Why Not Asking Salary History is a Step in the Right Direction
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March 13, 2018Why Not Asking Salary History is a Step in the Right Direction
The fact that 13 states and municipalities now ban salary history questions on their employment applications is encouraging. Organizations like Amazon, Facebook, Google and Cisco have decided to no longer ask salary history information from candidates. All of this is paving the way for what will be the new normal for how we screen and extend offers to candidates. A recent Fortune article captures this well.
Why is this important?
Numerous reports such as this one by Glassdoor have shown that persistent pay gaps between men and women are rooted in the fact that men tend to be more aggressive salary negotiators then women. Even if we were able to find a quick solution to women being more aggressive negotiators, by continuing to use salary history as a benchmark, the existing pay gap would persist. The tide for pay increases would rise for everyone, but in proportion to existing pay levels which inherently leaves women still at lower levels..
What Can Organizations Do?
Step #1 is to immediately institute a policy against asking salary history information of candidates. In place of individual salary history, try to strike a balance between the value you place on a role from both an internal perspective benchmarking similar roles in your organization as well as from an external perspective using salary data from sources such as salary survey providers and/or the Bureau of Labor Statistics. Take time to communicate the change and provide any necessary training to your human resources staff, recruiters and hiring managers. Make sure any external recruiters or researchers you use follow your policy.
What Can Applicants Do?
This change represents a golden opportunity for women. It is not a panacea, though. In most cases, while organizations may no longer ask salary history, they can still inquire about salary expectations. It is important that all candidates do their research and ask for competitive, realistic compensation. Keep in mind that asking for a salary that is slightly above a company’s range ALMOST NEVER results in an immediate “Thanks but No Thanks” email. It can be a great place to begin a negotiation, though.
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