On September 29, 2019, Illinois passed a new law that prohibits employers from asking job applicants about their salary history. The law also allows employees to discuss their salary and benefits with their colleagues, which is a practice employers often frown upon. These measures are intended to help close the gender pay gap and eliminate pay inequality. The new law applies to both salaried and hourly workers. However, Illinois is not the only state that has this law. There are currently 14 states that have banned the wage issue and that number is growing.
So how should employers handle the new law? Knowing someone’s salary history is a crucial part of determining what that candidate’s salary should be at your company. There are some steps employers can take to avoid not being able to ask about wages. These steps revolve around expectations and research.
ask about expectations
If employers haven’t already done so, they should start asking candidates about their salary expectations in the first interview. Asking about salary expectations lets the employer know if the candidate’s desired salary is within the salary range of the job. Right off the bat, this will make them either a good fit or an unfit for the position. If the candidate’s desired salary is within the range, then he knows that there will be no problem with salary in the future if he offers him an offer. If the employer really likes the candidate, then he or she may give you an offer that fits further up the spectrum to help ensure that he or she will accept the offer.
Employers can even include this question on your job application, before the first interview. If candidates select a salary well above the salary for the job, that can automatically remove them from the candidate pool.
set expectations
In addition to asking about expectations, you should also set your OWN salary expectations. In the first interview, tell the candidate what the salary range of the job is so they know it up front. This would be a good question to ask after asking about their expectations so they don’t set their expectations around yours. If your salary expectations don’t meet the range of the job, ask if that’s okay. If there’s any form of hesitation, it’s probably not okay, even if they say it’s okay. Beware of any hesitation.
Do your salary research
Before your first interview with a candidate, a good rule of thumb is to do your research on the industry and role you are currently working in. This allows you to gauge what his current salary might be. Helpful resources for research include the Bureau of Labor Statistics, Glassdoor, and job descriptions from the same field/position. Having an idea of what your current salary range might be allows you to prepare for what your salary expectations might be. If your expectations are well above the salary you found in your research, you know that your desired salary is above the industry average.
You’ll also want to make sure you continue to do your research on the industry. you job and positions for which you are seeking candidates. To remain competitive, you must offer competitive salaries and ensure you meet and/or exceed salary expectations for the industry and position.
Conclution
Not being able to ask candidates about their salary anymore can cause a bit of a hurdle for employers, but here are 3 ways to overcome that hurdle. Asking about expectations, setting expectations, and doing your salary research will be key to the future of hiring.
