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Do you really believe in Pay Equity?
Do you really believe in Pay Equity?
Have you ever asked a candidate what they currently make? If so, does that imply you don’t believe in pay equity and that you’re just looking to lowball them?
If a candidate makes 75K and is applying for a position which the salary range is between 100-140K, then what relevance does such a question have in the hiring process? Is it because you may offer a salary based on a percentage of their current salary? A 20% increase would make the candidate very happy and your company would save money. However doesn’t that conflict with your Fundamental role as a Human Resource person to act in good faith as a fair and non-bias mediator between the company and its employees? So do you really believe in Pay Equity when hiring someone?
Answers (5)
Marc L
Pres., Integrity Consulting Associates "Recruitsmithing" in Real Estate /Property Management/Construction
Best Answers in: Staffing and Recruiting (2), Mentoring (1)
We always value the position, first. Lowballing offers is better for sprints and not for marathons. Water seeks its own level and so do good employees when it comes to getting paid appropriately.
If you want to keep good employees employed for awhile and engaged in their work, pay them fairly within the established range for the position.
Surely, if you have a job worth $100K and are considering people who are currently making $35K, there is something very wrong with the math. But, generally, if you've done your compensation homework, you have valued the position correctly. This will be reflected when the pay requirements of suitable candidates closely approximate what you seek to offer them.
If you think you got lucky and found a huge bargain -- you will probably make a huge mistake in trying to capitalize on it. Be sure that people aren't being "underpaid" for a reason. It may be a red flag.
Bruce J M
CIR/CDR, Talent Acquisition Specialist & Senior Recruiter at Catholic Healthcare West (toplinked.com)
Best Answers in: Staffing and Recruiting (1), Business Development (1)
Pay Equity is essential to the integrity of any organization. If two people are doing the same job and they have similar years of experience & education - then they need to be paid the same. What about years of service - compensation and rewards can come in other ways for years of service.
As we grow into a more global community - equity in pay will become more mainstream. Organizations that do not have pay equity will see higher turnover !
Amber P
CEO/Founder: Southern Executives, LLC {Business Development Manager, Signature Staff Resources }
Best Answers in: Staffing and Recruiting (1)
"The Equal Pay Act essentially covers "equal pay for equal work" and applies only to sex-based discrimination. The Fair Pay Act expands these protections in two ways: First, it prohibits pay discrimination on the basis of race and national origin, as well as sex; Second, it prohibits such discrimination among workers performing dissimilar work in equivalent jobs. The Equal Pay Act prohibits only sex discrimination between workers performing substantially the same jobs."
We submit workers who are qualified within the range of pay we can provide. Doesn't matter what their sexual classification is. Each candidate regardless of sexual classification can either accept or decline the offer made.
Proving that their offer was less than the other 5 who interviewed and whether or not they know the other candidates sexual classification (which they shouldn't) is hard and almost impossible to do.
Links:
Michael P
Recruitment Supervisor at Sharp HealthCare
Best Answers in: Staffing and Recruiting (5), Job Search (1), Career Management (1), Ethics (1)
Hi Mark,
I actually ask that question because of concerns I have on the other end of the spectrum.
If I encounter someone that is paid significantly less than what I can offer, generally that is not a problem to manage… I haven’t run into anyone yet that will turn down more money and for most companies there are salary grades and internal equity concerns that should prevent people from bringing individuals in below an equitable level.
What is a problem is if someone wants significantly more than what I am able to pay (based on budget, internal equity, internal salary grades, etc.). Since I work for a non-profit organization, this is something we run into fairly frequently.
Let me know if you have any questions.
Mike
Mr. Meitin,
to answer your question, I would say it depends on the industry that you do business in. In a competitive industry where your employees will get solicited a lot by placement firms and head hunters, you have to be competitive and pay what the person is worth on the market, otherwise you will have high turnover or unhappy\unmotivated employees.
With that having been said, I do ask that question to candidates even though I am in a highly competitive industry. Lowballing the candidate is never the goal. I do it for several reasons including:
1) It might be a good indicator of how much they are valued by their prior employer as it helps unearth CV inconsistencies (i.e. person says they are senior yet they are paid as a junior...)
2) if they are coming from a competitor, this is a good way of gathering intelligence
3) what they say when they answer this question may give insite on the individuals view toward compensation $
Doing business is not always about being fair and equal. Thus, it is in the interest of the employee to know his or her worth prior to looking for a new job or negotiating a raise. This is even more important in less competitive industries.
Hope this helps.
Sev