Thursday, June 20, 2019

There’s an impact when you’re not including salary details in job adverts.

“There is no question that excluding salary details in job adverts can be a deterrent to talent. ” RECRUITMENT.COM 

EQUITY REQUIRES A MORE THAN FAIR LANDSCAPE

Equity and inequality, uncomplicated and connected.

Yup, let’s be straight! There’s nothing complicated about inequality. It’s been studied and defined for decades!

Income and income inequality result from participation in the labor force and in the marketplace. In their models of labor force and marketplace participation, economists have worked out in great detail the relationship between income and economic participation.  (Brady 2003)

What’s complicated is why good people go against personal and corporate principles to ensure inequality has posterity (a very, very long future).

When adverts are not transparent about pay, they potentially predetermine an outcome that can be ethically questioned. Meaning if you start with a lack of transparency, what are the conditions leading to this action and what else do you do that’s unfair? Co’s you see, according to the Constitution S23.1, unfair isn’t lawful!

Organisations can measure their equity plan success by matching their conduct to black women’s interests. In fact, a black woman is central to the story of inequality. Historically, she’s the one most deprived in economic chains.

Labour market research shows negotiating skills can be gender stereotyped, (we’ll write more about that in another article).

Girl children are generally taught to be sweet and kind, and we all like them that way!

But these traits are not always conducive to wage negotiation skills development. Women can fear coming across as too difficult if they negotiate their wages from a position of equal power. 

The most important thing you do with your labour is negotiate a price for it.

Social capital is raised during conversations with friends and family describing experiences, sharing stories candidly and transferring knowledge across generations.

A black female labour market entrant from Lilani, raised by granny who worked as a domestic, has likely had little access to these conversations.

A female from Houghton, with lawyer and accountant parents could likely have earned an equivalent of a negotiation degree by the time she enters the labour market. She could have viable connections through her parents, be exposed to more divergent labour market experiences and stories.   

Yet even with advantages, women are still more likely to be paid unfairly than men. For equity purposes, it’s best to begin the recruitment value chain by encouraging as many female candidates as possible.

The right people exist, recruitment is being done wrong.

Women are paid less where there’s secrecy, no transparency and information asymmetry

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.”

Pay secrecy during recruitment is only fair if the organisation makes a policy and compensation structure accessible to applicants. 

Be Transparent

  • A study by SMART Recruit Online  suggests that job adverts with salary details will get 30 percent more applicants
  • Jobsite estimates that drop off rates for job adverts without salary details are between 25-35 percent
  • numerous studies show salary details in adverts help close the gender pay gap
  • Moen (1997) shows how employers who include pay in adverts increase their competitive advantage

The perception of job applicants as greedy and believing themselves entitled to a high salary has no grounds, in fact a study found that

individuals may be willing to pay a premium in the form of lower wages to accept an identical job with a firm that increases their pride and self-esteem. (Cable and Turner 2003).

That’s it! If you’re able to make your employees feel good about themselves, you can attract great people, even if your talent rivals pay more.

Report Bad Brand Behaviour

  • It’s poor corporate policy to adopt unsustainable practices such as paying for recruitment services that discourage talent as opposed to attracting it, particularly women.
  • Secrecy and information asymmetry indicates a brand where recruitment code of conduct is not aligned to equity or fair treatment.
  • An unsettling experience, candidates are discouraged by the brand behavior as it prejudices their right to a fair wage negotiation
  • A brand that shows no consideration to candidates who become trapped in spending time applying for roles they later find they can’t afford to take.

PAYSLIPBANSA calls for

  1. The banning of pay history and payslip questions during recruitment processes
  2. Recruitment regulations and consequences for those depriving job seekers of their rights
  3. Job advertising in line with Constitutional values; that conform to ethical standards, not those allowing abuse of power and information asymmetry.
  4. Firms employing 100 or more employees to submit remuneration reports available for public scrutiny
  5. Youth employment platforms such as Harambee must make wage reports available to the public
  6. Department of Labour to research effects of pay transparency
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13 hours ago

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Cold feet @SABPP1 ? Still waiting for a new Battle Date! @sabpp @sabpp21 @SABPPWC @KznSabpp @MariusSABPP @annetjiemoore @SABPPUWCSC11 @StanHorwitz @FathimaM3 @_cosatu @Moneyweb @DOJ_CRS @CompComSA @PublicProtector @JustSALaw @vusvic ow.ly/tnn950uI9DB ...

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Labour Market Power - who has it and is it fair in #southafrica or the reason why we have growing #inequality? #rooseveltinstitute we need your help! #payslipbansa www.payslipbansa.co.za/2019/05/31/market-power/ via @1bigLEO ...

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