vision, and values and bring it to life through leadership.

Offer flexibility to foster motivation

While many are looking forward to collaborating in person with colleagues again soon, more workers want flexibility through a hybrid approach to work. CEOs need to decide what will work for their employees and their company going forward.

To compete in these new talent wars, however, CEOs must do more than design smart, competitive strategies for hiring. They must also accelerate their decision-making. The rapid human capital disruption that was ushered in by the pandemic has not slowed.

Vistage reports that 38% of CEOs believe that employees are leaving their organizations for higher salaries, and 18% believe they’re seeking better career/development opportunities. To win today’s talent wars, company leaders must focus on key decision areas – and be prepared to move fast.

Win before the war

It is vital that businesses not give employees reasons to leave. Make sure employees feel heard and valued. Continuously sell the benefits of being a part of your organization, and let them know where the company is going and how they are critical to getting there. Do not give them a reason to answer a recruiter’s call or make a call of their own.

Choose your battles

Identify key employees and proactively engage and connect with them. Whether it’s through salary increases and spot bonuses, or strategic investment in their career trajectory, identifying whom you want for the long term (and, as important, those you don’t) will ensure the strongest workforce.

Expect some losses

People, including the ones you know you need, will leave. CEOs need to get comfortable with being uncomfortable. Many will need to give up some control and empower managers to make more decisions about how their direct reports will work. There is no playbook for the rapid change the business world has seen, but when executives trust their managers, better and faster decisions can often be made.

The next 12 to 18 months will likely see as much trial and error as the past 18 months. No one is going to nail their hiring and retention strategy right out of the gate, but by being open to learning from challenges and working with managers, leaders can make better decisions and ultimately create a winning strategy.

Read the original article on Business Insider

4 of the best strategies to use when negotiating for a new job offer

young professional working from home on laptop
Negotiating a job offer is all about business, so don’t shy away from asking for what you want.

  • If you’ve been given a new job offer recently, take time to consider the overall compensation package.
  • Be ready to prove your value to an employer when negotiating for higher pay or additional benefits.
  • Understand that negotiation is a compromise, so don’t take low offers personally and stand up for what you’re worth.
  • Visit the Business section of Insider for more stories.

After a year full of swift changes to our working lives, where flexibility was demanded and anxiety was handed out in generous doses, most working professionals are looking forward to brighter days ahead. In some cases, we’re looking for a brand new job that will be more fulfilling, more lucrative, and more exciting. But just as the pandemic has shifted many aspects of how various industries function, it’s also impacted hiring and onboarding.

Now more than ever, employees need to weigh the overall compensation package they’re being offered, and make sure they have a complete understanding of how office policies may shift once COVID is behind us. For example, will you still be allowed to work remotely, work a flexible schedule, or have your home internet or gym membership paid for by the company? It may be that after having spent an extended period of time working remotely or unemployed, your priorities have shifted. And to win your dream job offer, you’ll need to exercise the fine art of negotiation.

We spoke with career experts to better understand the best approach to job offer negotiation. Consider this your 101 guide.

1. Know – and own – your value

First things first: before you can go to battle for what you want in this job negotiation, you need to have a firm understanding of your value. And most importantly, you should be confident in what you bring to the table. Teresa Sabatine, an empowerment and leadership coach, says because it’s a competitive job market right now and many talented people are on the job hunt, having confidence in your abilities is a critical component of getting the gig. In other words, you’ll need to fight imposter syndrome like your job depends on it. (Because it does.)

Sabatine recommends asking yourself these questions:

  1. What have I done to drive business results in the past?
  2. How did I make an impact?
  3. What is unique about me that helped me drive those results?
  4. How does that experience and success translate to the role I am applying for now or that is on offer?

Once you have your answers, back ’em up with stats and proof. “It’s important to have that data and rely on it because when we are in actual negotiations and interviews, we can get in our heads and forget what we bring to the table,” she said. “The people negotiating with you are hoping you know what you are talking about; they want you to be good at what you do and know your value.”

2. Get clear about post-pandemic changes

One of the trickiest parts of new job offer negotiation in the current landscape is all of the unknowns. Right now, you’ll be expected to work remotely, but what happens when offices reopen? Will you be required to come in every day? Do you want to commute again? If you’ll be working from home for the foreseeable future, does the company offer a stipend for your office setup? If not, do you need one – and should you negotiate for it?

When you have an offer, it’s essential to ask specific questions about tactical aspects of the job that are pandemic-specific, according to Christine Cruzvergara, the vice president of higher education and student success at Handshake.

“Explore whether there is a difference in compensation if you’re remote – do they have a philosophy on that, and what it might mean for your pay in the future?” she recommended. “Are there benefits or flexibility that you require in the near term, such as special equipment or unconventional hours, that you want to include in your negotiation? Not only will specific answers help you understand the terms of the negotiation, but it will also make you seem detail-oriented and clear in your communication.”

3. Know your points for compromise

You’re not going to get everything you ask for in any job negotiation, but to give yourself the best shot at walking away happy, Sabatine recommends exploring what matters the most to you, what wiggle room you’re comfortable with, and pinpointing your non-negotiables. Just keep in mind that there’s much more to consider than just your paycheck.

“Businesses may be having to tighten budgets, which means they might be offering non-compensated compensation to get great talent. Maybe they have upped the equity stake you get in the company. Maybe they are offering really flexible work hours in exchange for lower compensation, or there is an option for a robust bonus structure,” she explained.

For example, if your goal was to make $150,000 annually, but a company you love is offering you $105,000 per year to work your ideal job, Sabatine suggests asking yourself what might make up the difference. If the company would offer you a four-day workweek, would that be enough?

“Is it worth that loss in compensation because it means you get to be with your kids or you get to pursue your side hustle?” she added.

4. Don’t internalize the job offer negotiations

Repeat after Sabatine: Negotiating a job offer is all business. All too often, people – women especially – shy away from asking for what they really want out of a job because they don’t want to appear greedy, or as if they aren’t thankful for the opportunity. If that sounds like you, it’s time to shift that line of thinking and remember your worth and what you deserve.

“You are not lucky to be offered a job; you are talented and have something to offer in exchange for payment,” she said. “It’s important to understand the role, the market value compensation for that job, and the results you can get for that company.”

When an offer comes, state what you would like to make, then await the company’s next move. No low-balling yourself, no back-tracking, just confidence. You are worth every penny – and then some.

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A social experiment shows women may be as likely as men to accept a gender pay gap if they benefit from it

business meeting
Most women still make $0.84 on the dollar of what men earn.

  • Marlon Williams is an assistant professor of economics at the University of Dayton.
  • In a recent experiment, he found women were as likely as men to vote against closing the pay gap when they earn more money.
  • Williams hopes this research will lead people to consider how self-interest may be driving their arguments.
  • See more stories on Insider’s business page.

The big idea

Women are just as inclined as men to vote against a policy to reduce a gender pay gap if they are personally benefiting from the status quo. This is one of the main findings of my new study, which was published in January 2021 in the journal Applied Economics Letters.

I conducted a series of laboratory experiments in which I recruited participants to do a 30-question quiz. The participants knew from the start that they would be paid based on the number of questions they answered correctly. In roughly half of the sessions, the quiz was written in a way to give men an advantage. I achieved this by choosing questions that were mainly on topics that surveys show men tend to be more interested in than women, such as sports and certain movie genres. The quiz for the other half of the sessions were designed in a similar way to give women an advantage.

In the version with a male bias, men answered an average of 21 questions correctly, while women answered only 13 right. This was meant to mimic the current real-world situation in which men, on average, earn more than women. The questions were carefully chosen so that the quiz that favored women had mirrored results: The average woman answered 21 correctly, the average man just 13.

Read more: I moved to the Alaskan Bush to become a teacher after COVID-19 ruined my plans. It’s wildly expensive, but I feel at home in my village of 270 people.

Three times at different stages of the experiment participants voted to either be paid $1 for every correct answer or to give the group that was at a disadvantage a leg up. If the second payment option won the majority vote, the disadvantaged participants would get $1.25 per right answer, while those who benefited from the biased test would receive just 85 cents.

In all three votes, which had similar results, I found that women were actually more likely than men to vote against the policy that would have led to a narrowing of the pay gap when they earned more money in the quiz. On average, 96.8% of women’s votes were against the proposed corrective payment policy when they were more likely to correctly answer the questions, compared with 90.5% of the men’s votes when they had the edge.

In addition, when women were at a disadvantage, they were more likely to vote in favor of the corrective policy, with 79.5% supporting it versus 73% for the men.

While social science laboratory experiments like mine cannot fully capture every nuance, I believe my qualitative results are similar to what we would find in the real world.

Why it matters

Debate over the gender pay gap can become quite heated.

The latest data from Pew Research Center show women make $0.84 on the dollar of what men earn – a gap that hasn’t changed much in recent years.

And surveys have found that men are more likely to oppose measures to correct this gap and even question whether the gap exists in the first place. A 2019 SurveyMonkey poll showed that 46% of men believe the gender pay gap “is made up to serve a political purpose” rather than a “legitimate issue.”

My research suggests women might feel the same if the positions were reversed. Additionally, it suggests that men would also likely be equally vociferous in calling for a narrowing of the gap if they found themselves in a world where they were holding the short end of the stick.

Ideally, I hope this research will lead people to reexamine the positions they hold on issues like this one and consider how self-interest may be driving their arguments. Maybe it can lead to more understanding and increase the focus in these debates on the available evidence.

What’s next

In my current and future work, I seek to experimentally determine people’s willingness to sacrifice personal financial gains in favor of an outcome that they see as serving the common good. This involves, for example, testing how much income the average employee or executive is willing to sacrifice to reduce income inequality.

Marlon Williams, assistant professor of economics, University of Dayton

The Conversation
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Chipotle just rolled out a new accelerated job path to a 6-figure salary in less than 4 years

Chipotle PR Crew Photo
  • Chipotle announced a new starting wage and a faster promotion path to salaried management positions.
  • In less than four years, a line worker can become a “restaurateur” who earn $100,000 on average.
  • The company currently has more than 250 managerial positions open, and has a goal of filling 70% with internal hires this year.
  • See more stories on Insider’s business page.

Chipotle has some aggressive expansion plans in the works, with 200 restaurants slated to open in 2021.

In order to staff them all, the company aims to hire 20,000 new employees and is offering a higher minimum wage, along with an accelerated path to a six-figure career.

The burrito chain needs a small army of managers for all those new (and existing) restaurants to run smoothly, so it is shortening the timeline to less than 4 years for employees to rise through the ranks to become “Restaurateurs” who have an average compensation of $100,000.

“Chipotle is committed to providing industry-leading benefits and accelerated growth opportunities, and we hope to attract even more talent by showcasing the potential income that can be achieved in a few short years,” said Chipotle’s chief diversity, inclusion and people officer, Marissa Andrada, in a statement.

The company’s latest sustainability report outlines the career path as starting with Crew Member, advancing through Kitchen and Service Managers, up to Apprentice, then General Manager, followed by Restaurateur.

An earlier release said that Chipotle’s general managers “often” started out with the company as line-level crew members.

There are currently more than 250 open managerial positions across the US listed on Chipotle’s jobs website, and the company says it would like to fill at least 70% of those positions with internally promoted candidates. Last year, nearly eight in ten apprentice managers were promoted from within the company.

Employees who refer a successful applicant for apprentice or general manager positions are eligible for a $750 bonus, compared with the $200 bonus for crew-member hires.

In addition to prior restaurant experience, a job listing for a general manager position in Baltimore says applicants should have financial and staffing management knowledge, as well as a creative approach to marketing in the local community.

“They understand what it takes to run a strong business, hire and train great people, and grow our company,” the listing says.

Benefits include financial bonuses and up to $5,250 in annual tuition assistance for select educational credentials.

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