It has long been customary for employers to gain salary history from job applicants to help determine an applicant’s qualifications for a position. Some employers have requested W-2 forms have in order to gain an accurate picture of an employee’s background and determine if an applicant’s salary history is in line with is being offered. Federal laws do not prohibit requesting the information, however, some states and cities have already taken steps to outlaw employers from requesting salary history.
With the objective of pushing to fight wage discrimination and the gender pay gap, a bill was recently introduced in Congress that would ban salary questions across ALL states. The bill forces employers to develop salary offers based on job requirements and market pay levels rather than an applicant’s current salary or salary history, which may be lower than current market rates for some individuals’ skill and experience.
The following cities and states have banned salary questions by public and/or private employers: (*Effective Date; E.D.)
- California – (E.D. Jan 2018); banned private and public employers from asking about pay history
- Delaware – (E.D. Dec 2017); banned ALL employers from asking salary history
- Massachusetts – (E.D. Jul 2018); prohibits ALL employers from inquiring about pay history
- New Orleans – (E.D. Jan 2017); banned inquiries from city departments and employees of contractors who work for the city
- New York City – (E.D. Oct 31, 2017); banned public and private employees from asking salary history
- Oregon – (E.D. Jan 2019); will ban ALL employers from inquiring about salary history
- Philadelphia – (E.D. was May 23, 2017—on hold) bans ALL employers from asking salary history; halted from going into effect by Chamber of Commerce; still pending
- Pittsburgh – (E.D. Jan 30, 2017); Bans only city agencies from asking candidates’ pay history
- Puerto Rico – (E.D. Mar 2018); bans employers from inquiring about pay history
When an employer ceases to rely on salary history of an applicant, it requires making a clear, market-based case for pay, the challenge falls on the employer. It will be important to create a salary range for each position and ensure that the variations within those ranges are based on things like merit, education, and experience. Some companies welcome a strictly market-based approach to making salary offers as it has the ability to foster greater transparency. Whether or not your jurisdiction is covered by the new laws, the trend is increasing and may soon impact your organization.
WageWatch offers accurate, up-to-date HR metrics, benefit survey data, market compensation data and salary reports that will allow you to stay current with the times. This information is highly beneficial in creating the best salary and benefits packages that meet or rival the industry standards. The PeerMark™ Wage Survey is the only Web-based custom survey tool that allows individual survey participants to select their competitive set for comparison purposes. Our experienced compensation consultants can assist with your organization’s compensation needs. We can help you ensure internal equity and compliance with regulations as well as help you structure your compensation programs to support your company’s business strategy and objectives. For more information on our services, including consulting, salary survey data, benefit survey data and market compensation reports, please call WageWatch at 888-330-9243 or contact us online.
Organizations are finding it to be a huge challenge to attract and retain a group of talented and hardworking employees that are loyal to the company and its mission. Finding high caliber employees with advanced skills to perform important jobs within a company is a challenge, especially as unemployment continues to decline. Everyone is looking for top talent, and those companies that excel in attracting and retaining this talent are the ones that will reap the rewards.
To retain talent, it is essential that loyalty is established. In order to do this, the employee must feel that their job is instrumental in achieving the goals of the company, making them excited to come into work each day and give it they’re all. It is also important that the work the employee puts in is acknowledged, affirming their place within the company, and offering them opportunities for growth.
While compensation and benefits packages are one of the largest factors considered by employees, it isn’t enough to make the top talent stay. The following are a few ways that you can attract and retain the best employees at your company:
- Promote Open Communication
When a company is completely open with employees, everyone will feel respected. Instead of allowing rumors to spread, let your employees know as soon as possible about anything that is going on in regards to the company. When possible, let your employees be a part of the decision making process. A culture of open communication is very attractive to employees.
- Provide Opportunities for Team Building
Most employees enjoy interacting with their coworkers. By encouraging teamwork, employees are able to build great working relationships and establish a trusting, open environment for the company. When working together toward a common goal, employees are more motivated and excited about their jobs, often producing excellent results.
- Cater to Individual Work Style
Each employee has a different way that they prefer to work, learn and be managed. When you as an employer take the time and effort to make adjustments for each employee’s needs, they will respect the company more and loyalty will, once again, be built. This will also help you to establish teams that will work best together based on their work styles.
- Acknowledge Your Talent
When an employee does a good job, it is important that you recognize them for their efforts, so they feel that they are a valued member of the team. A majority of employees leaving a company do so because they feel unappreciated. Employees want to feel that the work they are doing is making a difference, so acknowledging their work often is essential. Also, review surveys for 2013 healthcare compensation, 2013 casino compensation and other market compensation data surveys for your industry to determine what benefits and bonuses you should be rewarding your employees with.
Implementing the above suggestions will help your company to build a culture that encourages retention of employees, which in turn will attract top talent. In addition to providing a great work environment that respects employees and provides opportunities for learning and growth, it is also important that they receive a solid benefits package. At WageWatch, we provide accurate data for 2013 healthcare compensation, 2013 casino compensation and compensation information for a wide variety of other industries. To learn more about our up-to-date market compensation data, such as 2013 healthcare compensation surveys or university benefits surveys, call 888-330-9243 or contact us online.