HR Elements: How to Handle Pay-History Inquiries —The Right Way - Bim Group

HR Elements: How to Handle Pay-History Inquiries —The Right Way

We’ve all been there. You’ve gotten deep into the job interview process, and then you’re face-to-face with the awkward question: would you share your previous salary?

Whether the question rears its head in a digital application or during initial in-persons, none of us like answering it. Many people, especially young people, are less committed to their employers and seek new jobs every few years in order to rapidly spike their salaries, yet having to confront the pay question is never comfortable.

Why Pay-History Bans Exist

To date, there are 17 state-wide bans on potential employers inquiring about pay history, as well as 19 local bans. The goal of these bans is to end the cycle of pay discrimination, as well as the cycle of low-earning and poverty.

Everyone knows that it has long been illegal for employers to pay different wages to men and women for the same work, but despite this, the wage gap between men’s and women’s earnings persists. One 2019 PayScale report found that women still make only $0.79 for each dollar men do. A Bureau of Labor Statistics (BLS) analysis discovered that in 2018, median weekly earnings for female full-time wage and salary workers was 81% of men’s earnings. When it comes to minority women and women of color, the pay gap is even more pronounced. The salary history ban is designed to put a stop to that, and begin to repair the damage it has caused.

Pay-history bans allow people who have experienced historically low pay or pay discrimination to have a fresh start when they come in to interview. Some bans go even further than merely blocking pay history questions. A few also prohibit an employer from relying on an applicant’s pay history to set compensation if discovered or volunteered; others forbid an employer from taking action against employees who choose to discuss pay with coworkers.

Navigating Pay History

It’s important to ensure your hiring team is educated and aware of pay-history regulations. Read on for thought-starters on what your team can do to make sure you are compliant with these laws.

  1. Audit and review recruiting materials. The first step for many employers is to audit and remove any recruiting materials that ask salary-history questions in states where this is illegal. This includes but is not limited to digital applications, printed materials, and interview scripts.
  2. Develop alternate methods for assigning salary. Your HR and recruiting teams should be focused on finding the right candidate for the job, not necessarily the one who has the right salary profile or history. Asking questions about a candidate’s comprehensive experience, previous tenure, and education can be smarter ways to determine what is fair when discussing salary. Using a junior, mid-level, senior, coding model can help your team develop salary ranges that are fair.
  3. Foster a culture of transparency. If it makes sense for your organization, it’s not a bad idea to share salary ranges for each job internally. This will help employees feel confident that their compensation is fair in relation to their colleagues’.

 

 

 

Recent Insights

April 8, 2024
HIPAA

Timely Responses Required for Requests under HIPAA’s Right of Access Rule

READ TIME: 4 MINUTES On December 15, 2023, the U.S. Department of Health and Human Services (HHS) Office for Civil Rights (OCR), announced a settlement under the Health Insurance Portability & Accountability Act (HIPAA) Right of Access Rule. This penalty illustrates that the Right of Access Rule remains a focus of HHS and that health […]
Read more
April 8, 2024
Compliance Alert

March 2024 Compliance Recap

READ TIME: 7 MINUTES ACA reporting is in its first year of the required electronic reporting for employers filing ten or more returns annually. Employers and employees must make changes to HSAs by the April 15 deadline. Employers of all sizes continued to prepare for the June 1 RxDC Reporting using the newly released instructions. […]
Read more
March 27, 2024
HR Elements

Workplace Culture | Attracting and Hiring Veterans

READ TIME: 5 MINUTES Hiring veterans can address the challenges of a skilled labor shortage and diversify your talent pool. You can tap into veterans’ technical skills and leadership experience by adjusting your recruitment strategies to consider practical experience over academic qualifications. Why should you develop a more inclusive recruitment strategy for veterans? Veterans bring […]
Read more
March 18, 2024
News

Bim Group named one of the 2024 Best Places to Work in Kentucky!

Bim Group is honored to be named a Best Place to Work (BPTW) in Kentucky for the 19th year in a row! It truly never gets old and we are extremely proud of our perennial recognition as a “Best Place to Work” employer – a designation bestowed on our company by our employees. We have a unique […]
Read more