UK Govcamp

Women – would you like to earn as much money as your male colleagues?

I was at #altukgc13 yesterday on the 5th floor of the Royal Festival Hall.  It came about thanks to Lloyd Davis & James Cattell who jumped into action following cancellation of UK Govcamp because of a bit of snow & the chaos that wreaks on the British public transport network (I note that even Buzz Aldrin had to take the train from London to Edinburgh on Friday and sit in standard class, although from the photos online he appeared to be having a great time).

One of the groups I joined discussed why it is that conference speaking platform slots are overwhelmingly dominated by white, middle aged males.  We had a lively discussion & generated some ideas.  One of the women in the group, the very fabulous & sadly ex-public sector Sharon O’Dea, has successfully managed to break onto the speaking circuit herself where she talks about technology.  Rare indeed.  Sharon agreed that she will write a blog with some tips for interested people on how they may do the same.  You can find Sharon’s blog at http://sharonodea.co.uk/

The discussion got me thinking that many of the reasons that women in particular don’t put themselves forward for speaking slots are similar to the reasons why women are so rubbish at either negotiating or improving their salary packages.  That was my driver for writing this blog.  When I was a younger person in a junior job it didn’t occur to me that there was a difference in outcomes of salary negotiations between men & women.  I naively assumed that everyone did as well as each other.  I knew I felt a bit uncomfortable having to wrangle with my MD in this way once a year.  Then one day in a team meeting a wonderful woman that I used to work with, Kirsten Gillingham (now Bursar at St Antony’s College, Oxford) challenged our MD about this inequality & made reference to the many studies that have been done showing that women are extremely unwilling to negotiate their salary and are financially disadvantaged as a result.  For me, merely becoming aware of this fact was enough to bring about a change in my own behaviour from that moment on – another reason for writing the blog as hopefully the same thing will happen for at least one person that reads it.

When you get to the stats they’re a bit alarming.  For new graduates, 57% of men negotiate a higher starting salary than the sum they are first offered but only 7% of women do.  In recruitment exercises, 90% of men immediately ask for more money when their offer comes through but over 50% of women accept the first offer.  Women earn about 75% of what men do in the same role.  I’m not talking about the public sector here or organisations where there is a transparent pay scale – although I will say that even then, you do still have a chance of negotiating a better deal when you’re joining the organisation.

So why is this?  What are the contributing factors?  I think there are probably a lot including:

  • women systematically underestimate their own abilities and performance
  • women underestimate their own value and the contribution they make to an organisation
  • women often aren’t used to negotiation because of the types of jobs they do
  • women probably care more about fairness
  • women are nervous & less confident of their position if they don’t have complete information – in this context specific salary information on other people is unlikely to be available
  • women don’t usually like conflict & will be extremely reluctant to threaten to walk if they don’t get what they want
  • at recruitment time, women may believe they’ll be able to improve their lot once they’ve started working & demonstrated their value to the organisation
  • perhaps women are more scared of losing the job offer than men are
  • maybe bosses treat this as a bit of a game and women don’t readily understand the rules
  • perhaps worst of all, success & likeability are positively correlated for men & negatively correlated for women – I can think of many occasions where I’ve underplayed my own achievements in order to be better liked or more easily accepted (we publicly put our success down to luck or help from other people).  So the male that negotiates a great package for himself is seen as an all-round great guy whereas the woman who does the same thing is seen as a hardnosed ballbreaker.

No doubt there are many more.

So how can you improve your salary negotiation outcome?

  1. By being aware that this is just how things are done.  It isn’t personal and you may not like it.  During the hiring process most company’s recruiters will start by offering you less than they are authorised to spend on the post.  It is perfectly acceptable for you to refuse that sum & state what your expectation is via a counter offer.  The negotiator will then often lowball you with another offer that is less than they can pay you.  Again – just stick to your guns & continue to counter offer.  Stay calm & polite at all times.  Don’t give any reasons why you want more money unless they really press you to.  Often they won’t.
  2. Be familiar with your industry metrics so that you know what’s realistic – it probably isn’t realistic to ask for £50k when you’ve been offered £25k – but who knows – dependent on your sector & skills maybe it is.
  3. Practice your negotiations with a friend or mentor & reassure yourself that your demands are reasonable.
  4. Remember that negotiation at its core is culturally masculine.
  5. Don’t be afraid to initiate a conversation with your manager about a salary increase – my own team is made up of males & females but inevitably it’s the men who will chance their arm and pitch to me the reasons why they deserve a pay rise, even when they aren’t due for one.

Ideally the process should be changed as there’s also a commercial downside & cost to behaving in this way.  No enlightened company will consciously operate like this as they will appreciate that in order to succeed commercially; they need a gender balanced and happy workforce who are treated fairly.  At Learning Pool we want our people to have the same opportunities and to be treated equitably.  We recognise the very large sums of money we spend recruiting and training our team members so it’s in our interests that they are content & stay with us for the long term.  There’s probably a special place in hell for managers who offer pay rises only at the point where their people threaten to leave.

When I was researching this topic last night I watched again Facebook’s Sheryl Sandberg’s famous TED talk entitled “Why We Have Too Few Women Leaders” – it’s just shy of 15 minutes long & well worth a viewing or another viewing.  I won’t repeat what she says but she makes some great points that really made me think.  The link is here http://www.ted.com/talks/sheryl_sandberg_why_we_have_too_few_women_leaders.html

I sincerely hope no-one is offended by this blog post.  That isn’t my intention & those of you who know me will know that I thrive in a male dominated sector and industry.  There’s lots more that can be said on this topic and I hope many of you will start a conversation using the comment section below.

 

 

 

 

 

 

So you wanna be a startup CEO…5 qualities you absolutely need

Paul_and_me_casino

Being a startup CEO seems to be an attractive occupation right now and one that the press & certainly Hollywood makes look pretty easy as well as fairly glamorous.  I thought I’d write a blog about my own views on the necessary qualities people need to make it through to the other side.  Please note that being the CEO of a startup requires a different set of qualities to being CEO of a mature & established business and indeed, that sort of experience may well be a hindrance in a startup environment.  Also it’s no accident that the photo of Paul & me above shows us in a casino setting – there’s a lot of luck at play as well – so don’t feel too bad if your startup is one of the 50% or so that fail in the first year.   

I’ve seen other bloggers make great long lists of these but I’ve distilled mine down to 5 main qualities:

1.       RESILIENCE – this is the big one.  It’s also a quality you should look for in a business partner or in your team members as you recruit them.  The official definition of resilience is an ability to bounce back into shape.  In reality in a work setting it means being able to continue functioning & making sensible decisions in the face of adversity – which could be a one off event (like a disaster) or longer term (like always being tired from working 16 hour days consistently).  As part of this quality I would include not bleating about how miserable you are & making your colleagues feel bad as well – there’s nothing worse than that.  Resilience is what you need when the 10th bank you’ve spoken to that week won’t lend you money & you don’t have enough to cover payroll right now, it’s the quality that makes you get up at 3am to go & catch a plane to London even though you only finished work at 10pm last night, it’s what makes you sit down & start working on another response to tender when you’ve just had a rejection letter in from something you thought was a dead cert.  In summary, this is the quality that keeps you going & you either have it or you don’t – so be honest with yourself.  At the end of the day, having the stamina & energy required to make a new company a success should not be overlooked.  The amount of sheer hard graft is savage & impossible to communicate to anyone that hasn’t been there.

2.       READING PEOPLE AND SITUATIONS – you need to be naturally good at this and it’s the quality that stops others from pulling the wool over your eyes.  First up you need to have a gut feel about how things are going for the company – you should be able to just tell, a bit like second sight.  You also need a natural ability to read your markets and know what products are right, when to launch them, etc.  Other times you use this is in appraising ideas (which you do on an hourly basis in a startup) and rapidly sorting them into good & bad, negotiating, making decisions (most of the time with a serious lack of information), recruiting people, choosing partners and so on.

3.       OPTIMISM & POSITIVITY – if you don’t have this alongside being the keeper of your original vision, don’t expect anyone else to believe in your company and that goes for both team members & people outside.  I don’t mean blind belief but I do mean being confident and using a bit of spin when you need to.  By that, I don’t mean lying to your team about stuff – it’s more about protecting them from many of the stresses that they don’t need to know about as they have no ability to influence the outcome & it will only distract everyone.  You need to be able to absorb all of this burden and put a smile on your face and your best foot forward at all times.

4.       RISK – I’m unsure if this is a quality or not but being a startup CEO and being risk-averse do not walk along hand in hand.  You will borrow large sums of money, you will guarantee those loans against whatever tangible assets you own, you will take major decisions without any of the information you need never mind would like, you will fail at stuff over & over again.  If you are unable to compartmentalise & shut these things away in a place where you don’t think about them – you aren’t cut out for this life.  It will make you ill & paralyse you with fear.

5.       LEADERSHIP & VISION – your team needs to look up to you & your customers & other stakeholders will hopefully admire you & what you’ve achieved.  You need to keep the team on track, communicating the shared vision to them over & over again so that no-one ever loses sight of where you’re going, you need to be able to pull off what I call “Take my hand & walk with me into the abyss” when you only have half the story yourself and you need to be able to keep it real – no-one wants to work for a CEO that never does any work themselves.

I hope this helps any of you that are thinking about going down this route yourselves.  It’s hard work & unrelenting being in or heading up a startup but it’s also deeply satisfying and a lot of fun.  Always interested in hearing your views so post your comments up below.