How managers give raises, and why women must ask for more
The best career advice that you are not getting? Financial feminist and Wall Street powerhouse Sallie Krawcheck delivers.
Sallie Krawcheck is a financial feminist, CEO and Co-Founder of Ellevest, a recently launched innovative digital investment platform for women. She is the Chair of Ellevate Network, the global professional women's network, and of the Pax Ellevate Global Women's Index Fund, which invests in the top-rated companies in the world for advancing women. She is also the best-selling author of Own It: The Power of Women at Work.
Before becoming an entrepreneur, she was CEO of Merrill Lynch Wealth Management, of Smith Barney and of Sanford Bernstein. Krawcheck has also been named among the top ten of Fast Company's "100 Most Creative People" in business list, as well as one of Entrepreneur Magazine's Entrepreneurs to Watch. and she has also been referred to as one of the most successful and influential executives in financial services.
Sallie Krawcheck: So there is so much career advice for women. The best career advice that you are not getting is to invest.
“What? What? That has absolutely nothing to do with my performance on the job!” Yes, but it does have to do with having more money. And if you are investing to the same extent that the guys are, that will on average—and has historically—added to your wealth hundreds of thousands of dollars, for some women millions of dollars, over the course of their lives.
What happens when you’ve got more money? You can play looser, right? You can, with more confidence, go in, ask for that promotion, for that overseas assignment, quit that job you cannot stand because that boss is such a jerk. Start your own business, test your own business. The degrees of freedom when we’ve got more money are substantial. And I’ll even take it all the way to: it will also help us get to equality with men. That confidence in the workforce, that equality. Ladies, we will not be equal with men until we are financially equal with men. So the best career advice you’re not getting is to invest.
I wish I didn’t have to give you this advice. I wish every company out there just let you be you; accept that you’re just not comfortable going in and negotiating for the raise and not to force you to do it. Close that gender pay gap, pay everybody exactly what they’re worth, and not make negotiating a core part of getting compensated in this country. So I wish I didn’t have to do that. But I do. And so we have to accept the world as it is today, and so ladies, you’ve got to negotiate from the first job. You just have to. Let me give you the example why.
So I managed a lot of people over a lot of years and I will tell you that every year almost every guy who reported to me, before bonus time would come into my office and tell me how much they wanted to make. And every guy every year typically told me more than he was in the budget for. And so, think about what happens, right: Jim and Mary. Jim and Mary are both in the budget for a bonus or a raise of five each. Jim comes in, tells me he wants ten—I never hear from Mary. I giggle to myself, “That Jim, he’s so crazy, you know, we’re never paying him ten.”
Well comes around time to put the budget together, give out the raises or the bonuses, and I know—my HR head and I both know Jim wants ten. Well, you know, we’re not going to pay him ten but, you know, his office door was closed the other day and the guys down the street are looking for someone like Jim. And by the way, he made a really good point, I totally forgot about that project he did. We’ll pay him seven.
Now how much does Mary make? The answer usually is five. The right answer, of course, is three. Just because Jim asked for more and I choose to give him more doesn’t mean my bonus pool goes up. It doesn’t mean my budget goes up. And so there is to some extent a zero sum game.
All right ladies. Now that I’ve convinced you, how do we approach it? With facts and in advance. So much of the advice to us is sort of in the meeting, in the moment. You have to start planting those seeds well before. First of all you need to know how much you should be making and go to a Payscale.com or a GetRaised or Comparably or Hired—any of these services that are popping up. Talk to your friends. Have two glasses of wine—or four, you know—and have the conversations. So know how much you should make. Have the conversation in advance with your boss about what are, if possible, the metrics. How many new—you know, quantify it to the extent you can. How many new reports? What kind of client satisfaction score? How many new clients? What in sales? How many clean audits? Whatever it is you can quantify. What does success look like?
So set that up: “This is success for me, for the department, for the company. Here’s what I need to achieve this year. Here’s what I want to make.” Get an agreement and then the negotiation at the end of the year is not a negotiation. To the extent, of course, that you come in, you’ve done that or haven’t done it. Never have one ask and take no for an answer. That if you’re told no on the raise, or even if you’re told yes, come in with 12 other requests, right.“I want to take a coding class that the company pays for. I want to have a stint in marketing. I want to work overseas for a period of time. I want to be mentored by XYZ. I want to work on this big project. I want to, I want to, I want to.” And if by number 20, you know, typically your boss is going to say yes to something that can turn into professional advancement or money down the road. And if he or she says no to all 20 I think you’ve gotten a pretty clear message there as well.
Sallie Krawcheck is the current CEO of Ellevest (a digital investment platform for women), is a former CFO and CEO at Citigroup and Merrill Lynch respectively, and is a self-described "financial feminist". She speaks here to women, but this advice can be applied across the board to anyone who is marginalized in the workplace or wants to jumpstart their personal wealth. For Krawcheck, the best career advice no one is talking about is actually financial advice: invest. Make your money work while you do, so that you have more financial freedom to make confident decisions in your career: ask for a promotion, quit the job that doesn't treat you well, or test your own business ideas. If you have money in the bank, you are free to play looser with your decisions. Men do it, and women should too. Remember this: "Ladies, we will not be equal with men until we are financially equal with men," Krawcheck says. Her second piece of advice is to ask for more money from your very first job, and to plant the seeds of a 12-pronged pay-rise request far in advance. Twelve prongs? Yep. It will all makes sense once you hear out her incredible guide to negotiating a salary increase and closing the gender pay gap. Sallie Krawcheck is the author of Own It: The Power of Women at Work.
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A machine learning system lets visitors at a Kandinsky exhibition hear the artwork.
Have you ever heard colors?
As part of a new exhibition, the worlds of culture and technology collide, bringing sound to the colors of abstract art pioneer Wassily Kandinsky.
Kandinsky had synesthesia, where looking at colors and shapes causes some with the condition to hear associated sounds. With the help of machine learning, virtual visitors to the Sounds Like Kandinsky exhibition, a partnership project by Centre Pompidou in Paris and Google Arts & Culture, can have an aural experience of his art.
An eye for music
Kandinsky's synesthesia is thought to have heavily influenced his painting. Seeing yellow summoned up trumpets, evoking emotions like cheekiness; reds produced violins portraying restlessness; while organs representing heavenliness he associated with blues, according to the exhibition notes.
Virtual visitors are invited to take part in an experiment called Play a Kandinsky, which allows them to see and hear the world through the artist's eyes.
Kandinsky's synesthesia is thought to have heavily influenced his 1925 painting Yellow, Red, Blue.Image: Guillaume Piolle/Wikimedia Commons
In 1925, the artist's masterpiece, "Yellow, Red, Blue", broke new ground in the world of abstract art, guiding the viewer from left to right with shifting shapes and shades. Almost a century after it was painted, Google's interactive tool lets visitors click different parts of the artwork to journey through the artist's description of the colors, associated sounds and moods that inspired the work.
But Google's new toy is not the only tool developed to enhance the artistic experience.
Artist Neil Harbisson has developed an artificial way to emulate Kandinsky by turning colors into sounds. He has a rare form of color blindness and sees the world in greyscale. But a smart antenna attached to his head translates dominant colors into musical notes, creating a real-world soundtrack of what's in front of him. The invention could open up a new world for people who are color blind.
A new study suggests that private prisons hold prisoners for a longer period of time, wasting the cost savings that private prisons are supposed to provide over public ones.
- Private prisons in Mississippi tend to hold prisoners 90 days longer than public ones.
- The extra days eat up half of the expected cost savings of a private prison.
- The study leaves several open questions, such as what affect these extra days have on recidivism rates.
The United States of America, land of the free, is home to 5 percent of the world's population but 25 percent of its prisoners. The cost of having so many people in the penal system adds up to $80 billion per year, more than three times the budget for NASA. This massive system exploded in size relatively recently, with the prison population increasing by six-fold in the last four decades.
Ten percent of these prisoners are kept in private prisons, which are owned and operated for the sake of profit by contractors. In theory, these operations cost less than public prisons and jails, and states can save money by contracting them to incarcerate people. They have a long history in the United States and are used in many other countries as well.
However, despite the pervasiveness of private contractors in the American prison system, there is not much research into how well they live up to their promise to provide similar services at a lower cost to the state. The little research that is available often encounters difficulties in trying to compare the costs and benefits of facilities with vastly different operations and occasionally produces results suggesting there are few benefits to privatization.
A new study by Dr. Anita Mukherjee and published in the American Economic Journal: Economic Policy joins the debate with a robust consideration of the costs and benefits of private prisons. Its findings suggest that some private prisons keep people incarcerated longer and save less money than advertised.
The study focuses on prisons in Mississippi. Despite its comparatively high rate of incarceration, Mississippi's prison system is very similar to that of other states that also use private prisons. Demographically, its system is representative of the rest of the U.S. prison system, and its inmates are sentenced for similar amounts of time.
The state attempts to get the most out of its privatization efforts, as a 1994 law requires all contracts for private prisons in Mississippi to provide at least a 10 percent cost savings over public prisons while providing similar services. As a result, the state seeks to maximize its savings by sending prisoners to private institutions first if space if available.
While public and private prisons in Mississippi are quite similar, there are a few differences that allow for the possibility of cost savings by private operators — not the least of which is that the guards are paid 30 percent less and have fewer benefits than their publicly employed counterparts.
The results of privatization
The graph depicts the likelihood of release for public (dotted line) vs. private (solid line) prison inmates. At every level of time served, public prisoners were more likely to be released than private prisoners.Dr. Anita Mukherjee
The study relied on administrative records of the Mississippi prison system between 1996 and 2013. The data included information on prisoner demographics, the crimes committed, sentence lengths, time served, infractions while incarcerated, and prisoner relocation while in the system, including between public and private jails. For this study, the sample examined was limited to those serving between one and six years and those who served at least a quarter of their sentence. This created a primary sample of 26,563 bookings.
Analysis revealed that prisoners in private prisons were behind bars for four to seven percent longer than those in public prisons, which translates to roughly 85 to 90 extra days per prisoner. This is, in part, because those in private prison serve a greater portion of their sentences (73 percent) than those in public institutions (70 percent).
This in turn might be due to the much higher infraction rate in private prisons compared to public ones. While only 18 percent of prisoners in a public prison commit an infraction, such as disobeying a guard or possessing contraband, the number jumps to 46 percent in a private prison. Infractions can reduce the probability of early release or cause time to be added to a sentence.
It's unclear why there are so many more infractions in private prisons. Dr. Mukherjee suggests it could be the result of "harsher prison conditions in private prisons," better monitoring techniques, incentives to report more of them to the state before contract renewals, or even a lackadaisical attitude on the part of public prison employees.
What does all this cost Mississippi?
The extra time served eats 48 percent of the cost savings of keeping prisoners in a private facility. For example, it costs about $135,000 to house a prisoner in a private prison for three years and $150,000 in the public system. But longer stays in private prisons reduce the savings from $15,000 to only $7,800.
As Dr. Mukherjee remarks, this cost is also just the finance. Some things are a little harder to measure:
"There are, of course, other costs that are difficult to quantify — e.g., the cost of injustice to society (if private prison inmates systematically serve more time), the inmate's individual value of freedom, and impacts of the additional incarceration on future employment. Abrams and Rohlfs (2011) estimates a prisoner's value of freedom for 90 days at about $1,100 using experimental variation in bail setting. Mueller-Smith (2017) estimates that 90 days of marginal incarceration costs about $15,000 in reduced wages and increased reliance on welfare. If these social costs were to exceed $7,800 in the example stated, private prisons would no longer offer a bargain in terms of welfare-adjusted cost savings."
It is possible that the extra time in jail provides benefits that counter these costs, such as a reduced recidivism rate, but this proved difficult to determine. Though it was not statistically significant, there was some evidence that the added time actually increased the rate of recidivism. If that's true, then private prisons could be counterproductive.
A Harvard professor's study discovers the worst year to be alive.
- Harvard professor Michael McCormick argues the worst year to be alive was 536 AD.
- The year was terrible due to cataclysmic eruptions that blocked out the sun and the spread of the plague.
- 536 ushered in the coldest decade in thousands of years and started a century of economic devastation.
The past year has been nothing but the worst in the lives of many people around the globe. A rampaging pandemic, dangerous political instability, weather catastrophes, and a profound change in lifestyle that most have never experienced or imagined.
But was it the worst year ever?
Nope. Not even close. In the eyes of the historian and archaeologist Michael McCormick, the absolute "worst year to be alive" was 536.
Why was 536 so bad? You could certainly argue that 1918, the last year of World War I when the Spanish Flu killed up to 100 million people around the world, was a terrible year by all accounts. 1349 could also be considered on this morbid list as the year when the Black Death wiped out half of Europe, with up to 20 million dead from the plague. Most of the years of World War II could probably lay claim to the "worst year" title as well. But 536 was in a category of its own, argues the historian.
It all began with an eruption...
According to McCormick, Professor of Medieval History at Harvard University, 536 was the precursor year to one of the worst periods of human history. It featured a volcanic eruption early in the year that took place in Iceland, as established by a study of a Swiss glacier carried out by McCormick and the glaciologist Paul Mayewski from the Climate Change Institute of The University of Maine (UM) in Orono.
The ash spewed out by the volcano likely led to a fog that brought an 18-month-long stretch of daytime darkness across Europe, the Middle East, and portions of Asia. As wrote the Byzantine historian Procopius, "For the sun gave forth its light without brightness, like the moon, during the whole year." He also recounted that it looked like the sun was always in eclipse.
Cassiodorus, a Roman politician of that time, wrote that the sun had a "bluish" color, the moon had no luster, and "seasons seem to be all jumbled up together." What's even creepier, he described, "We marvel to see no shadows of our bodies at noon."
...that led to famine...
The dark days also brought a period of coldness, with summer temperatures falling by 1.5° C. to 2.5° C. This started the coldest decade in the past 2300 years, reports Science, leading to the devastation of crops and worldwide hunger.
...and the fall of an empire
In 541, the bubonic plague added considerably to the world's misery. Spreading from the Roman port of Pelusium in Egypt, the so-called Plague of Justinian caused the deaths of up to one half of the population of the eastern Roman Empire. This, in turn, sped up its eventual collapse, writes McCormick.
Between the environmental cataclysms, with massive volcanic eruptions also in 540 and 547, and the devastation brought on by the plague, Europe was in for an economic downturn for nearly all of the next century, until 640 when silver mining gave it a boost.
Was that the worst time in history?
Of course, the absolute worst time in history depends on who you were and where you lived.
Native Americans can easily point to 1520, when smallpox, brought over by the Spanish, killed millions of indigenous people. By 1600, up to 90 percent of the population of the Americas (about 55 million people) was wiped out by various European pathogens.
Like all things, the grisly title of "worst year ever" comes down to historical perspective.
A new study finds an unusual genetic difference in people over 105.
- Researchers conduct genetic analyses of 81 Italian people who are over 105 years in age.
- Five unusual genetic differences were discovered.
- The differences are implicated in the routine repair of DNA, which seems to work unusually well in these people.
The oldest living person is Kane Tanaka of Fukuoka, Japan, who just celebrated her 116th birthday. The handful of people who live to be 105 years old or older are called "semi-supercentenarians." (Supercentenarians live to the ripe old age of 110 or older.)
New research, published in the Aging, Geroscience and Longevity: A Special Issue of the journal eLife, examines the genomes of semi-supercentenarians and has discovered what may be the key to their unusually long lives: Their DNA is exceptionally good at repairing itself.
People involved in the study
Men play cards in Martina Franca, ItalyCredit: sabino.parente via Adobe Stock
The researchers recruited 81 volunteers for genetic analysis from across Italy. Some participants were semi-supercentenarians and others were supercentenarians. Researchers compared the genetic makeup of the older volunteers with those of 36 healthy people from the same areas who were 68 years old, plus or minus 5.9 years.
"Aging is a common risk factor for several chronic diseases and conditions. We chose to study the genetics of a group of people who lived beyond 105 years old and compare them with a group of younger adults from the same area in Italy, as people in this younger age group tend to avoid many age-related diseases and therefore represent the best example of healthy aging."
The authors of the study collected blood samples from both groups and conducted whole-genome sequencing. Additionally, they compared their findings with the conclusions drawn in previously published research describing the genetic makeup of 333 Italian people older than 100 years and 358 who were approximately 60 years old.
Co-first author of the new research Massimo Delledonne of the University of Verona said, "This study constitutes the first whole-genome sequencing of extreme longevity at high coverage that allowed us to look at both inherited and naturally occurring genetic changes in older people."
It's all in the genes
In the semi-supercentenarians and some supercentenarians, the researchers discovered five unusual genetic changes that were often present in two genes, COA1 and STK17A, data that was consistent with the previous research.
Most intriguing, the genetic variations appear to be linked to increased activity of the STK17A gene in some tissues, a gene involved in three critical cell repair activities: managing cells' response to DNA damage, prompting badly damaged cells to die off, and controlling the amount of dangerous reactive oxygen species in a cell. Cells unable to perform these types of repair activities are more likely to become cancerous.
The COA1 gene is involved with energy production by promoting communication between the cell nucleus and mitochondria. The researchers believe that the genetic variants they detected reduce the level of COA1 activity, which in turn reduces energy production as well as aging. (One of the leading theories of aging is that energy production produces reactive oxygen species that damage cells and promote aging.)
Finally, the researchers noted that the genetic variants they identified are also linked to increased expression of he BLVRA gene in some tissue. This gene is also involved in the elimination of dangerous reactive oxygen species.
"Our results suggest that DNA repair mechanisms and a low burden of mutations in specific genes are two central mechanisms that have protected people who have reached extreme longevity from age-related diseases."