Applicants might avoid question of current pay
It is a standard question on many job applications or during a job interview: How much money do you make on your current job?
That question might be going away, though, as part of a strategy to close the gap between how much men and women earn for similar jobs.
Some companies and human-resources executives say they have eliminated the question — partly because some cities and states now prohibit it, and partly out of fairness.
The problem is that employers often make salary offers based on the applicant's salary history, and that tends to perpetuate the malefemale pay disparity.
For women who have stepped away from careers to help raise children or care for elderly parents, the time lag can exacerbate the differential.
To put numbers to the issue, in a Pew Research Center survey this month, about a quarter of working women say they earn less than a man who does the same job, compared with 5 percent of men who say they earn less than a female peer.
Equal pay is about helping women become economically self-sufficient, said Shelly Beiting, the executive director of the new Columbus Women's Commission created by Mayor Andrew J. Ginther and his wife, Shannon.
The commission says women in Columbus earn, on average, 78 cents for every dollar a man makes. The national average is 80 cents on the dollar. Nationally, the averages are worse for African-American and Hispanic women.
The commission has asked employers to commit to learn about the gender pay gap, understand how race and other factors can create even larger disparities, and take action to build awareness of the challenges women face in the workplace.
“We're asking employers to join. It's a voluntary pledge. We're asking companies to review their internal numbers and come up with their own strategies and action plans,” she said.
About 75 companies, government agencies and nonprofits have signed on.
“It's been an amazing response with this readiness for the conversation,” Beiting said.
Huntington Bancshares is among the companies no longer asking the “What was your previous salary?” question. It is one of those employers taking the commission's pledge.
“Huntington's emphasis on pay equality, regardless of race, gender, ethnicity or any other protected class, is fundamental to our pay philosophy,” the bank said. “We are currently closely reviewing salary inquiries as part of our regular review and refining of our
hiring process to ensure we welcome aboard the best colleagues to serve our customers.”
Nationwide eliminated the question in June as part of an update of its policies.
“As part of our hiring process, Nationwide does not ask candidates for their salary data,” the insurer said. “This process allows us to comply with ever-changing laws and regulations in states and cities that prohibit employers from directly asking about compensation.”
But there's doubt among some executives and humanresources professionals about whether these efforts will work.
“Employers are still going to ask what you're interested in making,” said Jennifer Erb, past president of the Human Resources
Association of Central Ohio and managing director of human resources at staffing consulting firm Tallann Resources.
Ask for a sum that's too low, and applicants — men and women — could find themselves underpaid. Ask for too much, and applicants could price themselves out of a job, she said.
“Candidates are going to have to do their research for this position and what they think they should be paid,” Erb said. “They're going to have to know their stuff.”
Chris Rutter, current president of the Human Resources Association, said he wants to talk about salary early on when he is recruiting for openings.
“It's in my daily practice that when recruiting for positions, I still seek out salary expectations of all
candidates as early into the process as possible,” he said. “My philosophy in doing so in quite simple: If we are not aligned in salary expectations, I don't want to waste their time or mine.”
About two-thirds of executives at 108 companies surveyed by the Hay Group, a division of consulting firm Korn Ferry, said laws prohibiting them from asking questions about salary will have minimal or no effect on improving the gender payequity situation in their organization.
But one thing it will do is make companies modify how they screen for talent and their hiring processes, Korn Ferry Hay Group said.
“As a result of this legislation, many employers will need to seek out better market data and conduct more rigorous analyses to determine what a job should pay versus relying on the crutch of a candidate's compensation history,” said Tom McMullen, senior client partner in the Korn Ferry Hay Group's rewards and benefits group, in a statement.
Tallann, which recruits for jobs with staffing firms, said it no longer asks applicants about their current compensation, instead asking them about their compensation expectations.
Because the company recruits nationwide, it makes more sense to go this route than to track the laws in each city and state where it operates, Erb said.
“Plus, it's just best practice to ensure fair and equitable compensation,” she said.