Picture this: You’re wrapping up a final interview that’s gone really well. The candidate is perfect for the role, they’re clearly interested, and it’s time for next steps. Whether you’re in a state like Oregon where salary history bans are in effect, or a state like Michigan where salary history bans are actually banned, this is probably where the dreaded salary negotiations start.
Active in 21 states, salary history bans are intended to ensure pay equity and close pay gaps based on gender, race, or background. It prevents companies from offering pay based on what you made at your last job, rather than what the job is worth. While this is a great step towards equity, there’s still something broken in the traditional hiring process. Leaving the negotiations to the end of the process can mean wasted time for everyone if the candidate is looking for more than the company is willing to pay. The solve? Pay transparency.
So many companies aren’t willing to be transparent about the minimum salary or range for their positions. Whether this is because companies don’t want competitors to know what they’re paying or haven’t done the research to know what a job is worth, it’s time to do away with this old-school approach. No one enjoys haggling when they buy a car, and no one likes having to haggle when it comes to negotiating salary. With the availability of info online about what jobs are worth based on experience and region, there’s no reason to waste candidates’ time by hiding what you’re willing to offer.
Here are three ways organizations can be more transparent throughout the hiring process.
List a starting salary for your position
Let potential candidates know the minimum pay for the position and do your homework so you know how much the position is worth. This way you’ll attract applicants that are comfortable with what the position pays, and you’ll ensure that you’re paying candidates a fair wage indiscriminately.
Discuss salary early and often in the interview process
Don’t forget, interviews cost the company money as well, in time and resources. You don’t want to spend all this time and money just for the candidate to end up turning down the offer due to the salary not being what they expected. Share the minimum salary during your first interaction with the candidate and re-iterate it throughout the process so there’s no confusion.
Ask for the candidate’s pay expectations
If you have flexibility with what you can pay, ask the candidate what they’re looking to make, not what they currently make. If someone currently makes $40,000 a year, but the position they are applying for has significantly more responsibility then their current job, they may only be willing to accept $55,000 for this new position. What they currently make is irrelevant.
While it may feel like a departure from current strategies, pay transparency is a win-win for both companies and candidates. Candidates can hone in on the jobs that fit their salary needs, rather than interviewing blindly. And organizations can streamline their hiring process with candidates who are comfortable with the salary range that’s being offered for the role.