Advocating for Higher Pay: Why It Matters and How to Start

Article Summary

• Most people do not look forward to negotiating a salary increase.
• For women especially, negotiation conversations can be vital to capturing as much income as possible during working years.
• An increase in salary makes it easier for women to save for the future, invest and accumulate wealth.

Advocating For Higher Pay: Why It Matters And How To Start

Any woman who looks at her paycheck and wishes it were bigger may realize that she has to have a conversation many people actively avoid. Salary negotiation for women actually ranks as the most difficult conversation we have to have, ahead of breakups, apologies and family planning.

Despite the difficulty of the conversation, it appears more women are getting on board with having it. Data indicates an increasing number of women are challenging the gender pay gap and engaging in salary negotiations. In some cases, women are outpacing men by requesting a higher salary at a higher rate than their male peers.

There is a good reason for that.

Paychecks are finite, and for most people they represent the bulk of their income. One calculation found that the average worker receives about 1,040 paychecks over their professional life. With that in mind, it makes sense to maximize what is in those paychecks. For women especially, maximizing income becomes even more important when life is factored in.

The Reasons Behind Salary Negotiation For Women

On the surface, a salary negotiation is simply a request for a raise. However, the implications of an increased salary go a bit deeper for women. Not only does a raise represent validation of skills, worth and performance for females, it also impacts long-term financial security and opportunities for wealth building.

Data indicates women may encounter challenges unique to females over the course of their lives that can impact or disrupt financial gains, from caregiving to career interruptions while raising a family. It is with those factors in mind that seizing opportunities to maximize earnings carries extra weight for women.

Experts have a few tips and insights for women pursuing a salary negotiation.

• Begin with understanding that leaders in a professional setting expect employees to negotiate salaries. 
• Analyze salary trends for your specific industry or specialty.
• Understand the most desired skills for your industry.
• Track your accomplishments and how they impacted the company’s success.
• Detail your future goals and how you intend to support the company in the years ahead.
• Rehearse your pitch to maximize confidence heading into a salary negotiation meeting.
• When presented with a salary offer, provide a counteroffer backed by examples of your skills and contributions.

When women are successful at advocating for higher pay, it can improve their purchasing power, their ability to save for the future, and create more flexibility with day-to-day expenses. Benefits of a higher salary that may be overlooked include improvements to your debt-to-income ratio (DTI), improved loan terms and the prospect of lower interest rates. A salary increase could also positively impact credit limits.

The biggest takeaway from a salary increase is the long-term impact, allowing women to more easily invest in a more secure financial future. Many women turn to a financial expert for investment guidance, and among them, many women appreciate working with a financial advisor who understands the unique journeys women navigate throughout their lives. 

At Svvy®, we understand that desire. Founded by women, Svvy® offers a service that matches women with female-vetted financial advisors. Curious about what that fit could look like? Our free online match quiz is available anytime. 

If you would like to be connected with a female-vetted expert who can help you develop a financial plan, get matched with a Svvy® expert today. 

Disclosure:This content is provided for general educational purposes only and does not constitute individualized investment, legal, or tax advice. Svvy® acts solely as a solicitor and connects and matches individuals with independent third-party financial professionals through a quiz-based matching process on the Svvy® Network. Matching is based on information provided through Svvy’s platform and does not constitute any advice. Any advice, recommendations, and services are provided only by the independent professional you choose to engage.