How Should Recruiters Help to Close the Gender Pay Gap?
There are serious imbalances across our workforces, and what has come about is a gender pay gap that signifies the inequalities of the world labor market.
The pay gap definitely exists and according to the World Economic Forum, if the pay gap progresses as it currently is, it will take an unbelievable 170 years to close it. So as recruiters what can we do to help?
Here in San Francisco, a law was just passed that will be enforced beginning January 2018 that forbids companies to ask about candidates’ salary history. This is an effort to make companies budget more intentionally and thoughtfully for the role and not the “type” of candidate. If you’re hiring for a senior marketing manager, figure out your compensation range beforehand, not when it comes time to generate an offer.
In addition, companies can be far more forthcoming about their own compensation philosophies, how comp packages are created, and how salary increases are achieved. By being transparent and consistent about compensation structure, you build more trust with employees and prospective candidates alike. Great recruiting technology like Lever will help you communicate more clearly with those stakeholders about your decision-making process.
Amanda Bell, Director of Recruiting at Lever.
The new salary history ban legislation is going to help allay the gender pay gap, to an extent. However, as recruitment professionals we should lead with evaluating the best skillset fit and cultural fit for both the organization and the candidate. Retention is built upon solid recruitment and re-recruitment of the best, right-fit talent.
Understanding what the candidate is seeking from a compensatory standpoint is best practice versus asking about current or past compensation. From here, measure candidate aspirations – objectively – against required skills, budget and organizational culture fit; this will lead to a more successful, happy and engaged employee. Pay for performance is another solution to close the gender pay gap, and is often more motivating among top recruitment professionals.
Libby Herrmann, Client Relationship Manager at WilsonHCG.
It is a recruiters role to “consult” their employers/clients in what pay scales should look like when attracting staff to their business. And encompassed within this, is the gender pay gap: if your client purposefully advises you of a pay bracket that is clearly breaching equality laws, it is a recruiters job to tell them that this is unacceptable and illegal. Advise your clients on paying what a candidate is worth for their skills, not their gender. And consult your candidates to not compromise on their own behalf too.
Lysha Holmes, Owner and Recruiter of Qui Recruitment R2R.
By holding themselves to account on that fairness, and by calling it out when we see it. We have an opportunity as Recruiters to challenge the status quo and create more fairness across the board. We can also encourage working towards transparency across our businesses.
At Shazam, we have stopped asking people what they are earning currently, and instead give them a range for the role. As a business, we’ve always been incredibly fair when it comes to gender, but we want to make sure that we aren’t being influenced by what someone is being paid when it comes to their ability to do the job.
Ruth Penfold, Director of Talent Acquisition, Shazam.
Coaching female candidates in aligning their skills to the market demands is a great way to start but then taking this through by ensuring male and female candidates with the same skills are put forward to their clients on the same salary is extremely important.
Other ways are by talking with the candidate on how to negotiate salary options as well as what other opportunities are available that may not be financial such as training and development. Coaching can support a candidate build confidence in negotiating their worth and is important when working with individuals that are not used to doing this.
Rebecca Fraser, National Executive Committee, Career Development Association of Australia.
Recruiters are often the ones who present offers to candidates. We get to see which candidates get offered how much. That puts us in a position to see when there is a gap between men and women. Maybe a good first step is for us to start pointing it out to HR, finance, and hiring, managers. To start a conversation that’s not just generalized, but about an actual, real, circumstance
Angela Bortolussi, Partner at Recruiting Social.
From next spring, employers with over 250 employees will have to report their gender pay gap and publicise this on a government website. Employers must ensure that they do not pay female employees less than male employees in comparable roles, or if they do, they have a justification for doing so. Flexible working is a good way to address the gender pay gap. Women often chose part-time work that doesn’t make best use of the skills. Lack of flexibility prevents employers from making the most of women’s talent.
Liz Sebag-Montefiore, Director and Co-Founder 10Eighty.
Internal advocation when they see something done internally in their organization that is clearly foul play. Sometimes people don’t notice it – but the recruiters voice can be heard.
Caroline Stokes, Founder of FORWARD and The Emotionally Intelligent Recruiter.
Take names off CV’s to remove bias. Start at home – the agency themselves should ensure they are paying everyone equally and perhaps publish these stats internally by grade.
Poonam Mawani, Director at Azuki Accounts.