Yes We Can (Channel Our Arousal): The Adaptive Role of Cortisol in Women’s Salary Negotiations

Abstract

Women have been found to experience more stress than men in negotiations which can adversely affect negotiation outcomes. However, it has been suggested that certain behavioral practices, such as being assertive can improve negotiation outcomes for women. Further, not all stress is created equal and small increases in stress have been found to enhance cognitive functioning, potentially influencing performance in negotiation contexts. We examine neurobiological reactivity during a negotiation to test the hypothesis that stress, when coupled with assertive behavior, can be helpful to women in negotiations. We measured 104 female participants' cortisol levels prior to and following a simulated salary negotiation with a male recruiter (confederate). We also assessed their assertiveness and perceptions of threat during the negotiation. Results indicated that elevated levels of cortisol were associated with enhanced negotiation performance, if coupled assertive behavior during the negotiation. Furthermore, among high cortisol responders, assertiveness mediated the experience of threat during the negotiation, such that, for high cortisol reactors, low levels of perceived intimidation resulted in greater assertiveness, which in turn, produced significantly better outcomes on the negotiation. This effect was not seen for low cortisol responders. We discuss the implications of these findings for research on gender in negotiations, as well as practical implications to help improve negotiation outcomes for both sexes.