Plus: taking the fear out of negotiations
October 28, 2026  ·  View in browser
The Insightful Leader
BY KELLOGG INSIGHT
Leadership advice from the Kellogg School of Management at Northwestern University

Good morning,

My husband, a type A man with a low tolerance for mistakes, needed just one corporate-management job to realize he never wanted to do it again. 

I could have saved him the time, having observed him at home. His attempts to administer direction to our four-year-old follow a highly predictable sequence of events that culminates in a spectacular explosion—one that our four-year-old counts on. 

That he ever had a choice between staying an individual contributor and becoming a manager is unusual, research from Kellogg’s Nicola Bianchi suggests. Instead of a single track, careers tend to follow one of two separate ladders that only rarely intersect. Today, Bianchi explains how the ladder on which you find yourself can make a big difference in your salary and responsibilities. Plus, we hear from Kellogg’s Victoria Medvec how to be less fearful in our negotiations. 

A fork in the ladder 

In research with Lydia Cao, Benjamin Friedrich, and Kieu-Trang Nguyen, Bianchi examined detailed personnel records from dozens of firms to compare these two career tracks. 

After analyzing the data, several facts came into focus. 

Individual contributors dominate the workforce, comprising about 82 percent of the average employee base. And they earn, on average, substantially less than do managers in comparable roles, are promoted less often, and see slower pay growth. 

Once you’re on a path, you tend to stay there. In any given month, only about 0.5 percent of individual contributors switch to the managerial track. Those transitions are linked to higher pay and faster pay growth. 

“When you just look at the descriptive characteristics of the careers of individual contributors, they look very, very different from the careers of workers who would end up becoming managers,” Bianchi says.  

But firms play a role. The researchers observed a lot of variability in how different organizations utilize—and pay—individual contributors, relative to managers.  

Firms where managers stay close to the work tend to pay individual contributors more, run flatter managerial ladders, and employ more highly skilled technical workers. In contrast, firms with a hard line between the tracks show the opposite pattern: steeper pay divergence between individual contributors and managers and a more-rigid set of duties for each.  

Most strikingly, those two ladders turn out to be a hidden engine driving pay gaps between workers of different genders and races. 

“We see that there is a higher probability of a woman or a minority worker being assigned to the individual-contributor career ladder,” Bianchi says. “And when we compute how much this difference in assignment contributes to the overall pay gap, we see it’s a sizable share.” 

Read more in Kellogg Insight. 

Got fear? 

Fear can sabotage a negotiation. Your first job is to understand the feeling’s source. 

“Before you can eliminate fear, you have to name it,” writes Kellogg professor Victoria Medvec in a recent LinkedIn newsletter. “Most people skip this step because acknowledging fear feels uncomfortable. Failing to acknowledge it makes it impossible to address.” 

People often question whether they have what it takes to improve the outcome of the negotiation. Or they worry they’ll damage the relationship or reach an impasse. 

Fear escalates when a deal is centered on you and your needs. But when you focus on the other side’s needs and recognize that you’re uniquely positioned to address them, you might see that they need you and feel more confident, as a result. 

“When you gather real information about their interests, options, and priorities, you control, to some extent, how powerful you will be in the room,” Medvec writes. 

When fear is properly addressed, you can set a more-aggressive goal for the negotiation. 

Medvec says that most executives set their ask based on what they did last year, but that’s a walk-away point—not a goal. It’s better to think about what the other side is really spending, what they need, and how weak their alternatives are without you. 

“Nobody hands you the deal you did not ask for. An aggressive goal, grounded in their world rather than your costs, is how you stop hoping and start negotiating,” Medvec says. 

Read more at LinkedIn. 

“A good question surfaces an assumption, exposes a tension, deepens a point the speaker made, or adds texture to an idea.” 

— Mohanbir Sawhney, in a LinkedIn post, on the quality checks we can run on our questions before we ask them.

See you next week,

Laura Pavin, multimedia editor
Kellogg Insight

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