New Laws Banning the Salary History Question

New Laws Banning the Salary History Question

New Laws Banning the Salary History QuestionPotential new laws are on the horizon that would ban employers asking questions about salary history during the interview process. Restrictions in Massachusetts, Delaware, Oregon, New York City, San Francisco, and Philadelphia have already passed legislation that prohibits employers from requesting salary information from job candidates. Hefty fines will be imposed on those that do not comply.

These laws are becoming more prevalent in order to counteract the disadvantages that salary history requests put on women and other minority groups. Often employers do not intend to use the info given about history against the candidate but bias opinions can creep in if the history is discussed.

Here are some recommendations to ensure that you adhere to such laws and prepare in advance for those that may come into play in your municipality.

Employers should avoid asking about salary history.

Once the information is out on the candidate’s pay history, it can never be taken back and could affect the thought processes of the employer. The gender gap is a real problem and minorities suffer too when it comes to prior salary history. Let it not even become a factor and simply don’t discuss it during the interview process.

Focus on the open position and the pay expectation.

Rather than discussing salary history, employers should talk with their candidate about the responsibilities and skill sets necessary required for the position. The conversation should be a two-way street where both of you discuss the expectations when it comes to salary.

Be sure that Human Resources have made the salary amount clear as far as what the company will pay. Go into the interview ready to discuss options with your candidate. Previous salary history should not have a bearing on what they will get paid.

Know that this is not just for female candidates.

The laws banning the salary history question are not only to protect women. In fact, this is important for all candidates and an essential element to a company’s culture. Avoiding these questions shows that you are unbiased and pay based on what suits the role and candidate that accepts the position.

In any situation, you want to be sure that you handle salary questions with attention and detail. The laws that have been put in place and are coming in the near future will help to protect candidates and keep employers an unbiased mindset. The compensation discussion should be beneficial to both the candidate and company. Work to keep these conversations positive with the goal to eliminate any unfair practices.

Gary Brunson
gary@myclearfocus.com

Debra Rider
debra@myclearfocus.com

574.361.2674

Sustainable Growth & Profit Consultant, Coach, Mentor and Counselor/Therapist for Business Owners and Professional.

The First Step to Understanding the Complexities of Preparing a Company for Transition

The ExitMap® Assessment questionnaire consists of 22 questions and produces a high-quality 12-page summary report which will be emailed to you. The report ranks the overall preparedness of a company for transition and provides a breakdown of the four major categories of readiness; Finance, Planning, Profit/Revenue, and Operations.

ExitMap Assessment Widget

Gary Brunson
gary@myclearfocus.com

Debra Rider
debra@myclearfocus.com

574.361.2674

Sustainable Growth & Profit Consultant, Coach, Mentor and Counselor/Therapist for Business Owners and Professional.

How Do I Begin Planning My Exit?

How Do I Begin Planning My Exit? 

Business owners frequently approach exit planning much like a new fitness routine. They know it is necessary, but it always seems to be something that can be put off until tomorrow.

For the Baby Boomers, tomorrow is already here. Business owners who were born between 1945 and 1964 make up 25% of the population, but own over 60% of the small businesses. This is the result of their surge into the job market in the 1970s, and the lack of room in corporate America to absorb a much larger and better educated employee population. From 1975 until the middle 1980s, Baby Boomers opened new businesses at a rate never seen before, and not duplicated since.

Today, over 5,000,000 Baby Boomers are preparing for retirement. Just as when they all went to college, started new businesses, and became prolific consumers, they will create a flood of small business sales in the United States.

The generation that is now reaching ownership age is much smaller, and less inclined to entrepreneurship than the boomers. They are also being hotly pursued by corporate America, which needs to replace their retiring generation of Boomer managers and executives. These three factors combine to create a “perfect storm” of competitive pressures when marketing a small business for sale.

Exit planning is quickly becoming a buzzword in the legal and financial communities. Although boomers are healthier than prior generations, they will all retire eventually. Tens of thousands of professional advisors are positioning themselves to provide tax, risk management, wealth management and contract preparation services to this flood of sellers.

The most effective and efficient approach to exit planning is to select a single professional who can manage all the others in the process. Creating new entities or sale agreements is pointless unless the tax implications are first understood. Planning to reduce the impact of income taxes may be rendered moot if a company is not in position to sell. Putting the company up for sale may be a disaster if an owner doesn’t understand what buyers are looking for, and how much they’re willing to pay.

An effective and lucrative exit plan frequently takes up to five years to plan and execute. It starts by examining the strengths and weaknesses of the business, IT systems, management team, and customer base. With that information, you can realistically set expectations about who a likely buyer might be and how much you will realize after taxes. If you would like to have a preliminary conversation about starting your exit planning process, please contact us.

Gary Brunson
gary@myclearfocus.com

Debra Rider
debra@myclearfocus.com

574.361.2674

Sustainable Growth & Profit Consultant, Coach, Mentor and Counselor/Therapist for Business Owners and Professional.

© 2018, MPN Inc.

The Future Workplace Experience: Is Your HR Department Ready?

The Future Workplace Experience: Is Your HR Department Ready?

The Future Workplace Experience: Is Your HR Department Ready?The business world is focused on the need to innovate today. Try to be more innovative with your company’s culture, leadership style, technology goals, strategy, etc…

One thing that often doesn’t get as much traction is Human Resources. The future workplace experience is changing. How does your HR department measure up? Are you ready?

The Future Workplace Experience

If you want to have an Innovative HR department, then you check out The Future Workplace Experience: 10 Rules for Mastering Disruption in Recruiting and Engaging Employees by Meister and Mulcahy. This great read is helpful for both workers and human resources to see the innovative workplace changes.

The book focuses on the trends in the future from a fresh perspective.

In recent years, people began to consider the opportunity of employees to work from anywhere and on a flexible schedule. They seem to have forgotten the employer though. There is still a need for hiring managers, recruiters, and the HR department.

The Employer Side of Things

This book will shed some light on the employer side of things and the future of work. Specifically, it focuses on 10 trends that will change the way employers recruit, train, and the manner that they use freelancers for projects.  The goal is to embrace an innovative approach where you focus less on the 9 to 5 parameters of one’s day job.

Employers should shift their thinking to attract top talent and give them work that is designed for their particular skill sets. The book encourages employers to rethink the entire hiring process and to switch gears on leadership styles as appropriate.

Worth the Read

Meister and Mulcahy’s book is absolutely worth the read. Their findings are geared toward the audience of “gig economy” employers. The material is sure to give ways for leaders to implement innovative strategies for management and HR departments.

This book is different than other business books on the market. The key focus is on people. Technological innovation is great but if you miss the mark with people, then you don’t have much left. The best practices in this book will enable others to see the future workplace in a different light and give their business the opportunity to thrive.

Need help getting your HR ready? Contact us today!

Gary Brunson
gary@myclearfocus.com

Debra Rider
debra@myclearfocus.com

574.361.2674

Sustainable Growth & Profit Consultant, Coach, Mentor and Counselor/Therapist for Business Owners and Professional.