Women: if you don't ask, you don't get
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Thirty years after the introduction of the Equal Pay Act, women’s pay is still nearly a fifth lower than men’s, even though it was trimmed last year from 17.8% to 17.2%. The gap is partly due to the fact that women remain more heavily represented in lower-paid clerical and secretarial jobs, but one of the main and unremarked causes of this persistent gender gap can be attributed to the simple failure of women to ask for a pay rise.
This gender difference is apparent from a very early age. A Christmas survey conducted by Woolworths revealed that parents tend to spend around £100 more on gifts for their sons than for their daughters. The reason parents gave was that boys’ presents tend to be more expensive and boys make more of a fuss if they don’t get what they want.
The lesson, here, as MoneyWeek’s editor pointed out in her Sunday Times column recently, is that if you don’t ask, you don’t get. Yet women just don’t seem to learn. “They get stuck with cheap dolls when they’re nine, and rubbish salaries when they’re 29.”
So it’s down to women to take action. Asking for a pay rise is never the easiest thing to do, but no one else will do it for you, and it makes more of a difference than you might think. A man who negotiates his starting salary up from £25,000 to £28,000 and gets a 5% increase for the next 30 years will earn a staggering £285,000 more than the woman who received the same annual raise but agreed to the £25,000 starting package.
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The key is good preparation. Don’t simply catch your boss unawares and whinge that you deserve a rise because you’ve been in your job for such a long time, or a colleague earns more than you. Legitimate reasons for a rise include an increase in responsibility, longer hours, saving the company more money (or bringing in more), working more unsociable hours, being expected to travel more often or gaining new skills or experience. The best time to ask for a rise is at your annual appraisal, or alternatively, at a time when you’ve just made a noticeable contribution.
Once you’ve established that you deserve a rise, you’ll need to present a coherent, logical argument, and to do this you should make a formal appointment with your boss (say you want to discuss your progress, not that you want a pay rise). You should then rehearse what you’re going to say and stick to the facts. Don’t get angry, complain or threaten (inventing a job offer from another firm is a seriously bad idea), and women, take note: pitch high (that means asking for 7.5% if you want 5%) and don’t accept the first rejection, dress smartly and maintain eye contact with your boss, not your fingernails.
Finally, be prepared to think on your feet. You may have to, so be flexible. Don’t be afraid to discuss benefits such as pensions or company cars, and if in doubt, play for time, saying, “I need to think about that”. There’s no need to take any decision immediately.
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