Amazon is changing their hiring policies to ban managers from asking applicants about their previous salaries.
This is part of a US policy that is meant to reduce the gender pay gap. California, New York, New Orleans, New Jersey, Dalaware, and Pittsburg are a few of the states that have already implemented this policy. According to the Labour Code, the bill would “prohibit an employer from relying on the salary history information of an applicant for employment as a factor in determining whether to offer an applicant employment or what salary to offer an applicant. The bill also would prohibit an employer from seeking salary history information about an applicant for employment and would require an employer, upon reasonable request, to provide the pay scale for a position to an applicant for employment.”
The idea is that if potential employers don’t ask, then everyone entering the position will automatically be given the same starting salary based on experience and job title.
It’s an interesting concept, but there are many who believe the law could backfire and actually increase the gender pay gap. If previous salaries, or salary expectations, are not discussed, assumptions regarding the worth and value of the person being interviewed could guide the hiring process to offer certain people a lower salary.
For example, women could be offered less money than they earned previously, and be forced to either re-negotiate or accept the offer. The argument against this ban is that if women are able to firmly state their expectations and previous salary, the number in the original offer will be able to more accurately reflect their value.
The transparency element of this policy is admirable. Companies will have to provide a pay scale for the position to applicants, meaning those being interviewed will have an idea of what kind of salary they should expect.
While this is a state decision, national companies are now being forced to use this new hiring policy across borders.
It’s still a little early to determine whether or not a policy like this one will help reduce the gender pay gap or cause further challenges for women in the workplace. However, it’s an intriguing attempt by governments to take an active role in gender parity in business.
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