It’s that one word which always has a ripple effect.
Is it tacky to talk about money? Nah. When it’s about gender pay gaps best to get comfortable with the uncomfortable questions of pay equity.
I can most assuredly tell you there is a science to determining pay. I’ve learnt from compensation experts that salary is calculated by a mix of skill sets, experience, title, level, location and industry. “Total compensation” is when base salary is combined with the value of any and all financial benefits provided by the employer.
Thus, determining a starting salary has nothing to do with either one’s salary history nor one’s current pay.
So why do (almost all) organizations still ask this question?
It’s one loaded with bias.
Companies now invest over US$8 billion annually in diversity training. US$ 8 billion, no doubt delivered with the best intentions to create an inclusive workplace. Typically the training, a mix of lectures and discussions, focuses on building awareness how bias impacts decision making.
The one missing element from bias training is the most elemental; Pay Equity, and how salaries are determined. Consciously or unconsciously, hiring managers and HR have an ‘’anchoring bias’’, an over reliance on a candidate’s prior salary to determine a starting salary, which almost always leaves little room to negotiate.
Last week alone, two clients sought my advice on this very topic. One has extensive experience working for a global NGO, and is being recruited for a private sector role. The other has worked for an association for over five years and is now exploring opportunities with an online retailer.
At the outset, both were first questioned on salary history and asked to provide pay slips as proof. (And hello, who receives pay slips anymore?). This makes zero sense, as the salary range for the private sector is completely different than that of an NGO or an association.
Read the full post on Medium here.
