Rewards Systems, Negotiation, and the Wage Gap

Abstract

This study examined the gender differences for preference towards various rewards systems offered by employers and salary expectations. A random sample of undergraduate and graduate students from the University of Wisconsin-Stout were given a survey containing seven point likert rating scales to evaluate their sentiment regarding the various rewards systems commonly offered by employers. Along with these scale items, participants were also asked to indicate the expected starting salary for two entry level job descriptions. It was predicted that Male and Female students would display differences in both salary expectation and preference for rewards systems structure. Statistically significant results were found for three constructs in the rewards systems survey. Males also had higher expectations for salary at the statistically significant level for one of the two job descriptions used in the research. Based on findings from the literature review in this research, the implications of starting at even a slightly different starting salary have a noteworthy impact on long term earnings potential, and may be a contributing factor for the persisting gender wage gap in a modern economy where women commonly out-pace men in educational attainment.