How can you address pay equity concerns during salary negotiations?

If your organization has a dedicated Compensation team, they'll be the experts on how the budget range was calculated. They will be able to point to specific sources informing the budget size. However, candidates will be talking with other organizations, whose calculations will importantly differ. This is often location and/or industry driven: some industries just pay better, such as pharma, financial services, or big tech. You will inevitably encounter situations in which you will be outbid. This is why it's critical to vet why exactly the job seeker is interested in your role. If it isn’t the money, then it's about getting the candidate's ideal state to match your organization and where it's headed.

Having a clear salary band available prior to hiring which is comparable to others in the team is key. People will be paid at various parts of the band depending on experience but having the band set prior to hire will support the conversation. Ultimately the candidate who is accepting the role will need to be comfortable that they can support themselves and their family on the package and they are happy with the package but we as employers need to review benchmarking both externally and within the team prior to hire.

As job seekers, we are blessed to be living in this era with booming technology. So, make use of all the tools available out there like Glassdoor, Fishbowl, Darwinbox etc., including AI, and do your due diligence by researching about the potential salary you could expect based on the role, years of exp, location, and skills, and set a realistic expectation for yourself based on the market insights gained. Negotiate hard with the employer for it. As an employer, it's important to provide psychological safety to job seekers. So, how do you do that? By debunking myths pertaining to gender biases upfront. Avoid asking personal questions which may cast doubts about you having biases, making them believe that they wouldn't be evaluated fairly.

I coach all of my candidate AND clients to take the win-win approach to salary negotiation. Predetermining your market value and the business value parameters for a particular role is essential before negotiating. It’s so important to know what your cards are! I have seen people negotiate a too high salary for the value of the role- only to find themselves first on the chopping block.

To tackle pay equity head-on, transparency's key; start by clearly defining compensation ranges for the role, rooted in market data and job performance criteria—not a candidate's past pay. I’m a big advocate for structured interviews, where everyone's getting grilled on the same competencies, ensuring fairness. And let’s not forget, regular pay audits can nip disparities in the bud, making sure you’re not just talking the talk but walking the walk, too.

Yes, Transparency. Eliminate unnecessary back-and-forth discussions on salary between recruiters and candidates. Share the pay range upfront, and engage in open conversations about compensation. The old rule of 'the other person has to throw out the first number' is outdated.

It doesn't matter what someone used to make in terms of pay because their past salary may not accurately reflect their current skills, experience, or the market value for their role. Focusing on their previous earnings can inadvertently enable wage disparities and limit opportunities for both candidates and employers.

If a candidate brings up pay equity concerns, listen attentively. Even if you feel as though the compensation is fair, avoid interrupting, making assumptions, or being defensive. Active listening is the first step to negotiating with respect and empathy. Take the time to reflect and understand that individual concerns about pay equity can be deeply personal and rooted in larger societal issues. To whatever extent you can, share how compensation structures are determined with your candidate. Transparency and open communication is key during these conversations. If there are discrepancies, be prepared to discuss this feedback with the internal hiring team within the organization managing to improve the applicant experience.

In addition to what’s already shared, ensure that your comp philosophy also acknowledges: 1. Pay gaps are real 2. Why and how pay inequity exists 3. A commitment to drive justice through pay There are a plethora of intersecting disparities that contribute to pay inequities. While many cos have clear comp bands, the truth is that many of the factors that determines a person’s rate are rooted in injustice. Challenge the necessity of those factors, and if they further disadvantage those who are affected by social disparities. i.e., does the role require a higher ed. degree? If not, is it fair to have education level be a determining factor? Does that further disadvantage those who were not privileged enough to pursue higher ed?