No matter what role you currently occupy in an organization, you’ve likely had a conversation at some point in your career about compensation. At the Insurance Business Women in Insurance event held earlier this month in Toronto, how to navigate the often-dreaded salary negotiation talk came up during a panel on career advancement.
“I always pave the way. I always say top quartile performance, and tenure and experience should create top quartile compensation, and that’s where we start. The shock and awe wears off after a few minutes with the boss, and then we have a real conversation about what that looks like,” said Lynn Oldfield, president and CEO of AIG Canada, while recommending that employees send an email to their boss in advance of a meeting about compensation where they outline that the focus will be a discussion on performance.
Salaries also come up during job interviews, though the government of Ontario passed pay transparency legislation in April that bars employers from asking job candidates about their previous compensation. The question of what to do if an interviewee finds themselves in this situation was asked during a Q&A following the panel.
Heather Masterson, president and CEO of Travelers Canada, brought up a personal experience where she was put in this position. She said that she acknowledged the interviewer had an opportunity to ask, but that she had an opportunity to not provide the number since she knew that legally, there was no obligation for her to do so.
“What I make is between myself, my employer, and Revenue Canada,” she said at the event, adding that she reiterated her excitement for the position to the interviewer and redirected the discussion to what they thought were appropriate compensation levels for the role.
“You have to be prepared to live under your core values,” explained Masterson, and if necessary, be prepared to walk away.
When it comes to salary negotiations, women can be at a disadvantage. A Glassdoor survey from 2016 found that 68% of women accepted the salary they were offered and didn’t negotiate compared to just 52% of men, attributing that factor as one reason for the pay gap.
“For some reason, I have found women have a fear of this and that bothers me,” Jackie Doell, commercial broker and branch partner at A-WIN Insurance, told Insurance Business. “We need to be very clear on what our worth is and why we deserve the pay we are requesting. It’s really about equal pay for equal work. In my experience, women are not as aggressive in pointing out their value in an interview and believe that their resume speaks for itself. At the end of the day, you are the best person to sell yourself, so do just that.”
For anyone who plans to discuss their salary with superiors, Jo-Anne MacDonald, newly appointed CEO of ARAG in Canada, recommends coming prepared with facts, not emotions.
“Be personable, be respectful, but when it comes to talking about business – and negotiating salary is no different – bring the facts to the table,” she said. “Clearly describe what you have accomplished, what you’re contributing and what the result of this contribution is - and put that into a salary expectation that you have for yourself.”
When applying for a job, MacDonald says that you shouldn’t worry if you don’t meet every point listed under the job description. It’s about figuring out what you can bring to the position that others can’t, and not providing a discount on a salary because you’re not meeting 100% of those descriptors.
The Women in Insurance event and other opportunities that exist today make MacDonald confident that the gap between men and women’s approach to salary negotiations will change soon.
“Looking around the room and seeing a lot of young women being able to take part in a day like that – I’m from the Maritimes [and] we didn’t get these advantages,” she said, adding that with the next generation, “I think that gap will become either more balanced or less balanced in the other way.”
