Fewer Employers Asking About Pay To Remove Pay Gaps

Posted January 5, 2018 by Mary McGinley

When going on an interview for a new job, it’s rare when the question about how much money you are currently making comes up. All of that may be changing, however, and it’s all in the name of closing the age-old problem of the wage gap.

In a recent article appearing at Dispatch.com, because employers often make a salary offer based an applicant’s past salary history, some organizations and human resource executives have decided to eliminate the question altogether. While some may have made the move in an effort to create a sense of fairness between men and women, others have been required to do so by state law. This movement seems to be gaining momentum around the world. On January 1st,  Iceland declared that it is now illegal to pay a man more than a woman for the same position.

In the US, for those women who want to take a break from their careers to raise children or when they find themselves the primary caregiver for aging parents, the gap between their wages and those of a man holding the same position can be even greater.

Even though on a nationwide scale, women will earn an average of 80 cents for every dollar that a man makes, for women of color such as African-American, Hispanic and Native American women, these numbers are even lower.

Shelly Beiting, the executive director of the new Columbus Women’s Commission indicated in a recent interview that equal pay is about helping women become economically self-sufficient.

Recently the commission approached area employers and asked them to commit to not only learning about the gap but helping to do something about it. The pledge that approximately 75 companies, government agencies, and nonprofits have taken up is a voluntary one. The commission is asking that they come up with action plans to help address the issue according to Beiting.

Among those making the commitment are Huntington Bancshares and Nationwide Insurance Group. Both of the companies have either stopped asking potential new hires about previous salaries or have committed to no longer ask it in the near future.

Even so, some HR professionals and company executives have expressed some doubts. Almost every interview will ask what a candidate would like to make in the position they are applying for. Matching the expectations on both sides of the equation can still take a bit of maneuvering in the meantime.

No doubt creating greater income equality across all segments of society will be in the headlines and on the minds of workers and organizations more than ever. As the world of work becomes more competitive, it is important to offer an equitable wage to every potential worker.

At EinsteinHR we are committed to providing every aspect of human resource service and management above and beyond what our clients expect. EinsteinHR along with our alliance partners will provide all areas of service in order to help you in your HR and PEO decisions. If you have a small or medium-sized company, contact us today at 888-981-3622 (emc2) to find out how we can help.