Why Asking for Salary History Is Outdated: Focus on Value and Fair Compensation

The Problem with Asking for Salary History

Asking candidates about their previous salary is an outdated practice that needs to be abandoned. Just like we don't inquire about the past value of a house or gold, we should focus on the current market conditions and the true value of individuals. Many companies and recruiters treat candidates as commodities, which is inherently flawed. Instead, the emphasis should be on the job requirements and the value the person can bring.

Fair Offers Based on Job Requirements

Employers should make offers based on the job's nature and the contribution the candidate can make. Tying the compensation to their previous salary can perpetuate unfair pay practices. The previous employer's payment practices should not dictate the worth of a candidate's skills and experience. It's time for employers to stop treating individuals as commodities and eliminate questions about their current salary.

The Importance of Fair Compensation

During the economic downturn of 2008, I had the opportunity to hire a woman who had lost her job elsewhere. She was in dire need of employment due to her mortgage situation and was willing to accept a pay cut. However, it is crucial never to disclose your salary to an employer. I have witnessed how individuals remember when an employer takes advantage of their desperate situation, but they also remember when they are treated well.

The Benefits of Offering Fair Compensation

Offering compensation that exceeds what candidates ask for can have significant benefits. In my experience, it has consistently worked well for both parties involved. As an employer, it is a good business practice not to exploit people's misfortunes. Instead, we should pay employees what they truly deserve, considering their skills, experience, and the value they bring to the table. It is essential to leverage people's strengths rather than taking advantage of their circumstances.

Conclusion - Focus on Value and Fairness

In conclusion, the practice of asking for salary history is outdated and counterproductive. Instead, employers should prioritize fair compensation based on the job requirements and the value that candidates can contribute. Treating individuals as commodities undermines their worth and perpetuates unfair pay practices. Let's move away from this approach and embrace a system that recognizes and rewards individuals for their skills, expertise, and potential. By doing so, we create a fair and equitable environment for both employers and employees.