GENDER IN JOB NEGOTIATIONS THREE THINGS TO REMEMBER HANNAH RILEY BOWLES INTERNATIONAL WOMEN’S DAY 2012 THE HELLER SCHOOL, BRANDEIS UNIVERSITY Collaborators:

GENDER IN JOB NEGOTIATIONSTHREE THINGS TO REMEMBER

HANNAH RILEY BOWLESINTERNATIONAL WOMEN’S DAY 2012THE HELLER SCHOOL, BRANDEIS UNIVERSITY

Collaborators: May Al Dabbagh, Linda Babcock, Julia Bear, Lei Lai, Kathleen McGinn, Bobbi Thomason

International Women’s Day

“It is an occasion for looking back on past struggles and accomplishments, and more importantly, for looking ahead to the untapped potential and opportunities that await future generations of women.”

United Nations Womenwatch

International Women’s Day

“It is an occasion for looking back on past struggles and accomplishments, and more importantly, for looking ahead to the untapped potential and opportunities that await future generations of women.”

United Nations Womenwatch

Why Negotiation?

Negotiating the Path to Leadership

Negotiation is an essential process for gaining

resources and opportunities for the attainment

of leadership positions.

Potential leaders negotiate to…

Seize opportunities to expand their authority

Gain recognition and rewards

Overcome barriers or challenges

Why Negotiation?









Why Negotiation?









Why Negotiation?









Why Negotiation?









Why Negotiation?









3 Ideas on Gender & Negotiation

#1 Women have less opportunity than men

#2 Ambiguity heightens potential for gender effects

#3 Gender in negotiation is a two-level game

















Idea #1

Women have less opportunity than men to negotiate for career advancement

Social Networks

Influence access to information and career support

Gender Stereotypes

Inhibit women more than men from self-advocating in negotiations

Idea #1


Social Networks


Gender Stereotypes


Idea #1


Social Networks


Gender Stereotypes


Idea #1


Social Networks


Gender Stereotypes


Negotiating Pay

F(1, 111) = 4.80, p = .03Bowles, Babcock & Lei (2007, Study 1)

4

5

6

7

Female Candidate Male Candidate

Wil

lin

gn

es

s to

Hir

e C

an

did

ate

No Negotiation Negotiation

****

Idea #1Unequal

Opportunity

Negotiating Pay


4

5

6

7


Wil

lin

gn

es

s to

Hir

e C

an

did

ate


****

Idea #1Unequal

Opportunity

Negotiating Pay


4

5

6

7


Wil

lin

gn

es

s to

Hir

e C

an

did

ate


Social Cost for Men

****

Idea #1Unequal

Opportunity

Negotiating Pay


4

5

6

7


Wil

lin

gn

es

s to

Hir

e C

an

did

ate


Social Cost for Women

Social Cost for Men

****

Idea #1Unequal

Opportunity

Global vs. Local

Studies conducted in Arab Gulf—Saudi Arabia (KSA) and United Arab Emirates (UAE) Rapidly globalizing region Foreign workers >80% private-

sector jobs (Arab Labor Organization, 2010)

Private-sector Lingua Franca is English

Mission of “reform universities” is to prepare local graduates for the global workplace (selected in KSA; nationwide in UAE)

Global vs. Local





Global vs. Local





Global vs. Local





Global vs. Local





Global/Local Work Cultures

Employee

Male National

Female National-0.30

-0.10

0.10

0.30

0.50

0.70

0.90

1.10

1.30

1.50

1 2

Soci

al C

ost

M d

iff in

Will

ingn

ess

to W

ork

with

Em

ploy

ee(N

o N

egoti

ate

-Neg

otiat

e)

Global Local

Negotiating Pay


4

5

6

7


Wil

lin

gn

es

s to

Hir

e C

an

did

ate


Social Cost for Men

****

Idea #1Unequal

Opportunity

Negotiating Pay


4

5

6

7


Wil

lin

gn

es

s to

Hir

e C

an

did

ate



Social Cost for Men

****

Idea #1Unequal

Opportunity


Employee

Male National


-0.10

0.10

0.30

0.50

0.70

0.90

1.10

1.30

1.50

1 2

Soci

al C

ost

M d

iff in

Will

ingn

ess

to W

ork

with

Em

ploy

ee(N

o N

egoti

ate

-Neg

otiat

e)

Global Local

Social Cost for Men


Employee

Male National


-0.10

0.10

0.30

0.50

0.70

0.90

1.10

1.30

1.50

1 2

Soci

al C

ost

M d

iff in

Will

ingn

ess

to W

ork

with

Em

ploy

ee(N

o N

egoti

ate

-Neg

otiat

e)

Global Local


Social Cost for Men


Employee

Male National


-0.10

0.10

0.30

0.50

0.70

0.90

1.10

1.30

1.50

1 2

Soci

al C

ost

M d

iff in

Will

ingn

ess

to W

ork

with

Em

ploy

ee(N

o N

egoti

ate

-Neg

otiat

e)

Global Local


Social Cost for Men


Employee

Male National


-0.10

0.10

0.30

0.50

0.70

0.90

1.10

1.30

1.50

1 2

Soci

al C

ost

M d

iff in

Will

ingn

ess

to W

ork

with

Em

ploy

ee(N

o N

egoti

ate

-Neg

otiat

e)

Global Local


Social Cost for Men


Employee

Male National


-0.10

0.10

0.30

0.50

0.70

0.90

1.10

1.30

1.50

1 2

Soci

al C

ost

M d

iff in

Will

ingn

ess

to W

ork

with

Em

ploy

ee(N

o N

egoti

ate

-Neg

otiat

e)

Global Local


Social Cost for Men


Employee

Male National


-0.10

0.10

0.30

0.50

0.70

0.90

1.10

1.30

1.50

1 2

Soci

al C

ost

M d

iff in

Will

ingn

ess

to W

ork

with

Em

ploy

ee(N

o N

egoti

ate

-Neg

otiat

e)

Global Local


Social Cost for Men


Employee

Male National


-0.10

0.10

0.30

0.50

0.70

0.90

1.10

1.30

1.50

1 2

Soci

al C

ost

M d

iff in

Will

ingn

ess

to W

ork

with

Em

ploy

ee(N

o N

egoti

ate

-Neg

otiat

e)

Global Local


Social Cost for Men

#1: Practical Implications

Individuals: Use your knowledge about gender stereotypes

“Relational Accounts” Employ legitimate

explanations that Demonstrate concern

for organizational relationships

Organizations: Do men and women feel equally comfortable negotiating?

Bowles & Babcock (2011)


Individuals: How can you use your knowledge about stereotypes?


explanations that Demonstrate concern for

organizational relationships






explanations that Demonstrate concern for







explanations that also Demonstrate concern for







explanations that also Demonstrate concern for




Relational Accounts

Research Examples Supervisor Excuse Account

“My team leader during the training program told me

that I should talk with you about my compensation. It

wasn’t clear to us whether this salary offer represents

the top of the pay range. My team leader told me

there’s a range in term of how much managers are

paid in their first placement. He thought I should ask

to be paid at the top of that range and to explain that

I would also like to be eligible for an end of year

bonus.”

Relational Accounts

Research Examples Supervisor Excuse Account

“My team leader during the training program told me

that I should talk with you about my compensation. It

wasn’t clear to us whether this salary offer represents

the top of the pay range. My team leader told me

there’s a range in term of how much managers are

paid in their first placement. He thought I should ask

to be paid at the top of that range and to explain that

I would also like to be eligible for an end of year

bonus.”

Relational Accounts

Research Examples

Skill Contribution Account

[Negotiation Request] “I don’t know how

typical it is for people at my level to

negotiate, but I’m hopeful you’ll see my

skill at negotiating as something

important that I bring to the job.”

Relational Accounts

Executive Examples:

Sheryl Sandberg strategy:

“This is the last time you

and I are going to be

negotiating across the

table from one another,

and you want a head of

sales who negotiates…”

Facebook COO Sheryl Sandberg

Relational Accounts

Executive Examples Senior executive finds for second time that

a male subordinate is paid more than she is. “I am confident this is just a mistake. The company

does not want subordinates paid higher than their managers.”

Woman is asked to lead a diversity initiative “How will be measure this initiative’s contribution to

the bottom line?” “If you want this position to have the authority you

describe, then I think the compensation should be set at [X] level.”

Relational Accounts


a male subordinate is paid more than she is “I am confident this is just a mistake. The company





Relational Accounts







Relational Accounts




Senior woman is asked to lead a diversity initiative “How will be measure this initiative’s contribution to



Relational Accounts




Senior woman is asked to lead a diversity initiative “How will we measure this initiative’s contribution to



Relational Accounts




Senior woman is asked to lead a diversity initiative “How will we measure this initiative’s contribution to



Idea #2

Ambiguity heightens the potential for differential negotiation outcomes

Structural AmbiguityDegree of clarity about zone of possible agreement and appropriate standards for agreement(Bowles, Babcock, & McGinn, 2005)

Norm AmbiguityDegree of clarity about norms for appropriate negotiating behavior(Kray & Gelfand, 2009; Babcock & Bowles, 2009)

Idea #2




Idea #2




MBA Salary Outcomes

Controls work experience, job function, prev. salary,

job offers, non-compensation preferences, etc. Overall gender gap ≈ $5,000

Conditions “Low Ambiguity” (70%): No gender

difference “High Ambiguity” (30%): $11,000

gender gap

Idea #2Ambiguity Matters

MBA Salary Outcomes

Controls work experience, job function, previous

salary, job offers, non-compensation preferences, etc. Overall gender gap ≈ $5,000



gender gap (Bowles et al., 2005)


MBA Salary Outcomes







MBA Salary Outcomes







MBA Salary Outcomes







MBA Salary Outcomes







Executive Compensation

Studies suggest gender differences in executive compensation are greater in non-standardized forms of pay

Bonuses (Elvira & Graham, 2002)

Equity (Lyness & Thompson, 1997)


Idea #2: Practical Implications

Organizations: How does one learn what is negotiable? More transparency is likely

to reduce gender differences in negotiated outcomes

Individuals: Women especially need to reach outside of convenience networks for comparison standards.


Organizations: How does one learn what is negotiable? More transparency is likely

to reduce gender differences in negotiated outcomes

Individuals: Women especially need to reach outside of convenience networks for comparison standards.


Organizations: How does one learn what is negotiable? More transparency is

likely to reduce gender differences in negotiated outcomes

Individuals: Where can you get the best information? Reach outside of

convenience networks


Organizations: How does one learn what is negotiable? More transparency is

likely to reduce gender differences in negotiated outcomes

Individuals: Where can you get the best information? Reach outside of

convenience networks

Negotiations with employers are contingent on negotiations at home (Bowles & McGinn, 2008).

Idea #3: The Two-Level Game





Lilly Ledbetter’s Story

1996 Ledbetter received

“Top Performance” award from company

1997 Ledbetter earned

$44,724 in salary. Lowest paid man

doing same work earned $51,432.






doing same work earned $51,432. $0.87/$1







1996 Median Annual Earnings (U.S. full time, year round)

Female = $32,515

Male = $42,261

$0.87/$1








Female = $32,515

Male = $42,261

$0.87/$1

$0.77/$1








Female = $32,515

Male = $42,261

$0.87/$1

$0.77/$1

“Ricardo Hausmann, director of the Centre for International Development at Harvard University, said that, among the 134 countries covered in the report, 'we have found that gaps are closing between women and men's health and education . . . And yet only 60 per cent of economic participation gaps have been closed.

Progress will be achieved when countries seek to reap returns on the investment in health and education of girls and women by finding ways to make marriage and motherhood compatible with the economic participation of women.’”

Harvesting full potential of women in labour forceBusiness Times SingaporeInternational Women’s Day, March 8, 2012

The Global GenderGap Report 2011Ricardo Hausmann, Harvard UniversityLaura D. Tyson, University of California, BerkeleySaadia Zahidi, World Economic Forum


Organizations: Are work-life dilemmas on the table?

Individuals: How do I manage work-life conflicts? Negotiate for long-run success

Create value to make work and life partners better off

Facebook COO Sheryl Sandberg: “Don’t leave before you leave”

Leadership OpportunityIdea #3

Two-Level Game Major corporation selects two candidates

for overseas leadership opportunities:

Man accepts within 48 hours

Woman still has not accepted

Is she less interested? Less ambitious?







































3 Ideas: Problems & Solutions

Women have less opportunity to negotiate than men

Ambiguity facilitates gender effects

Gender effects in negotiation are a two-level game

Reach out and use your knowledge of gender stereotypes to

Reduce the ambiguity

Create value in the two-level game

PROBLEMS SOLUTIONS FOR WOMEN





















Reach out and use your knowledge of gender stereotypes




























Feedback and ideas are warmly [email protected]

Thank you!

Documents

GENDER IN JOB NEGOTIATIONS THREE THINGS TO REMEMBER HANNAH RILEY BOWLES INTERNATIONAL WOMEN’S DAY 2012 THE HELLER SCHOOL, BRANDEIS UNIVERSITY Collaborators: