I’ve written about salary negotiation a few times already, but I want to revisit the topic again. There is a fairly new trend happening right now across the workforce that could have a real effect on job seekers. A limited number of companies, including the Internet company Reddit, are eliminating the salary negotiation process altogether. That means that when you accept a position with one of those companies, you don’t negotiate your salary at all, you accept what they offer you.

So, what could be the implications of this? It's complicated. If you’ve read my previous blogs or worked with me as a coach, then you know that I am passionate about all candidates, but for women in particular, learning to negotiate firmly and accepting no less than their true worth. Proponents of this trend are arguing that banning negotiations will level the playing the field for women and eliminate the gender pay gap. Let me pose this question: When is the last time you got better at something by never doing it? I didn’t think so. If candidates never negotiate, they will never develop that skill. The ability to negotiate is something that is useful in life in general, not just job hunting. As for the employers, they will risk losing top talent that is not willing to settle for the given salary and can get a better offer elsewhere.

Of course, there is the possibility that it may help the gender gap somewhat. That is only going to happen though if a large number of companies adopt this policy, and that is unlikely to happen.  The impact is likely to be pretty small in my opinion.

What I do believe will actually remedy the pay gap though is pay transparency. See my other article titled “Can You Discuss Your Salary At Work? The Answer Might Surprise You.” If companies are open and transparent about salaries and job candidates have access to reliable salary data, then they will know how much to ask for. For lower compensated employees, banning the negotiation process will actually give employers more leverage than they already have. For higher compensated employees, they will simply accept other offers and the company will lose good talent.

Need help negotiating? Well, that’s just one more thing that WorkSmart Career Counseling can do for you.
Share this Post: