by Atiya Jordan
December 18, 2023
Black people are more likely to receive lower salaries in hiring negotiations when racially biased evaluators believe they have overnegotiated, according to a recent study.
Whether you're just establishing yourself in your career, stagnating, or developing bigger and better skills, there's often an opportunity to make or break salary negotiations. However, research shows that for Black applicants and employees, there are numerous factors that impact our chances of negotiating our worth.
Black people are more likely to receive lower salaries in hiring negotiations when racially biased evaluators believe they have overnegotiated, according to a recent study. The risk of negotiating as Black, coupled with the huge pay gap between Black men and women, sheds light on the differences in the way salary negotiations occur.
What common fears do candidates have about salary negotiations?
- Fears of rejection.
- Fear of being stereotyped based on gender racial identity.
- Fears of not having enough experience.
- Fears of economic uncertainty.
If you are preparing for the next interviews, there is no need to worry. A prepared mind is just as important as planning. Here are four salary negotiation tips that can help you prepare for that upcoming interview or performance review and walk away with confidence.
1. LEARN THE PSYCHOLOGY OF NEGOTIATION
Salary negotiations are never predictable. Therefore, it is essential to understand the basics of negotiation style 101. From setting expectations and high anchoring to maintaining appropriate body language, the mental psychology of negotiating can be complex.
“The goal is to learn how to get to a point where you are happy with the outcome of the negotiation and your partner is also happy with the outcome and wants to continue negotiating with you in the future. “This is an invaluable skill in the dynamic business environment where reputation is built very quickly and maintaining it is very important,” said Rellie Derfler-Rozin, associate professor of management and organization at the Robert H. Smith School of Business University of Maryland.
2. Be confident in your own financial house
There is power in walking away from a negotiation when your financial house is at the forefront. Many people are acting out of fear because the economy appears to be fragile. However, according to Forbes, becoming debt-free gives you the confidence to take advantage of better opportunities. Don't settle for less when you can make a change now. Open a high-interest savings account with at least three months of expenses, practice consistent budgeting, pay off high-interest credit cards or debts, and file your taxes with the IRS on time and, if possible, with zero dollars.
3. RESEARCH ECONOMIC TRENDS
Growth in advertised wages for new hires has slowed in recent months, according to a report from job posting service ZipRecruiter. Companies are now reporting lower salary ranges. Recent PYMNTS information shows that 72% of working consumers say their wages have barely kept up with inflation or simply haven't kept up. But don't let the uncertainty stop you from asking yourself what you deserve in the position you're applying for. Research current economic trends to get a clearer approach to negotiations.
4. UPDATE YOUR BRAG BOOK
“Make sure you have your brag book with you so you can organize all of your accomplishments as you prepare for interviews and annual reports,” said Niani Tolbert, founder and CEO of HIREBLACK, during a panel discussion at the BLACK COMPANY Women of Power Tech. If you exceeded your previous employer's expectations or achieved an important project goal, don't hesitate to write it down in a fun way that you can refer back to during interviews or performance reviews.
To reduce the insidious effects of racial and gender bargaining biases and fear-based salary negotiations, researchers are calling for broader organizational and societal changes. Preparation is an advantage for those who want to bring skill to a salary negotiation.
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