One of the most significant developments in the area of talent development over the past decade has been the promulgation of salary transparency laws in a number of jurisdictions. Those primarily come in two forms: the prohibition of employer inquiries into a candidate’s current compensation, and the requirement of disclosure of salary ranges in job postings and position descriptions. The impact of these laws goes far beyond the states where they have been enacted, as many human resources departments have implemented these policies companywide.
This has been an overwhelming positive development, both in terms of addressing gender and racial discrimination and in tying compensation packages to the actual skills and accomplishments of the candidate, rather than their job history.
That said, disclosure of ranges often put both candidates and employers in a bind. In most situations, employers in their postings ask candidates to provide their salary expectations. That puts candidates in a situation where they are invariably “bidding against themselves.”
As a result, candidates will likely request the top of the range listed in the posting, even in situations where their credentials may fit better on the low side of those set out by the employer. In doing so, those candidates may face rejection by the employer, even if they might be willing to take a lower salary within the stated range. In the end, there is disappointment on both sides: the candidate doesn’t have a chance to interview, and the employer passes up a totally viable candidate.
One other development has been exacerbating this problem. Human Resources and Talent Departments, buoyed by AI and other recruiting tools, continue to increase the percentage of openings they fill without outside assistance. What they are missing out on is the needed intermediary who can separately evaluate the experience of a candidate, and who can have more frank conversations with that candidate about how a particular compensation request will be considered.
Technology has made recruiting faster, but not easier. When seeking to navigate these sensitive conversations, both parties can benefit from experienced search professionals. Where leadership fit, long-term success and compensation are intertwined, such market-savvy professionals can provide value to help organizations and candidates alike arrive at the best solutions.
