When hiring, is it better or worse to know candidate's salary history?
As turns out, everybody wins when salary history is not a part of the hiring equation. Candidates, especially those who are traditionally underpaid, see an increase in their wages. Employers make better hiring decisions.
Many folks jump to the conclusion that not knowing candidate salary history is bad for employers because they end up paying higher salaries to the candidates they hire. After all, they reason, isn't it the goal to pay workers as little as possible?
Well, no. The goal is to get the best person in the job. And the job pays what it pays. The person who is doing the job should get paid what the job pays.
Researchers found that, without the distraction of salary history, employers end up making better hiring decisions because:
They ask more questions of candidates about their ability to do the job rather than making decisions based on superficial information (like previous salary history)
They interview more candidates rather than screening out those out who are above or below the target salary