Tag: Salary expectations

Inc.com columnist Alison Green answers questions about workplace and management issues—everything from how to deal with a micromanaging boss to how to talk to someone on your team about body odor.

A reader asks:

You’ve talked about how inappropriate it is for employers to ask candidates about their salary expectations without giving out any info on salary themselves.

I became a small business owner without having received training in that aspect of things, but learned early on when I am hiring to always ask the candidate their salary expectations before giving any information out about the range I am willing to offer. Why? Firstly, the money comes directly from our pockets and frankly if we can get away with paying $20/hour instead of $22/hour, why wouldn’t we? It also gives us room for raises, bonuses, etc. without taking too much of a financial hit. You always advocate that employees look out for their own interests. Why should that be so different for me as an employer? Maybe we tend to think of employers as big corporations but in our case we’re just hard-working individuals hoping to keep expenses in check.

The second reason I want that information first is that if I were to give my range, a candidate expecting more might well say, “Sure, that’s fine,” while planning to take the job and keep looking for something else. Frankly, I want to know if they’re likely to be unhappy with that salary! Hearing that they expect more is valuable information for us to have and if I can get it, I will.

So there you have it from a brazenly unapologetic employer who plans to continue asking the question. (For what it’s worth, we are excellent employers whose staff have been with us for years and seem very happy).

Green responds:

Well, I’ll happily tell you why you should stop.

First, your current practice is likely to lead you to break the law. The Equal Pay Act of 1963 makes it illegal for you to pay a man and woman differently for doing the same work. So if you have a man who negotiated a higher salary than a woman did, and they’re doing substantially equal work, you are violating federal law. The law is clear that it doesn’t matter whether or not they negotiated differently and it doesn’t matter whether or not you intended to engage in wage discrimination; the fact that you’re paying them differently is itself illegal. (There’s an exception if you can prove the difference in pay is due to a seniority system or a merit system.) This is true if the genders are reversed, too — you can’t pay men and women differently, period.

So if you want to look out for your own interests, ensuring you don’t break the law — with the significant fines and penalties that go with that — is a pretty good baseline to start with.

Second, there’s tons of data showing that setting pay the way you’re doing disproportionately harms women and people of color, who are less likely to negotiate. I’m sure you don’t want to be perpetuating a system that keeps women and people of color’s wages depressed.

Third, if you’re worried about losing candidates once they hear your range, then either your range is too low for the market and the candidates you want to attract or those candidates aren’t well matched for the role you’re filling. As the employer, you need to figure out the value of the work to you and to the market, come up with a range that reflects that, and be able to explain to people where they fit into it and why.

Fourth, you’re far better equipped than your candidates are to know what the job should pay. You’re intimately familiar with the role’s responsibilities, pressures, and challenges in a way an outside candidate never can be. You’re asking candidates to name a number first when they’re not the one with the deep understanding of those factors — which can result in new hires who discover the salary doesn’t match up with the job after they start, which can mean they don’t stick around or don’t go above and beyond in the way they might if they felt fairly compensated.

And last, the world is increasingly scoffing at employers that operate the way you do, and more and more employers are jettisoning the practice. When you refuse to disclose your budgeted salary range and insist on the candidate naming theirs, you’re sending a signal about your culture that will increasingly turn off your best candidates.

I think the reason you’re “brazenly unapologetic” about a practice that hurts people is because it’s what you’ve done in the past and you don’t want to change something that you’ve grown comfortable with. But it’s a poor way to operate and at some point will have you violating the law if you haven’t already.

The times are changing. Change with them — and don’t gloat about doing something that hurts people.

Want to submit a question of your own? Send it to alison@askamanager.org.