Ban salary secrecy, says Young Women’s Trust
Employers should stop asking job applicants how much they earn and include salary details in adverts to help close the gender pay gap, says Young Women’s Trust, a charity that supports young women on low or no pay.
The charity commissioned a YouGov survey of employers that found that nearly half ask prospective employees about their current salary and 42% admit to not including any wage details when advertising roles. The practice is most common in the private sector.
Some US states and cities have already banned employers asking candidates about previous pay. Young Women’s Trust says that, other than in exceptional circumstances, UK organisations should follow suit. In the past year, New York City and California have outlawed the practice, which perpetuates existing gender pay gaps. Asking “the salary question” means that women who were underpaid in their previous job are more likely to be underpaid in their next one and disadvantages anyone moving to an area with a higher cost of living.
Instead, organisations should make it clear what level the job is at by including salary details in job listings. The charity says that making pay more transparent would make it harder for employers to – even unintentionally – pay men and women different amounts for similar roles.
Many employers agree that organisations should publish salary details for all roles to increase transparency, with some saying it is best practice as it encourages more applicants. In the charity’s survey, 48% of employers were in favour of the measure to bring about gender equality in the workplace.
Young Women’s Trust Chief Executive, Dr Carole Easton OBE, said:
“We have to break the cycle that traps women in low pay. Women often start work on a lower salary than men, move to a new job and are paid based on their previous wage, as opposed to what they or the role are worth – so they continue to be paid less. Ending this practice is crucial to ending the gender pay gap.
“Our research shows that women are more likely to disregard jobs if they feel their skills don’t match up to them, compared to men who often apply anyway. Including salary details in job adverts would help women to see that jobs are in fact at their level and give them an idea of where they should be negotiating from to progress their pay.”
See Terry Hayward's recent blog on this subject for more thoughts.