The recent announcement of a law in Albany County that prohibits employers from inquiring about a job applicant’s wage history is really an opportunity for employers to take control of this topic.
Instead of guessing at how much to pay an applicant, or instead of relying on a “free” wage information web page, consider developing your own compensation strategy. A compensation strategy is a thoughtful and thorough strategic business process. That process includes:
- Careful job analysis
- Internal definitions of compensable factors
- Accurate job descriptions
- Robust statistical job market analysis using multiple data sources and gathering data that is industry specific, and geographically specific.
This results in pay scales and compensation policies that provide:
- Pay scales that are market competitive, and in many cases, provide competitive advantage
- Internal equity, jobs are accurately valued relative to other jobs in the organization
- Accurate pay rates, start rates, and a basis for valuing factors such as direct experience, education, certifications, etc.
- A consistent, non discriminatory basis for merit pay, promotions
- Job offers that are accurate, without having to, or wanting to inquire about an applicant’s pay history
For over 20 years, Saratoga Human Resources Solutions, Inc. has been developing compensation strategies and systems for large and small companies in a variety of industry sectors, both locally and across the country. These industries include healthcare systems, manufacturing, retail, and not-for-profit.