In Employment Contract Negotiation, “No Haggling” Isn’t the Answer
This post has been viewed 3,059 times.
Reddit CEO Ellen Pao’s Recent Decision Not to Allow Salary Bargaining in Dealmaking is Well-Intentioned but Misguided
This spring, Ellen Pao, the CEO of social networking and news website Reddit, revealed in an interview with the Wall Street Journal that her company had taken a bold move in its efforts to create an “equal opportunity environment for everyone” at the company. Specifically, Reddit no longer negotiates salary with job candidates, preferring a “no haggling” approach to contract negotiations.
“We come up with an offer that we think is fair,” Pao explained. “If you want more equity, we’ll let you swap a little bit of cash salary for equity, but we aren’t going to reward people who are better negotiators with more compensation.”
Pao told the Journal that Reddit’s decision was based on the fact that “Men negotiate harder than women do and sometimes women get penalized when they do negotiate.”
Reddit’s decision not to allow hiring managers or job candidates to negotiate salary is an admirable attempt to address a stubborn problem. Women earn only about 84% of what their male counterparts earn, according to the Pew Research Center, for numerous reasons, but in part because they are less likely to negotiate their salaries than men are.
Read original articleTags:
