It’s common practice for HR leaders to make compensation decisions based on salary history. Companies are often tempted to pay new hires as little as possible, offering whatever a candidate will accept — and not a penny more.
There’s a good chance this has happened to you or someone you know, dashing hopes of starting a new gig with a significant pay bump. And this practice needs to change.
Asking candidates for their salary history helps perpetuate salary discrimination and the wage gap, which disproportionately impacts marginalized populations like women and people of color. Thankfully, cities and states across the U.S. are taking action to close these persistent gaps, and New York State has similar legislation that could be passed soon.
Leaders must learn to leverage salary data, think through compensation philosophy and job levels, and make thoughtful decisions about their talent and people investments. It’s the way compensation should work, and the future of successful, people-centric organizations.
On The Index, learn about GA’s efforts to close the salary gap, and how doing so can benefit employees and hiring managers alike.