As you know, not all employees are paid the same. Where does this pay gap come from, and how does salary negotiation work for the gap?

Most employers set base requirements and compensation ranges for employment based on education level, relevant skills, knowledge, and experience, among other elements. It is known that higher education and earnings are appropriately correlated in most fields. The U.S. Department of Labor publishes statistics based on market research to inform citizens of trends in employment in the nation. Based on information from the Bureau of Labor Statistics (2022), the median weekly earnings of a full-time worker age 25 and older was $875 for a high school graduate compared to $1,547 for a college graduate.

Screen Shot 2023-02-14 at 9.39.30 AM.png

Screen Shot 2023-02-14 at 9.40.53 AM.png

In addition to the level of education, there are other elements explaining wage difference in the nation. Geographic location, type of industry, occupation, age, and gender constitute such elements in assessing this equation. The gender gap is strikingly evident in most industries that have equal numbers of male and female workers. For example, in occupations with a high concentration of women, such as teaching and nursing, or occupations with a high concentration of men, such as engineering and technology, women are still being paid lower wages than men on average. According to the Bureau of Statistics (2022), women earn .83 cents for each dollar earned by men.

How to

Other than advocating for a social and a political change, one solution to close the gender pay gap is to understand the market-assessed salary range for each level of employment and for both genders to negotiate equitable salaries accordingly. It is a societal challenge that needs to be addressed and dealt with fairly.

Practice

Now, you know how you can use salary negotiation skills to close all pay gaps in general and gender pay gap in particular. Think of paying it forward and discuss your experience with a friend or a family member.

Congratulations! You can move on to Chapter 3. How to research market-based salaries to prepare for negotiation?

To review the full module on Salary negotiation, click here.