Over 18 months ago, as a company, we decided we wouldn’t ask any candidate for their salary history. This was regardless of whether that state had prohibited us from asking. Since I made that commitment, the number of states and cities with some sort of ban has trebled.
I made that decision because I felt it was the right thing to do, even though it was difficult. The laws banning salary history questions are supposed to enable people — typically minority groups — to break out of a cycle of underpayment. It may be too soon to tell if they are having the intended effect, but we have seen some other consequences of this. There are also some clear steps you can take as a candidate to ensure you obtain the best possible salary.
Several countries, including the U.K., have enacted policies that promote transparency on pay gap reporting rather than secrecy around individual salaries. A 2018 study found that transparency decreases the pay gap. While this is due to a combination of slower wage growth for men and incremental increases for women, the transparency and reporting has an impact. Crucially, a survey my company conducted into women’s salaries in cybersecurity found that only 25% of women think they are being paid equally. In fact, women in cybersecurity are often paid more. It may be that transparency serves pay equality more than salary history bans.
The laws aren’t necessarily there to protect those with higher incomes, and in cybersecurity, almost everyone fits that bracket. Candidates in this market are using the legislation to their advantage, to negotiate what they feel is a fair market rate. Many candidates volunteer their salary details, making those who don’t stand out. It becomes obvious that these are the candidates who are trying to negotiate a considerable increase. Generally, this is working out in the candidates' favor, as the market demand in cybersecurity is so significant at the moment. Employers are also mindful of the market forces and are often more concerned about competing offers than a candidate’s current salary.
To this end, the legislation appears to be having the right effect. The most notable change is that salaries have increased significantly in the past 18 months. I have seen salaries for some roles increase by almost 40%, and at least 15% seems typical. Pay discrimination legislation may be having an effect on this, but in cybersecurity, it is most likely due to demand.
The number of open roles within cybersecurity is well documented, and companies often find themselves competing against several other offers to secure the best talent. Compensation packages for these roles are also more complex than a basic salary. They typically involve complex bonus schemes, comprehensive healthcare packages and even loans for training or professional development. Without details on the wider package, it can be very hard to come up with a package that is attractive to candidates.
When candidates are not asked about their current income, they often don’t consider these additional benefits until the last minute, making a protracted negotiation more likely. This can delay the process and create some frustration on both sides. Both candidates and employers need to be aware of this in order to avoid frustrations derailing the recruitment process. As a candidate, having someone negotiate on your behalf can assist with this.
Five Tips For Salary Negotiation
Without disclosing your current salary, you can still negotiate for a fair and equitable compensation package. Here's how:
1. Consider your total package and what nonsalary compensation it should include at the start of the process to make sure your expectation aligns with the role.
2. Be clear on what package you are looking for, including the minimum it would take for you to move.
3. Consider the market rate. Use salary surveys, job ads and discussions with colleagues or recruiters to assess the market.
4. Transparency can help. This doesn’t have to be with a prospective employer, but talking to industry peers may help you understand the market and what constitutes a competitive salary for your role and experience.
5. Remember that sometimes companies will increase their budget for the right candidate. But be prepared to walk away early if you are too far apart to save everyone’s time.
Whether or not your city, state or country has outlawed the salary history question, candidates can and should feel encouraged to negotiate a fair salary that is not based on previous compensation.
