November 2024
In 2016, the first “salary history ban” was passed in Massachusetts. That ban restricted companies from asking candidates their salary histories. Since then, 22 states have followed suit with their own versions of “salary history bans”. If you’re not sure about your obligations when hiring, you can find a list by state of current salary ban requirements (referred to as Pay Equity Laws) here: Bridgeway Salary History Ban Laws by State January 2024
This shift in practice has presented a significant challenge for companies when extending and negotiating salaries. Implementing a best practice for offering salaries can enhance acceptance rates and reduce net salary increases. Here are some considerations:
1- Avoid asking candidates what salary they’re seeking:
- Meeting their requested salary often leads them to think they could have asked for more.
- If they aim high and you can’t meet their expectations, it can cause dissatisfaction.
2- Determine your desired salary range and initiate the offer:
- Offer room for negotiation as it’s commonly expected today.
- Discuss all components of the offer, including bonuses, merit increases, and benefits, to ensure transparency.
- Request a response within two days.
- Conduct the negotiation conversation live whenever possible.
3- Follow up with an email:
- Reiterate the company’s interest in the candidate.
- Highlight reasons why the position would be rewarding beyond just compensation.
- Provide detailed verification of the offer.
4- To excel in hiring practices, consider additional best practices such as:
- Having a senior leader reach out to the candidate to extend their knowledge of the offer and share company insights.
- If the candidate interviewed with multiple individuals, suggest a follow-up message from one of them expressing hopes for an acceptance and offering further company insights