Would You Hire Based on Skill or Salary?

Written by EO Executives on Oct 26, 2017

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I have recently been made aware of a controversial legislation impacting the employment market that is being passed across the US and I’m wondering if (or should I say when) it will make its way to the U.K.

Across numerous States, employers and their recruiting partners will no longer be able to ask a candidate’s current salary and benefits during an interview process.

If they do, it could result in penalties for such violations.

A candidate cannot be asked in writing or verbally during the interview process about their salary, benefits or other compensation history.

All salary related questions will also need to be removed from job applications. 

How will this be regulated?

There will be indemnification clauses set out by employers for providers / recruiting agencies if any lawsuits arise. Training will also be put in place for HR, internal recruiters and other employers who interface with potential candidates, to support on how to interview in accordance with these regulations.

Questions will be focused solely on candidates experience and performance, to judge candidature as opposed to using salary as a benchmark.

What next?

We expect to see salary brackets re-appearing for advertised roles. Something that many organisations had moved away from to ensure that they are less vulnerable to the competition. With competing organisations using such information to ‘win’ candidates by offering them more money.

With Gender Pay Gap reporting now making its way to the US whilst we should start to see the gap closing. Candidates should finally be paid based on their skills, experience and business value obtaining equal pay for comparable work.

Those may have been underpaid in the past, or have taken time out of the market should finally be judged on the value that they bring an organisation for the future and not how they have been financially rewarded in the past.

How do you think this will affect how we hire, if this comes to the UK? Let me know your thoughts below.

 

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