Men are more likely than women to ask for a raise. And as a result, many women are leaving money on the table.
“Unfortunately, for a whole bunch of different reasons we do so at significantly lower rates,” says Sallie Krawcheck, the CEO of women-led digital investing platform Ellevest on a new episode of MAKERS Money.
Presently, women in the U.S. face a gender pay gap where they make 80% of what men make for doing the same job, and it’s even less for many women of color.
Women should be encouraged to make the ask because they’ll likely get that raise. A recent study by the Ellevate Network found that 75% of respondents received a pay bump when they requested it.
“Now, exactly how many of those women do you think got a salary decrease? Zero. That’s right zero. Seventy-five percent got a raise and zero got a decrease. So the lesson here is ask,” says Krawcheck.
On the second episode of MAKERS Money, Krawcheck is joined by Sally Thornton, founder of Forshay, to discuss raise negotiations.
During the episode, Krawcheck and Thornton provide a series of steps for women to prepare for that important conversation.
“If we have knowledge, the science actually shows that we negotiate better than men,” Thornton says.
Krawcheck spent nearly 30 years on Wall Street, holding high-level positions including CEO of sell-side research firm Sanford Bernstein, CEO of Smith Barney, CFO of Citigroup, and president of global wealth and investment management at Bank of America Merrill Lynch.
Earlier this month, feminist media brand MAKERS and Yahoo Finance launched “MAKERS Money,” a weekly show hosted by Krawcheck that features advice for women from top female financial experts.
(Editing by Julia La Roche)