🎰 Why Banning Questions About Salary History May Not Improve Pay Equity

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But why would not talking about salary history impact a compensation offer negatively for women and positively for men? Partner Center.{/INSERTKEYS}{/PARAGRAPH} These findings seem to undercut the whole premise of banning the salary history question in order to level the playing field for women when it comes to compensation. {PARAGRAPH}{INSERTKEYS}Men who declined, however, were paid 1. The negotiation process is an opportunity to start a healthy conversation about the way pay is established and managed at an organization. Since then, several other cities and states have followed suit or are considering similar legislation. When examining findings around potential gender pay gaps, we controlled for all of these factors with the exception of gender to ensure we were comparing similar individuals seeking similar jobs at similar companies. Between April and June of this year, we asked 15, job seekers who visited PayScale. It remains to be seen whether legislation banning employers from asking the salary history question will have any positive impact in terms of closing the gender pay gap. A survey reveals the potential for hidden biases. Some employers are trying to determine what to pay for a position by asking a handful of candidates. However, there are some misguided motives at play as well. The possible responses were:. The topic has sparked some heated debates and even resulted in a lawsuit in one city , brought by the Greater Philadelphia Chamber of Commerce. Related Topics:. The root of this discrepancy could come down to two biases: people reacting negatively to women who negotiate their pay and employers assuming women who decline are paid less than they actually are. Meanwhile, if a man refused to disclose when asked about salary history, he received an offer that was 1. In our study, both male and female refusers tended to earn more in their current jobs than the candidates who revealed their salary history, regardless of whether they were asked or volunteered the information. PayScale creates products that help employees and employers understand market pay and have more open and mutually beneficial conversations about compensation. Rather than approaching it as a way to save money, employers and hiring managers can use pay negotiations to build trust with a candidate β€” man or woman β€” right from the start. PayScale , the compensation data and software company where I work, regularly examines trends and questions regarding employee pay, so we conducted a survey to better understand the relationship between the salary history question and the gender pay gap. However, this study revealed that a woman who was asked about her salary history and refused to disclose was actually offered 1. Last year, Massachusetts passed the first law in the U.